Legal structure

The entities behind Shores.

Shores is structured so that each vault’s loans are legally separate from every other vault and from the companies that run the protocol.

Vault issuer: a Cayman exempted SPC

Vaults are issued by Shores Vault SPC, a Cayman Islands exempted segregated portfolio company. Each vault is a separate segregated portfolio (a cell) with its own assets and liabilities. The assets of one cell are not available to the creditors of another.

The SPC is not registered with the Cayman Islands Monetary Authority (CIMA) as a mutual fund or private fund. shUSD holders are lenders with a limited-recourse claim on their cell. [TBD: counsel confirmation of holder-claim wording]

Entities

Entity	Role
Shores Vault SPC (Cayman exempted SPC)	Issues shUSD for each cell and holds that cell’s loans
Shores Foundation (Cayman foundation company)	Issues SHORES; walled off from the vaults
Shores operating company	Runs the app and manages the vaults; never the issuer of shUSD. [TBD: entity name and jurisdiction]
Security agent / trustee	Holds liens for the benefit of each cell. [TBD: name]
Servicers	Service loans locally. [TBD: names]