Legal & security framework at RealWorld.fi.

At RealWorld.fi, the security of client assets forms the cornerstone of our operational philosophy. Our tripartite security architecture - spanning legal, physical, and digital domains - is designed to provide unparalleled protection while ensuring compliance with global regulatory standards.
Below, we elaborate on the sophisticated measures underpinning each layer of our security framework.

Legal security: regulatory rigor and asset safeguarding.

At RealWorld.ﬁ, legal security forms the backbone of our commitment to protecting client assets. We operate within a robust legal framework that ensures compliance with global regulations, safeguards client holdings from operational risks, and provides transparency through rigorous governance structures.

Regulatory Compliance and Oversight.

RealWorld.ﬁ adheres to Germany's stringent ﬁnancial regulatory standards, ensuring that all client assets are managed with the highest levels of accountability and oversight. Key elements of our compliance framework include:

Integration with Concedus Regulatory Platform: Through our partnership with Concedus (www.concedus.com),we comply with BaFin (Federal Financial Supervisory Authority) regulations and the European Union's Markets in Financial Instruments Directive II (MiFID II). This guarantees real-time compliance monitoring, transaction reporting, and anti-money laundering (AML) checks.
GDPR Compliance: We strictly adhere to the General Data Protection Regulation (GDPR), ensuring secure handling of personal data while maintaining transparency and privacy for all clients.

This comprehensive oversight ensures that RealWorld.ﬁ operates transparently and securely, meeting both domestic and international legal obligations.

Asset Segregation and Client Ownership.

Client assets are protected through a German-regulated Independent Client Trust structure. This legal arrangement ensures:

Complete Asset Segregation: Client holdings are entirely separate from corporate funds, eliminating risks associated with commingling. This structure is certiﬁed under ISO 37001 (Anti-Bribery Management Systems), ensuring ethical governance practices.
Insolvency Protection: In the unlikely event of corporate restructuring or insolvency, client assets remain unaffected. Automatic return protocols via third-party trustees guarantee uninterrupted access for clients.
Transparency and Access: Clients maintain direct ownership of their holdings through encrypted audit trails and trustee-managed accounts. This system provides real-time visibility into asset status while preserving robust security measures.

Intellectual Property and Content Protection.

To combat website cloning, phishing attacks, and content theft—growing threats in today's digital landscape—RealWorld.ﬁ employs proactive measures:

Web Capture Service: Using Full Certiﬁcate’s Web Capture Service,we timestamp website content to provide legally valid proof of ownership. This protects against copyright disputes and fraudulent duplication.
Compliance with CASS Standards: Adopting best practices from the FCA's Client Assets Sourcebook (CASS), we ensure that all client-related intellectual property is protected through detailed record-keeping, regular reconciliations, and periodic audits.

Emerging Trends in Legal Security.

RealWorld.ﬁ remains committed to staying ahead of evolving legal challenges by adopting innovative practices in asset protection:

Domestic Asset Protection Trusts (DAPTs): While primarily a U.S.-based tool, DAPTs offer valuable insights into safeguarding assets against creditor claims. By leveraging similar principles within Germany’s legal framework, we enhance protections for high-net-worth clients.
Offshore Trusts for Diversiﬁcation: For clients seeking additional layers of security, we explore partnerships with jurisdictions known for strong asset protection laws, such as Luxembourg or Switzerland. These trusts provide added insulation from geopolitical risks while maintaining full compliance with international tax laws.
Digital Asset Legal Protections: As digital assets like cryptocurrencies gain prominence, RealWorld.ﬁ ensures their legal protection by integrating blockchain-backed provenance records and adhering to rigorous smart contract auditing standards.

Client Education on Legal Protections.

We empower our clients by providing resources that enhance their understanding of legal protections. These include:

The beneﬁts of asset segregation
Navigating complex regulatory landscapes
Recognizing phishing attempts and online fraud

By fostering awareness, we help clients make informed decisions about their ﬁnancial security.

Future Initiatives in Legal Security.

To continuously improve our legal safeguards, RealWorld.ﬁ is committed to:

Enhanced Compliance Automation:
- Leveraging AI-driven tools to monitor regulatory updates and ensure seamless adaptation to new legal requirements.
- Automating reporting processes for faster reconciliation and greater transparency.
Expanded Global Partnerships:
- Collaborating with international custodians and legal experts to create a uniﬁed global asset protection framework that meets diverse jurisdictional requirements.

RealWorld.ﬁ’s legal security framework combines regulatory rigor with innovative safeguards to protect client assets comprehensively. By adhering to stringent German regulations, ensuring asset segregation through independent trusts, and proactively addressing emerging risks like digital asset fraud, we provide a secure foundation for our clients' ﬁnancial futures.
For more information about our legal protections or tailored solutions for your needs, please contact us at compliance@realworld.ﬁ.
This revised version removes references to "Quantum-Safe Legal Frameworks" while maintaining a logical ﬂow and emphasizing RealWorld.ﬁ's commitment to comprehensive legal security measures. Let me know if further adjustments are needed!

Physical Security: Fortified Facilities and Multi-Layered Protections

RealWorld.fi partners with multiple premier custodians to safeguard client assets through cutting-edge infrastructure and multi-layered security protocols.

The Vault House – Miami, USA

Location: Brickell, Miami, Florida

Facility Type: Urban Vaulting and Secure Custody

Security & Compliance Highlights:

Class-3 vault infrastructure, meeting or exceeding insurance and institutional custody requirements for precious metals, luxury watches, gemstones, and collectibles.
24/7 armed security with biometric access control, motion detectors, and off-site encrypted surveillance backup.
Discreet urban location, allowing for high-net-worth clientele to deposit and retrieve valuables in complete privacy.
Insurance coverage through top-tier global underwriters, with asset-specific customization per vault tenant.
In-person inspection lounge and private handover areas to facilitate appraisals, onboarding, and redemption of assets without exposure.
RealWorld.fi integration: fully interoperable with the RealWorld platform for token minting, custody fee reconciliation, and redemption procedures.

Use Case:

Primarily servicing clients from the Americas, The Vault House offers seamless onboarding for Miami-based collectors and is ideal for fast collateralization of physical assets intended for financing or fractionalization through RealWorld.fi.

London City Bond – London, UK

Location: Tilbury, London, United Kingdom

Facility Type: Bonded Warehouse and Fine Asset Custody

Security & Compliance Highlights:

HMRC-regulated bonded storage, offering tax-efficient warehousing for fine wine, spirits, and luxury goods.
Redundant security layers, including CCTV with night vision, infrared detection, vibration sensors, and perimeter alarms monitored 24/7.
Climate-controlled environment, optimized for long-term preservation of fine wine, with real-time temperature and humidity logging.
Specialist insurance policies, underwritten by leading UK insurers, fully covering stored assets at declared market value.
Provenance integrity protocols, with arrival documentation, condition verification, and standardized storage indexing for every item.
RealWorld.fi integration: all assets stored at London City Bond are eligible for tokenization, lending, and trading through the RealWorld platform, with on-chain fee tracking and full redemption capabilities.

Use Case:

London City Bond is RealWorld.fi’s primary custody partner for fine wines in the UK and Europe. It offers secure, tax-efficient storage and seamless integration for clients seeking to tokenize or leverage their collections without physical relocation.

Athena – Dubai Freeport, UAE

Location: Dubai Airport Free Zone (DAFZA), United Arab Emirates

Facility Type: Airside Freeport and High-Security Storage

Security & Compliance Highlights:

Airside bonded facility, directly connected to Dubai International Airport, enabling secure global import/export without customs delays.
Tier-1 security infrastructure, including biometric access, armored vault doors, seismic sensors, and armed response units.
Ultra-modern environmental controls, supporting temperature and humidity-sensitive items such as precious metals, gemstones, and rare artifacts.
Comprehensive insurance coverage, provided by top international underwriters, tailored to individual asset classes and valuations.
In-house authentication services, with direct access to appraisers and global certification networks for rapid onboarding and quality verification.
RealWorld.fi integration: full support for token issuance, on-chain custody fee management, collateralization workflows, and secure redemption or re-export.

Use Case:

Athena is RealWorld.fi’s strategic partner for clients based in the Middle East and Asia. Its airside access, tax advantages, and luxury-focused infrastructure make it ideal for onboarding high-value assets into the RealWorld ecosystem with unmatched efficiency.

Nordic Freeport – Aalborg, Denmark

Location: Aalborg, Denmark

Facility Type: Tax-Free Freeport and Asset Vaulting Hub

Security & Compliance Highlights:

Government-certified bonded freeport, offering VAT and customs suspension for long-term asset storage and international transfers.
High-grade vaulting systems, including multi-layer access control, tamper detection, and continuous surveillance monitored by Danish authorities.
Specialized in wine, art, and precious metals, with sector-specific storage protocols and separate vault compartments for sensitive categories.
Full-risk insurance coverage, with tailored protection policies for fire, theft, flooding, and degradation, backed by European underwriters.
Proven chain-of-custody tracking, from arrival to tokenization, with condition checks, photography, and asset-level registration.
RealWorld.fi integration: seamless onboarding, token minting, and redemption support through RealWorld’s platform, including automated custody fee monitoring and loan collateral compatibility.

Use Case:

Nordic Freeport is RealWorld.fi’s key vaulting location for Northern and Central European clients. Its tax efficiency, strict regulatory compliance, and multi-asset support make it ideal for long-term storage and asset-backed financialization.

Singapore Freeport – Singapore

Location: Changi Airport Free Trade Zone, Singapore

Facility Type: Ultra-Secure Freeport and High-Value Storage Center

Security & Compliance Highlights:

Airside bonded facility, located within the Changi Free Trade Zone, allowing direct tarmac access and streamlined international logistics.
Military-grade security, including biometric authentication, thermal motion detectors, anti-ram barriers, and independent power and fire suppression systems.
Regulated climate vaults, offering precision-controlled environments for fine art, rare wines, precious stones, and luxury watches.
All-risk insurance, provided by global insurers, fully customizable per asset class and storage duration.
Accredited appraisers and auditors on-site, ensuring real-time valuation, authentication, and due diligence reporting.
RealWorld.fi integration: direct compatibility with the platform for tokenization, lending enablement, custody tracking, and redemption logistics.

Use Case:

Singapore Freeport serves as RealWorld.fi’s premier hub for Asian clients. Its strategic location, zero-tax environment, and elite security protocols make it a flagship site for storing and financializing high-value assets through RealWorld’s digital ecosystem.

This global network combines historical security infrastructure with modern technological safeguards, ensuring assets remain protected through geopolitical shifts and evolving threats.Facility certifications include ISO 28000:2022 supply chain security standards and SOC 2 Type II ompliance for digital/physical integration.

Digital Security: Cutting-Edge Cryptography and Proactive Threat Mitigation

1. Secure Authentication and User Authorization.

JWT Authentication: We use JSON Web Tokens (JWT) for secure user authentication.This enables token-based authentication to ensure the identity of users when interacting with the platform,while maintaining privacy and integrity.
Two-Factor Authentication (2FA): For added security, users have the option to enable 2FA when logging into their accounts. This ensures that access is protected by both a password and an additional layer of security (such as a one-time passcode sent via email or SMS).

2. Web3 Security (via Wagmi Library).

Smart Contract Audits: All smart contracts are thoroughly audited by reputable third-party auditors to identify potential vulnerabilities and ensure the security of token transactions and interactions.
Web3 Integration: Using Wagmi (a Web3 Angular library), our client application communicates securely with the Polygon blockchain.We ensure that wallet connections (e.g., MetaMask) are authenticated properly and only authorized actions are allowed. All transactions are signed by the user, and there is no direct access to the private keys.

3. Secure API Endpoints.

HTTPS (SSL/TLS): All communication between the frontend (Angular application) and backend (Node.js/Express server) is encrypted using HTTPS. This ensures that sensitive data, such as user credentials and NFT transaction details,is transmitted securely.
Rate Limiting & Throttling: To prevent abuse and denial-of-service (DoS) attacks,we implement rate limiting on our API endpoints. This protects the backend from high volumes of requests and ensures fair usage.

4. Data Protection and Privacy.

Encryption at Rest and in Transit: All sensitive data, including user information and transaction details, is encrypted using strong encryption standards both at rest and in transit. This ensures that even if data is intercepted, it cannot be read or tampered with.
Minimal Data Collection: We only collect necessary data and comply with data protection regulations such as GDPR to ensure that user privacy is respected.Sensitive data is never stored unnecessarily, reducing the risk of exposure.

5. Backend Security (Node.js / Express).

Input Validation and Sanitization: All inputs received from users are properly validated and sanitized to prevent SQL injection, Cross-Site Scripting (XSS),and other common vulnerabilities.
Role-Based Access Control (RBAC): We use RBAC to control user permissions. Only authorized users (e.g., admin, creator, buyer) have access to specific backend functionalities, ensuring secure access to the system.

6. Secure Smart Contract Interaction.

Verified Contract Deployment: All smart contracts deployed to the Polygon blockchain are verified on to ensure their transparency and trustworthiness.
Gas Fee Management: We implement mechanisms to prevent users from overpaying for gas fees during transactions by optimizing smart contract functions and implementing user-friendly interfaces.

7. Continuous Monitoring & Incident Response.

Security Logging & Monitoring: We continuously monitor user interactions,transactions, and system activities for suspicious behavior. Logs are securely stored and regularly audited to ensure any unusual activity is quickly detected and mitigated.
Incident Response Plan: In case of a security breach or compromise, we have a defined incident response plan that ensures swift containment, analysis, and resolution.We notify affected users and take appropriate actions to prevent future incidents.

8. Compliance and Third-Party Integrations.

Regulatory Compliance: We are committed to following industry best practices and ensuring compliance with relevant regulations, such as GDPR and KYC (Know Your Customer), especially for NFT creators and buyers.
Secure Third-Party Integrations: Any third-party services, such as payment gateways and NFT marketplaces, are thoroughly vetted for security compliance before being integrated into the platform.

9. User Education & Awareness

Security Best Practices: We provide users with educational resources on securing their wallets, recognizing phishing attempts, and maintaining account security.We also encourage regular software updates for browser extensions and wallets like MetaMask.

We are continuously evaluating and improving our security measures to stay ahead of emerging threats.The security of our users and the integrity of their transactions are our top priorities,and we ensure that best practices are followed at every stage of development and deployment.

A unified defense strategy.

RealWorld.fi’s security ecosystem represents a synthesis of legal rigor, physical fortification,and digital innovation. By aligning with ISO standards, leveraging certified third-party custodians,and adopting proactive threat detection frameworks, ensure client assets remain impervious to evolving risks. Future initiatives include AI-driven predictive analytics for physical intrusion prevention and quantum-resistant encryption pilots,reaffirming our commitment to security excellence.

For further details on our security protocols, please contact our Compliance Officer at compliance@realworld.fi.