> For the complete documentation index, see [llms.txt](https://aibattleground-1.gitbook.io/aibattleground-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aibattleground-1.gitbook.io/aibattleground-docs/8.-legal-and-compliance.md).

# 📑 8. Legal & Compliance

#### 8.1 Regulatory Framework

Token Classification: AIBG is positioned as a utility token with the following characteristics:

* Primary use for platform services (generation, voting)
* No promise of profits from others' efforts
* Decentralized governance transition plan
* Not marketed as investment contract

Jurisdictions:

* Entity incorporation: Cayman Islands (Foundation)
* Operations: Singapore, Switzerland subsidiaries
* Compliance: Ongoing consultation with regulatory experts in each market

#### 8.2 KYC/AML Procedures

Tier 1 (< $1,000 equivalent):

* Email verification only
* Access to basic features

Tier 2 ($1,000 - $10,000):

* Identity verification via Onfido
* Proof of address
* Full platform access

Tier 3 (> $10,000):

* Enhanced due diligence
* Source of funds verification
* High-value creator benefits

Monitoring: Real-time transaction monitoring for suspicious activity, reporting to relevant authorities as required.

#### 8.3 Intellectual Property

User-Generated Content:

* Creators retain IP rights to their generations
* AIBG receives non-exclusive license for platform display
* Commercial rights remain with creator
* Winning pieces may be featured in marketing (with consent)

Platform Technology:

* Patent pending on voting algorithm
* Trademark protection for AIBG brand
* Open-source smart contracts (transparency)


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