Official Rules

Each Participant needs to meet the Participant Eligibility Rules, the application and evaluation criteria, as well as the General Rules (altogether known as “Official Rules”).

Structure

Financial protocols who have completed an audit and have a live implementation on Stellar mainnet can be invited to submit proposals to request a Liquidity Award of up to $100,000 of XLM* total to support bootstrapping their initial liquidity needs.

Award Types

Award Type	Amount (Range)
Base Liquidity Award	$50K in XLM*
Supplemental Liquidity Award	An additional $50k in XLM*

Program Phases

Phase or Module	Function
Rolling inbound prospects	Based on available data from past SCF awards, Projects which pass the application criteria, will be sent a form to apply for Liquidity Program awards.
Pre-Screen	Once the Projects complete the application form (including a Due Diligence form), the application is pre-screened for completeness.
Individual Review (including Risk Assessment)	Each application that passed the pre-screen phase will be sent to available reviewers (both from SDF and community delegates), who will evaluate each submission according to the evaluation criteria, and perform a risk assessment.
Collective Review	If necessary, reviewers convene (either async or on a call) to come to a consensus on who should receive awards.
Legal Due Diligence	After reviewer approval, projects will undergo a final legal Due Diligence check.
Test Transaction	Approved Projects will be sent a test transaction to the Stellar address they specified.
Award Distribution	Once the test transaction amount has been confirmed, the award will be sent to their Stellar address.
Follow-up / Check-in	There will be regular checks to see how the Projects are performing., and Projects are required to deliver monthly activity reports for 6 months post award distribution as part of the award requirements

Eligibility Criteria

In order to be invited to submit an application to the Liquidity Awards Program and qualify for an initial Liquidity Award, Projects must meet the following criteria:

• Business Criteria: Projects must have a fully functioning financial protocol/application deployed on Stellar mainnet that demonstrates a viable use case, business model, and show potential for adoption from either users and/or community.

• Technical Criteria: Projects must have a completed valid security audit from an SDF recognized audit firm, with any outstanding vulnerabilities and issues resolved.

• Legal Criteria: Projects must have passed SDF’s KYC, Risk Assessment, and Due Diligence checks.

In order to also qualify for the Supplemental Liquidity Award, Projects must have met the initial Liquidity Award criteria as stated above, received an initial Liquidity Award and then also meet the following criteria:

• Supplemental Liquidity Award Criteria: Projects that are able to attract liquidity into their projects and are able to show 7-day consecutive TVL (of recognized asset(s)) greater than $250K.

Reviewer Evaluation Criteria

Fit Analysis for Liquidity Award Program	Above Average (3)	Average (2)	Below Average (1)
1. Technical Criteria
Functionality: Assess if the protocol/application works as intended.	Demonstrates functionality	Some functionality with room for improvement	Significant issues with functionality
2. Business Criteria
Roadmap: Review the project's execution plan, deliverables, timelines, and success metrics.	Detailed plan with clear milestones and metrics	Clear plan with room for improvement in metrics	Unclear plan lacking in milestones and metrics.
Team Experience: Evaluate the team's experience in DeFi and related fields.	Experienced team with successful projects in DeFi	Some experience in DeFi	Inexperienced team in DeFi.
Business Experience: Assess the team's startup experience.	Successful startup founders with relevant experience	First-time founders with some business experience	Inexperienced founders without relevant business experience.
3. Community Engagement
Community Support: Examine the project's community engagement efforts and potential for leveraging community support.	Strong community engagement strategy	Some community engagement efforts, room for improvement	Weak community engagement strategy.

Participant Eligibility Rules

1.1 The Liquidity Award is open to:

1. Eligible Individuals, as defined below in Section 1.3;

2. Teams of Eligible Individuals (“Teams”); and

3. Organizations (including corporations, not-for-profit corporations, and other nonprofit organizations, limited liability companies, partnerships, and other legal entities) that consist of Eligible Individuals and that are duly organized or incorporated and in good standing at the time of submission (“Organizations”).

(the above Eligible Individuals, Teams, and Organizations are referred to collectively as “Participants”).

In any individual Round, an Eligible Individual may not join more than one Team or Organization and an Eligible Individual who is part of a Team or Organization may not also enter the program on an individual basis.

1.2 If a Team or Organization is applying:

The Team or Organization must appoint and authorize one Eligible Individual (the “Representative”) to represent, act, and enter a submission on their behalf. By entering a submission on the Submission website on behalf of a Team or Organization, you are representing and warranting that you are the Representative authorized to act on behalf of your Team or Organization.

1.3 An “Eligible Individual” is a natural person who:

1. Is 18 years of age or older;

2. Is not a citizen of, located in, or otherwise normally residing in Cuba, Iran, North Korea, Syria, any Russian-controlled region of Ukraine, or any other country or region subject to sanctions by the US Department of Treasury Office of Foreign Asset Control (“OFAC”), as may be updated from time to time;

3. is not identified on the Specially Designated Nationals or Blocked Persons list provided by OFAC; and

4. Does not reside in a jurisdiction where the transfer and holding of cryptocurrency is illegal or would require a special license or authorization that the such person does not possess.

General Rules

1) Publicity

By applying to the Liquidity Award Program, Participants consent to the use of their personal information by the SDF and third parties acting on behalf of SDF. Such personal information includes, but is not limited to, Participant’s name, likeness, photograph, opinions, comments, and hometown and country of residence (“Participant Profile”). Participant Profiles may be used for advertising and promotional purposes and in any existing or newly created media, worldwide without further payment or consideration, or right of review, unless prohibited by law. The duration of this consent is for a period of three years following the time of payment of the last Liquidity Award. This consent applies, as applicable, to all members of the Participant that participated in any winning Submission.

2) Disclaimers & Limitations of Liability

Participants acknowledge and understand that XLM is a highly risky and volatile asset, and that SDF does not provide any representations, warranties, or guarantees of its value.

‍In addition to the disclaimers, limitation of liability, and indemnities agreed to in the main SDF Terms of Service, Participants also specifically agree to release and hold harmless SDF and its respective affiliates, employees, and agents from any and all liability or any injury, loss or damage of any kind arising from or in connection with SDF and its promotion, or any Awards granted in connection with SDF.

3) General Conditions

SDF reserves the right, in their sole discretion, to cancel, suspend and/or modify the Liquidity Award Program, or any part of it including any or all Awards or the Official Rules for any reason.

The Liquidity Award Program is governed by the SDF Terms of Service and the Official Rules. If there is any conflict or inconsistency between the SDF Terms of Service and the Official Rules, the Official Rules will prevail. If there is any discrepancy or inconsistency between the terms and conditions of the Official Rules and disclosures or other statements contained in any Liquidity Award Program materials, including but not limited to the Liquidity Award Program Submission form, Stellar.org Website, then the Official Rules shall prevail.

The terms and conditions of the Official Rules are subject to change at any time, including the rights or obligations of the Participants and SDF. SDF will post the terms and conditions of the amended Official Rules on the Stellar Website. To the fullest extent permitted by law, any amendment will become effective at the time specified in the posting of the amended Official Rules or, if no time is specified, the time of posting.

SDF’s failure to enforce any term of the Official Rules shall not constitute a waiver of that provision. Should any provision of the Official Rules be or become illegal or unenforceable in any jurisdiction whose laws or regulations may apply to a Participant such illegality or unenforceability shall leave the remainder of the Official Rules, including the Rule affected, to the fullest extent permitted by law, unaffected and valid. The illegal or unenforceable provision shall be replaced by a valid and enforceable provision that comes closest and best reflects the SDF’s intention in a legal and enforceable manner with respect to the invalid or unenforceable provision.

4) Data Privacy

SDF collects personal information from Participants when they enter the Liquidity Award Program. The information collected is subject to the privacy policy located here: https://www.stellar.org/privacy-policy

5) Contact

If you have any specific questions or concerns you can also email SDF at [e-mail].