What is SAFT?
A SAFT (Simple Agreement for Future Tokens) is a contract where an investor funds a project today in exchange for tokens the project will deliver once its network launches — before the token exists.
Also known as: Simple Agreement for Future Tokens · future token agreement
In plain terms
A SAFT is a promise of future tokens. The investor pays now; the project delivers tokens at the token generation event or later, usually at a discount to the expected launch price.
Because the tokens do not exist yet, the SAFT is a security in most analyses — it is an investment in a venture, not a purchase of a finished asset.
How it works
The agreement defines the investment amount, the discount or valuation cap, the delivery trigger (typically the TGE) and vesting terms for the delivered tokens.
Delivery can be in tokens themselves or in a right to purchase tokens at the agreed terms; documentation varies by deal and jurisdiction.
Because SAFTs are usually offered privately to accredited investors, resale restrictions and lockups commonly apply to the delivered tokens as well.
Example
Hypothetical: an investor signs a $250,000 SAFT with a 20% discount to the public sale price. At the TGE eighteen months later, the project delivers the equivalent amount of tokens, which then vest monthly over 24 months under the same agreement.
Why it matters for founders and investors
SAFT terms — discount, vesting, delivery mechanics — directly determine an investor's economics and risk exposure, and they are negotiated before any product exists, when information asymmetry is largest.
For founders, SAFTs raise securities-law obligations in most jurisdictions, which is why they are typically limited to eligible investors with proper documentation.
Common misconceptions
A SAFT does not guarantee token delivery on a fixed date: delivery is usually conditional on the network actually launching, and terms address what happens if it does not.
Buying a SAFT is not buying the token at today's price; it is funding a venture whose token terms may still change before delivery.
Frequently asked questions
Who can invest through a SAFT?
SAFTs are typically offered privately to accredited or professional investors, since they are securities and cannot be sold to the general public without registration or an exemption.
What happens if the project never launches?
The agreement governs it. Many SAFTs provide for refund, conversion into equity or extension of deadlines; investors should read the failure clauses before signing, not after.