Introduction to Accounts

Accounts represent an agreement between on or more parties, establishing rules by which the parties can execute transactions related to financial instruments. The purpose of establishing accounts is mainly for the account holder to gain access to certain financial services, but also to gain the benefit of tax or accounting treatment of activities performed within the account and in accordance with relevant laws.

Generally, our system should allow the creation of a suite of existing legal accounts for deposits and investment, however we also want to be able to represent documented, but complex personal ownership of certain alternative assets.

Accounts will have a relationship with one or two entities:

one where the account resides
and another who is the beneficial owner of the residual balance of flows within an account.

Distributary Account Economic

Our framework takes an economic, and not an accounting treatment of accounts such that if the beneficial owner entity and the location entity differ, accounts result in different treatment. Further, we're developing out system from first principles where assets and liabilities are determined by expected cashflows over time.

Net positive residual flows will result in an asset to the beneficial owner and a liability to the entity where the account is located

Net negative residual flows will result in a liability to the beneficial owner and an asset to the entity where the account is located.