Regulatory & Disclaimers

Entity Characterization & Tax Status

Wyoming DAO Framework: LiteWater Capital DAO LLC operates under the Wyoming DAO LLC framework (WY Filing ID: 2026-001972207 / LEI: 984500360E6D6AG10C28). The structure is optimized for rapid blockchain settlement and explicitly delegates day-to-day settlement of digital assets to be conducted algorithmically under a cryptographic multi-signature consensus.

Disregarded Entity: LiteWater Capital DAO LLC is not an independently tax-exempt entity; it is a single-member, disregarded entity for federal tax purposes. Pursuant to Treasury Regulations § 301.7701-2(c)(2), a disregarded entity takes on the precise tax character of its owner. The LLC functions operationally as an internal treasury auxiliary entity, exclusively managing the capital of its parent Unincorporated Church and Spiritual Association, while fully inheriting the statutory tax immunities of its parent.

Tax Exclusion and Non-Reporting Mandate

  • 26 U.S.C. Code § 508(c)(1)(A) Mandatory Exception: The parent entity is statutorily exempt from applying for 501(c)(3) status and is automatically recognized as tax-exempt. As a disregarded subsidiary, LiteWater Capital inherits this mandatory exception.
  • 26 U.S.C. Code § 6033(a)(3)(A) Mandatory Exclusion: As an integrated auxiliary acting exclusively to manage funds for the parent, we are strictly prohibited from filing Form 990 (Annual Information Return). We are not required, nor permitted, to issue 1099s or similar tax reporting documentation for OTC conversion events.
  • SEC Family Office Exemption: The LLC acts exclusively as a private family office managing the internal treasury of its parent entity. It does not solicit or manage outside retail capital, strictly exempting it from registration under the Investment Advisers Act of 1940 pursuant to 17 CFR § 275.202(a)(11)(G)-1.
  • FATCA Status: We operate as an Excepted Non-Financial Foreign Entity (NFFE) / Tax-Exempt Parent, as verified by federal forms.
  • FinCEN BOI Exemption: 31 U.S.C. § 5336(a)(11)(B)(xix) explicitly exempts any entity described in section 501(c) of the Internal Revenue Code. We qualify as a tax-exempt entity under the Corporate Transparency Act and are STRICTLY EXEMPT from FinCEN Beneficial Ownership Information reporting requirements.

Not Available to US Retail

The services, vaults, and tokens developed by LiteWater Capital DAO LLC (including the JAB Series) are not offered or sold to retail US persons. LiteWater operates strictly as a private fund manager for the treasury of its parent organization and does not solicit capital from the general public.

Algorithmic Incentive Distribution & The Howey Test

LiteWater Capital DAO LLC does not conduct Initial Coin Offerings (ICOs), token pre-sales, or any form of direct retail token sales. Our sovereign infrastructure tokens (including the JAB series and LTWC) are fundamentally engineered as internal B2B collateral for decentralized lending. They are strictly prohibited from sale, offering, or marketing to the retail public.

Furthermore, tokens distributed via the Universal Rewards Distributor (URD) as yield incentives possess no speculative investment characteristic. Their exit liquidity is strictly and autonomously handled by immutable smart contract redemptions through our locked Uniswap V3 pools. Because these assets serve exclusively as isolated utility collateral for DeFi lending—and are never subjected to retail speculation or enterprise capital-raising—they do not constitute securities and fall entirely outside the purview of SEC regulation under the Howey Test.

No Financial Advice

Nothing on this site should be construed as financial, legal, tax, or investment advice. You should consult with your own independent legal and financial advisors before making any decisions based on the information provided herein.

Regulatory Status

LiteWater Capital DAO LLC is structured as a Wyoming Decentralized Autonomous Organization under Wyoming law. We are not registered with the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or any other regulatory body. Tokens issued by the DAO are not insured by the FDIC, SIPC, or any other government agency.