A smart contract enables “trustless” transactions through self-executing code on the Ethereum blockchain. Once signed, the contracts may not be altered in any way and will automatically execute their predefined terms. Investors and companies who participate in an ETO on the Neufund platform sign a smart contract in the form of Equity Tokens. This smart contract defines the exact agreement between the two parties, based on the company’s term sheet (e.g. exit strategies, voting or dividend rights).