Payouts are distributed automatically via Equity Token  smart contracts. The payout conditions will be established up front in a company’s term sheet. The company will transfer all proceeds to the Nominee. Through the Nominee, the platform will distribute the proceeds to the token holders. The legal framework and safety of the operation is ensured by the term sheet, which is mirrored in the Token Holder Agreement and Investment Agreement and cryptographically hashed in Equity Token smart contracts.