Question 1

Is this a security?

Accepted Answer

The Prime Partnership is a commercial partnership: a dedicated vehicle that your institution and BettorToken each own half of. How the interests in that vehicle are characterized, including their securities and tax treatment, is set in the definitive documents and reviewed by counsel for both parties. Nothing on this site or in the data room is an offer to sell, or a solicitation to buy, any security or other instrument.

Question 2

What is BettorToken’s license status?

Accepted Answer

None, and we say so first. BettorToken is a software company and holds no financial license or registration. BettorToken Holdings LLC is not registered with the SEC or the CFTC in any capacity, and its people hold no FINRA registration and no securities licenses such as Series 7, 63, 65 or 66. It is not a broker-dealer, investment adviser, commodity pool operator, commodity trading advisor, futures commission merchant, introducing broker, bank or money transmitter. It does not hold partner funds and gives no investment, legal or tax advice. Whether a vehicle that trades event contracts is a commodity pool depends on how it is organized and operated, so the structure is set in the definitive documents with counsel on both sides, and your counsel should review it.

Question 3

Who holds the money?

Accepted Answer

The vehicle does, in its own name. Its accounts, including its venue accounts, are held in the vehicle’s name with a custodian named in the definitive documents. BettorToken does not hold or custody partner funds. Your institution funds the vehicle’s own accounts, never BettorToken, and only after it has signed off the shadow run. Collateral behind open positions is held by the venue until each contract settles. Distributions are paid by wire to your account on file.

Question 4

What does BettorToken earn, and when?

Accepted Answer

Only its 80% share of the split, and only after you are paid. On the first business day of each month, the vehicle’s net settled profits for the prior month run through the waterfall in order: your 10% a year preferred return first (capital × 10% ÷ 12), including any shortfall carried forward; then any losses carried forward are recouped; then the remainder is split 80% to BettorToken and 20% to your institution. There is no management fee and no platform fee. The vehicle bears its own direct costs (venue fees, custody, banking, data, formation, legal and tax), and none of them is paid to BettorToken. The preferred return is a distribution priority, not a guarantee.

Question 5

BettorToken puts in no capital and takes 80% above the preferred. Doesn’t that encourage risk-taking?

Accepted Answer

It can, and our own risk factors say so. The structure works against it in four ways. Your preferred return, including any shortfall, is paid before BettorToken takes anything. Losses are recouped before any split resumes, so BettorToken earns nothing while your capital is being made good. The desk trades only inside hard limits your institution signs off, which change only by a written amendment signed by both parties, and any named role can pause the desk at any time. And before any capital funds, you see your own mandate run in a simulated shadow run.

Question 6

What if the desk loses?

Accepted Answer

Losses are carried forward and recouped from later settled profits before any split. A month whose settled profits do not cover the preferred return carries the shortfall forward, without compounding, and that month’s distribution may be zero. BettorToken never pays the preferred return from its own funds. The limits act in three layers: in the day, the daily loss limit stops the desk; in the month, the drawdown review triggers a same-day notice to your named roles and a joint review of the mandate within two business days; and any named role can pause the desk at any time. Losses reduce capital. At wind-down, after positions settle, your remaining capital is returned to you first, and it may be less than you contributed, or nothing.

Question 7

What if a court or state stops sports event contracts?

Accepted Answer

Then the strategy could be restricted or end. The law is unsettled. As of November 4, 2026, the Third Circuit has ruled for Kalshi against New Jersey, the Sixth and Ninth Circuits have ruled for the states, and three petitions to the U.S. Supreme Court are pending. A Nevada state court has enjoined Kalshi and Polymarket from offering event contracts there without a state gaming license, and on October 19, 2026 the CFTC proposed defining event contracts as swaps. A ruling, an injunction or a criminal case could close sports markets in some states or everywhere, reduce liquidity, or force venues to restrict accounts or delist contracts. The program cannot change any ruling. Named roles can pause the desk at any time.

Question 8

What if a venue goes down?

Accepted Answer

The desk cannot trade around it. A venue can suffer an outage, suspend a market or the whole exchange, restrict an account, delay withdrawals or fill orders at prices nobody intended. If a venue or its clearinghouse failed, positions and collateral held there could be frozen, delayed or partly lost. Two controls limit the damage, and neither prevents a failure: the venue concentration limit in your mandate caps how much of the allocation sits on any one venue, and every fill is reconciled to the venue’s own ledger each day. While only Polymarket and Kalshi are live, a problem at one of them affects a large share of the book.

Question 9

Who verifies the numbers?

Accepted Answer

Today, no independent firm does. BettorToken has no auditor; its records are maintained internally and are not audited or attested by an independent accountant. What you can check yourself: every order lives on the venue, and each venue’s own ledger is the reference record for every fill. The desk matches every fill against it every day, and a mismatch halts the desk until the records match and a person has looked. Your named roles see the vehicle’s activity on a read-only dashboard at all times. An independent audit of the vehicle can be arranged at your election, at the vehicle’s cost; whether one is appointed, and who, is set in the definitive documents.

Question 10

What do we see each month?

Accepted Answer

A statement after each distribution, which is paid on the first business day of the following month. It shows the waterfall in order (preferred return, any shortfall carried forward, losses carried forward, then the split), an account summary, payment details, activity by venue, risk-limit use and breaches, reconciliation results and year-to-date totals. Between statements, the read-only dashboard for your named roles never closes, and a daily report of fills reconciled to each venue’s records is available if your mandate asks for it.

Question 11

What is the shadow run?

Accepted Answer

A simulation of your own mandate before any capital funds. BETTOR runs your Written Mandate inside its limits, with no capital at risk, for 14, 30 or 60 days as the mandate sets. The report covers scope, limits, simulated activity by venue, settlement timing and every pre-trade limit check, and it is labelled Simulated throughout. You review it with us and both sides sign it off; funding follows sign-off. A simulation is not a track record, a forecast or a projection.

Question 12

How long is the commitment, and how do we exit?

Accepted Answer

Five years from the funding date, renewing automatically for further five-year terms unless either party gives six months’ written notice. Capital is committed for the term: your institution may not withdraw capital or transfer its interest except as the agreement allows, and early termination rights are limited and listed in the form of agreement. There is no market for an interest in the vehicle. On wind-down, after positions settle, your remaining capital is returned to you first. Named roles can pause the desk at any time, though a pause does not return capital.

Question 13

Who are the people?

Accepted Answer

Seven principals: Matthew Taylor, President, Founder and CEO; Wisam (Sam) Shango, VP, Owner and COO, who owns position reconciliation; Mark Taylor, Minority Owner; Dan Reynaud, Vice President of Strategy; Tim Hastings, Vice President of Partnerships; Michael Taylor, Vice President of Capital Markets; and Demarco Shango, In-House Counsel. Leadership includes family relationships across the Taylor and Shango families, and we disclose them ourselves. If concentrated, family-linked leadership is a disqualifier for your mandate, we would rather know early. Tim and Dan join every first call.

Question 14

How long from first call to funding?

Accepted Answer

We plan for 8 to 12 weeks, a planning range rather than a commitment, and you move when your committee is satisfied. The path: a 30-minute call with Tim Hastings and Dan Reynaud on the live floor, with the mutual NDA signed at booking; the data room the same day; a structure session; your Written Mandate, drafted in the Mandate Builder; diligence; definitive documents with counsel on both sides; formation of the vehicle; the shadow run; funding, only after sign-off; and the first monthly statement.

Questions committees ask. Answered plainly.