Legal Terms & Disclosures

Sacred Federation · Last Updated July 2026

1. What is the Sacred Federation?

The Sacred Federation is a sovereign commerce network and private membership organization, not a bank, investment firm, or insurance company. We provide three entry paths: (1) Event Vendors — accept SFT for free via payment QR; (2) Guild Members — join any of 6 guilds + establish trust instruments; (3) Reserve Anchors — contribute gold to T1 Reserve. All infrastructure is technological and private.

2. SFT — Sovereign Federation Token

SFT (Sovereign Federation Token) is a digital token on the XRPL used for peer-to-peer payments within the Federation. SFT is NOT a security, NOT an investment, and NOT a regulated financial product. The Federation fixes the internal rate at 1 SFT = $1.00 USD. Customers who purchase SFT are exchanging USD for a peer-to-peer payment medium, not buying an investment. No secondary market trading is endorsed by the Federation.

SFT Disclaimer:

  • • SFT is a currency within the Federation economy, not a speculative asset
  • • Federation does not sponsor or endorse secondary trading or speculation
  • • Holding SFT exposes you to XRPL network risks, exchange rate volatility, and regulatory changes
  • • T1 Reserve covenant (100% of trust revenue → gold) is voluntary Federation structure, not a guarantee
  • • SFT cash-out to prepaid cards is at fixed 1:1 rate while program runs; no refunds on stored value

3. IRS Classification & Tax Treatment

The Sacred Federation does not provide tax advice. Trust taxation depends on your specific trust structure, assets, and usage. SFT transactions may be subject to capital gains, foreign currency, or ordinary income treatment—consult your CPA. The IRS recognizes multiple trust classifications (grantor, non-grantor, charitable, etc.), and your obligations vary accordingly.

Important:

  • • You are responsible for determining your trust's IRS classification
  • • You must file appropriate tax forms (1041, K-1, or 1040 schedules)
  • • We strongly recommend consulting a qualified CPA or tax attorney
  • • Non-compliance with tax law is not the responsibility of the Federation

4. Data Security & Infrastructure

All member data is encrypted at rest and in transit using industry-standard encryption. Trust documents, RFN credentials, and account information are stored with redundant security measures. Payment processing is handled by PCI-compliant Stripe; the Federation never stores raw payment card data. Your trust data is your property and will not be shared with third parties except as required by valid court order.

Liability Disclaimer:

  • • Federation provides technology, not legal or financial advice
  • • You assume all risk and responsibility for your trust's actions
  • • Federation is not liable for asset loss, theft, or mismanagement
  • • Creditor claims against trust assets are your responsibility
  • • Federal or state enforcement actions are not Federation's liability

5. Federation Financial System — Event Payments

The Federation Financial System enables vendors to accept SFT and customers to load SFT at events. Vendors generate free QR codes linked to their Xaman wallet. Customers purchase SFT via Stripe ($10–$200). All transactions are peer-to-peer on the XRPL — the Federation does not hold, process, or settle payments. You assume all risk of wallet access, lost keys, or network failures.

Your Responsibilities:

  • • Secure your Xaman wallet and private keys
  • • SFT you hold or receive is YOUR responsibility — Federation does not hold it for you
  • • QR codes link to YOUR XRPL address — verify accuracy before distributing
  • • Federation is not liable for lost wallets, hacked accounts, or network failures
  • • All SFT transactions are final; no chargebacks or reversals

6. Federation Liability & Disclaimers

The Sacred Federation provides technological infrastructure and administrative tools for trust formation and commerce. We are not responsible for how you use your trust, the legality of your actions, or outcomes of your financial decisions. Federation credentials are private attestations, not government-issued identification.

Liability Disclaimer:

  • • Federation provides technology and administrative infrastructure, not legal advice
  • • You assume all responsibility for your trust's actions and compliance
  • • Federation not liable for asset loss, theft, or trust mismanagement
  • • Creditor claims and legal enforcement are your trust's responsibility
  • • Data breaches, while mitigated through encryption, are disclosed transparently

7. Your Responsibilities

By registering with the Sacred Federation, you acknowledge:

  • ✓ You are legally capable of forming a trust in your jurisdiction
  • ✓ You understand the difference between legal rights and Federation tools
  • ✓ You will comply with all federal, state, and local laws
  • ✓ You will file required tax forms and disclosures
  • ✓ You will not use your trust for illegal activities
  • ✓ You understand the limitations of privacy in legal proceedings

8. State Variations & Trust Legality

Private trusts are a legitimate legal structure recognized in all 50 United States. The Sacred Federation provides tools for sovereign citizens to form their own trusts under constitutional law without government licensing or intermediaries. While trusts are legal in all 50 states, specific trust laws vary. Some states have Trust Code provisions, others recognize common law trusts. We recommend reviewing your state's trust law or consulting local counsel if you have jurisdiction-specific questions.

Key variables by state: trust formation requirements, trustee duties, beneficiary protections, privacy provisions, and asset protection rules. The Sacred Federation infrastructure is jurisdiction-neutral; your trust's legal status depends on where you reside and establish it.

9. Privacy & Confidentiality

The Sacred Federation encrypts your trust data and maintains records on the XRP Ledger. However, privacy is not guaranteed in legal proceedings. If subpoenaed, your trust documents may be compelled by court order. We do not hold your assets—you control them through your trust accounts.

10. Cryptocurrency & Asset Risk

If you hold XRP or other digital assets through Federation infrastructure, you assume all risk of:

  • • Smart contract failures or exploits
  • • Ledger forks or network changes
  • • Exchange rate volatility
  • • Loss of private keys or account credentials
  • • Regulatory changes affecting digital assets

11. T1 Reserve & Physical Gold

The Federation maintains a T1 Reserve (100% of trust instrument revenue) allocated toward physical gold purchases. The reserve is attestation-based and published quarterly on-chain. However, the Federation does not guarantee: (a) gold purchase completion, (b) specific timing of purchases, (c) exact weight or purity verification at all times, or (d) that the reserve will never be liquidated or restructured.

Gold Reserve Disclaimer:

  • • Reserve covenant is voluntary Federation policy, not a contractual obligation
  • • Gold holdings are NOT segregated accounts (you do not own specific bars)
  • • Federation does not provide gold insurance or guarantees against loss
  • • Reserve value fluctuates with gold market price and holdings
  • • Quarterly attestations are informational only, not financial guarantees

11A. Trust Instrument Characterization — No Gold-Backing Benefit

The Sacred Federation's trust instruments (Option A, B, and C) are private express trusts that provide identity, property-holding, and legacy benefits: a Resonance Federation Number, private trust structure, EIN support, beneficiary and successor-trustee designation, and generational succession. No trust instrument carries a gold-backing benefit, a yield, an asset accrual, or any expectation of profit derived from the efforts of the Federation or others. All three tiers may be offered and promoted on this basis.

The T1 gold reserve is the Federation's sovereign asset

Physical gold purchased with Federation revenue and attested on-chain as public proof of the Federation's healing work (curing distressed mortgage notes). The reserve belongs to the Federation as a sovereign entity. No trust holder, member, or purchaser holds any claim, share, beneficial interest, or expectation of profit in the gold reserve. What the Federation does with its sovereign resources is the Federation's own stewardship — disclosed publicly through attestations, but not owed to any purchaser.

Why the trust instrument is not a security:

  • • Under the Howey test, a security is an investment of money in a common enterprise with an expectation of profit from the efforts of others. Purchasers here pay for a private trust instrument and membership tools, not for a return.
  • • There is no yield, no gold accrual, no asset appreciation owed to the holder, and no secondary-market trading sponsored by the Federation. A trust that provides identity, property-holding, and legacy administration — without any profit expectation — is not an investment contract.
  • • SFT itself is a 1:1 RLUSD-pegged payment medium (see §2), not a security and not backed by the gold reserve.

Status:

  • • Per-trust gold accrual has been removed from the system; existing trusts have been zeroed. The reserve is reported as a single sovereign total.
  • • A comfort opinion from independent securities counsel is recommended but is not required to offer the trust instruments, since no security-like benefit exists. If counsel's opinion ever differs, the Federation will comply before continuing sales.
  • • This disclosure is provided so every purchaser makes an informed decision. It is not legal advice; purchasers may consult counsel in their jurisdiction.

12. No Government Affiliation

The Sacred Federation is a private, non-governmental organization. We are not affiliated with federal, state, or local government agencies. Federation credentials are private attestations, not government-issued identification. Your trust is not registered with the IRS or any state agency unless you file required tax forms.

13. Changes to These Terms

The Sacred Federation reserves the right to update these terms. Continued use of Federation services constitutes acceptance of updated terms. We recommend reviewing this page periodically.

14. Guild Structure & Membership Tiers

Federation members join one of six guilds (Goldsmith, Vendor, Healer, Educator, Craftsman, Property). Guild membership includes progression tiers: Member ($600) → Ambassador ($1,200) → Anchor ($6,000). Each tier grants access to deeper network tools, credential cards, and governance participation. Guild membership does NOT guarantee income, protection, or outcomes. Each tier is a one-time fee plus optional annual renewal ($144–$588/yr).

15. Intellectual Property & Copyright

All content, materials, architecture, documents, designs, and intellectual property created by or hosted on the Sacred Federation platform are the exclusive property of the Sacred Federation and its creators. This includes but is not limited to: trust instruments, governance frameworks, operational manuals, PDFs, graphics, databases, and all original works.

Intellectual Property Protection:

  • ✓ All Federation IP is protected under U.S. copyright law
  • ✓ Unauthorized reproduction, distribution, or modification is prohibited
  • ✓ Members may only access and use Federation materials for personal sovereign purposes within the platform
  • ✓ Sharing, selling, or redistributing Federation IP without explicit written permission is copyright infringement
  • ✓ All documents created within the platform are sealed with digital IP markers for authenticity verification
  • ✓ Breach of IP terms may result in account suspension, legal action, and liability for damages

Your trust documents and personal data within your account are your property. Federation IP (architecture, tools, methodologies, educational content, templates) remains Federation property and is licensed to you solely for non-commercial use within the platform.

16. Acknowledgment

By proceeding with trust registration or Federation participation, you acknowledge that you have read and understood these terms. If you have concerns, consult qualified legal counsel in your jurisdiction before proceeding.

Sacred Federation · Private Jurisdiction · Non-Governmental · Base 44

© 2026 Sacred Federation. All Intellectual Property Rights Reserved.