Producer Rights & Protection

What You Control, What Protects You

Listing your IP on RedCarpetHQ does not mean surrendering control. This document clarifies your rights, protections, and obligations as a producer.

What You Control

Creative Control

Your token holders are economic participants, not creative partners. You retain full authority over:

  • Final cut and editorial decisions

  • Casting, crew, and hiring

  • Distribution strategy (theatrical, streaming, festival circuit)

  • Marketing and publicity

  • Sequels, spin-offs, and derivative rights

    • Token holders receive dividends if you choose to distribute. They do not receive veto power over creative decisions.

    Financial Control

  • You set the Floor (minimum budget) and Ceiling (maximum raise)
  • You choose the overage type (fixed, unlimited, or capped)
  • You set the token price
  • You decide when and how much to distribute in dividends
  • You receive 100% of funds raised (no platform fee)

    • Campaign Control

    Before your campaign starts, you can edit:

  • Start time, end time

  • Floor and ceiling amounts

  • Funds recipient address

    • After launch, you can:

  • Cancel the campaign anytime (full refunds to all investors)

  • Extend once (if within 24-hour grace period)

  • Claim funds after successful funding (within 2-week finalize window)

    • What Protects You

    All-or-Nothing Funding

    If your campaign does not hit its Floor by the deadline, it fails. All USDC is automatically refunded. This protects your reputation:

  • No underfunded productions that cannot deliver

  • No angry investors who backed a project that limped forward

  • Clean separation: success or reset

    • 2-Week Finalize Grace Period

    After hitting your Floor, you have 2 weeks to decide whether to claim funds or cancel. This gives you time to:

  • Review the final investor list

  • Confirm legal compliance

  • Consult with your team and financiers

  • Decide if proceeding is the right move

    • After 2 weeks, anyone can finalize the campaign — preventing stalled projects.

    No Platform Fee

    Unlike every other platform, we do not take a cut of your raise. This means:

  • Your Floor can be lower (you need less to hit your true minimum)

  • Your Ceiling can be higher (more capital reaches your production)

  • You keep every dollar for your project

    • Producer Fee Income

    You earn 10% of all trading fees on your token — forever. This creates:

  • Passive income from secondary market activity

  • Alignment with long-term token health

  • Incentive to maintain investor relationships post-release

    • Burn-for-Vault Exit

    If you hold tokens and want to exit without crashing the market:

  • Burn your tokens

  • Receive protocol vault shares (no market sell pressure)

  • Minimum threshold: $10 USDC equivalent

  • 25% exit fee applies (protects the ecosystem)

    • Your Obligations

    Honest Representation

  • Your budget breakdown should be realistic
  • Your timeline should be achievable
  • Your revenue projections should be grounded
  • You must communicate delays or changes via Project Updates

    • Dividend Transparency

    If you promise revenue sharing in your campaign materials, you are expected to follow through. The blockchain does not forget:

  • Clearly state your intended revenue-sharing formula

  • Communicate when revenue is expected

  • Distribute when revenue materializes

  • If no revenue occurs, communicate why

    • No Market Manipulation

  • Do not wash-trade your own token
  • Do not make false claims to pump price
  • Do not exploit the RiskOracle with fake volume

    • Violations can result in:

  • Risk tier downgrade (higher costs, lower limits)

  • Contest disqualification

  • Platform delisting in extreme cases

    • The Screening Process

    If screening is enabled, you must be whitelisted by a screener before creating campaigns. This is not censorship — it is quality control:

  • Protects investors from scams

  • Maintains platform reputation

  • Preserves decentralization (multiple screeners, not one gatekeeper)

  • Can be toggled off if the community prefers open access

    • Legal Considerations

    Intellectual Property

  • You must own or control the IP you are financing
  • Clearly state rights ownership in campaign materials
  • Be transparent about co-production partners or licensors

    • Securities Compliance

    RedCarpetHQ tokens represent project participation and profit-sharing, not equity or securities. However:

  • Consult legal counsel in your jurisdiction

  • Do not promise guaranteed returns

  • Do not market to accredited-only audiences (we are permissionless)

  • Be clear that tokens are speculative and carry risk

    • Tax

  • Funds raised are typically treated as income or project financing
  • Trading fees you receive are income
  • Consult a tax professional

    • Summary

    | Right | Yours? |
    |---|---|
    | Creative control | ✅ Yes, fully |
    | Financial decisions | ✅ Yes, fully |
    | 100% of raise | ✅ Yes |
    | Passive fee income | ✅ Yes (10% of trading fees) |
    | Cancel anytime | ✅ Yes (before finalization) |
    | Dividend discretion | ✅ Yes (when and how much) |
    | Exit without market impact | ✅ Yes (burn-for-vault) |
    | Honest representation | ✅ Obligation |
    | Revenue sharing (if promised) | ✅ Obligation |

    Next: Creating Your Campaign →