# Eligibility

Collar is only available to and designed for sophisticated investors and non-US persons at this time.

Non-US

Please read the below definition to determine whether or not you are considered a US person for swaps purposes. If you are a U.S. person, you can read the guidance below this section to understand if you may be eligible to use Collar.

CFTC will interpret the term “U.S. person” generally to include, but not be limited to: (i) any natural person who is a resident of the United States; (ii) any estate of a decedent who was a resident of the United States at the time of death; (iii) any corporation, partnership, limited liability company, business or other trust, association, joint-stock company, fund or any form of enterprise similar to any of the foregoing (other than an entity described in prongs (iv) or (v), below) (a “legal entity”), in each case that is organized or incorporated under the laws of a state or other jurisdiction in the United States or having its principal place of business in the United States; (iv) any pension plan for the employees, officers or principals of a legal entity described in prong (iii), unless the pension plan is primarily for foreign employees of such entity; (v) any trust governed by the laws of a state or other jurisdiction in the United States, if a court within the United States is able to exercise primary supervision over the administration of the trust; (vi) any commodity pool, pooled account, investment fund, or other collective investment vehicle that is not described in prong (iii) and that is majority-owned by one or more persons described in prong (i), (ii), (iii), (iv), or (v), except any commodity pool, pooled account, investment fund, or other collective investment vehicle that is publicly offered only to non-U.S. persons and not offered to U.S. persons; (vii) any legal entity (other than a limited liability company, limited liability partnership or similar entity where all of the owners of the entity have limited liability) that is directly or indirectly majority-owned by one or more persons described in prong (i), (ii), (iii), (iv), or (v) and in which such person(s) bears unlimited responsibility for the obligations and liabilities of the legal entity; and (viii) any individual account or joint account (discretionary or not) where the beneficial owner (or one of the beneficial owners in the case of a joint account) is a person described in prong (i), (ii), (iii), (iv), (v), (vi), or (vii). – See Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations, 78 Fed. Reg. 45,292 (July 26, 2013), linked here.

US

In the US, in order to use Collar you must qualify as an Eligible Contract Participant. You certify this as you interact with the protocol.

HNWIs and Institutions must be one of the below requirements in order to use Collar in the US due to federal regulations. The below is a summary and full guidance may be found in 7 USC § 1a(18)

0. An individual with a net worth of $5m+ managing the risk associated with an asset ^MOST CASES

1. Financial institutions

2. State-regulated insurance companies

3. Foreign-regulated insurance companies subject to comparable regulation as determined by the Commission

4. RIA (domestic or foreign)

5. Commodity Pool with assets >$5m and meeting other requirements

6. Corporation, partnership, proprietorship, organization, trust, or other entity — (I) that has total assets exceeding $10,000,000;

• (II) entity underwritten by another ECP
• (III) net worth >$1m + managing risk for another entity

7. an ERISA plan, govt EBP, foreign plan w/ assets >$5m or guided by an RIA or CTA or foreign person or insurance co
8. Governments, States, foreign governments, political subdivisions
9. multinational or supranational government entity
10. a BD or AP of a BD
11. a CTA

For a more thorough definition please visit https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=7-USC-1679330354-1954888350&term_occur=999&term_src=