The DAOS FUN model blatantly violates security laws—not the ones up for interpretation, but clear-cut violations. Beyond the unregistered securities, using only 10% for liquidity makes market manipulation too easy.

Here’s a tip: anytime you promise returns based on future events or outcomes, you’re stepping into regulatory territory. And when funds collected from users are pooled to generate profits, it’s a security—there’s no U.S. court that would argue otherwise.

As a former licensed rep, I can tell you: violating securities laws isn’t a slap on the wrist—it’s jail time and hefty fines. Be cautious with platforms pooling funds to act as hedge fund managers. It’s not a question of if they’ll get shut down, but when.