# Expectation of profits

`kaal:entity:expectation-of-profits`

**Status.** derived

This node is assembled mechanically from the 2 claims that carry the concept tag `expectation-of-profits`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

2 claims across 2 works, 2022 to 2025.

**2022**

- [4021599-014](https://wulfkaal.github.io/claims/4021599-014) [condition/evidenced] -- For digital assets the decisive element of the Howey analysis is whether the purchaser of the token has a reasonable expectation of profits derived from the efforts of others, which the SEC divides into reliance on the efforts of others and reasonable expectation of profits.
  > purchaser of such a token has a reasonable expectation of profits derived from others.
  Wulf A. Kaal, Securities Versus Utility Tokens (2022). SSRN: https://ssrn.com/abstract=4021599

**2025**

- [5583610-020](https://wulfkaal.github.io/claims/5583610-020) [mechanism/argued] -- Non-transferability is what defeats the expectation of profits prong: because LER vouchers cannot be listed, traded, or resold, no capital appreciation is possible and their value comes from merchant redemption rather than issuer performance.
  > Expectation of Profits: LER as vouchers are non-transferable, have no inherent value, are not listed as fungible assets, and cannot be traded. As such, LER issuance precludes any expectation of profit through capital appreciation.
  Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/expectation-of-profits.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.