An accredited investor is someone who meets specific financial criteria that allows them to participate in certain private investment opportunities that aren't available to regular retail investors.
Financial Requirements
To qualify as an accredited investor in the US, you must meet one of these criteria:
Individual income: $200,000+ annually for the past two years (or $300,000+ for married couples filing jointly)
Net worth: $1 million+ excluding your primary residence
Professional certifications: Certain licenses or credentials may qualify you
Verification Process
Legion uses InvestReady to verify accredited investor status. The process involves:
Self-declaring as an accredited investor
Completing a verification questionnaire through InvestReady's portal
Providing documentation to prove you meet the financial requirements
Receiving approval or denial based on your submission
Investment Implications
Once certified as an accredited investor:
You can participate in US-restricted investment rounds that regular investors cannot access
You're subject to additional regulations, including potential 1-year lockup periods on tokens
Projects offering to US accredited investors must comply with Reg D, Rule 506(c) securities regulations
Why It Exists
The accredited investor designation exists because regulators assume that individuals with higher income or net worth have more investment experience and can better absorb potential losses from riskier private investments.