Project Quiver - Dev-Kit in Germany

General
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Hi everyone,

I want to move forward with the plan to build the batch of 4-5 Quiver dev-kit prototype units so we can get them into the hands of developers and testers. However we need to clarify three critical aspects: Funding Scope, Liability, and Timeline.

1. Order Commitment: I cannot order further equipment or materials until a formal order commitment is made including a prepayment. I already ordered the aluminum parts and landing gear adapters. We also need to define exactly what is included in the dev-kits, because it makes a big difference in terms of costs. A cost table would be very desirable, because many things have been added since the beginning of PT3.

Should it be just the bare drone, or a full bundle including a transport case, batteries, and a remote control?

I would recommend a full bundles, but this obviously impacts the budget per unit.

2. Liability (Building and Shipping): This is the most important point regarding the timeline.

I can start manufacturing the drones immediately under my current company setup once the materials are funded. However, I cannot ship these units or lend them to third parties (developers/media) under my current legal structure.

Important Note: It makes no difference if the DAO “officially” acts as the distributor or lender. Legally, as the entity physically manufacturing and shipping the hardware, the chain of liability (Product Liability) traces back to me. The DAO structure cannot shield me from this personal risk.

Since these are 25kg experimental aircraft, the liability risk is too high. If a beta tester crashes one, I would be personally liable with my private assets. To do this responsibly, I need to convert my operations into a GmbH (Limited Liability Company) and secure specific product liability insurance.

3. Timeline: Founding a GmbH is expensive and requires significant long-term administrative effort. It does not make financial sense for me to take this step solely for a one-off batch of 4-5 drones. I can only commit to founding the LLC (and thus to the possibility of distributing the drones) if there is clarity about the long-term financing of the DAO projects (including further proceedings with Project Quiver).

Because of this, please be aware that it may take some time before any drones can physically be handed over to partners or testers in Europe. Of course, it’s also fine not to build any dev kits for third parties here in Germany at the moment. Then we’ll stick with a drone for testing.

Looking forward to your thoughts.

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Thanks for raising this important discussion, Julius.

Order Commitment:

A Snapshot proposal from you for devkit build funding would be well received here. My preference would be for full kits including at least one battery and charger, with transport case and remote. Also some spare attachment interface pieces for development purposes and probably a general kit of replacement and spare parts. Cost table seems very important here so we know how much we’ll need to invest for the dev-kits. I think a smaller number of drones with full bundles would be better than a larger number without.

On your liability assessment, I agree. The DAO has not practical way to be the manufacturer of record or shield you from personal liability. It sounds like a GmbH would be a good structure but I didn’t realize it was so costly to start.

From the DAO end, I feel confident in saying that we will continue to fund Quiver development - building out the attachment ecosystem and working to grow it into a valuable and stable product. But I can’t guarantee order flow. That’ll depend on how much demand we actually see from users and customers in Europe. You’d probably be better at assessing the potential there than any of us. Up to you to decide if it’s worth forming the company to lend out devkits with an uncertain future about further manufacturing.

Would your risk/liability profile change if you just distributed our more custom parts (PCBs, aluminum structure, etc) and left the developers to do the actual drone assembly with their own flight controller, batteries, motors, etc.?

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These are very important points and I agree that a formal agreement via Snapshot is necessary.

I believe the Dev Kit should be a full version of Quiver. That means the full OA system, three payload interfaces, RPI, SIYI camera and telemetry, ethernet integration, etc. Ideally I would like for everything to be included in the order but I know batteries are difficult to ship, people have a preference on RCs, and not everyone will want to pay for a transport case.

You need to be protected from liability. If the cost is high, it seems like we are running into the same issue with the C3 certification where the expense does not make sense for a prototype. Does the same liability fall on you if you were to distribute this as a kit? It could include the partially assembled structure with all the components and wires that the end user assembles?

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Thanks for the feedback on this. To answer the question regarding the kit approach: unfortunately, distributing it as a kit or a set of parts doesn’t really solve the liability issue for me. The liability traces back to the producer of the kit, not just the person who screwed the bolts together. It maybe dilutes responsibility, but it’s not a solution where I could say with certainty that it protects me.

I think I will go ahead and start the process of forming the GmbH. Such protection is also reasonable in consideration of my current/future projects. I know the DAO can’t guarantee commercial order flow, but I trust the commitment to funding the ongoing development.

I will work on a proposal for sourcing the required parts, but it might take some time because some details aren’t certain yet. To keep things moving, we could also split the proposal into two parts: first, funding for the actual drone components so I can start building, and second, a separate proposal for the accessories like the transport case, high-capacity batteries, and the remote. That way we can get the airframes on the bench while we figure out the other items. Any other ideas on how to structure this are welcome.

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Not sure if others are on board with this approach, but I am in favor of funding this in a way that gets the ball rolling. While it might take some effort to prepare this, I think there is a investment opportunity here for the DAO and yourself with AIP-009. You could use the capital for the GmbH foundation, liability insurance, and materials. The DAO would get an aligned manufacturer with skin in the game. Perhaps we can come up with a solution that requires you to post an $ARROW bond that will cover the administrative and material cost. This could act as an incentive for you to get setup as a manufacturer and the DAO to implement AIP-009 and figuring out a workflow.

I could see this helping you with some of the risk of starting the manufacturing without having guaranteed order flow.

Of course we could also just skip this entirely and have the DAO purchase the drones you are building and ensure that those drone go to people with low risk for a liability claim (someone in the DAO, trusted person, etc.)

We have options but we shouldn’t dwell. Let’s setup a call for this week if we need to decide on terms.

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