What is a blockchain?
A blockchain is a transparent, immutable ledger that can store transactions, allowing the ownership of an asset to be stored and verifiable by any actor in the network, rather than by a central party.
What is tokenization?
Tokenization is an application of blockchain technology that enables a standardized framework to represent transaction terms and conditions in programmable form. Tokenization transforms the way that asset ownership is recorded, increasing transparency throughout the capital stack and facilitating automation between participants.
What is a token?
Tokens are digital representations of ownership of an asset that are stored on a blockchain. Among other things, these assets can be securities. Tokenized securities maintain the same economic and legal rights as those in certificate or book-entry form, but carry new capabilities that allow them to interoperate with other infrastructure such as secondary markets, which unlocks the potential for enhanced liquidity.
Are tokens regulated?
Security tokens are still securities and are regulated in the same manner as traditional securities. In the United States, securities are regulated by the Securities and Exchange Commission. Issuers who use the Factora platform to issue securities are assisted by a FINRA-registered and integrated broker-dealer, Propellr Securities LLC.
How do I store my tokens?
Tokens are stored in digital wallets. When you elect to hold your ownership in token form, we will ask that you confirm ownership of your wallet.
What is a digital wallet?
Digital wallets allow users to buy, sell and store their tokens on a blockchain. In order to approve a transaction from a user’s wallet, the user must sign the transaction with their private key. Digital wallets come in both software and hardware forms, with each having their own benefits.
How is my information protected?
Who can invest?
Investors are eligible to invest as long as they are properly signed up on factora.io, which includes providing up-to-date documentary evidence that they are Accredited Investors and confirming that they are not considered Bad Actors under Regulation D of the Securities Act of 1933. For more information on this, please visit the SEC website or the account opening section of factora.io.
How can I invest?
You may invest using USD or stablecoin, a digital currency the value of which is intended to be stable relative to a stable asset or basket of assets.
What is the minimum investment amount?
The minimum investment amount varies by offering. Please refer to the offering memorandum for the corresponding offering to confirm the minimum.
How will I receive distributions?
You may elect to receive distributions in USD or stablecoin. If you elect for distributions in stablecoin, you will be required to provide a wallet address. If, after choosing stablecoin distributions you later decide to opt out, please email us at firstname.lastname@example.org to switch your election to USD. Please note that this will only affect your future distributions.