Scenario 1: Co-owners redeem tokens after re-sale of an item.
When an item is re-sold to a 3rd-party following a successful vote by a 2/3 majority of the item’s co-owners, the distribution of sales proceeds requires redemption of the item’s ownership tokens. Redemption consists of DiviD placing a Standing Offer in the marketplace at a price per token that reflects the sales proceeds received, divided by the total number of ownership tokens, minus the platform fee. Through this process, holders return all their ownership tokens to the platform receive their pro-rata proportional share of the sales proceeds, bringing that asset’s ownership token life-cycle to a close
All token redemptions are required to be completed within 180 days of the item sale announcement. Concurrently with the opening of the redemption period, the item’s ownership tokens are delisted and removed from DiviDEX (once launched).
The asset’s Standing Offer for ownership tokens will be canceled after the 180-day redemption windows has closed and ownership tokens not redeemed within that period will be considered abandoned, and will not be redeemed in the future.
Scenario 2: Single owner redeems all tokens for the physical item.
A holder who buys all of an asset’s ownership tokens (representing 100% ownership interest) may redeem the tokens for physical delivery of the collectible item. Redemption consists of returning all the ownership tokens to the platform, paying the platform administrative fee, shipping, and any storage and insurance fees owed (see below) and completing an online form with the user’s contact information and verifiable shipping address in a country not subject to international shipping restrictions. Subsequently, the item’s ownership tokens are delisted and removed from DiviDEX (once launched).
“Tokens-for-Item” redemptions must be completed within 30 days of the date the holder acquires all the item’s ownership tokens. Holders of 100% of an item’s tokens who do not redeem them within the 30-day redemption window will be charged a flat monthly fee of $100 USD for insurance and storage of the item until redeemed. Storage and insurance fees for the post-redemption window will be in addition to the usual platform administrative fee and are required to be paid in full before an item is released and shipped to the redeeming owner.
If a “Tokens-for-Item” redemption has not been completed by the ownership token holder within a period of 180 days, DiviD Fractional Collectibles Marketplace reserves the right to sell the item and distribute any proceeds obtained from its sale to the holder via stablecoin or other cryptocurrency, less all accrued fees owed to the platform.