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By Joshua Freedman
• 24 articles

Getting Started with SecondaryDAO: A Step-by-Step Guide

Title: Getting Started with SecondaryDAO: A Step-by-Step Guide Introduction: Welcome to SecondaryDAO, the innovative platform that opens the doors to the world of fractionalized real estate investments. This comprehensive step-by-step guide is designed to assist users in navigating the process of starting their journey with SecondaryDAO, from the initial account setup to making their first investment in fractionalized real estate assets. Follow these detailed instructions to kickstart your investment journey on SecondaryDAO. Section 1: Creating Your SecondaryDAO Account 1. Begin by visiting the official SecondaryDAO website at SecondaryDAO.com. 2. Locate the "Sign Up" or "Create Account" option on the homepage and click to initiate the registration process. 3. Provide the necessary information, including your name, email address, and a secure password for your account. 4. Agree to the terms and conditions of SecondaryDAO and complete any additional verification steps required. 5. Congratulations! You have successfully created your SecondaryDAO account and are ready to explore the world of fractionalized real estate investments. Section 2: Navigating the Platform 1. Log in to your newly created SecondaryDAO account using your credentials. 2. Take a tour of the platform interface to familiarize yourself with the various sections and features available. 3. Explore the dashboard to view your account balance, investment opportunities, and other relevant information related to your account. Section 3: Investing in Fractionalized Real Estate 1. To start investing in fractionalized real estate assets, navigate to the "Marketplace section of the platform. 2. Browse through the available projects and select one that aligns with your investment preferences and goals. 3. Review the details of the selected project, including property information, investment terms, and the fractionalized token offering. 4. Enter the desired investment amount and proceed to confirm your investment. 5. Complete the transaction using the designated payment method or wallet integration provided by SecondaryDAO. Conclusion: By following this step-by-step guide, you have successfully initiated your journey with SecondaryDAO, from creating your account to investing in fractionalized real estate assets. As you continue your investment activities on the platform, remember to explore further opportunities and stay updated on new features and projects. Should you encounter any challenges or require assistance along the way, do not hesitate to reach out to the knowledgeable support team at SecondaryDAO for prompt assistance. Start your investment journey with SecondaryDAO today and seize the exciting opportunities that await in the world of fractionalized real estate.

Last updated on May 04, 2024

Understanding SecondaryDAO's Tokenomics: Explained

This article explains the tokenomics of SecondaryDAO, covering details about tokens, its purpose, and how they function within the ecosystem. Title: Understanding SecondaryDAO's Tokenomics: Explained Introduction SecondaryDAO is an innovative platform that specializes in tokenizing and fractionalizing companies that own properties. In this article, we will explore the unique tokenomics of SecondaryDAO and how it revolutionizes property investment. Each token represents ownership in a company that owns a specific property, with all rents and expenses flowing through that company and distributed to token holders. Tokenizing and Fractionalizing Companies SecondaryDAO's primary focus is on tokenizing and fractionalizing companies that own properties. In most cases, each company is associated with a single property, ensuring clear ownership and accountability. However, there may be cases where a company owns multiple properties, which might be specifically outlined. The Token Represents Ownership When an investor buys a token of a property on SecondaryDAO, they are effectively acquiring a token representing ownership in the company that holds the property. This ownership entitles them to a share of the property's benefits and returns. Read the operating agreement in the Document section for the listing! Property Operations through the Company All rents and expenses related to the property are handled by the company that issued the token. This setup ensures a streamlined process where the company manages day-to-day operations, including rent collection, property maintenance, and expense management. Token holders can rest assured that their investment is managed by professionals with expertise in property management. Distribution of Net Rents One of the significant advantages of owning tokens of a property through SecondaryDAO is the distribution of net rents. As the company receives rental income, expenses such as property taxes, insurance, and maintenance are deducted. The remaining net rents are then distributed proportionally amongst the token holders. Transparent and Accountable System SecondaryDAO's tokenomics brings transparency and accountability to property investment. Token holders can easily track the flow of funds within the company, ensuring that all rents and expenses are accurately recorded and distributed. This level of transparency builds trust among investors and fosters a strong sense of community within the SecondaryDAO ecosystem. Conclusion SecondaryDAO's pioneering tokenomics transforms property investment by tokenizing and fractionalizing companies that own properties. By buying tokens associated with specific properties, investors gain ownership in the company and the ability to receive net rents. This unique approach to property investment provides transparency, accountability, and attractive returns for token holders.

Last updated on May 04, 2024

Setting Up Metamask Wallet for SecondaryDAO Transactions on Arbitrum

SecondaryDAO offers a seamless transaction experience through Arbitrum, a layer 2 scaling solution built on Ethereum. To participate in SecondaryDAO's ecosystem on Arbitrum, setting up a Metamask wallet is crucial. This article will guide you through the process of setting up a Metamask wallet on Arbitrum, providing step-by-step instructions and essential tips to ensure a smooth experience. Step-by-Step Guide 1. Install the Metamask Extension: Visit the official Metamask website (https://metamask.io/) and download the extension compatible with your web browser. Follow the installation instructions to add the extension to your browser. 2. Create a New Wallet: Click on the Metamask icon in the top right corner of your browser to open the extension. Select "Create a Wallet" to initiate the wallet creation process. 3. Set a Strong Password: Choose a secure password for your wallet. Ensure it includes a combination of alphanumeric characters and symbols to enhance security. 4. Save Your Secret Backup Phrase: After setting your password, Metamask will provide you with a secret backup phrase. This backup phrase is crucial for recovering your wallet if needed. Write it down on paper or store it securely offline. Never share it with anyone. 5. Confirm the Secret Backup Phrase: To ensure you have accurately noted the backup phrase, Metamask will ask you to confirm select words from the backup phrase in the correct order. 6. Connect to Arbitrum: Access the network selection dropdown in Metamask and choose "Custom RPC." Provide the Arbitrum network details, including the RPC URL and chain ID. Save the configuration. 7. Fund Your Wallet on Arbitrum: To perform transactions on SecondaryDAO's Arbitrum network, you need to have funds in your wallet. Transfer some Ether (ETH) to your Metamask wallet on the Arbitrum network. Important Tips - Backup Your Wallet Regularly: It is crucial to create backups of your wallet periodically to prevent the risk of permanent loss in case of device failure or loss. - Secure Your Password and Backup Phrase: Safeguard your password and backup phrase from unauthorized access. These are essential for accessing and recovering your wallet. Store them securely offline. - Stay Alert for Phishing Attempts: Exercise caution to avoid falling victim to phishing attempts. Verify that you are using the official Metamask website or extensions when entering your wallet information. Conclusion Setting up a Metamask wallet on Arbitrum is an essential step to facilitate seamless transactions on SecondaryDAO's platform. By following the provided step-by-step instructions and implementing the provided tips, you can ensure a secure and efficient transaction experience. Empower yourself with the benefits of SecondaryDAO on the Arbitrum network, using the convenience of the Metamask wallet.

Last updated on May 04, 2024

Buying Fractionalized Real Estate Tokens on SecondaryDAO: A Step-by-Step Guide on Arbitrum

Navigating the realm of fractionalized real estate tokens on SecondaryDAO can be both exciting and rewarding. This guide is designed to walk you through the process of purchasing these tokens on SecondaryDAO's platform, leveraging the power of Arbitrum for efficient transactions. Discover all the necessary steps and considerations to make informed investment decisions. Step-by-Step Guide 1. Accessing SecondaryDAO's Platform: Visit the SecondaryDAO platform on Arbitrum by going to the provided website link and ensure that you are connected to the Arbitrum network on your Metamask wallet. 2. Browsing Available Real Estate Tokens: Explore the list of fractionalized real estate tokens available for purchase on SecondaryDAO. Each token represents ownership in a property, offering a unique investment opportunity. 3. Selecting a Real Estate Token: Choose a specific real estate token that aligns with your investment goals and preferences. Consider factors such as location, potential returns, and risk profile before making a decision. 4. Initiating the Purchase: Once you have selected a real estate token to purchase, follow the on-screen instructions on SecondaryDAO's platform to initiate the transaction. Confirm the details of the purchase and ensure that you have sufficient funds in your Metamask wallet on the Arbitrum network. 5. Completing the Transaction: After confirming the purchase details, approve the transaction through your Metamask wallet. Wait for the transaction to be processed on the Arbitrum network. Once confirmed, you will officially own a fraction of the chosen real estate asset. Important Considerations - Diversification: Consider diversifying your investment portfolio by purchasing fractionalized real estate tokens across different properties to mitigate risk and enhance returns. - Due Diligence: Conduct thorough research on the properties associated with the real estate tokens you intend to purchase. Verify relevant information such as rental income, property value, and potential for appreciation. - Understanding Tokenomics: Familiarize yourself with the tokenomics of the real estate tokens you are purchasing. Understand how returns are calculated, fees are charged, and how governance decisions impact your investment. Conclusion By following this step-by-step guide and considering the essential factors outlined, you can confidently purchase fractionalized real estate tokens on SecondaryDAO's platform using Arbitrum. Embrace the world of decentralized finance and real estate investment with SecondaryDAO, leveraging the efficiency and security of the Arbitrum network. Meta Title: Meta Description: Keywords:

Last updated on May 04, 2024

Exploring SecondaryDAO's Governance Features

As the realm of real estate continues to evolve with the advent of blockchain technology, platforms like SecondaryDAO are at the forefront of integrating decentralized governance structures into their operations. SecondaryDAO, a pioneering tokenized and fractionalized real estate platform based in El Salvador, not only offers investment opportunities but also provides its token holders with robust governance features. These features empower participants to have a significant say in the platform's development and future direction. Here’s a closer look at the governance features of SecondaryDAO, including its mechanisms for voting, proposals, and decision-making processes. Voting Rights At the core of SecondaryDAO’s governance structure are the voting rights granted to token holders. Each token represents a stake in the platform, and with it, the right to vote on key decisions. Voting power is typically proportional to the number of tokens a member holds, emphasizing a democratic approach where the extent of one's investment corresponds to one's influence over decisions. Proposal Framework SecondaryDAO utilizes a structured proposal framework that allows token holders to submit their ideas and suggestions for the platform. Proposals can range from changes in operational tactics to strategic pivots in business focus. The process begins with a proposal submission that is then vetted for viability and relevance by a preliminary committee. Once a proposal passes this initial phase, it is put forward for a community-wide vote. Decision-Making Process The decision-making process at SecondaryDAO is designed to be transparent and inclusive. Once proposals are approved for voting, a designated voting period begins, during which token holders can cast their votes. This period is crucial as it ensures that all stakeholders have ample time to evaluate the proposals and make informed decisions. The outcome of the vote determines whether a proposal is accepted or rejected, with results publicly disclosed to maintain transparency. Implementation of Decisions Upon approval, proposals are not just conceptual but are set in motion through a systematic implementation phase. This phase involves the detailed planning and allocation of resources to bring the approved proposals to fruition. SecondaryDAO’s management team, alongside its community members, oversees this process, ensuring that the decisions made by the token holders are executed efficiently and effectively. Continuous Improvement and Feedback SecondaryDAO recognizes the importance of continuous improvement and regularly seeks feedback from its community to refine its governance processes. This iterative feedback loop helps in adjusting and optimizing the governance framework to better suit the needs of the token holders and the overall strategic goals of the platform. In conclusion, the governance features of SecondaryDAO showcase its commitment to maintaining a decentralized and participatory approach. By allowing token holders to actively participate in the decision-making processes, SecondaryDAO not only enhances investor confidence but also ensures that the platform evolves in a direction that is aligned with the interests of its community. This forward-thinking approach to governance in the blockchain space sets a precedent for other platforms seeking to democratize real estate investment and management.

Last updated on May 10, 2024

How to Bridge Tokens from Ethereum to Arbitrum for SecondaryDAO

In the expanding world of blockchain and decentralized finance, the ability to seamlessly interact across different blockchain networks is crucial. For users of SecondaryDAO, which leverages the Arbitrum network to optimize its tokenized real estate transactions, bridging tokens from Ethereum to Arbitrum is a vital process. This guide will walk you through the step-by-step process of transferring your tokens from the Ethereum mainnet to the Arbitrum Layer 2 solution, allowing you to participate in SecondaryDAO's offerings more effectively. Understanding the Need for Bridging Bridging is a process used to transfer assets and data between different blockchains—in this case, from Ethereum to Arbitrum. Arbitrum operates as a Layer 2 solution that runs on top of Ethereum, providing faster transactions and lower fees while still maintaining the robust security features of the Ethereum network. By bridging tokens, users can take advantage of these benefits without fully moving away from the Ethereum ecosystem. Step 1: Choose a Compatible Wallet To start the bridging process, you need a wallet that supports both Ethereum and Arbitrum networks. Popular choices include MetaMask, Trust Wallet, and Coinbase Wallet. Ensure your wallet is set up and funded with ETH for transaction fees on both networks. Step 2: Connect to an Ethereum-to-Arbitrum Bridge Access a reliable Ethereum-to-Arbitrum bridge. The official Arbitrum Bridge (bridge.arbitrum.io) is commonly used due to its security and ease of use. Connect your wallet to the bridge’s website. Step 3: Select the Tokens to Bridge Once connected, select the tokens you wish to transfer to Arbitrum. SecondaryDAO may have specific tokens that need to be bridged for use on its platform. Enter the amount and ensure you have sufficient ETH in your wallet to cover the gas fees. Step 4: Initiate the Transfer Confirm the transaction details and initiate the transfer. The bridging process involves a series of transactions, including token approval and the actual transfer of tokens. Monitor these on both the Ethereum and Arbitrum networks. Step 5: Confirm on Arbitrum After the transaction is confirmed on Ethereum, wait for the tokens to appear in your wallet on the Arbitrum network. This may take some time depending on network congestion. Once confirmed, your tokens are ready to be used with SecondaryDAO. Final Thoughts Bridging tokens to Arbitrum not only allows you to engage with SecondaryDAO's offerings more efficiently but also helps you benefit from lower transaction fees and faster processing times. Always ensure to follow security practices such as using secure wallets and interacting with official bridges to avoid potential risks.

Last updated on May 10, 2024

Unlocking the Potential of Arbitrum Blockchain: An Overview and Guide

Understanding Arbitrum Blockchain: An Overview Arbitrum, a Layer 2 scaling solution, is designed to enhance the performance and scalability of Ethereum. It does so by processing transactions off the main Ethereum blockchain (Layer 1), allowing for faster and more cost-effective transactions while still leveraging the security of the Ethereum network. This article will provide an in-depth overview of Arbitrum, its functionalities, benefits, and its integration with platforms like SecondaryDAO. Key Features and Benefits of Arbitrum 1. Increased Transaction Throughput: Arbitrum can process a much higher volume of transactions compared to Ethereum's mainnet. This is achieved by executing transactions off-chain and only settling final results on Ethereum, reducing congestion and gas fees. 2. Compatibility with Ethereum: Developers can deploy existing Solidity smart contracts on Arbitrum without needing significant modifications, making it an attractive option for those looking to enhance their applications without leaving the Ethereum ecosystem. 3. Enhanced Privacy: Arbitrum uses optimistic rollups that assume transactions are valid by default, only running computation to verify transactions if a challenge is made. This method not only speeds up the process but also enhances privacy by reducing the amount of data that needs to be publicly verified on the blockchain. 4. Decentralization and Security: Despite being a Layer 2 solution, Arbitrum does not compromise on the decentralization or security aspects of its transactions. It relies on the underlying security of the Ethereum network, ensuring that assets are as secure as on the mainnet. Arbitrum's Functionality Arbitrum operates by grouping multiple transactions into a single batch, which is then executed on its chain. This batch is later confirmed on Ethereum, ensuring finality and security while minimizing the load on the main Ethereum blockchain. The primary components of Arbitrum's functionality include: - Rollup Nodes: These nodes execute the transactions and produce proofs (known as rollups), which are then posted to Ethereum. - Arbitrum Bridge: This bridge facilitates the transfer of assets between Ethereum and Arbitrum, allowing users to move funds securely and efficiently. - Arbitrum Sequencer: This acts as a temporary transaction aggregator before batches are finalized on Ethereum, improving transaction speed and reducing latency. Integration with SecondaryDAO SecondaryDAO utilizes Arbitrum for its real estate tokenization and fractionalization platform. By operating on Arbitrum, SecondaryDAO can provide faster transactions and lower gas costs, which are crucial for facilitating micro-transactions in real estate investing. Here's how Arbitrum integrates with SecondaryDAO: 1. Efficient Transactions: Investors on SecondaryDAO experience quick and cost-effective transactions when buying, selling, or trading fractionalized real estate tokens, thanks to Arbitrum's efficient processing. 2. Secure Asset Management: All transactions and tokenized assets benefit from the robust security measures provided by both Arbitrum and Ethereum, ensuring that investments are secure against vulnerabilities. 3. Scalability: As SecondaryDAO grows and processes more transactions, Arbitrum's scalability ensures that the platform can handle increased load without performance bottlenecks. Arbitrum offers a compelling solution for applications like SecondaryDAO that require the security and functionality of Ethereum but need more scalability and efficiency. By utilizing Arbitrum, SecondaryDAO ensures that its users can engage in real estate investment in a manner that is not only secure and decentralized but also fast and affordable.

Last updated on May 11, 2024

Navigating SecondaryDAO's User Interface: A Walkthrough

SecondaryDAO's user-friendly interface empowers users to explore the world of tokenized fractionalized real estate effortlessly. This article provides a detailed walkthrough of SecondaryDAO's user interface, highlighting its key features, sections, and functionalities. By following this guide, users can navigate the platform seamlessly and make the most out of their real estate investments. Help Chat on the Bottom Right: Located at the bottom right corner of the interface, the help chat feature aims to provide real-time assistance to users. If you encounter any difficulties or have questions while using SecondaryDAO, the chat feature allows you to connect with support professionals who can guide you through the platform's various functionalities. Dashboard: The dashboard is your gateway to an overview of your current holdings. Here, you can view the status of your investments, with market values displayed for easy tracking. Property cards within the dashboard provide access to due diligence information, including relevant news and data that can assist you in making informed investment decisions. Marketplace: The marketplace section on SecondaryDAO showcases properties that are available for tokenized fractionalized real estate investments. Browse through the listings to discover potential investment opportunities. You can explore property details, investment potential, and participate in token sales to acquire fractional ownership. The marketplace is a dynamic hub where buyers and sellers connect within the SecondaryDAO ecosystem. Payment: The payment section of SecondaryDAO facilitates seamless handling of rental payments and income distributions. Utilizing smart contract technology, rental income is automatically distributed to token holders' wallets, eliminating manual tracking and administrative burdens. This user-friendly payment system ensures prompt and accurate transactions, streamlining the management of real estate investments. Learning Center: The learning center within SecondaryDAO provides a wealth of educational resources to assist users at every step of their investment journey. Here, you can find comprehensive guides, video tutorials, and informative articles that cover topics ranging from real estate investment strategies to blockchain technology. The learning center helps users expand their knowledge and make well-informed decisions. FAQs: The FAQ section within SecondaryDAO addresses frequently asked questions, providing answers to common queries. Whether you have inquiries about the platform's features, tokenized fractionalized real estate, or general user account management, the FAQ section offers quick and convenient access to essential information. Settings: The settings section allows you to personalize your SecondaryDAO experience. Here, you can update account details, configure notification preferences, and manage security settings. You have control over your profile information, ensuring a tailored user experience within the platform. SWAP Wallet: The SWAP wallet feature in SecondaryDAO offers users the ability to swap coins quickly and easily. With this functionality, you can exchange different cryptocurrencies or tokens seamlessly, providing flexibility and liquidity to your portfolio. By familiarizing yourself with SecondaryDAO's user interface and its various sections and functionalities, you can navigate the platform with ease. Whether you are exploring the marketplace, handling payments, accessing educational resources, managing settings, or utilizing the SWAP wallet, SecondaryDAO is designed to provide a seamless and intuitive experience for tokenized fractionalized real estate investors. SecondaryDAO's user interface is designed to simplify the process of investing in tokenized fractionalized real estate. Through its intuitive design, helpful features, and easily accessible sections, users can efficiently manage their investments, access educational resources, and make well-informed decisions within the platform. Start navigating the SecondaryDAO interface today to unlock the potential of real estate investing in the digital age.

Last updated on May 11, 2024

Connecting to the Arbitrum Sepolia Testnet with MetaMask

Connecting to the Arbitrum Sepolia Testnet with MetaMask Step 1: Setting Up MetaMask To begin interacting with SecondaryDAO on the Arbitrum Sepolia Testnet, you'll first need to configure your MetaMask wallet: 1. Open MetaMask. 2. Switch to the Arbitrum Sepolia Testnet by selecting it from the network dropdown. If it's not already available, then you'll need to add it manually: - Network Name: Arbitrum Sepolia Testnet - New RPC URL: https://arb1.arbitrum.io/rpc - Chain ID: 421614 - Currency Symbol: ETH - Block Explorer URL: Arbiscan Step 2: Importing Tokens To interact with tokenized properties, follow these steps: 1. Navigate to the specific property page on secondarydao.com. 2. Copy the contract address of the property you're interested in. 3. In MetaMask, go to your wallet and select "Import Tokens." 4. Paste the contract address into the designated field and confirm. 5. Step 3: Interacting with Properties Once the token is imported, you can engage in activities such as buying or selling tokens: 1. Go to the Market tab on SecondaryDAO. 2. Select the property by its token to view available transactions. 3. Enter the number of tokens you wish to trade and execute your order. Helpful Tips - Always verify the contract address on the official SecondaryDAO website before importing tokens to avoid scams. - Ensure you have sufficient ETH in your wallet to cover transaction fees, which may vary based on network congestion. For more detailed guidance, visit our help section or contact our support team through the chat feature on our website.

Last updated on Jan 22, 2025

How SecondaryDAO Revolutionizes Real Estate Investment

SecondaryDAO is transforming how investors engage with real estate by leveraging blockchain technology to tokenize properties and offer fractional ownership. Traditionally, investing in real estate required significant capital and navigating through intermediaries like agents and legal representatives. SecondaryDAO eliminates these barriers by creating a decentralized ecosystem where property ownership is accessible to everyone. Through tokenization, properties are divided into digital tokens, with each token representing a share of ownership. For instance, a $200,000 property can be split into 200 tokens, each worth $1,000, making it easier for multiple investors to participate. On the SecondaryDAO platform, the minimum investment starts at just $50, allowing small-scale investors to become property owners and benefit from rental income and property appreciation. Smart contracts, deployed on the Arbitrum blockchain, ensure trust, transparency, and data security. These contracts automate and enforce transactions, removing intermediaries and reducing costs, while enabling faster, more efficient property acquisitions and trades. In addition to increased accessibility and affordability, tokenization enhances liquidity in the real estate market. Investors can trade property tokens on the SecondaryDAO marketplace after the Initial Property Selling (IPS) phase. The secondary market uses a centralized order book system where participants can place buy and sell limit orders based on fair market value, ensuring flexibility and transparency. SecondaryDAO is reshaping real estate investment into an inclusive and efficient model, driving innovation through blockchain's inherent attributes of robustness, security, and immutability.

Last updated on Mar 06, 2025

How Metrics Are Calculated in SecondaryDAO

SecondaryDAO uses a variety of metrics to evaluate property investments and ensure transparency in tokenized real estate transactions. Below is a breakdown of how the key metrics are calculated: 1. Total Investment Value (TIV): The total investment value represents the cost structure of a property asset on the marketplace. It is calculated as: TIV ($) = Underlying Property Price + Maintenance Reserves + Property Listing Fee - Underlying Property Price: This is the purchase price of the property, which fluctuates based on market conditions such as appreciation or depreciation. - Maintenance Reserves: A fixed amount allocated to cover property repairs and maintenance, replenished through rent deductions when necessary. - Property Listing Fee: SecondaryDAO charges a fee of 0-10% of the total property purchase price. TIV is then divided by $50, the initial property token price, to calculate the total number of tokens for the property. 2. Internal Rate of Return (IRR): IRR is a metric representing the potential returns from a property investment, considering cash flows and projected appreciation over time. It provides a combined measure of: - Cash-on-Cash Return: Yearly net cash flow relative to the total cash invested within the same year. For example, if an investor puts in $1,000 and earns $100 in a year, the Cash-on-Cash return is 10%. - Projected Appreciation: The expected increase in property value over time, calculated using the formula: Appreciation (%) = (Final Value – Initial Value) / Initial Investment × 100. IRR combines these two factors to give a comprehensive picture of expected returns, excluding external market conditions. 3. Cap Rate (Capitalization Rate): The Cap Rate assesses potential risk and return in real estate investments. It is calculated as: Cap Rate (%) = Net Operating Income (NOI) / Purchase Price × 100% This metric is particularly useful for comparing properties or markets and is regularly reevaluated to gauge market conditions. 4. Cash Flow: Cash Flow is the net monthly or annual income from a property after subtracting expenses from revenue. It provides insight into profitability. The formula for calculating monthly cash flow is: Cash Flow = Rental Income – Expenses For annual cash flow: Annual Cash Flow = Annual Gross Rent – Expenses Annual gross rent includes all tenant payments and supplementary income, such as parking or storage fees, while expenses include taxes, insurance, and maintenance costs. 5. Market Capitalization: Market capitalization in SecondaryDAO reflects the total value of a property based on current token prices. It is calculated as: Market Capitalization = Total Token Supply × Current Token Price This measurement dynamically adjusts based on token trading prices in the marketplace. By applying these calculations, SecondaryDAO ensures transparent and data-driven evaluation of properties, enabling investors to make informed decisions.

Last updated on Mar 06, 2025

SecondaryDAO Terms of Service and Privacy Policy

https://www.secondarydao.com/termsofservice https://www.secondarydao.com/privacypolicy Terms of Service Last Updated: Tuesday, 4/21, 2025 Welcome to SecondaryDAO.com (SD), operated by Secondary DAO SA de CV, ISAOA ATIMA. Please review the following terms carefully as they govern your use of our services. By accessing this site and any of its pages, you agree to be bound by the Terms of Service and Privacy Policy. 1. General Disclaimers - Secondary DAO SA de CV is not a registered broker-dealer or investment advisor and does not provide investment advice, endorsements, or recommendations for any properties listed on this site. - The content on this website is not an offer to sell, solicitation to buy, or a recommendation regarding any security. - You are solely responsible for evaluating whether an investment aligns with your objectives, financial circumstances, and risk tolerance. Consult with qualified legal and financial advisors for professional advice. 2. Account Requirements - You must open a SecondaryDAO Account to use our services. - During registration, accurate and complete information must be provided. You are fully responsible for all activity under your account. - Secondary DAO SA de CV reserves the right to suspend or terminate accounts for providing false or incomplete information. 3. Investment Risks Investing in real estate involves inherent risks, including: - Market volatility, which may result in partial or total loss of investments. - The unpredictability of future property values and potential negative cash flows. Before investing, carefully review all information and consult with tax and legal advisors. 4. Policies and Procedures (Articles 28–35 of the Regulation) 4.1 Spot Operations (Article 28) SecondaryDAO facilitates immediate transactions for tokenized real estate assets. Once the buy and sell sides agree on terms, transactions are settled instantly. This supports seamless trading and enhanced liquidity in our marketplace. 4.2 Forward Operations (Article 29) Currently, SecondaryDAO does not support forward operations. However, we may explore adding this feature in the future based on market demand and regulatory considerations. 4.3 Optional Purchase or Sale Operations (Article 30) Our platform does not yet support optional purchase or sale operations. Future updates may include these features depending on legal and operational advancements. 4.4 Settlement of Operations (Article 31) The SecondaryDAO Escrow Contract ensures secure and efficient settlements of digital asset transactions, maintaining compliance with applicable regulations. 4.5 Seizure, Arbitration, and Protection of Acquirers Assets (Articles 32–34) - Embargo (Article 32): SecondaryDAO has robust protocols to comply with legal embargoes on digital assets. While we provide self-custody wallets, our platform fosters a secure user environment. - Arbitration (Article 33): We adhere to international best practices for dispute resolution, offering an arbitration process for conflicts involving clients or the company. - Protection of Acquirers’ Assets (Article 34): Our Market Integrity Policy ensures operational transparency and fosters trust among participants. 4.6 Investments (Article 35) SecondaryDAO focuses on optimizing client returns while managing risks. We evaluate market conditions to make informed investment decisions responsibly. 5. Custodial Wallets SecondaryDAO does not offer a custodial wallet feature through its platform: - Users retain full control of their funds. - Funds are not used for any purposes without user consent. - Users must self-custody wallets and their contents at all times. 6. Withdrawal Limits There is a $50,000 USD weekly withdrawal limit for cash and cash equivalents, excluding property tokens. This limit is subject to change, but we strive to maintain liquidity. 7. Property Escrows Escrow accounts may be held in an IOLTA account managed by Secondary DAO SA de CV ISAOA ATIMA. Any accrued interest may be used to offset account management fees. 8. Third-Party Content Hyperlinks or reproduced content from third-party sources do not constitute endorsements by Secondary DAO SA de CV. 9. Contract Voting Any votes not made within timelimits will be proxied to the contract creator or contract manager ISAOA ATIMA. Acknowledgment of Risks By accessing this site, you understand and acknowledge: - The risks associated with real estate investments. - The potential for unpredictability in property performance and market value. Section X: Token Buyer Disclosures & System Governance Framework This section outlines the foundational disclosures, operational rules, and governance procedures applicable to all token buyers and users of the SecondaryDAO system. These terms are binding upon participation in any offering or transaction on SecondaryDAO. 1. Token Mechanics and Ownership - Property Tokens represent fractional economic rights in real estate-backed smart contracts but do not confer ownership or equity in the physical asset. - Tokens are issued to self-custodied ERC-20 wallets (e.g., MetaMask) and are non-custodial in nature. - Ownership entitles the holder to defined distributions (e.g., rental income), resale rights, and participation in governance votes, as applicable to each Property Contract. 2. Contract Evolution & Defaults Smart contracts govern all token interactions, and default behaviors may evolve. - New property deployments may: - Inherit default behaviors, - Override specific settings, - Or implement entirely new governance rules. - Unless otherwise stated, newly deployed contracts do not retroactively apply changes from earlier governance votes. 3. Governance Participation Token holders are granted governance rights over operational decisions including: - Property maintenance approvals - Distribution logic changes - Contract upgrades - Escrow reserve policies Default Voting Rules: - Any proposed action involving > $3,000 USD or 2% of the Initial Property Sale (IPS) value (whichever is greater) requires a vote. - Voting outcomes may be calculated as: - Simple majority (Yes vs. No votes) - Majority of total token supply (e.g., >50% of token holders voting Yes) - Specific rules are defined in the property’s smart contract. Proxy Voting: - If a holder does not vote within the designated timeframe, their vote is automatically proxied to the contract creator or manager (ISAOA ATIMA) unless explicitly opted out via wallet signature. 4. Escrow Replenishment Policy To ensure sustainability and risk mitigation, all Property Contracts implement automated escrow funding logic. Default Logic: - If escrow is <15% underfunded (i.e., at least 85% funded): - 20% of monthly rental income is allocated to replenish the escrow. - If escrow is ≥15% underfunded: - 50% of rental income is allocated to replenishment. - Remainder is distributed pro-rata to token holders. Governance Override: - Replenishment logic may be amended per-property by: - Voting among token holders - Contract upgrades with prior disclosure Transparency: - Escrow balances are published on-chain via smart contract functions (Balance(), TotalToken()). - Funding ratios and transaction history are publicly viewable. 5. Future Contract Deployments Upgraded contracts may change default rules. - Token holders will receive prior notice of any proposed changes or upgrades affecting: - Governance rules - Distribution policies - Escrow mechanics 6. Legal Acknowledgments By holding or interacting with Property Tokens: - You acknowledge the programmable, evolving nature of SecondaryDAO smart contracts. - You accept responsibility to review updates, vote on proposals, or opt out of proxy logic. - You acknowledge that participation is at your own risk and that SecondaryDAO does not guarantee returns, distributions, or asset performance. For additional information, please consult the Docs Center or contact us at [email protected]. Privacy Policy 1. Introduction This Privacy Policy ("Policy") describes how SecondaryDAO SA de CV ("SecondaryDAO SA de CV," "we," "us," or "our") collects, uses, and protects the personal information of users ("User," "you," or "your") who access our platform, website, or services. By using our services, you agree to the collection and use of your information in accordance with this Policy. 2. Information We Collect 2.1 Personal Information We collect personal information that you provide directly to us during the registration, KYC (Know Your Customer) process, and use of our services. This information may include, but is not limited to: - Full legal name - Date of birth - Nationality - Residential address - Government-issued identification (e.g., passport, national ID) - Email address - Phone number - Payment information (e.g., bank account details) - Transaction history 2.2 Non-Personal Information We may also collect non-personal information that cannot be used to identify you directly. This may include: - Browser type and version - IP address - Device type and operating system - Pages visited and the time spent on our website - Cookies and other tracking technologies 3. How We Use Your Information 3.1 Service Provision We use your personal information to provide and manage our services, including account creation, transaction processing, customer support, and compliance with legal and regulatory requirements. 3.2 KYC and AML Compliance Your personal information is used to verify your identity and assess your risk profile as part of our KYC and AML (Anti-Money Laundering) obligations. 3.3 Communication We may use your contact information to communicate with you about your account, service updates, or any issues related to our platform. This includes sending you transactional emails, security alerts, and important notices. 3.4 Marketing With your consent, we may use your information to send you promotional materials, newsletters, and other marketing communications. You can opt-out of these communications at any time. 3.5 Analytics and Improvements We use non-personal information to analyze how our services are used, to improve our platform, and to develop new features. This data helps us enhance user experience and tailor our services to better meet your needs. 4. Information Sharing and Disclosure 4.1 Third-Party Service Providers We may share your information with third-party service providers who assist us in delivering our services, such as identity verification services, payment processors, and cloud storage providers. These third parties are required to protect your information and use it only for the purposes for which it was shared. 4.2 Legal Compliance We may disclose your information to law enforcement, regulatory authorities, or other governmental entities if required by law or in response to legal requests (e.g., subpoenas, court orders). 4.3 Business Transfers In the event of a merger, acquisition, or sale of all or part of our business, your personal information may be transferred to the acquiring entity as part of the transaction. We will notify you of any such transfer and any new privacy policies that may apply to your information. 4.4 Consent We may share your information with third parties if you provide explicit consent for such sharing. 5. Data Retention We retain your personal information for as long as necessary to fulfill the purposes outlined in this Policy, including compliance with legal obligations, dispute resolution, and enforcement of our agreements. When your information is no longer needed, we will securely delete or anonymize it. 6. Data Security We implement appropriate technical and organizational measures to protect your personal information from unauthorized access, disclosure, alteration, or destruction. These measures include encryption, access controls, and regular security assessments. 7. Your Rights 7.1 Access and Correction You have the right to access and request correction of any personal information we hold about you. You may update your account information directly through our platform or contact us to request changes. 7.2 Data Portability You have the right to request a copy of your personal information in a structured, commonly used, and machine-readable format. 7.3 Right to Erasure You have the right to request the deletion of your personal information, subject to certain legal or contractual limitations. 7.4 Objection and Restriction You have the right to object to the processing of your personal information or request that we restrict its processing under certain circumstances. 7.5 Withdrawal of Consent If you have provided consent for the collection, use, or sharing of your personal information, you have the right to withdraw that consent at any time. However, this may limit your ability to use certain features of our services. 8. Cookies and Tracking Technologies We use cookies and similar tracking technologies to enhance your experience on our website. These technologies allow us to remember your preferences, track user activity, and analyze site traffic. You can control the use of cookies through your browser settings. 9. International Data Transfers Your personal information may be transferred to and processed in countries outside of your jurisdiction, including countries that may not have the same level of data protection as your home country. By using our services, you consent to such transfers. 10. Changes to This Policy We may update this Privacy Policy from time to time to reflect changes in our practices, technology, legal requirements, or other factors. We will notify you of any significant changes by posting the updated Policy on our website and, if applicable, through other communication channels. 11. Contact Us If you have any questions or concerns about this Privacy Policy or how we handle your personal information, please contact us at: SecondaryDAO SA de CV SV [email protected]

Last updated on Apr 21, 2025

📘 Understanding SecondaryDAO Property Metrics: A Complete Guide

📘 Understanding SecondaryDAO Property Metrics: A Complete Guide Last updated: July 11, 2025 📌 Overview SecondaryDAO’s financial model is built on a simple but rigorous principle: real estate tokenization is based on actual acquisition cost plus all setup and reserve expenses, not just the seller’s asking price or estimated valuation. Each metric displayed in the dashboard reflects real-world underwriting, enabling investors to evaluate offerings with confidence. Token supply is determined by this formula: Total Capitalization (acquisition + reserves + setup) ÷ Token Price For example, the following costs are typically included: - Seller’s Proposed Asking Price – $50,000 - SD Listing Fee – $3,500 - Vacancy Reserve (2%) – $1,000 - Initial Maintenance Reserve (5%) – $2,500 - LLC Setup Fee – $600 - Appraisal and/or Inspection – $600 Total Investment Raise: $58,200 Token Price: $50 Total Token Supply: 1,164 tokens Every financial and yield metric on the platform flows from this foundation. 🏗️ Property Lifecycle & Data Evolution Phase 1: Pre-Launch The property record is initialized with basic metadata (name, address, type, image). Metrics will display as “Not Set.” Badge: NEW PROPERTY Phase 2: Simulated Metrics Data is imported from underwriting spreadsheets. The platform calculates token supply, CoC%, yields, and IRR based on defined costs. Badge: USING ESTIMATES Phase 3: Smart Contract Deployment Tokens are minted based on fixed supply. Escrow is created. Badge: READY TO LAUNCH Phase 4: Active Trading Tokens become tradable on the secondary market. Real rent collection and distributions begin. Badge: TRADING ACTIVE 📊 Core Financial Metrics Token Price Typically set at $50, this represents the base unit value used to derive token supply from the total capital stack. It may remain fixed or adjust in future offerings. Token Supply Calculated from total acquisition + reserve + setup costs, not valuation. Formula: Token Supply = (Acquisition + Setup + Reserves) ÷ Token Price Example – 123 MainST17050 - Asking Price: $50,000 - SD Listing Fee: $3,500 - Vacancy Reserve: $1,000 - Maintenance Reserve: $2,500 - LLC Setup Fee: $600 - Appraisal/Inspection: $600 - Total Raise: $58,200 - Token Price: $50 - Token Supply: 1,164 tokens Market Capitalization Token Price × Token Supply Example: $50 × 1,164 = $58,200 Net Asset Value (NAV) Reflects current or projected appraised value. NAV can diverge from market cap when token price is based on cost rather than market valuation. 📈 Yield & Return Metrics Cash-on-Cash Return (CoC%) Measures net income return on total raised capital. Formula: CoC% = (Annual Net Cash Flow ÷ Total Investment Raise) × 100 Example: $12,102 ÷ $58,200 = 20.79% Gross Rental Yield Represents rent relative to property value. Formula: (Annual Gross Rent ÷ Property Price) × 100 Example: $18,000 ÷ $50,000 = 36.0% Token Yield Reflects what tokenholders receive annually relative to their $50 token. Formula: (Annual Distribution ÷ Token Price) × 100 Example: $10/year ÷ $50 = 20% Projected Internal Rate of Return (IRR) Incorporates rental income, appreciation, and exit assumptions. Example: If $121,020 is the modeled sale price after 5 years, the implied IRR is ~10%. 🏷️ Badge System Badge Condition Meaning NEW PROPERTY Data score < 3/5 Only basic details entered USING ESTIMATES Mock data imported Simulated metrics visible READY TO LAUNCH Token supply set, escrow ready Smart contracts deployed TRADING ACTIVE Trading live Market activity and price visibility RENTAL INCOME Rent collected and distributed Real returns flowing to tokenholders 📊 Data Source Integrity Data Type Source Accuracy Update Frequency Property Info Admin input High As needed Token Economics Derived from cost structure High At listing Pre-Launch Financials Spreadsheet import Moderate Pre-listing Rental Income Property managers High Monthly Trading Data Blockchain Immutable Real-time 🎯 How to Interpret the Metrics For Pre-Launch Properties Metrics such as CoC%, IRR, and token yield are derived from pro forma projections based on hard costs and expected income. These are useful for modeling investor returns but not guarantees. For Active Properties Metrics reflect actual operating performance. Rental income and tokenholder distributions update monthly. Token prices may adjust based on supply/demand in secondary markets. ⚠️ Red Flags to Watch For - “Calculating…” remains unresolved → Data may be missing - Unrealistically high returns → Check expense/reserve inputs - NAV differs sharply from market cap → Token price may need review - No rental income on active listing → Possible vacancy or reporting lag 🧠 Investment Decision Support Compare Properties Intelligently - Favor high data quality scores (3–5) - Ensure reserve and setup costs are clearly defined - Match CoC% and IRR with your investment goals - Consider diversification by asset type and geography Understand Risk Profiles Lower Risk: - Documented reserves - Strong rental history - Multi-unit or diversified tenant base - Conservative leverage Higher Risk: - No reserves included - Speculative IRR assumptions - Single-tenant properties - High reliance on appreciation to justify returns 🔄 Transparency & Update Frequency Metric Type Frequency Token Trading Data Real-time Rental Income Monthly Property Valuation Quarterly/Annual Mock Data Updates On-demand All changes are logged, versioned, and transparently disclosed to stakeholders. 📞 Support Channels - General Info: SecondaryDAO Help Center - Property Questions: Assigned property manager via support chat - Metric Inaccuracies: Email [email protected] - Investment Advice: Consult a licensed financial advisor (SecondaryDAO does not provide financial advice) 🚨 Reporting Issues To report data issues: 1. Screenshot the page or error 2. Identify the property and metric 3. Submit via chat or email Guaranteed response within 24 hours 📌 Final Note All SecondaryDAO property metrics begin with real-world, line-item costs—not hypothetical values. By tokenizing the actual acquisition, reserve, and onboarding expenses, investors receive a more accurate, cost-based stake in each asset. Use these metrics as tools to assess risk, measure performance, and make smarter real estate investment decisions. Disclaimer: This guide is informational and does not constitute investment advice. Always review our Risk Disclosures and consult qualified professionals before investing.

Last updated on Jul 11, 2025

⚠️ SecondaryDAO Risk Disclosure Summary

⚠️ SecondaryDAO Risk Disclosure Summary Last updated: April 21, 2025 This summary is for informational purposes only and does not constitute financial advice. 📌 Why Risk Disclosure Matters Investing in tokenized real estate on SecondaryDAO carries both opportunity and risk. While our platform is designed for transparency, security, and ease of use, it’s important you understand the risks involved before buying property tokens. 🏠 Real Estate Investment Risks Even tokenized real estate is subject to traditional real estate risks, including: - Property Damage: Fires, floods, or disasters can temporarily halt income and reduce property value. Mitigation: We carry insurance and maintain repair reserves. - Market Fluctuations: Real estate values can drop due to local conditions or broader economic changes. Mitigation: We update property valuations regularly and encourage diversification. - Economic Shocks: Rising interest rates or inflation can reduce demand and increase costs. Mitigation: We use stablecoins (USDC/USDT) and maintain flexible minimum investment thresholds. 💸 Token-Specific Risks Tokenizing real estate introduces additional considerations: - Liquidity Risk You may not be able to sell your tokens quickly or at your desired price—especially in thin markets. We operate a secondary market to help match buyers and sellers. - Governance Risk Some decisions (e.g., major repairs) require DAO token holder votes. Low participation can delay action. We enforce voting thresholds and educate users on participation. - Platform Downtime Technology failures can impact token trading or rental income distribution. We use redundant infrastructure and perform regular failover tests. 🛡️ Cyber & Security Risks - Smart Contract Bugs: Undiscovered code vulnerabilities may allow unauthorized access. We conduct external audits and monitor all contracts post-launch. - Asset Theft: While most user funds are kept in cold wallets, a portion remains in hot wallets to support real-time transactions. We cap hot wallet exposure and use multi-signature access. - Data Breach: Unauthorized access to your personal data (e.g., KYC details). We use AES-256 encryption, multi-factor authentication (MFA), and role-based access controls. 🧾 Regulatory & Legal Risks - Compliance Failures: If we or our partners fail to comply with El Salvador’s digital asset laws, it could impact your access to tokens or funds. We undergo regular audits and report any suspicious activity to regulators. - Jurisdictional Limitations: Some users may not be able to invest or trade due to local laws. We screen users during onboarding and restrict access where required. 🔄 What We’re Doing to Protect You - Real-time AML/KYC checks and transaction monitoring - Insurance and reserves for physical damage - Regular property valuations and smart contract audits - Detailed logging and quarterly risk reviews - Transparent governance through DAO voting 🚨 Final Notes All investments carry risk. Never invest more than you’re prepared to lose. We encourage you to: - Diversify your holdings across multiple properties - Review each property's Data Quality Score and Historical Performance - Ask questions before investing—our team is here to help 📞 Questions or Concerns? - General Support: Chat with us anytime by going to app.secondarydao.com and clicking on the chatbot on the bottom right. - Legal or Risk Questions: [email protected] - Need Help Making a Decision? Consult a licensed financial advisor Would you like this summary as a standalone .md file or embedded into your Chatwoot knowledge base HTML? I can generate that next.

Last updated on Jul 11, 2025

🏦 Understanding Escrows in Tokenized Real Estate on SecondaryDAO

🏦 Understanding Reserve Funds in Tokenized Real Estate Last updated: October 25, 2025 Contract Version: PropertyReserveFundManager v2.0.0-UUPS 📘 What Are Reserve Funds? Think of reserve funds as your property’s financial safety net 🛟. They’re on-chain savings set aside to handle predictable costs like taxes, insurance, maintenance, and vacancies — the unglamorous but essential stuff that keeps your investment smooth and stress-free. On SecondaryDAO, every property has its own PropertyReserveFundManager smart contract, ensuring transparency, automation, and zero surprises. 💡 These aren’t fees. They’re protective cushions that ensure your property operates seamlessly — even when things get bumpy. 🗂️ The 10 Reserve Categories Every property you invest in has a mix of one-time setup reserves and auto-replenishing reserves. 💼 One-Time (Setup) Reserves These are paid once during the property raise and aren’t replenished: - 🏛 DAO Listing Fee – modest contribution to maintain the platform - 🧰 Deferred Maintenance – covers known fixes upfront - 🏢 LLC Setup Fee – legal entity creation - 🏠 Appraisal / Inspection – professional evaluation costs - 📑 Transfer Taxes / Fees – standard closing costs - 📎 Miscellaneous – any small extras (usually zero) 🔁 Auto-Replenishing (Ongoing) Reserves These stay topped up through rental income: - 🏘 Vacancy Reserve – covers rent gaps - 🧱 Maintenance Reserve – funds repairs and upkeep - 💸 Annual Taxes – property taxes paid smoothly - 🛡 Annual Insurance – ensures coverage never lapses 💰 Reserve Lifecycle Phase 1 – Initial Capitalization (At Property Raise) When a property is tokenized, reserves are funded upfront alongside the purchase. Formula: Total Raise = Purchase Price + Total Reserve Requirements Example for a $200K Property: Item Amount Property Purchase $200,000 Vacancy Reserve $10,000 Maintenance Reserve $5,000 Deferred Maintenance $2,500 LLC Setup $1,000 Appraisal $500 Transfer Taxes $2,000 Annual Taxes $2,400 Annual Insurance $1,600 DAO Listing Fee $1,500 Total Raise $226,500 This ensures every property starts off financially solid 💪 — no waiting on rent to cover bills. Phase 2 – Allocation (Post-Sale) Once tokens are sold, the smart contract automatically assigns funds to each reserve category — all visible on-chain. Phase 3 – DAO Listing Fee When trading starts, a small platform fee goes to SecondaryDAO’s treasury to keep operations secure and compliant. Then that reserve is zeroed out. Phase 4 – Day-to-Day Operations Every rent payment triggers: 1. 💵 Rent received 2. 🧮 System checks for shortfalls 3. 🔄 Reserves topped up (if needed) 4. 💸 Remainder distributed to investors Everything’s automatic and transparent. 🔄 The Tiered Rebuilding System To keep things balanced, the system adjusts how much rent is withheld based on how healthy the reserves are. Think of it as adaptive cruise control for your investment 🚗💨. Tier Shortfall Withheld Description 🟢 FULL 0% 0% All rent paid to investors 🎉 🔵 TARGETED <25% Just enough monthly Light touch build-back 🟠 STANDARD 25–49% 50% Balanced recovery 🔴 AGGRESSIVE 50–74% 75% Faster rebuilding ⚫ EMERGENCY ≥75% 90% Safety-first mode Example Property Value: $200K Total Required Reserves: $20K Current Balance: $10K (50% funded) Monthly Rent: $2,000 ➡️ Shortfall = $10K (50%) → Tier = Aggressive Rebuilding ➡️ Withholding = 75% of rent = $1,500 ➡️ Token holders receive = $500 (25%) ✅ Next month, the system recalculates automatically — no human needed. 🎯 Replenishment Priority When rent is withheld, it’s allocated in this order: 1. 🏘 Vacancy Reserve 2. 🧱 Maintenance 3. 💸 Taxes 4. 🛡 Insurance Each step is logged on-chain with time-stamped events, so you can see every move transparently. 📊 Transparency You Can Verify Every transaction triggers public blockchain events showing: - Rent received - Tier applied - Amount withheld - Distribution to investors - Remaining shortfall You can literally watch your property’s financial health improve in real-time 🧠💎. 📱 Investor Dashboard Perks From your SecondaryDAO dashboard, you can: - View current reserve levels - Preview next month’s rent split - See tier status (with shortfall %) - Track where every dollar goes All powered by smart contracts — no spreadsheets, no guesswork, just math and transparency. ⚙️ Governance & Security - 🧑‍⚖️ Admin controls for configuration - 🔐 Multi-signature treasury for disbursements - ⏸ Pause protection in case of anomalies - 🧩 Upgradeable architecture for future improvements Every property runs independently — no cross-drain risk, ever 🚫💦. 📈 Why This Matters to Token Buyers ✨ Predictable Yields: Your payouts are never interrupted by surprise expenses. 🏡 Stability: Properties stay insured, taxed, and maintained year-round. 🔍 Transparency: You can see reserve actions in real time — fully on-chain. 🤖 Automation: Smart contracts do the heavy lifting, no human meddling. 📜 Compliance: Built for El Salvador’s CNAD DSAP framework and beyond. 🧮 Example Timeline – $200K Property Month 1 – Fully Funded 🟢 Reserves = $20K (100%) Rent = $2,000 → Distributed 100% Per Token (1,000 tokens): $2.00 Month 4 – Maintenance Event 🔧 $4,000 spent on roof repairs → 20% shortfall System switches to TARGETED mode Withholds $400/month until full again Month 7 – Vacancy 🕳️ No rent for 1 month → Vacancy Reserve covers it Next rent resumes with STANDARD rebuilding Half of rent distributed, half rebuilt 🚀 Final Takeaway SecondaryDAO’s reserve system isn’t just about covering costs — it’s about protecting your yield and stabilizing your property long-term. - 10 transparent reserve categories 🧾 - 5 smart tiers that adapt to property health 📊 - 100% on-chain tracking 🔗 - 0 surprises 🎯 Your investment isn’t just tokenized — it’s intelligently managed. Contract: PropertyReserveFundManager v2.0.0-UUPS Testnet Address: 0x457cCf29090fe5A24c19c1bc95F492168C0EaFdb Audit: Internal complete, external pending Need help? 💬 [email protected] or join our community on Discord.

Last updated on Oct 25, 2025

🌐 Understanding Rent Distributions & Escrows

🌐 Understanding Rent Distributions & Escrows ⚡ Quick Summary (TL;DR) 💸 When do I get paid? - 📅 Monthly: Last day of each month @ 11:59 PM UTC - ✅ KYC approved? → 💵 Auto-paid to your wallet - ⏸️ Not KYC approved? → 💰 Held until you verify 📊 How much? 👉 Your share = % of tokens you own × Net rental income Example: 1% ownership in $10,000 net income = $100 payout 🧮 What Gets Deducted First? Before distributions, income flows through this waterfall: 1️⃣ Management fees (2–5%) 2️⃣ Operating expenses (utilities, taxes, insurance, maintenance) 3️⃣ Reserve replenishment (if needed) 4️⃣ 💵 Your distribution (what’s left) 🏦 Where Does My Investment Go? 1. Escrow Account (initial) - 🔒 Holds your funds during the token sale - 💡 Released only after property purchase completes 2. Operational/Rental Account (ongoing) - 📥 Collects tenant rent - 🧾 Pays expenses & reserves - 💸 Sends monthly distributions 📅 Key Dates to Remember - 📆 Weekly: Rent collected - 📊 Month-end: Distribution calculated - 🗓️ Record Date: Last day of month = who’s eligible - 💵 Payment Date: Within 24 hours after month-end 🪣 Reserve Management System Each property maintains safety reserves: - 🛠️ Operating Reserve – 3 months of ops costs - 🏠 T&I Reserve – Taxes & insurance - 🔧 CapEx Reserve – Repairs & upgrades - 💳 DSRA – Mortgage buffer (if applicable) **Replenishment Logic: **(more details...) - ⚠️ Minor (<75% full): 30% of income held back - 🚨 Major (<50% full): 70% held back - 🛑 Critical (<25% full): 100% held back 🌳 Merkle Root Distribution Every payout is cryptographically verifiable: - 📑 Calculate each investor entitlement - 🌳 Generate tamper-proof Merkle Tree - 🔗 Publish Merkle Root (on-chain) - 💵 Push payments to wallets - 📜 Audit trail logged forever 🔐 KYC/AML Requirements - 👤 Why required? Investor protection, anti-fraud, tax compliance - 🛑 If not approved: - Your share is still calculated - Funds withheld (not lost) - 📌 Once verified → all withheld + current released 🏗️ Escrow Recapture Scenarios Sometimes rent is redirected to escrow: - 🧾 Shortfall in initial funding - 🔥 Emergency capital needs - 🛠️ Major unplanned repairs ➡️ Rent diverted to rebuild escrow → distributions resume when back on target 💱 Payment Methods - Standard token: USDC (USD Coin) - 🔒 Stable, low-fee, widely supported - ⚙️ Flow: Rent → USDC → Smart Contract → Wallet - 📜 Tx hash provided for every payout 📑 Tax & Compliance - 📬 Monthly payout statements - 📊 Annual tax docs (1099-DIV equivalent) - ⚖️ Generally treated as ordinary income - 🌍 International: Possible withholding 🛡️ Smart Contract Security - 🔑 Multi-sig approvals for large transactions - ⏳ Time-locked withdrawals - ✅ Audited contracts - 🛡️ Insurance coverage Transparency: - 📖 All payouts recorded on blockchain - 🔍 Merkle proofs = math-level verification - 📊 Live reserve dashboards 🤔 Common Scenarios 1. 👋 First-time investor → Buy tokens → Verify KYC → Wait → 💸 First payout 2. 🚫 Miss KYC → Payout withheld → Verify later → Receive current + withheld 3. 🛠️ Major repair → Reserves topped up → Smaller distribution that month 4. 🏚️ Property sold → Escrow pays expenses → Remaining funds distributed → Tokens burned 🧾 Example Calculation Property Rent: $50,000 - – Mgmt Fee (3%): –$1,500 - – Expenses: –$8,000 - – Reserves: –$5,000 = Net Distributable: $35,500 👉 If you own 2.5% → $887.50 🙋 Frequently Asked Questions ❓ Buy mid-month? ➡️ Eligible from next month. ❓ Change wallet address? ➡️ Must update before 25th. ❓ Unclaimed payouts? ➡️ Never expire; always yours. ❓ Guaranteed? ➡️ ❌ No. Based on actual rent/expenses. ❓ Emergencies? ➡️ Reserves used first, distributions reduced if needed. 📬 Need Help? - 🔎 [email protected] - 📊 View Dashboard → app.secondarydao.com/distributions 🕒 Last Updated: 8/16/2025

Last updated on Aug 16, 2025

SecondaryDAO Property Metrics Guide for Investors

SecondaryDAO Property Metrics Guide for Investors Overview This guide explains how all property statistics are calculated on the SecondaryDAO platform. Understanding these metrics will help you make informed investment decisions when buying, selling, and holding tokenized real estate. Key Investment Metrics 1. Token Yield (Current Yield) 📊 What it means: The annual return you receive from holding tokens, based on rent distributions. How it's calculated: Token Yield = (Annual Distributable Cash ÷ Market Cap) × 100 Example: 123 Main St - Annual Distributable Cash: $24,300 (rent minus expenses) - Market Cap: $282,400 (all tokens at current price) - Token Yield: 8.6% Why it matters: This is your actual cash return rate from holding tokens. Higher yields mean more monthly income. 2. Gross Yield 🏠 What it means: Total rental income relative to the property's value, before any expenses. How it's calculated: Gross Yield = (Annual Gross Rent ÷ Property Value) × 100 Example: 123 Main St - Annual Gross Rent: $30,000 (12 × $2,500 monthly) - Property Value: $250,000 (fair market value) - Gross Yield: 12.0% Why it matters: Shows the property's income potential. Compare this to other real estate investments. 3. Cash-on-Cash Return 💰 What it means: Your cash return on the actual money you invested. How it's calculated: Cash-on-Cash = (Annual Cash Flow ÷ Your Investment) × 100 Example: 123 Main St - Annual Cash Flow: $24,300 (after all expenses) - Total Investment Raised: $282,400 - Cash-on-Cash: 8.6% Why it matters: This is your true return on investment. In SecondaryDAO, this often equals Token Yield since all cash flow is distributed. 4. Cap Rate (Capitalization Rate) 📈 What it means: Industry standard metric for comparing property investments. How it's calculated: Cap Rate = (Net Operating Income ÷ Property Value) × 100 Example: 123 Main St - Net Operating Income: $24,300 (rent minus operating expenses) - Property Value: $250,000 - Cap Rate: 9.7% Why it matters: Higher cap rates typically indicate higher income relative to property value. Compare to other markets. 5. NAV Premium/Discount ⚖️ What it means: How much the tokenized investment trades above or below the actual property value. How it's calculated: NAV Premium = ((Market Cap - Property Value) ÷ Property Value) × 100 Example: 123 Main St - Market Cap: $282,400 (what investors pay for all tokens) - Property Value: $250,000 (actual property worth) - NAV Premium: +13.0% Why it matters: - Positive (+13.0%): You're paying a premium above property value - Reason: Premium includes reserves, listing fees, and initial operating capital - Consider: Whether the premium is justified by income potential Income Distribution Metrics Per-Token Monthly Distribution 💵 What you receive: Actual cash payments to your wallet each month. How it's calculated: Monthly per Token = (Annual Distributable Cash ÷ Total Tokens) ÷ 12 Example: 123 Main St - Annual Distributable Cash: $24,300 - Total Tokens: 5,648 - Monthly per Token: $0.36 For 100 tokens: $35.85 per month = $430.24 annually Expense Ratio 📋 What it means: How much of rental income goes to operating the property. How it's calculated: Expense Ratio = (Operating Expenses ÷ Gross Rent) × 100 Example: 123 Main St - Operating Expenses: $5,700 (taxes, insurance, management, DAO fees) - Gross Rent: $30,000 - Expense Ratio: 19.0% Why it matters: Lower is better. Well-managed properties typically have 15-25% expense ratios. Advanced Metrics Projected IRR (Internal Rate of Return) 🚀 What it means: Total expected return including both cash flow and property appreciation. How it's calculated: Projected IRR = Cash-on-Cash Return + Expected Appreciation Example: 123 Main St - Cash-on-Cash Return: 8.6% - Expected Appreciation: 3.0% annually - Projected IRR: 11.6% Why it matters: Your total investment return over time. Consider this against other investment options. Market Cap 🌐 What it means: The total value of all tokens at current trading price. How it's calculated: Market Cap = Token Price × Total Token Supply Example: 123 Main St - Token Price: $50 - Total Supply: 5,648 tokens - Market Cap: $282,400 Why it matters: Shows the total investment size and liquidity of the token. What These Numbers Mean for Investors 🟢 Strong Investment Indicators: - High Token Yield (8.6%): Good monthly income - Reasonable Cap Rate (9.7%): Competitive with real estate market - Low Expense Ratio (19.0%): Efficiently managed property - Positive Cash Flow: Property generates income after all expenses ⚠️ Things to Consider: - NAV Premium (+13.0%): You're paying above property value - Why Premium Exists: Includes reserves for vacancies, maintenance, and platform fees - Income Stability: Depends on tenant occupancy and rent collection 📊 Comparison Benchmarks: - Traditional REITs: 3-6% dividend yields - Direct Real Estate: 6-12% cap rates - Bonds/CDs: 2-5% yields - 123 Main St Token Yield: 8.6% (competitive) How Data is Verified Data Sources (in priority order): 1. Master Spreadsheet: Verified property financials and projections 2. Actual Rent Payments: When available from smart contracts 3. Property Management Reports: Monthly operational data 4. Market Comparables: Local real estate data Calculation Updates: - Real-time: API provides current calculated metrics - Monthly: Updated with actual rent and expense data - Quarterly: Reviewed and adjusted for market changes - Annually: Full property revaluation Transparency Features: - Tooltips: Show exact calculation formulas - Data Quality Tags: Indicate if metrics are "Estimated," "Projected," or "Actual" - Audit Trail: All calculations are logged and verifiable Risk Considerations Metric Limitations: - Projections: Based on current market conditions and assumptions - Actual vs. Estimated: Early properties may use estimated expenses - Market Risk: Token prices and yields can fluctuate - Vacancy Risk: Lower occupancy reduces actual distributions Due Diligence: - Review expense breakdown - Are costs reasonable? - Check market comparables - How do yields compare locally? - Understand the premium - Why are you paying above property value? - Consider liquidity - Can you easily buy/sell tokens? Reading the Platform Marketplace View: - Token Price: Current cost per token - Token Yield: Expected annual return rate - Gross Yield: Property's income potential - Status: "Live Sale," "Trading," etc. Property Details View: - Real Estate Metrics: Gross yield, cap rate, NOI, expenses - Crypto/Market Metrics: Token yield, market cap, NAV premium - Buy/Sell Widget: Per-token income projections - Performance Tab: Trading history and volatility Your Dashboard: - Portfolio Value: Total token holdings at current prices - Monthly Income: Expected distributions from all properties - Performance: Gains/losses and yield over time Smart Contract Integration Actual Rent Tracking: Once properties are operational, the platform will display actual rent collected from smart contracts: - Monthly Deposits: Property managers deposit actual rent collected - Distribution Events: Smart contracts log all rent payments - Yield Updates: Metrics update based on real performance vs. estimates Transparency Benefits: - Verifiable Income: All rent payments recorded on blockchain - Automated Distributions: Smart contracts handle monthly payments to token holders - No Trust Required: Blockchain ensures transparent income distribution Investment Strategy Implications High-Yield Focus (8.6% Token Yield): - Good for: Income-focused investors seeking monthly cash flow - Risk level: Moderate (depends on property management and market) - Compare to: Traditional dividend stocks (2-4%) or REITs (4-6%) Premium Consideration (+13.0% NAV): - Trade-off: Pay premium for professional management and liquidity - Benefits: No landlord responsibilities, instant liquidity, fractional ownership - Cost: Higher price than direct property ownership Portfolio Diversification: - Geographic: Different markets and property types - Yield Range: Mix high-yield and stable properties - Liquidity: Balance long-term holds with trading opportunities Frequently Asked Questions Q: Why is Token Yield different from Gross Yield? A: Token Yield (8.6%) is after expenses; Gross Yield (12.0%) is before expenses. Q: Why do I pay a NAV Premium? A: The premium covers reserves, platform fees, and provides instant liquidity vs. buying property directly. Q: How often do I receive distributions? A: Monthly, based on actual rent collected and distributed through smart contracts. Q: Are these returns guaranteed? A: No. Returns depend on actual rent collection, property performance, and market conditions. Q: How do I track my investment performance? A: Use your dashboard to monitor token values, distributions received, and total returns. Getting Started Before Investing: 1. Review all metrics for each property 2. Understand the calculations using this guide 3. Consider your risk tolerance and income goals 4. Start small to test the platform and returns After Investing: 1. Monitor monthly distributions in your dashboard 2. Track property performance vs. initial projections 3. Compare actual vs. estimated metrics as data becomes available 4. Rebalance portfolio based on performance and goals Disclaimer: All metrics are estimates based on current data and market conditions. Past performance does not guarantee future results. Consult with financial advisors before making investment decisions. Last Updated: September 3, 2025 Platform Version: SecondaryDAO v2.0 Example Property: 123 Main St (Multifamily, $250K FMV)

Last updated on Sep 03, 2025

🏠 Understanding Property Yield Calculations: Data Source Precedence Guide

🏠 Understanding Property Yield Calculations: Data Source Precedence Guide Overview SecondaryDAO uses a sophisticated 4-tier data source precedence system to calculate the most accurate property yields for investors. This system ensures transparency and helps you understand the reliability of the financial metrics you see for each property. 📊 The 4-Tier Source Precedence System 1. 🔗 On-Chain Data (100% Confidence) Highest Priority - Verified Blockchain Data - Source: Smart contract transactions and blockchain records - What it includes: Actual rent payments, expense disbursements, token distributions - Why it's most reliable: Immutable, transparent, and cryptographically verified - When available: Once properties are operational and using smart contracts for transactions Example: If a property received $2,500 in rent payments through the smart contract in January, this becomes the definitive rent figure for that month. 2. 🧾 Receipt-Backed Data (85% Confidence) Second Priority - Documented Evidence - Source: Bank statements, invoices, receipts, and verified financial documents - What it includes: Property manager reports with supporting documentation - Why it's reliable: Physical evidence of transactions, auditable trail - When available: When property managers provide documented proof of income/expenses Example: Property manager submits bank statements showing $2,400 rent received, along with a $150 repair receipt. 3. 📋 Seller Statement Data (60% Confidence) Third Priority - Self-Reported Information - Source: Property seller or operator statements without full documentation - What it includes: Reported rent rolls, estimated expenses, occupancy claims - Why it's less reliable: Self-reported, may lack independent verification - When available: During property onboarding or monthly reporting without full documentation Example: Property owner reports "$2,500/month rent typically collected" during initial listing. 4. 📈 Estimate Data (30% Confidence) Lowest Priority - Projections and Market Analysis - Source: Market rent estimates, comparable property analysis, projections - What it includes: Market-based rent estimates, projected expenses, industry averages - Why it's least reliable: Based on assumptions and market conditions, not actual performance - When available: For new properties or when no actual data is yet available Example: Market analysis suggests similar properties rent for $2,300–2,700/month in the area. 🏆 How Data Quality Status is Determined The system analyzes the trailing twelve months (TTM) of rent data to assign an overall quality rating: ✅ VERIFIED Status - Criteria: 75%+ of TTM data comes from On-Chain or Receipt-Backed sources - Confidence Score: 90% - Badge Color: Green - What it means: Highly reliable data with strong documentation 🔄 BLENDED Status - Criteria: 50–74% of TTM data comes from On-Chain or Receipt-Backed sources - Confidence Score: 70% - Badge Color: Orange - What it means: Mix of verified and reported data, moderately reliable 📋 ESTIMATED Status - Criteria: Less than 50% of TTM data comes from verified sources - Confidence Score: 45% - Badge Color: Gray - What it means: Primarily based on estimates and projections 💰 How This Affects Your Investment Decisions Token Yield Calculation Token Yield = (Net Operating Income ÷ Market Capitalization) × 100 - Higher data quality = more reliable yield projections - VERIFIED properties show actual historical performance - ESTIMATED properties show projected potential performance Gross Yield Calculation Gross Yield = (Annual Rental Income ÷ Property Value) × 100 - VERIFIED: Based on actual collected rent - BLENDED: Mix of actual and reported rent - ESTIMATED: Based on market rent projections 📈 TTM (Trailing Twelve Months) Analysis What TTM Shows You - Rolling 12-Month Window: Always shows the most recent 12 months of performance - Monthly Breakdown: See which months have actual vs. estimated data - Source Attribution: Each month shows its data source and confidence level - Seasonal Trends: Identify patterns in rent collection and expenses Reading TTM Tooltips When you hover over yield metrics, you'll see: - Month-by-month rent breakdown - Data source for each month (On-Chain, Receipts, Seller Statement, Estimate) - Confidence percentage - Total verified vs. estimated months Example TTM Tooltip: Token Yield: 8.2% (BLENDED - 70% Confidence) Jan 2024: $2,500 rent (On-Chain) ✅ Feb 2024: $2,500 rent (On-Chain) ✅ Mar 2024: $2,400 rent (Receipts) 🧾 Apr 2024: $2,500 rent (Seller Statement) 📋 ... 9 months verified, 3 months estimated 🔍 Data Source Evolution How Data Quality Improves Over Time 1. Property Launch: Starts with ESTIMATED data based on projections 2. Initial Operation: Moves to BLENDED as some actual data comes in 3. Full Operation: Achieves VERIFIED status with consistent on-chain transactions 4. Ongoing Updates: Newer verified data replaces older estimates Source Upgrading - Higher-quality data automatically replaces lower-quality data for the same period - On-chain data will override receipt-backed data if both exist - System maintains audit trail of all data sources and changes ⚠️ Important Investment Considerations VERIFIED Properties - ✅ Most reliable for investment decisions - ✅ Historical performance clearly established - ✅ Lower risk of yield surprises - ❌ May have higher token prices due to proven performance BLENDED Properties - ⚠️ Moderate reliability, some uncertainty remains - ⚠️ Mix of proven and projected performance - ✅ May offer good value if trending toward VERIFIED - ❌ Some months may have inaccurate data ESTIMATED Properties - ❌ Highest uncertainty in projections - ❌ Yields may not match actual performance - ✅ Potentially undervalued if estimates are conservative - ⚠️ Higher risk investment requiring careful monitoring 🛡️ Transparency & Trust Why This System Matters - Informed Decisions: You know exactly how reliable each property's data is - Risk Assessment: Higher data quality typically means lower investment risk - Performance Tracking: Watch properties improve from ESTIMATED to VERIFIED over time - Fair Pricing: Token prices should reflect data quality and associated risk Questions to Ask Before Investing 1. What percentage of the TTM data is VERIFIED vs. ESTIMATED? 2. How long has the property been operational with on-chain transactions? 3. Are the estimated months based on conservative or optimistic projections? 4. What's the plan for moving from ESTIMATED to VERIFIED data? 📞 Need Help? If you have questions about a specific property's data quality or yield calculations: 1. Check the TTM tooltip - Hover over any yield metric for detailed breakdown 2. Review the data quality badge - Look for VERIFIED, BLENDED, or ESTIMATED status 3. Contact support - Reach out through this chat system for property-specific questions 4. Request documentation - Ask for supporting documents for any claimed figures Remember: Higher data quality generally means more reliable investment projections, but also potentially higher token prices due to reduced uncertainty.

Last updated on Sep 15, 2025

🗳️ Token Holder Voting Guide

🗳️ Token Holder Voting Guide Your Property, Your Voice: How Community Governance Works 🏠 What is Token Holder Voting? As a property token holder, you own a piece of real estate and have voting rights on important decisions about your property. Think of it like being a shareholder in a company, but instead of voting on business decisions, you're voting on property maintenance, improvements, and expenses. Your tokens = Your voting power = Your say in property decisions 🗳️ When Do I Get to Vote? You'll be asked to vote when the Property Manager requests funds above the voting threshold (typically $2,000). Here are common scenarios: 🔧 Maintenance & Repairs - Roof repairs - $5,000 to fix storm damage - HVAC replacement - $8,000 for new heating system - Plumbing issues - $3,500 for major pipe repairs - Electrical work - $4,000 for panel upgrades 🏡 Property Improvements - Kitchen renovations - $15,000 to increase rent potential - Landscaping projects - $6,000 for curb appeal - Security systems - $2,500 for cameras and access control - Energy efficiency - $10,000 for solar panels or insulation ❌ What You DON'T Vote On - Small repairs under $2,000 (auto-approved) - Regular maintenance like lawn care, cleaning - Monthly expenses like utilities, insurance - Emergency repairs under $1,000 📱 How Do I Find Out About Votes? You'll Get Multiple Notifications: 1. 📧 Email Alert Subject: 🗳️ Vote Required: Marina Bay Roof Repair ($5,000) Your property needs community approval for maintenance. Voting deadline: January 25, 2024 Click here to review quotes and vote: [Vote Now] 2. 📱 Push Notification SecondaryDAO App Vote Required: Roof repair needs approval 7 days remaining • Tap to vote 3. 💻 Dashboard Alert - Red notification badge on your property dashboard - "Action Required" banner with voting details ⏰ Voting Timeline - Emergency repairs: 3 days to vote - Standard maintenance: 7 days to vote - Major improvements: 14 days to vote 📋 What Information Do I Get Before Voting? 📄 Complete Proposal Details Property Manager's Request: - Description: "Roof leak in Building A causing water damage in units 201-203" - Urgency Level: High (immediate repair needed) - Estimated Cost: $5,000 - Reason: "Winter storms damaged shingles, affecting 3 units" 📑 Contractor Quotes (Minimum 2 Required): - Austin Roofing LLC: $4,800 - 5 days completion - Texas Contractors: $5,200 - 3 days completion - Fix-It-Pro Services: $4,950 - 4 days completion 💰 Fund Source: - Maintenance Reserve: $25,000 available - After Expense: $20,000 remaining - Reserve Status: Healthy ✅ 📸 Supporting Evidence: - Photos of damage - Inspector reports (if applicable) - Emergency documentation ✅ How to Cast Your Vote Step 1: Access the Vote - Click email link, app notification, or visit your property dashboard - Log in with your wallet or account credentials Step 2: Review the Information - Read the property manager's request - Review all contractor quotes and pricing - Check available fund balances - Look at photos and documentation Step 3: Make Your Decision Vote YES ✅ if you think: - The repair/improvement is necessary - The cost is reasonable compared to quotes - The property has sufficient reserves - The work will maintain/increase property value Vote NO ❌ if you think: - The expense is unnecessary or premature - The cost seems too high for the scope - The property should prioritize other repairs - More quotes or information are needed Step 4: Submit Your Vote - Select YES or NO - Add optional comments (visible to other token holders) - Confirm your vote - this cannot be changed 🎯 How Are Votes Counted? 💡 Simple Majority of Voters (Not All Tokens) Example: Marina Bay Apartments - Total Property Tokens: 1,000 - Token Holders Who Voted: 250 - Votes FOR: 150 tokens ✅ - Votes AGAINST: 100 tokens ❌ - Result: APPROVED (150 > 125 majority) 📊 Participation Requirements Different proposals need different participation levels: Proposal Type Min. Participation Voting Period Emergency (< $5K) 5% of tokens 3 days Maintenance ($5K-$10K) 10% of tokens 7 days Major Changes (> $10K) 25% of tokens 14 days Important: If minimum participation isn't met, the proposal fails automatically. ⚡ What Happens After Voting? If Vote PASSES ✅ 1. Immediate Fund Release - Money automatically transferred to contractor/PM - No waiting, no manual processing 2. Work Begins - Property manager coordinates with chosen contractor - You'll get updates on work progress 3. Documentation - Photos of completed work - Receipts and invoices - Updated property maintenance records If Vote FAILS ❌ 1. Request Denied - No funds released - Property manager must revise proposal 2. Possible Next Steps - Get additional quotes with lower prices - Provide more documentation/justification - Re-submit with different scope - Wait for emergency status (if urgent) 📊 Real-World Example Case Study: Broken HVAC System The Situation: Property manager reports: "Building B's HVAC failed. 10 units have no heating. Winter temps expected this week." Your Voting Screen Shows: 🏠 Property: Sunset Gardens Apartments 🔧 Issue: HVAC System Replacement - Building B 💰 Amount: $7,500 ⏰ Urgency: High (affects 10 units) 📅 Voting Ends: January 18, 2024, 5:00 PM 📋 Contractor Quotes: • Cool Air Systems: $7,200 (2 days install) • HVAC Pro: $7,500 (1 day install) ⭐ Recommended • Budget Heating: $6,800 (3 days install) 💵 Maintenance Reserve: $18,000 → $10,500 after expense 📸 Evidence: [View Photos] [Inspector Report] Your Decision Process: 1. ✅ Need is urgent - tenants without heat in winter 2. ✅ Price is reasonable - quotes are similar, mid-range selected 3. ✅ Funds available - $18K reserve can cover $7.5K expense 4. ✅ Property value maintained - working HVAC essential Vote: YES ✅ Outcome: - 180 of 250 voting tokens approved (72%) - Funds released within 1 hour - HVAC Pro completed installation next day - All units restored to heating 🛡️ Your Rights as a Token Holder Information Rights - ✅ Access to all contractor quotes - ✅ Property maintenance records - ✅ Reserve fund balances - ✅ Historical voting results - ✅ Property manager contact information Voting Rights - ✅ One token = one vote (proportional to ownership) - ✅ Vote on all expenses above threshold - ✅ Add comments with your vote - ✅ View how other holders voted (after voting closes) Appeal Rights - ✅ Contest improper proposals - ✅ Request additional quotes - ✅ Propose alternative solutions - ✅ Report property manager issues ❓ Frequently Asked Questions Q: What if I don't vote? A: Your tokens aren't counted. The vote proceeds based on participating tokens only. If you consistently don't vote, you miss your chance to influence property decisions. Q: Can I change my vote? A: No, votes are final once submitted. This prevents vote manipulation and ensures fair results. Q: What if I think the property manager is wrong? A: Vote NO and add comments explaining your concerns. Other token holders will see your reasoning. Q: Do I have to vote on every proposal? A: No, voting is optional. But participating gives you a voice in how your property investment is managed. Q: What if there's an emergency? A: True emergencies (safety issues, major damage) may be handled with shorter voting periods or emergency procedures. Q: Can I see how others voted? A: Yes, after voting closes, you can see the full results including how different wallet addresses voted (but not personal identities). Q: What if the reserve funds run low? A: Token holders will be notified and may vote on special assessments to replenish reserves, or prioritize only essential repairs. 🚀 Getting Started First Time Voting? 1. Check Your Notifications - Email, app, or dashboard alerts 2. Learn About Your Property - Review maintenance history - Check current reserve balances - Understand your voting threshold 3. Stay Engaged - Vote on proposals that affect your investment - Provide thoughtful comments - Monitor property performance Best Practices for Token Holders ✅ Vote promptly - don't wait until the last day ✅ Read all details - review quotes and documentation ✅ Think long-term - consider property value impact ✅ Be reasonable - balance cost vs. necessity ✅ Stay informed - follow up on completed work 📞 Need Help? Technical Support - Email: [email protected] - App Help: Settings → Contact Support - Phone: 1-800-SDAO-HELP Property Questions - Contact your Property Manager directly - Review property documents in your dashboard - Join property-specific discussion forums Voting Issues - Report technical problems immediately - Screenshot any errors - Contact support before voting deadline Remember: Your vote helps maintain and improve your property investment. Every decision affects the value of your tokens and the quality of the property. Participate actively to protect your investment! 🏠💰 Happy Voting! 🗳️

Last updated on Sep 27, 2025

🏠 Initial Public Sale (IPS) – Investor Guide

SecondaryDAO Investor Guide Complete Guide to Buying & Managing Property Tokens Table of Contents 1. What Are Property Tokens 2. The Two Phases Explained 3. How to Buy Tokens 4. What Happens After You Buy 5. Understanding Property Information 6. Seller Equity Disclosure 7. Your Rights & Protections 8. When You Can Sell 9. Earning Rental Income 10. Fees & Costs 11. Common Questions 12. Getting Help 13. Quick Reference Card 14. Glossary What Are Property Tokens When you buy property tokens on SecondaryDAO, you’re buying fractional ownership in a real property — similar to owning shares of a company. Example: Property Value: $500,000 Total Tokens: 10,000 Token Price: $50 Buying 100 tokens ($5,000) = 1% ownership What You Get - Ownership proportional to tokens - Monthly rental income - Appreciation if value increases - Trading rights after IPS The Two Phases Explained Phase 1: Initial Property Sale (IPS) The property is offered to investors for the first time at a fixed price for a limited period until funding completes. Key Features - Token price fixed (e.g., $50) - Lower fee (example 2.5%) - Buyback guarantee available - No price fluctuation - No secondary trading yet - Seller tokens locked When you see the green IPS badge, price is guaranteed and refundable before issuance. Phase 2: Secondary Market Once funding completes, the property moves to secondary trading. Key Features - Variable token prices - Standard 5% fee - No buyback guarantee - Market-driven prices - Active trading allowed - Seller tokens unlocked When you see the blue Secondary Market badge, tokens are tradable and rent distributions begin. How to Buy Tokens Step 1: Browse Properties Look for: - Location, token price, ROI, phase badge, funding progress Example Sunset Villa — Miami, Florida IPS Phase — $50.00 fixed Funding: 25% Expected ROI: 8.5% annually Step 2: Review Property Details Check These Sections - Property overview (address, type, specs) - Tokenomics (price, supply, rent, ROI) - Seller equity (if shown) - Fees and documents Step 3: Connect Wallet Use MetaMask or Coinbase Wallet with USDC and some ETH for gas. Connect wallet on the platform to proceed. Step 4: Enter Purchase Amount Enter the number of tokens to see: - Total cost and fee - Ownership percentage - Estimated monthly rent Step 5: Approve USDC Spending Wallet asks to approve USDC use (one-time per property). Step 6: Confirm Purchase Confirm final purchase transaction. Your USDC is moved to smart contract escrow. What Happens After You Buy Immediately You’ll see confirmation with details and transaction hash. During IPS No action needed — tokens will be automatically issued once the funding goal is reached. Refund Policy (Phase 1 only) - Refund allowed before token issuance - Contact [email protected] with transaction hash - Processing: 3–5 business days After Phase 2 Begins Tokens appear automatically in your wallet. You can trade, earn rent, and view holdings. Understanding Property Information Property pages show: - Quick stats (price, ROI, tokens sold) - Detailed tokenomics - Seller equity disclosure (if applicable) - Fees and rent schedule - Property documents and images Hover or tap the ℹ️ icons throughout the platform for extra explanations. Seller Equity Disclosure Why It Matters - Shows seller ownership - Indicates locked/unlocked status - Ensures transparency Example Seller Wallet: 0x1234…7890 Allocation: 25% (2,500 tokens) Status: Locked during Phase 1 Sellers receive tokens at $0 cost but can’t sell until Phase 2. Your Rights & Protections You Own - Legal fractional ownership - Monthly rent income - Voting and exit rights - Exposure to appreciation During IPS - Buyback guarantee (refund at IPS price) - Smart contract escrow for all funds - Refund right before issuance Escrow Protections - Funds held in blockchain escrow - Immutable release conditions - Admins cannot move funds manually When You Can Sell Phase 1 - Sell back to platform at IPS price (minus fee) - Instant refund in USDC Phase 2 - Sell to other investors via order book - Market or limit orders supported - Standard 5% trading fee Earning Rental Income How It Works 1. Tenant pays rent → Property Manager → Token holders 2. Rent distributed monthly (around the 10th) 3. Rent received automatically in USDC 4. View rent history in your dashboard Example Monthly Rent: $3,500 Your Ownership: 1% Your Income: $35/month Fees & Costs Phase 1 (IPS) - Fee: 2.5% per trade - Example: $5,000 × 2.5% = $125 fee Phase 2 - Fee: 5% per trade - Example: $5,200 × 5% = $260 fee Exit Fee - 5% on property sale proceeds Gas Fees - Ethereum network fees (approx. $8–$20 total) Common Questions Minimum Investment? Usually 1 token ($50). Can I Use Credit Card? No — only USDC via Web3 wallet. When Do I Get Tokens? Phase 1: After funding completes. Phase 2: Immediately. What If Funding Fails? Full refund automatically processed. Is There a Lock-Up? Investors: None. Sellers: Locked during IPS only. When Do I Earn Rent? After token issuance. What If Property Is Vacant? No rent that month; reserves may apply. How Safe Is My Investment? - Smart contract escrow - Blockchain transparency - Real property backing - Separate legal entity ownership Can I Track Seller Wallets? Yes — wallet addresses are public and viewable on Etherscan. Taxes - Rent = taxable income - Token sale = capital gains - You’ll get a yearly summary for reporting Getting Help Support Options - Email: [email protected] - Chat: Click the icon at bottom-right - Discord: (link if available) Response Times - Email: 24–48 hours - Chat: Usually within 1 hour (business hours) - Urgent issues: Use “Urgent” tag in subject Quick Reference Card Phase 1 (IPS) - Buy fixed-price tokens - Sell back anytime at same price - Refunds available before issuance - Lower fees (2.5%) - Tokens auto-issued when funded Phase 2 (Secondary) - Trade freely on marketplace - Market prices fluctuate - Earn monthly rent - Standard fees (5%) - Seller tokens unlocked Glossary - IPS: Initial Property Sale (first token offering) - Secondary Market: Trading between investors after IPS - Buyback Guarantee: Option to sell back at IPS price - Escrow: Smart contract holding your funds - Gas Fee: Ethereum transaction cost - USDC: Stablecoin pegged to USD - Web3 Wallet: App for holding crypto (MetaMask, Coinbase Wallet) Last Updated: October 2025 Version: 1.0 Contact: [email protected]

Last updated on Oct 22, 2025

Institutional Buyout Guide

Institutional Buyout Guide SecondaryDAO Property Acquisition Program Version: 1.0 Last Updated: October 2025 Target Audience: Institutional Investors, Real Estate Funds, Family Offices Table of Contents 1. Executive Summary 2. Buyout Mechanism Overview 3. Eligibility Requirements 4. Fee Structure & Pricing 5. Step-by-Step Process 6. Compliance & Legal 7. Timeline & Milestones 8. Technical Integration 9. Risk Considerations 10. Support & Contact Executive Summary SecondaryDAO’s BuyoutRegistryCompliantV4 smart contract enables qualified institutional investors to acquire full ownership of tokenized real estate properties through a streamlined, blockchain-based buyout mechanism. Key Features - Institutional-Grade Security — Multi-signature compliance checks and KYC/AML verification - Transparent Pricing — Premium-based pricing model with governance controls - Automated Settlement — Smart contract-based token collection and fund distribution - Regulatory Compliant — Built-in compliance officer approval workflows Typical Buyout Parameters Parameter Description Minimum Token Threshold 50–75% of total supply required Premium Above Market 20–30% above last token sale price (adjustable via governance) Platform Fee 5–10% of transaction value (30-day notice for changes) Settlement Time 7–14 days from initiation to completion Buyout Mechanism Overview What Is a Buyout? A buyout is the process by which an institutional investor acquires 100% ownership of a tokenized property by purchasing all outstanding property tokens from existing holders. How It Works 1. Institution initiates buyout → Smart contract validates eligibility 2. Buyout price calculated → Premium applied to fair market value 3. Token holders notified → 7–14 day response period 4. Compliance officer approval → KYC/AML checks completed 5. Funds escrowed → USDC/USDT deposited to buyout contract 6. Token collection → Token holders exchange tokens for payment 7. Settlement → Institution receives 100% ownership, property transferred Smart Contract Architecture BuyoutRegistryCompliantV4 manages: - Buyout proposals and approvals - Token collection from sellers - Payment distribution to token holders - Compliance verification - Fee governance (admin-controlled + token holder voting) Eligibility Requirements Institutional Qualifications Institutions must meet all four requirement categories below: 1. KYC/AML Verification - ✅ Completed institutional KYC with SecondaryDAO - ✅ Beneficial ownership disclosure (FinCEN requirements) - ✅ Source of funds verification - ✅ Anti-money laundering screening 2. Financial Requirements - ✅ Minimum liquid assets: $5M USD equivalent - ✅ Proof of funds for full buyout + fees - ✅ USDC/USDT wallet with sufficient balance 3. Technical Requirements - ✅ Ethereum-compatible wallet (hardware wallet recommended) - ✅ Merkle whitelist inclusion (coordinated with SecondaryDAO) - ✅ Access to Ethereum RPC node (or use SecondaryDAO infrastructure) 4. Legal Requirements - ✅ Registered legal entity (Corporation, LLC, LP, Trust, etc.) - ✅ Good standing certificate (issued within 90 days) - ✅ Board resolution authorizing transaction (if applicable) - ✅ Accredited investor certification (SEC Reg D or equivalent) Compliance Officer Approval All buyouts require approval from the designated compliance officer who verifies: - Institutional eligibility - Absence of conflicts or regulatory issues - Fair buyout pricing - Documentation completeness Approval Timeline: 3–5 business days post-initiation Fee Structure & Pricing Buyout Price Calculation Total Buyout Cost = Base Value + Exit Premium + Platform Fee 1. Base Property Value Determined by: - Last token sale price × total supply - Independent appraisal - Governance-approved market value Example Property Tokens: 10,000 Last Sale Price: $100 Base Value: $1,000,000 2. Exit Premium - Default: 20% (2000 bp) - Range: 5%–50% (token holder governance) - Vote Threshold: 67% approval within 7 days Example Base Value: $1,000,000 Premium: 20% → $200,000 Total: $1,200,000 3. Platform Fee - Default: 5% (500 bp) - Range: 0%–10% - Adjustment: Admin-controlled, 30-day notice Example Base Value: $1,000,000 Fee: 5% → $50,000 Total Cost Example Base Property Value: $1,000,000 Exit Premium (20%): $ 200,000 Platform Fee (5%): $ 50,000 ─────────────────────────────────── TOTAL BUYOUT COST: $1,250,000 Payment Methods - USDC (Preferred) — 6 decimals - USDT (Accepted) — 6 decimals All payments in stablecoins; ETH not accepted. Step-by-Step Process Phase 1: Pre-Qualification (1–2 Weeks) 1. Initial Contact → Submit inquiry via [email protected] 2. KYC/AML Submission → Upload incorporation, ownership, financial docs 3. Whitelist Inclusion → Wallet added to Merkle proof registry Phase 2: Due Diligence (2–4 Weeks) 4. Property Analysis → Review data room, financials, appraisal, legal docs 5. Financial Modeling → Simulate returns, premiums, exit options 6. Legal Review → Confirm ownership transfer rules and compliance Phase 3: Buyout Initiation (1–2 Days) 7. Submit Proposal → Call initiateBuyout() contract function 8. Escrow Funds → Approve and transfer stablecoins 9. Compliance Review → On-chain approval by compliance officer Phase 4: Token Collection (7–14 Days) 10. Notify Token Holders → Auto-email + on-chain event 11. Token Exchange → Holders call approveBuyout() to redeem 12. Monitor Progress → Query buyout status via getBuyoutStatus() Phase 5: Settlement (1–3 Days) 13. Complete Buyout → Call completeBuyout() once threshold met 14. Property Transfer (Off-Chain) → Title and deed updates 15. Post-Acquisition → Receive tokens, title, management credentials Compliance & Legal Regulatory Framework 1. Securities Compliance — SEC Reg D (506(c)), accredited investors only 2. Real Estate Transfer — Local deed recording, title insurance, tax compliance 3. AML/KYC — FATF guidelines, FinCEN CDD, annual refresh Legal Documentation Institutions execute: - Buyout Agreement - Property Purchase Agreement - Token Transfer Agreement - Escrow Agreement - Property Management Transition Agreement Recommended Counsel: Specialists in digital securities, tokenized real estate, and Delaware law Timeline & Milestones Phase Duration Key Milestones Pre-Qualification 1–2 weeks KYC, whitelist inclusion Due Diligence 2–4 weeks Property, legal review Initiation 1–2 days Proposal, escrow, approval Token Collection 7–14 days Token exchanges Settlement 1–3 days Completion, token transfer Property Transfer 3–7 days Deed & title TOTAL 4–8 weeks End-to-end process Fast-Track Option Pre-qualified institutions can complete in 3–4 weeks. Technical Integration Smart Contract Interface Deployment Addresses Network Address Ethereum Mainnet [Pending] Arbitrum Nova [Pending] Development (Hardhat) RPC: https://testnet/ Key Contract Functions - initiateBuyout() - escrowFunds() - completeBuyout() - getBuyoutStatus() API Integration (Optional) Endpoint: https://api.secondarydao.com/v1/buyouts Auth: Bearer API Key Example: curl -X POST https://api.secondarydao.com/v1/buyouts \ -H "Authorization: Bearer YOUR_API_KEY" \ -H "Content-Type: application/json" \ -d '{ "propertyId": "prop_123", "pricePerToken": 120.00, "deadline": "2025-02-15T00:00:00Z", "walletAddress": "0xYourInstitutionalWallet" }' Risk Considerations Market Risks 1. Token Holder Holdouts → Mitigate via premium/extension 2. Valuation Disputes → Independent appraisal 3. Market Volatility → Lock price at initiation Operational Risks 4. Smart Contract Bugs → Audited + insured 5. Oracle Failures → Redundant data sources 6. Management Transition → 90-day support window Legal & Compliance Risks 7. Regulatory Changes → Adaptive legal terms 8. Title Issues → Mandatory title insurance 9. Jurisdictional Barriers → Local legal analysis 10. KYC/AML Violations → Real-time screening 11. Sanctions Issues → OFAC auto-block Support & Contact Institutional Desk: 📧 [email protected] Technical Support: 🌐 docs.secondarydao.com 💬 Discord: #institutional-buyers Legal & Compliance: - [email protected] - [email protected] Emergency Hotline: 📧 [email protected] Appendices Appendix A — Sample Buyout Timeline Date Milestone Details Jan 5 Inquiry ABC submits interest Jan 8 KYC Submitted Docs uploaded Jan 12 Approved Whitelist inclusion Jan 15–26 Due Diligence Review & appraisal Jan 30 Buyout Initiated On-chain Feb 1 Compliance Approved Feb 11 Buyout Completed Settlement Feb 15 Title Transfer Feb 16 Transaction Closed Ownership transferred Total: 42 days (6 weeks) Appendix B — Fee Governance Admin Fee (30-Day Notice): 1. Proposal → Email + auto PDF 2. 30-day notice → Automatic update Token Holder Premium Vote (7 Days): 1. Proposal → Any token holder 2. Vote → Weighted by ownership 3. Threshold → 67% approval Appendix C — Glossary Term Definition bp (Basis Points) 1/100th of 1% Buyout Premium Added payout above base value Compliance Officer Approves/rejects buyouts ERC-20 Ethereum token standard Escrow Smart contract fund holder Merkle Whitelist Cryptographic proof for KYC Platform Fee SecondaryDAO transaction fee USDC/USDT Stablecoins accepted for payment Document Control Version Date Author Changes 1.0 October 2025 SecondaryDAO Legal & Compliance Initial Release © 2025 SecondaryDAO. All rights reserved. This guide is for informational purposes only and not financial or legal advice.

Last updated on Oct 21, 2025

Token Holder Buyout Disclosure

Token Holder Buyout Disclosure Your Rights & Options When a Buyout is Proposed Version: 1.0 Last Updated: October 2025 Target Audience: Property Token Holders Quick Summary What's Happening? An institutional investor has proposed to buy 100% ownership of your tokenized property. If you accept the buyout offer, you will exchange your property tokens for cash (USDC/USDT) at a premium above the original token price. Your Options: 1. ✅ Accept — Exchange your tokens for cash at the offered price 2. ❌ Decline — Keep your tokens and continue as a token holder 3. ⏳ Wait — You have 7-14 days to decide (deadline in your notification) No Action Required? If you don't respond by the deadline, you keep your tokens. The buyout only happens if you actively accept the offer. Table of Contents 1. What is a Buyout? 2. Understanding the Buyout Offer 3. Your Rights as a Token Holder 4. How to Accept the Buyout 5. Payment Process 6. If You Decline the Buyout 7. Tax Considerations 8. Frequently Asked Questions 9. Important Warnings 10. Getting Help What is a Buyout? Definition A buyout occurs when an institutional investor (like a real estate fund, family office, or investment firm) wants to purchase all the property tokens and take 100% ownership of the physical property. Why Buyouts Happen - 🏢 Portfolio Expansion — Adding the property to their real estate portfolio - 💰 Undervalued Asset — They believe the property is worth more than the token price - 🔄 Operational Control — They want full control over property management - 📈 Appreciation Potential — They see strong growth opportunities - 🏗️ Development Plans — They want to renovate or redevelop the property How Buyouts Work Step 1: Institution proposes buyout at a specific price per token ↓ Step 2: SecondaryDAO compliance officer reviews and approves ↓ Step 3: All token holders receive email notification ↓ Step 4: Token holders decide whether to accept (7-14 days) ↓ Step 5: Those who accept exchange tokens for USDC/USDT ↓ Step 6: If enough tokens collected (75%+), buyout completes ↓ Step 7: Institution takes ownership of property Understanding the Buyout Offer Reading Your Notification Email When a buyout is proposed, you'll receive an email with the following information: 1. Property Details - Property name and address - Your current token holdings - Total property tokens outstanding 2. Buyout Price - Price per token (in USDC/USDT) - Your total payout (tokens × price) - Original token price (what you or previous holder paid) - Gain/Loss (difference between buyout price and original price) 3. Premium Information - Exit Premium % — Extra amount above base value - Why there's a premium — Compensates for early liquidation 4. Timeline - Proposal date — When buyout was initiated - Deadline — Last day to accept the offer - Days remaining — Countdown to deadline 5. Buyer Information - Institution name — Who is buying - Institution type — Fund, family office, corporation, etc. - KYC status — Verified by SecondaryDAO compliance Example Buyout Offer Property: Sunset Villa, Austin TX Your Holdings: 50 tokens ───────────────────────────────────────── BUYOUT OFFER DETAILS: Price per Token: $120.00 USDC Your Token Holdings: 50 tokens Your Total Payout: $6,000.00 USDC ───────────────────────────────────────── COMPARISON TO ORIGINAL PRICE: Original Token Price: $100.00 Buyout Price: $120.00 Your Gain per Token: $20.00 (20%) Your Total Gain: $1,000.00 ───────────────────────────────────────── PREMIUM BREAKDOWN: Base Property Value: $100.00/token Exit Premium (20%): $20.00/token Total Buyout Price: $120.00/token ───────────────────────────────────────── DEADLINE: Proposal Date: January 15, 2025 Acceptance Deadline: January 29, 2025 Days Remaining: 14 days What is an "Exit Premium"? The exit premium is an additional amount paid above the base property value to compensate you for: 1. Early Liquidation — You're selling earlier than expected 2. Opportunity Cost — You're giving up future rental income and appreciation 3. Market Premium — Similar to a "control premium" in traditional M&A Typical Premium Range: 15–30% above base value How It's Set: - Default premium: 20% (set when property launched) - Adjustable via token holder vote (67% approval required) - You can propose premium changes if you hold tokens Your Rights as a Token Holder 1. Right to Accept or Decline ✅ You have the absolute right to: - Accept the buyout offer and sell your tokens - Decline the offer and keep your tokens - Change your mind before the deadline (if you haven't finalized) ❌ No one can force you to: - Sell your tokens - Accept a price you don't agree with - Make a decision immediately 2. Right to Full Information You have the right to request: - Detailed buyer information (institution name, background) - Property valuation reports - Recent financial performance data - Comparison to recent token trades - Explanation of premium calculation How to Request: Email [email protected] with subject "Buyout Information Request - [Property Name]" 3. Right to Fair Pricing The buyout price must be: - Above Market Rate — Higher than the last token sale price - Include Premium — Exit premium (typically 20%) applied - Transparent — Clear breakdown of base value + premium - Compliant — Approved by SecondaryDAO compliance officer 4. Right to Equal Treatment All token holders receive: - Same price per token - Same deadline - Same information - Same payment terms (USDC/USDT) 5. Right to Contest If you believe the buyout offer is unfair, you can: - Request an independent property appraisal - Challenge the premium calculation - File a complaint with SecondaryDAO governance - Propose a higher exit premium (requires token holder vote) Complaint Process: Email [email protected] within 3 days of notification How to Accept the Buyout Option 1: Accept via SecondaryDAO Dashboard (Recommended) Step 1: Log into Dashboard - Visit: https://dashboard.secondarydao.com - Connect your wallet (MetaMask, WalletConnect, etc.) - Navigate to "My Properties" Step 2: Review Buyout Details - Click on the property with active buyout - Review "Buyout Offer" section showing price, payout, deadline, and buyer information Step 3: Accept Offer - Click "Accept Buyout Offer" - Review transaction details in the popup: You will send: 50 tokens You will receive: $6,000 USDC Gas fee estimate: ~$15-30 (varies) - Click "Confirm" in your wallet - Wait for transaction confirmation (~30 seconds) Step 4: Receive Payment - USDC/USDT automatically sent to your wallet - Email confirmation + transaction hash provided Option 2: Accept via Smart Contract (Advanced Users) // Using ethers.js const buyoutContract = new ethers.Contract(buyoutAddress, buyoutABI, signer); // Approve token spending first const propertyTokenContract = new ethers.Contract( propertyTokenAddress, propertyTokenABI, signer ); await propertyTokenContract.approve( buyoutAddress, ethers.utils.parseEther("50") // 50 tokens ); // Accept buyout const tx = await buyoutContract.approveBuyout( ethers.utils.parseEther("50") // Amount of tokens to sell ); await tx.wait(); // Wait for confirmation Contract Function: function approveBuyout(uint256 tokenAmount) external What Happens: 1. Your tokens transferred to buyout contract 2. Contract calculates your payout: tokenAmount × pricePerToken 3. USDC/USDT sent to your wallet 4. Transaction recorded on blockchain Option 3: Partial Acceptance ✅ Yes, you can sell a portion of your tokens. Example: - You hold: 100 tokens - You accept for: 60 tokens - You keep: 40 tokens How to do it: - Dashboard: Enter the number of tokens in "Partial Acceptance" - Smart Contract: Set tokenAmount accordingly Payment Process When You Get Paid Immediate Payment — As soon as your acceptance transaction confirms. Payment Currency - USDC (USD Coin) — Preferred - USDT (Tether) — Accepted 1 USDC = 1 USDT = $1.00 USD Converting to Fiat Currency - Coinbase (Easiest) — KYC → deposit USDC → sell → withdraw USD - Kraken/Gemini — Similar flow - OTC Desk (>$50k) — Email [email protected] for referrals Tax Reporting You will receive a 1099-B. SecondaryDAO reports sale details; you must report on your tax return. See Tax Considerations. If You Decline the Buyout What Happens If You Don't Accept? You keep your tokens and continue as a token holder: - Receive monthly distributions - Vote on property decisions - Sell tokens on secondary markets (if available) - Participate in future offers Changing Your Mind - Before Deadline: You can still accept - After Deadline: Offer expires (unless extended or reissued) Minimum Threshold Outcome - If threshold not met (e.g., 75%): Buyout cancelled; tokens and funds returned - If met: Buyout completes; non-sellers become minority holders Minority Token Holder Rights - You keep tokens; institution has majority control - Continue receiving proportional income - Options: keep, negotiate, wait for future buyout, or sell on secondary markets - Protections: cannot be forced to sell; governance oversight Tax Considerations Capital Gains Tax Capital Gain = Sale Price - Cost Basis - Transaction Costs Example: Sale $6,000 – Cost $5,000 – Gas $25 = $975 gain → 20% = $195 tax (illustrative) Tax Rates (2025) - Short-Term (<1 yr): Ordinary income (10–37%) - Long-Term (≥1 yr): 0%, 15%, or 20% Holding Period Gain Tax Rate Tax Owed 6 months $1,000 24% $240 18 months $1,000 15% $150 3 years $1,000 15% $150 State Taxes Some states add capital gains tax (e.g., CA up to 13.3%, NY up to 10.9%; FL/TX/NV 0%). Stablecoin Considerations - Selling tokens for USDC = taxable event - Holding USDC = not taxable - Selling USDC for USD = usually $0 gain - Swapping USDC↔USDT = taxable event Reporting & Loss Harvesting - Forms: 1099-B, 1099-MISC, Schedule D, Form 8949 - Losses offset gains; up to $3,000 may offset ordinary income; carry forward excess Consult a Tax Professional Consider CPA/tax attorney/crypto tax software for individual guidance. Frequently Asked Questions Q: Is this buyout mandatory? A: No. You can decline and keep your tokens. Q: How long do I have to decide? A: 7–14 days from proposal date (see email). Q: Can the buyer force me to sell? A: No. Voluntary only. Q: What if I do nothing? A: You keep your tokens. Q: Can I negotiate a higher price? A: Not individually; propose a higher premium via governance (67% approval). Q: When do I receive payment? A: Instantly upon acceptance; funds are escrowed beforehand. Q: Do I need to pay gas fees? A: Yes. Network gas applies. Q: Can I accept from a different wallet? A: No. Must accept from the wallet holding the tokens. Q: Are transactions public? A: Yes. On-chain amounts and addresses are visible. Q: What happens to the physical property? A: Institution takes deed and manages future strategy. Q: Is this legal and compliant? A: Yes. Operates under SEC Reg D, real estate transfer laws, and AML/KYC requirements. Important Warnings ⚠️ Scam Protection - ❌ Never share seed phrases or click unknown links - ✅ Verify emails from @secondarydao.com - ✅ Use the dashboard: https://dashboard.secondarydao.com - ✅ Contact support if unsure ⚠️ Tax Implications Accepting a buyout may trigger capital gains tax; plan accordingly. ⚠️ No Guaranteed Returns Buyout prices are offers, not valuations. Do your own analysis. ⚠️ Minority Holder Risks If you decline and buyout completes, you may face reduced voting power and liquidity. ⚠️ Smart Contract Risks Audited and insured, but risks exist (bugs, congestion, wallet security). Getting Help SecondaryDAO Support - General: [email protected] | | Mon–Fri, 9 AM–6 PM EST - Technical: Discord #token-holder-support | https://docs.secondarydao.com/faq - Complaints/Disputes: [email protected] (include property name, wallet, issue) Emergency Support (24/7 During Active Buyout) - Email: [email protected] Additional Resources - Tax: CoinTracker, TokenTax, IRS virtual currency guidance - Wallet: MetaMask Support, WalletConnect - Legal: [email protected] for referrals Checklist: Before You Accept Financial Review - Understand buyout price and total payout - Estimate capital gain/loss and taxes - Compare to recent market trades - Consider future rental income foregone - Have enough ETH for gas Tax Preparation - Consulted tax professional (recommended for large amounts) - Know short- vs long-term implications - Set aside 15–30% of gains (estimate) - Plan for USDC→USD conversion if needed Technical Readiness - Logged into dashboard - See active buyout in properties - Wallet connected with correct balance - Reviewed transaction preview Risk Understanding - Know acceptance is final - Considered accept vs keep - Understand minority-holder risks - Verified legitimacy (not a scam) Decision - ACCEPT - DECLINE - WAIT (check deadline) Document Control Version Date Author Changes 1.0 October 2025 SecondaryDAO Investor Relations Initial release Disclaimer: This disclosure is for informational purposes only and does not constitute financial, legal, or tax advice. Consult with qualified professionals before making investment decisions. SecondaryDAO is not responsible for your decision to accept or decline a buyout offer. © 2025 SecondaryDAO. All rights reserved.

Last updated on Oct 21, 2025