Terms & Conditions of Fractionalised Assets
NFT Attributes and On-Chain Ownership
An NFT symbolizes a unique and fractional ownership share in an asset presented in its corresponding documentation. Utilizing the Polygon blockchain and the NFT contract’s ownership functionalities, we offer a transparent method to verify and establish ownership of the NFT. To further ascertain the authenticity of the NFT and its associated ownership, one can turn to PolygonScan.
Terms and Conditions
These terms guide the acquisition and management of fractional NFTs related to various assets on our platform. By securing a fractional NFT of any asset or asset class, you commit to the following:
Obligations and Regulations:
Service Fees: These fees are instituted to uphold and potentially increase the value of the assets. These encompass maintenance, administrative charges, and other associated costs, often amounting to a specific percentage of the asset’s annual value, as determined by its class.
Fee Payment:
Service fees are deducted from your SLICIT wallet on a monthly basis. Should there be non-payment for three consecutive months, a portion of the NFT token, based on the asset’s value, might be liquidated to address these costs.
Collateral:
Assets might also serve as collateral for financial agreements, ensuring tangible security for any obligations. Financial leveraging against the asset will be constrained by its value, with mechanisms set up to prevent undue risks.
Periodic Valuation:
Depending on the asset class, regular evaluations will take place, producing a comprehensive report on its condition, performance, and any potential concerns.
Settlement of Charges:
Costs related to the management of the asset will be automatically withdrawn from the SLICIT wallet. Insufficient funds might necessitate additional contributions.
Smart Contract Commitments:
Stipulations and obligations of the asset will be embedded in a smart contract. Adherence is crucial, and the platform’s administrator ensures compliance.
Sale Provisions:
Sale Timing:
Fractional NFTs can be transferred, subject to the approval of a majority or specified group of existing owners, ensuring consensus before changes.
Sale Process:
Depending on the asset class, NFTs can be transferred either through approved channels or specified intervals. The sale price is governed by the asset’s contemporary market value.
Revenue Distribution:
Should the asset generate any revenue, it will be equally distributed among fractional NFT owners. Accumulated funds will be held in the designated SLICIT wallet, with periodic distributions based on individual ownership percentages.
Asset Disposal:
If there’s a consensus among fractional NFT owners to sell the underlying asset, the transaction can ensue. Proceeds will be evenly distributed among all fractional NFT owners, but this might terminate the fractional NFT and any associated privileges.
Legal Ownership Verification:
Ownership of fractionalized NFTs combines both on-chain and traditional methodologies. SLICIT amalgamates on-chain ownership, digital authentication, legally binding agreements, offline documentation, independent verification, and notarization, providing a comprehensive proof of ownership structure for all assets. This approach ensures clarity, verifiability, and protection for all fractional NFT owners.
The NFTFractionalization contract, crafted in Solidity, empowers NFT fractionalization. Adopting the MIT License, it integrates contracts and libraries from the OpenZeppelin ecosystem. A thorough review of the contract, accounting for its interplay with external contracts, is essential for security and understanding.
Potential stakeholders are advised to carefully read and grasp these terms before securing a fractional NFT of any asset or asset class. Acquisition indicates consent to the above-stated terms.
