Alice Owned
Funding Alice’s Property Through AssetSlices
This process describes how Alice can use the AssetSlices platform to raise funds by transferring part of her property’s equity to AssetSlices. Investors on the platform can then fund Alice and earn returns from her repayments, which include interest. Here’s a step-by-step explanation:
Step 1: Alice Partners with AssetSlices
Property Details:
Alice owns a property worth $500,000.
She needs $100,000 for personal use.
Equity Transfer:
Alice agrees to transfer 20% equity (representing $100,000 of the property’s value) to AssetSlices.
AssetSlices becomes a partial owner of the property for the agreed-upon equity percentage.
Agreement Terms:
Alice will repay the $100,000 in monthly installments over a specified period (e.g., 5 years) with an annual interest rate of 10%.
Total repayment: $100,000 principal + $50,000 interest = $150,000 over 5 years.
Step 2: AssetSlices Tokenizes the Property
Tokenization:
The 20% equity transferred to AssetSlices is tokenized into 100,000 RWA tokens ($1 per token).
Each token represents a fractional share of the 20% equity.
Marketplace Listing:
The property is listed on the AssetSlices marketplace with details:
Property Value: $500,000
Token Price: $1
Total Tokens: 100,000
Expected Annual Return: 10% (from Alice’s interest payments).
Investment Duration: 5 years.
Step 3: Investors Fund Alice’s Property
Investment by Bob:
Bob, an investor on AssetSlices, decides to fund Alice by purchasing 10,000 tokens for $10,000 (10% of the equity slice).
Ownership and Returns:
By purchasing tokens, Bob effectively owns 10% of the 20% equity (equivalent to 2% of the total property value).
Bob’s share of the returns: 10% of Alice’s monthly repayments, including interest.
Step 4: Alice Makes Monthly Repayments
Repayment Structure:
Alice repays the loaned amount in monthly installments over 5 years.
Monthly Repayment Formula: M=P×r×(1+r)n(1+r)n−1M = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1}M=(1+r)n−1P×r×(1+r)n Where:
P=100,000P = 100,000P=100,000 (Principal)
r=10%12r = \frac{10\%}{12}r=1210% (Monthly Interest Rate)
n=60n = 60n=60 (Total Months)
Monthly Repayment: Approximately $2,124.70.
Interest Distribution:
Each month, Alice’s repayment ($2,124.70) is split between principal and interest.
The interest portion is distributed among token holders proportionally.
Bob’s Monthly Returns:
Bob owns 10,000 tokens (10% of the total 100,000 tokens).
Bob receives 10% of the interest portion from each repayment.
Example:
Monthly Interest: $833.33 (portion of repayment attributed to interest).
Bob’s Share: 10%×833.33=$83.3310\% \times 833.33 = \$83.3310%×833.33=$83.33.
Step 5: End of Investment Period
Final Repayment:
After 5 years, Alice fully repays the $100,000 loan with $50,000 in interest.
Investor Payouts:
Bob earns his share of the $50,000 interest over 5 years.
Total Return for Bob: 10%×50,000=$5,00010\% \times 50,000 = \$5,00010%×50,000=$5,000 (in addition to his principal of $10,000).
Token Expiry:
Once the loan is fully repaid, the tokens are burned or expired, as the investment duration ends.
Platform’s Role and Fees
Fee During Token Purchase:
AssetSlices charges a 1–3% transaction fee on token purchases.
Example: Bob’s $10,000 investment incurs a 2% fee ($200).
Management Fee:
A 5–10% property management fee is deducted from Alice’s repayments before distribution to investors.
Example: If Alice repays $2,124.70 monthly, AssetSlices retains 10% of $833.33 interest ($83.33) as a management fee.
Listing Fee:
AssetSlices may charge Alice a one-time fee for listing the property on the marketplace.
Key Benefits
For Alice:
Raises $100,000 for personal needs without selling the entire property.
Retains majority ownership (80%) and can fully regain equity after repayment.
For Bob (Investor):
Earns passive income from Alice’s monthly repayments.
Low-risk investment backed by a tangible property.
Fixed investment duration with clear terms.
For AssetSlices:
Earns revenue through fees on token purchases, management, and listings.
Facilitates a win-win solution for property owners and investors.
Conclusion
This model combines real estate-backed loans with blockchain tokenization, allowing property owners like Alice to access funds without selling their property outright. At the same time, investors like Bob earn predictable returns from interest payments, and AssetSlices sustains operations through transparent fees. This innovative approach democratizes access to real estate investments and loans while ensuring fairness and profitability for all stakeholders.
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