FAQ

There are several types of tokens: utility tokens (so-called utility tokens) based on cosigners

• Security tokens - are tokens that guarantee a share in ownership (just like shares or stocks)
• Utility tokens - these are tokens that can be linked to profit revenue, rewards, loyalty programs
• Debt tokens - tokens linked to a debt issue and earning interest income
• NTF tokens - tokens reflecting ownership of unique or collectible items.

The primary benefits for digital token issuers are:

• Acquisition of new investors from Poland and foreign investors
• Asset fragmentation - obtaining financing without selling 100% of the underlying asset
• Increasing liquidity
• Valuation optimization

The main benefits for investors are as follows:

• Easy access to attractive assets
• Low barrier to entry for investment
• Ability to effectively diversify the investment portfolio
• Ease of token trading
• Increased investment opportunities with online real estate investment stocenated

Creating liquidity on private real estate assets is the ultimate goal and the most exciting added value of digital securities and the blockchain ecosystem. Transforming traditional real estate assets into digital assets (utility or security tokens) creates a tradable and highly liquid digital asset. This allows investors to buy and sell real estate on the secondary market to a wide pool of potential investors. Liquidity can also be achieved through secured loans in exchange for tokenized assets. Tokenization is a value-adding process in trading, as it creates new channels of liquidity for traditional methods of capital flow.

Yes, the Crowdex platform operates in accordance with Polish law. Crowdex is customizable and can support any offering structure under a non-prospect offering, which allows for the issuance of securities of a single issuer up to €5 million per year. In addition, each tokenization project offered is consulted with the FSA.

Crowdex is a technology service provider. We are not a broker-dealer, a brokerage house and we do not facilitate or offer fundraising services. With the right technology, Crowdex connects your offering to investors with primary and secondary market capital.

Yes, it is important to understand that the Issuer has full control over how the tokenized capital is managed. Tokenization introduces new opportunities, but all activities must comply with the rules of operation set by the Issuer in accordance with its corporate requirements.

Tokenization is not the same as refinancing strictly speaking, but tokenization can be used as an effective alternative to refinancing. If refinancing is necessary, a tokenization offering can be arranged to eliminate an existing debt obligation with capital provided by new investors.

Our offer is available to all investors in Poland and abroad. Crowdex integrates investor identification procedures (so-called KYC i.e. know your customer), AML (anti-money laundering) so that all potential investors are properly verified. As a result, the online investment practice is fully compliant with the requirements set by the FSA.

Technically, the process of converting ownership to digital shares takes only a few minutes. Education and planning processes, including marketing will take 2-8 weeks. The tokenization process usually takes 1 to 3 months, and offering requirements vary over time.

The cost of tokenization varies depending on the size of the asset and the issuer's requirements. Tokenization is generally a lower cost than the fees associated with a typical capital raising or the costs associated with real estate transactions.

The digitalization model for real estate offers many advantages over REITs The primary benefits are as follows:

• Valuation: direct ownership of tokens is closer to NAV than shares of REITs; these shares are subject to high volatility - often not reflecting NAV value
• Scope: tokenization enables trading of individual properties and private issues related to those properties
• Democratization of trading: it is possible to tokenize only a fractional "part" of the property and issue tokens with a low value, lower than the value of the REIT's shares
• Optimization: digital processes improve cost efficiency and accessibility to investors lower than the costs REITs incur especially the public ones (listed on stock exchanges)

No. The Crowdex platform has been built with a user-friendly interface similar to an online bank account, with ease and simplicity for the user in mind. With Crowdex, no maintenance of wallets, private keys or anything related to blockchain is required to spend orinvest.‍

Cryptocurrencies such as bitcoin and ethereum are based on a technology called blockchain. In the simplest terms, a blockchain is a list of transactions that anyone can view and verify. For example, bitcoin's blockchain contains a record of every time someone sent or received bitcoins. Cryptocurrencies and the blockchain technology by which they exist allow value to be transferred over the Internet without an intermediary such as a bank or credit card company.

Much of our financial lives now take place online, from shopping at Allegro or Amazon to investing at, say, Walutomat - and as each of these transactions requires a bank, credit card issuer or payment processor such as Paypal. Blockchains allow these transactions to take place without an intermediary and without the additional costs and complexity that come with them.

Bitcoin is a form of digital money. The underlying technology that makes it possible is the blockchain.

Thousands, from those that handle bitcoins, ether, litecoins, tezos and countless other digital currencies, to a growing number that have nothing to do with digital money.

All issued tokens are held in a secure vault at Coinbase, one of the largest digital currency exchanges in the world with more than 43 million users, $90 billion in cryptocurrencies in more than 100 countries. Coinbase's custody business is a fiduciary under New York State banking law and regularly undergoes financial and security audits by third-party firms. Coinbase's cryptocurrency trust business is subject to the same capital requirements as traditional financial trust companies.

By using tokenization, we can streamline and reduce the time it takes for real estate sponsors to raise equity for their projects. The fundraising process, which typically takes many months and requires multiple intermediaries and tedious paperwork, can be reduced to weeks at a lower cost.

Crowdex sells real estate over the Internet, allowing people to buy property from almost anywhere in the world. Properties can be subdivided, so the right investors can invest any amount that suits their needs. Tokenization can make real estate investment affordable for almost anyone. Real estate is also an illiquid industry. By converting real estate into digital tokens, a much larger number of potential buyers can access real estate, both because of the fractionalization of tokens and the potential reach of online markets. The larger 7 market participants that digital tokens can reach increase the liquidity of real estate.

The staked property is managed by the project sponsor

"Wallet" is the basic element of a blockchain/cryptocurrency system. Crowdex uses the Ethereum blockchain and the xDai network (eventually) to manage partial property ownership settlement on its platform. Because we operate on Ethereum, our assets are stored in "Ethereum wallets" compatible with the xDai network. "Public key" or "Public address" are also terms used to describe a "wallet." A wallet consists of two parts: "public address" and "private key." A good metaphor is "mailbox" and "mailbox key." Anyone can drop anything into the mailbox, but only the owner of the private key can open it and access it. You will need an Ethereum wallet to receive the fractional shares of real estate you have purchased.

There are many different wallets available, and each one manages your private key in different ways. Make sure you understand how each solution manages your private keys for you. We recommend these wallets: AlphaWallet (mobile) or MetaMask (mobile and browser).

Creating a wallet is very simple. All you need to do is install the application of your choice and then create an account. When you create an account, the app will give you a "recovery phrase" that you need to note down carefully to keep access to your wallet. You don't need to provide any personal information, such as your email address or name. Once your account is created, you will be able to find your public Ethereum address. This is the address we will use to send you your tokens and due profits from your token holdings (such as rents from stoken properties).

The tokenized property is managed by the project sponsor (the property owner). Rent is collected from tenants, from which miscellaneous expenses, property renovation costs and debt service fees are deducted. The remaining cash flow is allocated to shareholders like you. The portion allocated to token holders is transferred to Crowdex.PRO for timely allocation to each investor's portfolio/bank account. Depending on the terms of the project, income is usually paid quarterly or annually.

The displayed return ratios ( e.g. IRR) are targets based on projected results for the property. Actual results may differ from forecasts and there is a possibility of not achieving the expected profit.

In most real estate investment projects, the end of the target investment period assumes the sale of the property. To forecast the sale value of the property at the end of the investment period, the sponsor assumes that the property will have stabilized by that time, i.e., the property will have achieved a stable Net Operating Income (NOI) in all future years after disposal. In this case, the anticipated value of the property is calculated by dividing the expected stable annual NOI by the assumed discount rate (capitalization rate), which is referred to as the "exit rate." For example, if the expected stabilized NOI from a property is PLN 1 million, and the owner believes that he can sell this property at a capitalization rate of 5%, this means that the building will be sold for at least PLN 20 million (PLN 1,000,000 /0.5%).

It's an investment contract between parties to a transaction, stored in blockchain technology with specific terms and conditions for the transaction and controlling that transaction between the parties. Smart contracts create an additional layer of transparency to automate token buying and selling transactions.

A security token is an asset that is the virtual equivalent of a security digitally converted using blockchain technology. Examples of securities include stocks, bonds or shares in limited liability companies.

A custodian is a third-party provider of token storage and custody services representing the legal owners of digital assets. Trustees thus minimize the risk of theft or other losses.

The difference lies in the physical location of the asset. The real estate token of a real asset (e.g., real estate) is virtual - dislocated from the real estate it represents, and the real estate itself exists even though it is digitized and the investor may hold the deed or shares in the company that owns the property.

Soft Cap and Hard Cap are the goals that are set during the fundraising process in STO or ICO projects. The Soft CAP is the minimum amount or lower limit of the amount to be raised, and the Hard Cap is the maximum or absolute upper limit of the amount to be raised during the token issue fundraising. If an ICO or STO project receives an amount greater than the hard cap, the excess funds will be returned to investors. If the project does not reach the soft cap, the project may be considered a failure, but still the funds are sometimes returned.

An asset-backed token can be a financial instrument, service or financial product whose value reflects the fractional value of the asset it embodies. Each token represents a fixed amount of goods or services in a 1:1 ratio guaranteed by the issuer and supervised by a custodian. For example, one token may represent 1 gram of gold, one square meter of real estate, entitle the holder to a certain fractional share of the rent from its rental, or even represent 1/1000th of a valuable work of art. Asset-backed tokens are controlled by the issuer's accounting system and the custodian with whom they are held.

Cryptocurrencies, such as Bitcoin and Ethereum, are based on a technology called blockchain. Simply put, blockchain is an encrypted list of transactions on the Internet that anyone can view and verify. For example, a blockchain. Bitcoin contains a record of every transaction and operation related to the transfer and transactions on that bitcoin. Cryptocurrencies and the blockchain technology that supports them make it possible to transfer value online without the need for an intermediary such as a bank or credit card company. Almost all cryptocurrencies, including bitcoin, are secured through the blockchain network. This means that their accuracy is constantly verified by massive computing power. The list of transactions contained in blockchain is fundamental to most cryptocurrencies, as it allows payments to be made securely between people who don't know each other, without having to go through an external verifier, such as a bank. Because of the cryptographic nature of these networks, payments via the blockchain can be more secure than standard debit/credit card transactions. For example, when making a bitcoin payment, you don't have to provide any sensitive information. This means that the risk of your financial information being exposed or identity theft is almost zero. Blockchain technology is also exciting because it has many applications beyond cryptocurrency. Blockchains are being used to explore medical research, improve the accuracy of medical records, streamline supply chains and many other business processes.

Among the biggest advantages of blockchain is its global nature, which means cryptocurrencies can be transferred quickly and cheaply across the planet. They enhance privacy: cryptocurrency payments do not require personal information, which protects against hacking or identity theft. They are open because every transaction on the blockchain network is public and published as a blockchain, anyone can analyze it. This leaves no room for manipulating transactions, changing the money supply or adjusting the rules during the game. The software that forms the core of these currencies is free and open source, so anyone can review the code.

Imagine a chain that you can use as the anchor of a ship. But in this case, each link in the chain is a portion of information containing transaction data. At the top of the chain you see what happened today, and as you move down the chain you see older and older transactions. What if you follow it all the way to the anchor at the bottom of the port? You'll see every transaction in the history of the cryptocurrency. This gives the blockchain a powerful security advantage: it is an open, transparent record of the entire history of the cryptocurrency. If anyone tries to tamper with a transaction, it will break the link, and the entire network will see what happens. This, in a nutshell, explained blockchain. Another way people often describe blockchain is that it is a ledger (sometimes the term "distributed ledger" or "immutable ledger" is used), which is similar to a bank's balance sheet. Like a bank ledger, blockchain tracks 11 all money coming into, going out of and through the network. But unlike a bank ledger, crypto blockchain is not maintained by any individual or organization, including banks and governments. In fact, it is not centralized at all. Instead, it is secured by a large network of peer-to-peer computers running open source software. The network constantly checks and secures the accuracy of the blockchain.