FAQs - Terazo | Asset Tokenization Platform

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Blockchain and Tokenization

What is a blockchain?

A blockchain is secure, reliable, and decentralized network that allows for data to be stored and recorded on a global distributed ledger. This ledger is not controlled by any central authority, but instead maintained by computer nodes around the world, hence decentralizing control without compromising private data. Blockchains can hold enormous amounts of transactions and keep those transactions safe from hackers with cryptographic hashing. It secures, validates, and scales online transactions.

What is asset tokenization?

Asset tokenization is the process of digitizing and fractionalizing ownership of a real-world assets into digital tokens. Each token, representing ownership in the underlying asset, exists on a blockchain, offering greater transparency and the potential for easy tradability.

What benefits does tokenization bring to investors?

Tokenization has numerous benefits over conventional asset ownership models. First, it allows for fractional ownership of assets, enabling investors to purchase and sell small fractions of high-value assets such as real estate, venture capital, private equity etc. Second, the use of blockchain technology reduces the need for intermediaries, thereby lowering transaction costs and enhancing efficiency. Lastly, it provides transparency and security, as all transactions on the blockchain are immutably recorded and validated by decentralized nodes.

Eligibility & Onboarding

What is Terazo and how does it work?

Terazo is a digital investment platform that provides access to institutional grade alternative assets in real estate, venture capital, private equity etc. We work with reputed asset managers to curate and tokenize high-quality assets, making them available to qualified investors from around the world. Our mission is to democratize access to high-quality alternative assets and enhance liquidity in traditionally illiquid markets.

Investors from which countries are permitted to invest on Terazo?

Investors from select jurisdictions, who pass our Know Your Customer (KYC) and AML checks and meet eligibility requirements for specific offerings can invest on Terazo. For the current offering, we are unable to onboard investors from India and the United States. However, future offerings will enable participation from these regions.

How does asset tokenization work?

Asset tokenization is the process of creating digital tokens on blockchain that enable fractional ownership of real world assets. Tokens available on Terazo’s platform will represent ownership interest in underlying assets through funds or corporate structures.

How do I get started with Terazo?

To begin investing with Terazo, join the waitlist. Based on your eligibility, create your account.
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Once set up, submit your information for KYC verification. Our team will validate your profile and reach out with the next steps.
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Investors must set up their own blockchain based wallet or connect an existing wallet during the onboarding process.

How do I get qualified as an investor?

To qualify as an investor, create your account, complete the KYC verification, provide net worth certificate and connect your wallet. During this process, you will be asked to provide proof that you meet the eligibility criteria. The eligibility criteria for each offering may be different. After we verify your documents, you will be qualified and ready to invest!

What documents do I need for KYC?

To complete the KYC for the current offering please have the following documents handy:

Your passport
One recent utility bill that is linked to residential property, as a gas, electricity, water, or landline telephone bill
Your net-worth certificate, certified by a CA or CPA supported by last 3 months bank statements or last 3 years income tax returns

In accordance with IFSCA’s AML Policy, certified true copies of the above documents will have to be scanned and sent by email and also sent by courier.

What is the net worth criteria for investors?

For the current offering a minimum net worth of US $150,000 is required for investors. As a part of the onboarding process, you will be required to submit proof of net-worth, which is certified by CA or CPA with supporting documents.

Here is a template of a net-worth certificate. Please email completed net-worth certificate to us.

How do I create and connect my wallet?

The most popular wallet is Metamask. Please check this step-by-step guide on creating and connecting a new Metamask wallet. Alternately, you may use an existing compatible wallet.

Once I have submitted the documents, how long will it take to get onboarded?

It can take up to 3 working days for us to qualify you once you have successfully submitted all the documents.

Where is investor data being stored?

Terazo stores all personal data in accordance with its policy and on secured AWS servers located in India. We follow best practices for handling personal data.

What if I forget my connected wallet key?

If you forget or lose your wallet credentials, please contact support@terazo.network and our team would be happy to help you. Please note that we will only be able to help with tokens available/ purchased on our platform. We highly recommend you note down your wallet key and store it securely.

Investments & Trading

Do I need to pay fees to sign up as an investor with Terazo?

Currently, there are no fees to sign up as an investor. Each offering may have its fees and charges as mentioned in fund documents or on our platform.

When can I see the asset related / fund documents?

Once you create your account and successfully complete your KYC, you will have access to all fund documents.

What is wallet whitelisting?

Once you have successfully created your account, passed KYC and AML checks and met our eligibility criteria, we will whitelist your blockchain wallet. With a whitelisted wallet, you will be qualified to buy, sell and hold tokens on Terazo’s platform.

Who has custody of my tokens?

As an investor, you will have self-custody of all your tokens.

How do I change my residential or citizenship status once I have submitted KYC?

If you have changed your residential address or citizenship status, please contact investors@terazo.network and our team would be happy to help.

What is the minimum investment amount?

For the current offering the minimum investment amount for primary investors is USD 100,000 and for secondary investors it is 1 token or USD 1000 whichever is higher.

Why are some of my tokens locked?

At times, based on the offering the issuer may lock transfer or sale of certain tokens for primary token holders. Please refer to fund documents of a specific offering for more information.

What is the NAV of a token?

Each entity/fund is required to get periodic valuation to determine Net Asset Value (NAV) of the fund in accordance with prevailing accounting practices. The NAV of the fund divided by total issued units/tokens is equal to NAV per token. The market price of the token can be higher or lower than the NAV of the token.

How does one determine the price of a token?

The market price of a token is dependent on demand and supply. You can see offers on Terazo’s marketplace.

How do I receive distributions?

Token holders can receive distributions in their bank account registered with Terazo.

What currency is supported on the Terazo platform?

Currently all transactions for the current offering are in USD. In future depending on the offerings, we may have support multiple currencies.

What is Terazo’s marketplace?

Terazo’s marketplace is a P2P bulletin board through which token holders can buy or sell tokens with other registered and qualified users.

What are gas fees?

Gas fees, is cost incurred by blockchain protocol users for each network transaction, are essential for basic functions like token issuance, transfer, and sale etc.

Do I have to pay gas fees?

Terazo uses the polygon blockchain which is a Layer-2 blockchain and has relatively inexpensive gas fees. Investors may be required to pay gas fees on certain transactions.

Are Terazo’s token offerings regulated?

Yes. Terazo’s platform and current offering are regulated under IFSCA’s Regulatory Sandbox Framework, GIFT City, India.

How can I trade tokens on secondary marketplace?

Terazo’s secondary marketplace will be live shortly. Please contact info@terazo.network if you are interested in buying or selling tokens.

What is the difference between primary and secondary investors?

Primary investors are eligible investors who have participated in primary offerings through private placement. Secondary Investors are eligible investors who can purchase tokens on the P2P marketplace.

What is the minimum amount you can sell?

The minimum trading lot for the current offering is 1 token, subject to a minimum transaction value of US$1000. You may sell unlocked tokens you have in your wallet, subject to a minimum transaction value of USD 1000.

Have more questions?

Get in touch with our team at info@terazo.network

Frequently asked questions

Blockchain and Tokenization

Eligibility & Onboarding

Investments & Trading

Have more questions?

Invest

Legal

Frequently asked questions

Blockchain and Tokenization

Eligibility & Onboarding

Investments & Trading

Have more questions?

Invest

Legal

Permitted Countries