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  • Welcome to Lofty's FAQ 👋
  • FAQ
    • What is Lofty?
    • How does the Lofty Marketplace work?
    • Which payment methods can tokens be purchased with?
    • Can non-US citizens participate?
    • Can I sell my tokens anytime?
    • How does Lofty make money?
    • How do taxes work?
    • How does governance work?
    • How are repairs handled?
    • How often do I receive rental income?
    • How do I withdraw my rental income?
    • Do I benefit from depreciation?
    • Will I lose my tokens if Lofty AI goes out of business?
    • As an owner am I liable if any lawsuits / accidents occur at the property?
    • Who manages the properties?
    • What is your Property Manager's process and tenant selection criteria?
    • Are Lofty properties purchased using debt?
    • Who owns the properties that are being listed on your platform?
    • How long after I pay will I receive tokens in my Algorand wallet?
    • Does the price of Algorand affect the price of Lofty tokens?
    • What is an Algorand wallet’? Why do I need one?
    • Which blockchain is Lofty AI using to tokenize properties?
    • How many tokens can I purchase in each property?
    • Can I do a 1031 Exchange with Lofty properties?
    • Who legally has ownership of these properties?
    • How is token appreciation determined over time?
    • How do we ensure each LLC owns the deed on its property?
    • Do I have to submit my ID before I can participate?
    • Why do I need to fill in personal information, and is it encrypted?
    • Why is my ID verification taking so long?
    • How can I track the performance of my property?
    • How long are properties held before they're sold?
    • Do you have 2 Factor Authentication (2FA) available?
    • What happens if a property doesn't sell fully by the deadline on the website?
  • Glossary
    • IRR
    • Cash on Cash return (CoC)
    • Cap rate
    • Appreciation
    • Net Operating Income (NOI)
    • Diversification
    • Operating Expenses
    • CapEx
    • Single-Family
    • Duplex
    • Triplex
    • Quadplex/Fourplex
    • Capital Gains Tax
    • Closing costs
    • MLS
    • HVAC
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  1. FAQ

Will I lose my tokens if Lofty AI goes out of business?

No. If Lofty went out of business, each property LLC would continue to remain in existence as a separate legal entity for property holding, tax, accounting, liability, and member ownership purposes. Regardless of what happens to Lofty AI, Inc., the assets and the Lofty tokens of an LLC would remain independent and intact. The Lofty tokens would still represent and evidence ownership of the property contained in the LLC and, as such, could be transferred in the market, as needed, so long as applicable securities transfer rules are complied with. You, therefore, remain the owner of your tokens. If there is a liquidation of Lofty AI, Inc., a new Managing Member would be appointed. This could be a lawyer on a temporary basis, an accountant, or even the largest token holder for example. If Lofty is no longer in business, then we would not be able to purchase the tokens back and provide liquidity, so please be aware of this risk. With that said, the tokens still entitle you share of the property, so your principal will still be protected. If the property were voted on by the token owners for liquidation, you would still be able to recover your investment plus any gains from the sale.

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Last updated 3 years ago