Buy-Back Option
The concept of a buy-back option offers a unique opportunity for investors to navigate various markets while balancing potential gains with a measure of security. The buy-back option enables investors to acquire assets at 50% of their market value within a specific timeframe. This structure not only provides exposure to diverse investment opportunities but also offers a safety net in case the investment doesn’t perform as expected.
When an executed buy-back takes place, the investor exercises their option to purchase the asset at the agreed-upon price. This strategic maneuver becomes invaluable when the investor believes the asset has strong potential for appreciation and wishes to secure it at a favorable price. By executing the buy-back, the investor becomes the permanent owner of the asset, positioned to benefit from any future increases in its market value.
When a buy-back is not executed within the specified timeframe, the permanent ownership of the asset remains with the initial investors. In such cases, Arkefi, as the facilitator of the buy-back, initiates an alternative plan to maximize returns. Typically, this involves selling the asset on the secondary market to secure the highest possible price. A nominal 10% commission fee may be applied to cover the costs of the sale.
The buy-back price is determined at the outset of the agreement, factoring in the asset’s market value, the financing requested by the collector, and any associated guarantees. It aims to offer a fair return to investors while providing liquidity to asset owners.
The buy-back option is a cornerstone of Arkefi’s investment model, ensuring that investors have clarity on their potential ROI while providing sellers with a path to reclaim their assets. This innovative approach fosters a win-win scenario, enhancing liquidity in the market for high-value collectibles. Next, we will navigate through the investment process on Arkefi, detailing how you can start your journey in this exciting investment landscape.