How It Works:

Step-by-step guide to the platform, from asset selection to token distribution.

1. Asset Selection and Due Diligence

The process begins with Fractalized identifying and evaluating suitable maritime assets for tokenization. Fractalized Steering Committee, composed of seasoned shipping and financial experts, carefully selects vessels based on stringent criteria to ensure maximum profitability and investment potential:

• Vessel Specifications: Focus on high-demand vessel types, such as chemical tankers, that are positioned to deliver strong operational performance and generate consistent revenue.
• Market Positioning: Vessels are selected based on their potential for high profitability, supported by robust market demand, strategic trade routes, and secure, long-term charter agreements.
• Valuation and Risk Analysis: Each vessel undergoes a thorough assessment to determine its market value, earning capacity, and risk profile, ensuring that only the most optimal investment opportunities are offered to token holders

2. Formation of a Special Purpose Vehicle (SPV)

Once a suitable vessel has been selected, Fractalized establishes a Special Purpose Vehicle (SPV) to facilitate secure ownership and management of the asset. The SPV is a dedicated legal entity created exclusively to hold and manage the vessel, providing several critical advantages:

• Asset Ownership: The SPV is solely responsible for owning the vessel, ensuring its operations and financial performance are distinct from Fractalized’s broader corporate activities. This structure guarantees independent and transparent asset management.
• Tokenized Income Rights: Fractalized tokenizes the income rights generated by the vessel. This includes both revenue from vessel operations and any proceeds from a vessel sale. Token holders have a legally binding claim to these income streams, ensuring direct participation in the vessel’s economic performance.
• Regulatory Compliance: The SPV is structured in accordance with international legal standards, ensuring compliance with relevant regulations in multiple jurisdictions. This legal framework protects the rights of token holders and aligns with global best practices for asset management and investor protection.
• Risk Management: The SPV structure effectively isolates the vessel's financial risks from Fractalized's other activities, protecting token holders from potential liabilities associated with other assets or operations.

By establishing an SPV for each vessel, Fractalized ensures that all aspects of ownership, management, and financial performance are handled with the highest level of transparency, security, and regulatory compliance.

3. Tokenization of SPV Income Rights

To provide users with a secure and efficient way to participate in maritime assets, Fractalized tokenizes the income rights of the Special Purpose Vehicle (SPV) that owns the vessel. This tokenization process involves the creation of digital tokens that represent a claim on the vessel’s revenue streams, ensuring direct participation in the asset’s financial performance.

• Issuance of Tokens: The income rights of the SPV, including vessel operating revenue and any vessel sale proceeds, are converted into digital tokens using the ERC-20 standard. This fungible blockchain protocol ensures the safe and efficient issuance, management of tokens and liquidation of assets. Each token represents a proportional right to the income generated by the vessel.