When you purchase shares in an Otis offering, you invest in an LLC which owns a specific asset, such as a painting. If the value of that asset rises, so does the value of your shares. It is our goal to curate assets that will appreciate in value over time but there is no guarantee we will meet this objective.
There are two primary ways in which you may have liquidity.
Trade - Sell your shares to other Otis members. We currently provide daily clearing and liquidity is limited by demand on the Otis platform. You can learn more about how trading works here.
Buyout - Occasionally, we will receive buyout offers, or offers from outside buyers to purchase an item at a significant premium. In these cases, we will empower shareholders with a vote on the offer. If a majority of shareholder votes opt to sell, we will do so and every shareholder will get paid out accordingly (i.e. you will be compensated at the relevant price per share for each share you own). For more details, see our buyouts FAQ.
Please note that it may take a few months before you can access liquidity via the trading platform after investing in a Drop.
This is because there is a two-step process for each of our assets:
1. Drop (IPO) — this is the initial public offering where anyone can buy shares for one price. The drop stays open until it is 100% fully funded, or when the total drop value has been bought.
While the drop is open, you will not be able to liquidate your investment in that drop. We do not offer refunds on drops while they are still open.
2. Trading — Once the drop is fully funded, our team must go through a closing process to open the asset for trading. You will not be able to trade, and therefore will not have access to liquidity during this process.
The process typically takes 3 months (sometimes sooner). During this time, we are operationally closing the drop, clearing all investors, and filing new paperwork. We also want to align incentives with our investors for the long-term.
Once the asset is open for trading, you can access liquidity by selling your shares to other Otis members. Keep in mind that our trading platform is new with limited liquidity.