Investing in Drops
Drops (IPO, "Primary")
Drops are the IPO’s of our assets. They are the first (i.e. initial, public) offerings of shares in an asset, before those shares go to trading.
Drops give everyone the opportunity to purchase shares at the same price, typically $10 per share.
Drop Value refers to the total amount open for investment in an asset, and is a reflection of the asset’s current valuation.
It also determines the amount of shares available for an asset (for example, if an asset’s drop value was $10,000, at $10 per share, there would be 1,000 total shares available).
Drops are open for up to three months (sometimes longer) before they get filled.
How do I know when drops will begin trading?
Drops will open for trading after the drop closes. This typically takes between 3 months (sometimes shorter). Behind the scenes, we have to operationally close the Drop (IPO), clear all investors, and file some new paperwork. We also want to align incentives with our investors for the long-term.
To get notified when drops begin trading, tap “Notify Me” on the details page of the drop.
Can I purchase all of the shares in a drop?
The maximum subscription by any investor is for shares representing 19.99% of the total shares of a particular series, although such maximum thresholds may be waived by Otis Wealth in its sole discretion
I’ve invested in a drop - will there be ongoing fees to account for the asset’s insurance, storage, etc.?
At the moment, we only charge an upfront 0-10% sourcing fee (depending on the asset) that is included in your initial purchase. There are no ongoing fees.
How long will a drop stay open and what happens if a drop doesn’t sell out?
Regardless of the precise timeframe of a drop’s closing, existing investors’ shares will be unaffected from a % ownership standpoint.
In the event, a drop isn’t closed within the allowed time frame (typically three months - sometimes longer), existing investors will be refunded their investment.
If you have any questions about how Otis works or your Otis account, please don't hesitate to give our support team a shout on the app or via email at [email protected].