Who can use Maecenas?
Anyone can use the platform if you submit your bids with our ART token or with other popular cryptocurrencies. However, only accredited investors can invest through the platform if they invest with fiat money like US Dollar or Japanese Yen. We may open access to retail investors in the future if there is sufficient demand for it.
Private collectors, galleries and art owners can list their assets provided that they satisfy our vetting and due diligence criteria.
What is an accredited investor?
An accredited investor is an investor with a special status under financial regulation laws. The definition of an accredited investor varies between countries. Generally, accredited investors include high-net-worth individuals, professional investors, financial institutions, and other large corporations who have experience in complex and higher-risk investments such as venture capital funds, hedge funds and angel investors.
What type of artworks will be listed on the platform?
Maecenas focus is on masterpieces and proven successful artists. Art pieces will be worth circa one million USD and above.
What is the minimum I can invest in a piece of art?
There is no minimum investment if you participate with our ART token or with other cryptocurrencies. However, if you participate with fiat currencies, there is a minimum investment is US$5,000 (or equivalent) and you need to make an initial deposit of at least US$50,000 to open your investor account.
Will you list masterpieces?
Yes. We will list paintings and sculptures that have sound fundamentals from an investment perspective but also have appeal to investors who appreciate fine art.
How do you ensure that the artwork is authentic?
As part of our due diligence we arrange for provenance checks to be conducted by reputable and trusted third-parties, including art loss registry checks and physical inspection of the property. The documents produced during the due diligence process are stored securely and protected by cryptography to ensure that they are impossible to falsify once they’re on the platform.
How can I validate that my art holdings are accurate?
We use blockchain technology to create a tamper-proof ledger that guarantees your exact holdings. This record also has a cryptographic certificate of ownership attached to it.
You can read more about this technology by clicking here: Blockchain in Capital Markets
What happens if a piece of art is damaged, lost or stolen?
All artwork listed in the platform is protected by mandatory insurance. In the unlikely event that the artwork is damaged, lost or stolen the insurance protection will cover in excess of 100% of the asset value.
How does the investment process work?
Each piece of art goes through a strict validation process that involves external independent and trusted third parties, including provenance analysis, document validation and physical inspection if required.
Once the validation process is complete, the piece of art is listed on the platform and investors can bid for it, choosing the amount they want to invest and their desired price (which can be above or below the reference price). All bids are private and confidential.
The bidding process lasts for a limited time, set at the discretion of the gallery or collector who listed the asset. Once the bidding is complete, the highest bids are given preference and the artwork is allocated to the successful investors based on the chosen amounts and price. At this point, the monies matching the investment amount are transferred from the investor account to the art owner account, and the transaction is settled.
What are the fees for using the platform?
Listing an artwork on the platform costs 6% of the total value of the instruments listed, whereas investors pay a 2% to invest. Both percentages are applied to the final settlement amount and are only paid if transactions are completed successfully.
Selling art shares in our art exchange is free whereas buying shares costs 2%.
Can I physically hold the art piece I invested in?
Art pieces will be held in purpose-built art storage facilities that not only ensures that the artwork is safe but it also guarantees that it’s properly looked after.
If there is enough demand for it, we may implement an art leasing facility where art lovers can temporarily hold the piece of art for a fee, and then distribute the proceeds as income to the art shareholders.
What happens if the original owner wants to delist the asset from the platform?
Owners of the asset-backed certificates have legal rights over the artwork. In the case of delisting, the original owner must buy-back the certificates from all current investors. There is a negotiation process that requires a minimum percentage of the investors to agree to the terms (typically 90%), but this will generally be settled at the market price plus a discretionary premium.
What happens if the owner physically sells the artwork?
This is allowed and actually encouraged. If the new owner is happy to continue having the artwork listed on the platform then the sale has no impact on investors at all. However, if this is not the case, then the asset must be delisted prior to the sale and the standard delisting process is followed.