They can be considered a “controlled” alternative to exchange tokens. These will never become volatile digital assets and remain secured using cryptography. They remain 100% backed at all times by a secondary blockchain asset, or liquid capital verified at a registered financial institution or other means of liquidity.
In some ways, yes a Bond and Profit Share have similarities. The Profit Share will be represented using a Dynamic Token asset. They can be considered smart-contracts with unlimited potential in terms of technical functionality and financial liquidity. Each Profit Share token will fully represent an verified physical or digital asset such as Bitcoin, BTA, bullion or even fiat currency. Essentially - they're an external method for representing something of value using crypto-signatures. In the use of a Profit Share, they become a digital loan contract with static or dynamic capabilities for return rates, terms of repayment and even controlling liquid venture capital by multiple entities.
No, It's a private equity crowdfunding platform servicing private accredited investors. The Howey Test: It is an investment of money: YES, eligible investors pool their investments with others to minimize their capital exposure and risks. There is an expectation of profits from the investment: No, investors are never offered a fixed rate of return and are made aware that investing in new-startup ventures has high risk for losses. The investment of money is in a common enterprise: No, Profit Shares offers the ability to automatically diversify investor's capital to project contractors without relying on a central enterprise. Any profit comes from the efforts of a promoter or third party. Profit Shares not does offer any commissions from the sale of the private equity shares on the platform, there are no transaction fees.
Yes, They're designed to create sustainable returns that will attract new capital from users of the Profit Shares Platform. They provide variable rates of return (ROI) for a predetermined length or indefinite period of time. Other programming criteria can be attached and extend the functionality of each share, a truly dynamic asset for multiple uses. They also allow for small or large businesses to acquire new funding without losing controlling interest in their companies. Allowing for public or private venture capital opportunities to be secured by a decentralized blockchain for a low fee.
The use of this platform is restricted to private members and individuals personally invited by them. Every deposit is considered to be a private transaction between the P2P Profit Share Issuer (Fund Manager) and its member. As a private transaction, they're not licensed and exempt from the US securities Act of 1933, The US Securities Act of 1934, and the US Investment Company Act of 1940 and all other rules, regulations and amendments thereof from the US or other countries. They're not SEC or FDIC insured, licensed or secured by any firm. Use these at your own risk and contact a financial advisor.