KR20250022766A - Method and system for transmitting information - Google Patents

Abstract

A method and system for transmitting information comprises transmitting, by a first computing device of a first computing system, a first network function request including first information to a distributed network, and transmitting, by a second computing device of a second computing system, a second network function request including second information to the distributed network.

Description

Method and system for transmitting information

This application claims the benefit of U.S. Provisional Patent Application No. 63/209,858, filed June 11, 2021, which is a continuation-in-part of U.S. Patent Application No. 17/806,677, filed June 13, 2022, which is a continuation-in-part of U.S. Patent Application No. 17/121,510, filed December 14, 2020, which claims the benefit of U.S. Provisional Patent Application No. 62/948,136, filed December 13, 2019.

All of these applications are incorporated by reference in their entirety.

This application is also related to PCT/US2020/064934, filed December 14, 2020, which is incorporated by reference in its entirety.

This application/patent contains at least one drawing drawn in color. Upon publication of this application/patent, copies of this patent application including the color drawings will be provided by the United States Patent and Trademark Office upon request and payment of the required fee.
Figures 1 to 4 illustrate various structures that can be used for investment depending on the mode of disclosure.
FIG. 5 illustrates an exemplary computer system according to an aspect of disclosure.
Figure 6 illustrates an exemplary method of using a blockchain according to an aspect of disclosure.
FIG. 7 illustrates an example of an MRE calculation flow according to an embodiment of the present disclosure.
FIG. 8 illustrates an example of using a blockchain for investment according to an aspect of the present disclosure.
FIG. 9 illustrates various equations that can be used for investments according to aspects of the present disclosure.
Figures 10 through 12 illustrate various parties, transactions, and elements that can be used to bring a home onto the platform.
FIG. 13 is an exemplary screen shot according to an embodiment of the present disclosure.
FIGS. 14, 15a and 15b, 16, 17, 18, 19, 20, 21a and 21b, and 22 to 26 illustrate other exemplary embodiments of the present disclosure.

Example alternatives for home investment

A system and method are described for using an alternative risk model that adjusts what is called minimum retained equity (MRE) rather than adjusting the price (rent) to match the borrower's risk profile. This approach could level the playing field in the long run by changing the current paradigm where those who pay the most for housing pay the most.

To avoid trading one problem (e.g. high cost of capital) for another (e.g. high upfront costs), impact investors can join with income-focused investors to homogenize housing finance across all classes of homeowners and risk profiles.

In some embodiments of the initiation, the investment capital may be separated from the equity provided by the homeowner or on behalf of the homeowner, as determined by the quarterly MRE calculation. For example, a borrower with a FICO score of 620 and a debt-to-income ratio of 45% wants to purchase a home for $200,000. Based on this borrower's risk profile, an MRE of 14.25% can be calculated, which means that the borrower can afford to make a down payment of $28,500, or 14.25% of the $200,000 purchase price, to purchase the home. The investor can then purchase the remaining 85.75% of the home for $171,500, with confidence that the investment is safe due to the MRE calculation and the risk pool.

In some embodiments of the initiation, instead of having the required upfront capital, the borrower may have an alternative option if they wish to rent. The capital required to meet the MRE requirement may be provided through a partnership between the homeowner and a third-party impact investor. One example of the impact of this type of housing financing model is that the homeowner’s monthly payment obligation is lowered. In this case, the rent may be, for example, 25-35% below market rent and mortgage. This difference may provide an arbitrage opportunity for the homeowner to purchase additional capital held by the impact investor in order to meet the MRE requirement. The homeowner may purchase the property from the impact investor over time by paying only market rent until the minimum equity threshold is reached, after which the monthly payment is reduced to the amount required to service 85.75% of the owner. Meanwhile, as long as the homeowner, impact investor, or some combination of the two consistently meets the MRE, the investment will look exactly like any other investment on the platform to the 85.75% stakeholder.

In some of the early days of the market, impact investors can earn annual returns of over 20% if they buy and resell a 10% stake to the homeowner, calculated using market rent payments and a 5-year repurchase period. In this case, impact investors, along with the homeowner, would suffer the first loss if the homeowner defaults.

In some embodiments of the disclosure, a framework may be provided that allows impact investors to leverage the platform design in a plug and play manner. Impact investors may be provided with an experience that allows them to easily design programs to fit their specific needs (e.g., according to predetermined guidelines) and leverage the infrastructure with minimal effort. For example, this framework may be similar to the Amazon experience, except that instead of the retailer leveraging the infrastructure, impact investors are the ones leveraging it. In some embodiments, blockchain-based smart contracts may be used, although one of ordinary skill in the art will recognize that non-blockchain-based contracts (and the software implementing them) may also be used. FIG. 6 illustrates an exemplary process utilizing a blockchain according to an embodiment of the present disclosure.

Using Blockchain-Based Smart Contracts for Investments

As described herein, the method and system for conducting a transaction for investment may be accomplished through asset tokens and blockchain-based smart contracts. Background information on blockchain can be found in Wikipedia's December 13, 2020 Blockchain article (https://en.wikipedia.org/wiki/Blockchain).

A request to perform such a transaction may be received from an entity (e.g., an investor) transacting with such asset tokens. The asset tokens may be backed by assets (e.g., real estate). While this disclosure details transactions involving real estate assets, it should be understood that this disclosure may be implemented in a similar manner for other assets.

In an exemplary embodiment, an asset token may be generated using a cryptographic hash of information that uniquely identifies the asset. The token may have an owner using an additional public/private key pair. The owner public key may be set to the token owner's identity, and may be used to establish proof of ownership by providing a signature generated with the owner's private key and verifying it with the public key listed as the token owner.

Asset tokens can digitize ownership interests in specific assets (e.g. real estate) to increase access to assets, track assets based on their characteristics, and create efficiencies in supply chain management and trade finance. These tokens can be used as a medium of exchange in payments, settlements, international remittances, investments, financing, and other activities, and can be used as a substitute for fiat currency.

In an exemplary embodiment, asset tokens may be issued and/or exchanged based on the availability of asset inventory in accordance with established procedures and exchanges for the asset. Transactions of asset tokens may include purchasing asset tokens, redeeming asset tokens, transferring ownership of asset tokens, providing assets backing asset tokens, etc. Transactions involving asset tokens may be recorded in blockchain-based smart contracts. Each asset token may be associated with a standardized smart contract that specifies the transactions that can be performed on the asset.

The blockchain used in this document can be a public ledger of all transactions in a blockchain-based data storage. One or more computing devices can form a blockchain network, which can be configured to process and record transactions as part of a block in the blockchain. When a block is completed, the block is added to the blockchain and the transaction record is updated.

A blockchain can be a chronologically ordered ledger of transactions, or it can be represented in a sequence suitable for use in a blockchain network. In some configurations, a transaction recorded on a blockchain can include a destination address and an amount, and the blockchain records the amount corresponding to a particular address. A transaction can be a financial transaction and/or include additional information such as a source address, timestamp, etc., or other information.

A blockchain may contain data in the form of transactions placed in a distributed database that maintains a continuously growing list of data records that are tamper-resistant and can be verified and validated on the blockchain network through proof-of-work and/or other appropriate validation techniques.

In some cases, the data for a given transaction may include additional data that is not directly part of the transaction attached to the transaction data. In some cases, including such data on the blockchain may constitute a transaction. In such cases, including such data on the blockchain may constitute a transaction.

A smart contract as used herein may be a computer code that programmatically executes a transaction that may be defined by a written contract or other predefined conditions. The computer code may be executed on a secure platform that supports recording transactions on a distributed ledger (e.g., the Ethereum platform, which provides a virtual machine).

Additionally, the smart contract itself can be recorded as a transaction on a distributed ledger using an ID token, which is a hash of the computer code (i.e., an ID token), thus authenticating the computer code being executed. When deployed, the smart contract's creator is executed, initializing the smart contract and its state.

The state of a smart contract can be permanently stored in a distributed ledger. When a transaction is recorded for a smart contract, a message is sent to the smart contract and the computer code of the smart contract is executed to implement the transaction (e.g., debiting an account balance with a certain amount of asset tokens).

Computer code can verify that all predefined conditions are met before a transaction is recorded in a distributed ledger. For example, a smart contract can support the sale of an asset. The inputs to a smart contract selling a portion of an asset might be the seller, the buyer, the asset’s ID token, and the sale price. The computer code verifies that the seller is the current owner of the asset and that the buyer has sufficient funds in his account. The computer code then records a transaction transferring ownership of the asset to the buyer and a transaction transferring the sale price from the buyer’s account to the seller’s account.

In an example embodiment, an asset token transaction may involve the purchase and sale of part or all of a real estate, which may be between one or more real estate residents (e.g., homeowners) who reside in the real estate and/or one or more investors who have a financial interest in the real estate. The ownership percentages between the various residents and investors may be determined based on the percentage of tokens and TIC shares owned by the respective entities.

Such a transaction could provide capital to a non-accredited investor homeowner to purchase a home and have undivided ownership of the home with the investor. For example, if the homeowner finances 5% of the purchase price and the investors finance 95% of the purchase price, the homeowner could be required to pay monthly rent to the investors for their 95% stake. Recurring rent payments could be made to the investors via smart contracts. Thus, the investor would receive cash flow from their investment and the homeowner would have the right to live in the home based on the rent payments.

For example, each home could have 95,000 indivisible asset tokens issued for trading. A prospective homeowner could purchase a 5% stake in the residential property and receive a 5% TIC stake in the home. An investor could purchase a 95% stake in the residential property and receive 95,000 asset tokens. A business that mediates these sales (e.g., a real estate website) could receive a commission from the net sale proceeds generated from the price paid by the homeowner and investor.

If a homeowner who owns part of a home experiences a positive financial event, the homeowner can purchase more of the home owned by the investor. For example, if the homeowner wants to pay an additional $25,000, the equity token ownership position of all owners can be adjusted, redeeming $25,000 worth of equity tokens and transferring $25,000 worth of TIC ownership to the homeowner. The homeowner’s new monthly rent payment can be reduced accordingly. Alternatively, if the homeowner needs more money, the homeowner can trade part of the home. In such a case, the homeowner’s monthly rent payment can be increased accordingly.

In an exemplary embodiment, only the homeowner may have the right to live in the home. Such occupancy rights may be evidenced by an occupant token unique to each residential property. Holding an occupant token may require the investor to pay rent via a smart contract. In the event of a default by the homeowner as specified in the contract between the homeowner and the investor, the investors may involuntarily redeem the occupant token. If the homeowner wishes to vacate the home, the homeowner may sell his/her asset token and the corresponding occupant token, which are then transferred to the new homeowner.

Asset-backed token transactions can be structured in the following ways: (i) a joint owner (TIC) structure (e.g., see FIG. 1 ), (ii) a Delaware Statutory Trust (DST) structure (e.g., see FIG. 2 ), or (iii) a limited liability company (LLC) structure (e.g., see FIG. 3 ). (FIG. 4 illustrates a hybrid structure.) Under the TIC structure, the tokens may represent a direct joint owner interest in the assets. Under the DST structure, the tokens may represent a beneficial interest in a DST governed by a trust agreement. This structure eliminates the need to record a certificate of change in ownership each time a TIC interest is transferred.

Depending on the LLC and/or DST structure, the tokens may represent membership interests in the LLC and/or DST, which would be joint tenants with the homeowner. The homeowner may own an undivided portion (e.g., 5%) of the TIC ownership interest in the home along with the remainder (e.g., 95%) TIC ownership interest of the investor's LLC and/or DST. The homeowner's TIC interest and the investor's LLC and/or DST TIC interest may together constitute a "joint tenant TIC interest" under such a structure.

In such a case, both the homeowner and the Investor LLC and/or the DST may have voting and management rights, which may be documented in the TIC Agreement. The Investor may be an LLC or DST interest holder of the Investor LLC and/or the DST. If the homeowner wishes to purchase or sell a joint tenant TIC interest from the Investor LLC, the Investor LLC may broker such purchase or sale and adjust rent payments accordingly. If the homeowner wishes to purchase a joint tenant TIC interest from the Investor DST, the Investor DST may broker such purchase and adjust rent payments accordingly.

Blockchain Use Cases for Investment

Example problem description

Some ways to mitigate the risk for potential homebuyers today are to offer higher interest rates to the highest risk homeowners in order to recover potential losses in their credit scores, LTV, and/or DTI. This results in the least able homeowners paying more each month on their mortgage, increasing the likelihood of default.

A new platform for home ownership allows homebuyers to reduce the risk associated with their homes by adjusting the amount of equity they hold. In the event of a default, the homeowner’s equity can be used to recover losses without putting excessive financial burden on the buyer, and/or the risk of individual assets can be shared across the entire network to reduce the layering of risk that currently exists in the mortgage space.

It may be helpful to know how much equity a homebuyer must have in their home. This may be referred to as the Minimum Retained Equity (MRE). In some aspects of the disclosure, the MRE may be based on the risk of the individual homebuyer and the performance of a global risk pool on a quarterly basis.

Exemplary definition

Loan to Value (LTV). LTV can be the ratio of the amount of a loan against a property to the actual value of the property.

Minimum Retained Equity (MRE). MRE can be the amount of home ownership that a homeowner can no longer sell part of.

Debt to Income (DTE). DTE can be the ratio of a homebuyer's debt to their income.

Exemplary MRE Calculation Flow

FIG. 7 illustrates an exemplary MRE calculation flow according to an embodiment of the present disclosure.

There are several ways to evaluate the relationship between credit score/LTV/DTI and default rates. In the platform model, LTV does not exist (e.g., there is no loan and instead home ownership may be 'split'). Instead, the LTV value may be roughly equal to the MRE and can be treated as such for the purpose of generating initial values to be used in the model.

In order to generate more detailed data on the relationship between credit scores/LTV/DTI and default rates, the data can be fit to a nonlinear model to see how scores between "blocks" of credit scores/LTV/DTI behave. A nonlinear model can be chosen because the relationship being modeled is inherently nonlinear, with a threshold set above and/or below which changes in credit scores or LTV no longer have a significant effect on default rates. The function resulting from fitting the available blocks of data can be a multi-variable equation that can be expressed as:

D ( C _s , E _min , I _r )

Here, C _s is the consumer's credit score, E _min is the minimum asset, I _r is the debt-to-income ratio (DTI), and/or D(C _s , E _min , I _r ) can be the expected default rate based on actual available data.

Once the initial D(C _s , E _min , I _r ) function is known, we can derive a new function from it:

E ( D _m , C _s , I _r )

Here, D _m is the maximum acceptable probability of default, C _s is the consumer's credit score, I _r is the debt-to-income ratio, and/or E(D _m , C _s ) can be evaluated as the minimum assets the consumer needs to hold to remain below the maximum acceptable default variance.

This can be verified with real data by comparing the output of E(D _m , C _s , I _h ) to known actual LTV values given credit scores and/or known default rates.

As the platform network grows and additional data becomes available, the E(D _m , C _s , I _h ) function can be re-tuned to provide more accurate data.

Exemplary Risk Pool Health

The platform can be designed to have a risk pool that can share the risk of all properties in the network, and the risk pool can hold 1% of the value of each home in the network, which is entitled to 1% of the rent and/or HPI accruals for each property. Additionally, this risk pool can be valued at the MRE for each property, which is assumed to be recoverable at a certain rate (R). The total assets held by the risk pool can be calculated as shown in Equation 1, where H _h is the total number of HPI tokens held by the risk pool, H _v is the current value of the HPI tokens, V _h is the value of the home, R _h can be the rent for the home, and P _h can be the number of rent payments paid by the home's occupants.

The risk that this pool must bear may be the total irrecoverable housing equity held by homeowners who are likely to default on their loans. This may be referred to as U. U can be calculated for each property as follows:

U _h = (1 - R ) * E _h

Here, R is the normalized recovery rate, and E _h can be the MRE of the property.

By evaluating these values for each house in the network and normalizing them for their likelihood of default (e.g., using credit score analysis), we can determine the total loss, the risk pool that must be insured, using Equation 2.

For Equation 2, D can be a function described in Credit Score Analysis, C _h can be the homeowner's credit score, E _h can be the homeowner's MRE, I _h can be the homeowner's debt-to-income ratio, and U _h can be calculated as shown above. Using U _tot and A _tot , we can compute a simple indicator of the health of the risk pool:

Rhealth = U _tot /A _tot

This indicator can be interpreted in some aspects of disclosure as follows:

R _health < 1: The pool does not hold enough assets to cover the expected losses.

R _health = 1: The pool holds exactly enough assets to cover expected losses.

R _health > 1: The pool's assets exceed its expected losses.

of a new house MRE Example of decision

When adding a property to the platform, it may be necessary to determine the MRE that a potential homebuyer must have in order to add their home to the network. This can be done by assessing the impact of adding a home on the overall health of the platform risk pool. This can be done by defining and assessing the maximum allowable change to the health of the risk pool that a property can introduce. This can be referred to as ΔH _max .

We can now calculate the change that a new home will have on the risk pool using Equation 3.

In equation 3, R _health could be the current health of the risk pool, U _tot could be the total expected loss of the risk pool, D(C _h ,E _h ,I _h ) could be the expected probability of default on the property, U _h could be the irrecoverable loss if the property defaults, A _tot could be the present value of the assets held by the risk pool, and/or V _h could be the value of the house.

If we set the value of Δh to ΔH _max , we can obtain E _h from equation 4.

Recall that U _h can be an expression of the irrecoverable MRE by substituting U _h = (1 - R)E _h as shown in Equations 5 and 6.

By making substitutions for D(C _h ,E _h ,I _h ), we can compute the MRE for a given homeowner based on several adjustable variables in the above equation and hidden variables that are still in the computed D(C _h ,E _h ,I _h ) function.

Examples of Smart Contracts and Blockchain for Investment

Figure 9 illustrates an example of how smart contracts and blockchain can be used for investment, depending on the mode of disclosure. In 1, home ownership can be granted to both the occupant and the SPE as co-owners via a deed of guarantee. In 2, the SPE can create a smart contract and issue asset tokens through it, which tokens can represent ownership of the SPE and sell the funds necessary to purchase the TIC interest as per step 1 to the investor. The asset tokens can be distributed to the investor and the risk pool. In 3, a smart contract can be created between the occupant and the SPE that includes a contract for a co-tenant and a lease agreement. In 4, the SPE can create a smart contract to issue occupancy tokens to the occupant. In 5, the creation of the smart contract can include an agreement to allocate the appreciation in the home value to the HPI asset pool and in return issue HPI tokens that can be included in the sale of the asset tokens. The HPI tokens can represent ownership of the right to profit growth and can be distributed to the investor along with the asset tokens, and can also be distributed to the platform owner/manager. In 6, all transactions can be recorded on the blockchain.

On the platform Boarding Detailed example of Boarding Home

Exemplary definition

ALTA: American Land Title Association.

Applicant: A person who can apply to become a homeowner and resident on the platform.

Back End DTI: A ratio expressed as a percentage that indicates how much of an individual's monthly income is used to repay debt.

Base Rent: The amount a tenant must pay each month, excluding other items such as taxes, insurance, HOA fees, pass-through payments for escrow liens or third-party obligations.

Burned: Burning means permanently removing existing tokens from circulation.

Capital Improvement: An improvement intended to be a permanent fixture that substantially increases the value of real property, substantially extends the useful life of real property, or becomes a part of real property or is permanently attached to real property and its removal would cause substantial damage to the real property.

Capital Improvement Value: The calculated value of capital improvements a resident could make to their home.

Current Adjusted Asset Token Par Value: The par value of the Asset Token, which may be expressed in fiat currency (USD), and which may have been adjusted since issuance due to a decline in the value of the housing units owned by the SPE.

Current Enhanced Assessments: Assessments recorded using an enhanced assessment methodology such as BPO, Overall Assessment, and/or other assessment methodologies adopted by the platform.

Current Valuation: The recorded valuation within the network that can be determined via an Automated Valuation Model (AVM).

Enhanced Rent: An additional amount that a tenant may pay to an impact investor, calculated as the market rent minus the platform (e.g., Quarter owned and/or operated) rent for a given unit.

Excess Capital: The amount of capital a tenant can hold without burden in excess of the minimum required equity (MRE).

Fiat currency: A national currency, usually issued by a national government or central bank, such as the US dollar.

HPI Asset Pool: A housing asset pool that can contain the total appreciation in value of all homes on the platform.

HPI Realization Rate: An amount expressed as a percentage between 0 and 100 that can be used to calculate the number of HPI tokens to be unlocked by applying them to the current period's HPA.

HPI Token: A token issued by the platform that can be backed by the increase in housing prices of all houses on the platform.

Impact Investor: An individual or organization that can assist applicants in meeting the Minimum Maintenance Equity (MRE) requirements to qualify as a homeowner on the platform.

Initial Holder: An individual or entity that acquired tokens through the initial issuance directly from the platform owner/operator.

Investor: Holder of asset tokens.

Minimum Capital: The minimum capital that a tenant must hold based on current underwriting criteria. This may be a dynamic number that may change based on the property and/or tenant profile at any given point in time and may be used to manage default risk.

Resident: An owner who may be designated as a co-owner and may hold occupancy tokens.

Original Asset Token Nominal Value: The nominal value of the asset token at the time of issuance, expressed in fiat currency (USD).

Qualified Institutional Buyer (QIB): A firm that manages a certain amount of securities (e.g., at least $100 million) at its discretion and/or a registered broker-dealer that invests a certain amount (e.g., at least $10 million) in non-affiliated securities.

Quota Platform Preferred Provider: A real estate agent and/or brokerage with whom the Platform Network may have negotiated an agreement to provide listing and/or selling services.

Quarterly Transaction Fee: A fixed fee that the Platform may charge for all transactions that may occur on the Platform, except when a Home is first listed on the Platform, when a Home is delisted from the Platform, and/or when the Initial Holder initially purchases the Asset Tokens when the Home is listed on the Platform.

Quarterly Property Fee Fund: A fund that can be established to pay future property sales fees on behalf of property owners. This can be funded monthly from platform fees collected when rents are paid on the platform.

Rent: The total monthly payment that a tenant token holder is required to pay, including base rent, platform fees, taxes, insurance, and/or HOA escrow if applicable.

Maintenance Risk Pool: A pool of asset tokens held by the network, forming a risk pool for the purpose of mitigating the risk of default by residents.

Special Purpose Entity (SPE): An entity that can be created specifically to hold investor interests in a home. Investors can own an interest in the SPE, which can then become co-owners of the home under a Tax In common (TIC) certificate.

Tenants in Common (TIC): A legal way for two or more owners to have ownership of a property. A co-owner's interest may be an undivided legal interest in the property that can be held and has no right of survivorship.

Co-owners' Agreement: A legal agreement that governs how a co-owners' partnership will be managed.

Triple Net Lease: A lease agreement for real estate in which the tenant or lessee promises to pay all real estate expenses, including real estate taxes, building insurance, and/or maintenance.

Example tokens and how to use them

The disclosure aspect includes various tokens that can be used in software according to the exemplary process described in the steps below.

Occupy Token

1) Occupancy Tokens may be non-fungible tokens that may be issued by an SPE to a homeowner upon the SPE and the occupant entering into a TIC Agreement and/or Triple Net Lease Agreement and completing the purchase of a TIC interest in the home. Occupancy Tokens may confer certain rights and/or obligations on the holder as described herein.

a) Tenants may have the right to occupy the unit under jurisdiction-specific co-ownership agreements and/or triple-net leases, which may include, for example, the following provisions:

i) The period may be perpetual unless terminated under predefined conditions.

ii) Rent may be paid by the Tenant to SPE through the Platform, and the amount is calculated as the sum of the base rent, platform fees, accrued late fees and/or prepayment repayments.

(1) In some cases, rent payments may also include levies on taxes, insurance, and/or HOA fees.

(a) Whether an escrow account seizure will occur may be determined based on an algorithm using various consumer and/or property data points and/or local jurisdiction requirements.

(b) The seized escrow payment may be paid to a third party escrow service provider.

iii) Unless included in the rent as part of an escrow impound, the Tenant may pay property taxes, hazard insurance, and/or HOA fees (including fines) separately from the rent directly to the applicable tax, insurance, and/or HOA authority/agent.

iv) In addition to other payment requirements contained herein, Tenant may also be required to pay timely any and all liens against the Property, including but not limited to water and/or other utility charges, code enforcement fines, special assessments, and/or contractors hired by Tenant to perform work or services on the Property.

v) Tenant may be obligated to perform and/or pay for any routine property maintenance not included in the housing warranty that may be provided under the terms of the TIC Agreement and/or Triple Net Lease Agreement.

vi) If Tenant fails to comply with any maintenance requirement (e.g., Section 1(a)(v)) and/or fails to cure the default within a predefined number of days after notice of default, Tenant may be considered in breach or may engage a third-party contractor, at Tenant’s sole expense, to perform any maintenance work necessary to bring the Property back into compliance, which cost shall be paid by Tenant and added to the next Rent payment.

(1) Any payments for third party contractor engagements (e.g., under Section 1(a)(vi)) that become due prior to the next scheduled rent payment date may be prepaid from the maintained risk pool and repaid by the tenant.

vii) The deductible arising under the terms of the housing warranty program may be paid by the tenant.

viii) Rent payments may be made in legal tender.

ix) may determine the terms of late payment (fees and/or timing);

x) Occupants may be required to take and submit photographs of the interior and exterior of the property using a computer on the first anniversary of the date they acquired their Occupancy Token. (All elements of the system may be managed by the Administrator and/or may be accessed by users using any computer or a combination of computers (e.g. desktop computer, laptop computer, mobile computer).)

xi) If the Tenant fails to comply with a pre-established rule (e.g. Section 1(a)(x)) within a pre-determined time period, the Tenant may be notified of the default. If the Tenant continues to default within the pre-determined time period after receiving the default notice, the Tenant may contract with a third party to inspect the property and/or take and upload photographs. (Additional costs associated with photographs or other issues related to the property or systems may be added to the next rent payment.)

(1) Any amount paid to a third party contractor employed according to predefined criteria that is due before the next scheduled rent payment date may be prepaid from the maintained risk pool and repaid to the maintained risk pool upon payment by the tenant.

xii) In the event that any obligation under a predefined criterion (e.g. Section 1(a)(iii), 1(a)(iv), 1(a)(iv), 1(a)(vi), 1(a)(vii) and/or 1(a0(xi))) is not paid by the Occupant within a pre-determined time period, the funds paid out from the maintained risk pool may be paid on behalf of the Occupant, and any excess capital amount sufficient to pay the defaulted payment(s) may be automatically sold to the Network.

xiii) In the event that there is not sufficient surplus capital to fully repay the maintenance risk pool paid under the predefined rules (e.g. Section 1(a)(xii)), a lien may be placed on part or all of the tenant's minimum maintenance capital for the amount of the shortfall.

xiv) If any payment obligation under a predefined rule (e.g. Section 1(a)(ii)) is not paid by the Occupant within a predefined number of days, payment shall be made on behalf of the Occupant from funds paid out of the maintained risk pool, and sufficient excess capital may be automatically sold to the Network to pay the defaulted payment.

xv) In the event that there is not sufficient surplus capital to repay the full amount of the advance payment to the network in accordance with the predefined rules, a security interest equivalent to the shortfall may be established against the entire minimum capital of the occupier.

xvi) The creation of a lien (e.g., under 1(a)(xiii) or 1(a)(xv)) may result in eviction proceedings, cancellation of the occupancy token, sale of the home, termination of the TIC contract, or a combination thereof. Local law may be used to determine eviction proceedings, etc.

b) The staking tokens may grant the right to purchase and/or sell fractional shares as follows:

i) In order to exercise any put or call right, the occupant may be required to comply with all lease obligations.

ii) The tenant may purchase an additional portion of the home at any time at the current improved assessed value if the current assessed value ($) or % (fractional amount) is less than or greater than the pre-determined amount.

iii) The amount of capital to be transferred may be calculated by dividing the relevant valuation (e.g. current or improved) by the amount paid in legal currency (e.g. USD) less any transfer taxes or other fees and network transfer fees. The capital may be divided by 0.001 of the valuation (e.g. current or improved) and may be transferred by amending the TIC Certificate. The total amount paid is the amount of the share purchase price plus any transfer taxes or fees and network transfer fees, which may be paid by the tenant in legal currency (e.g. USD).

iv) The tenant may sell the excess equity in the house at any time if the current assessed value ($) or % (partial amount) is less than the pre-determined amount or if the current increased assessed value is higher.

v) The amount of the property to be transferred may be calculated by dividing the relevant assessment (e.g., current or improved assessment) by the amount in legal tender (e.g., USD) that the homeowner wishes to receive, plus any transfer taxes or fees and network transfer fees. The equity may be divided down to 0.001, may be transferred by amending the TIC certificate, and may be recorded pursuant to an escrow agreement with a third-party title company or other settlement service provider. The amount received by the tenant shall be the amount less any transfer taxes or fees and network transfer fees, and may be paid to the tenant in legal tender (e.g., USD).

c) Occupancy tokens may grant the occupant the right to sell the entire home as follows:

i) The tenant may notify the investor of his intention to sell the house and the price at which he will put the house up for sale.

ii) After receiving the letter of intent to sell and the initial listing price, the investor has the right not to purchase the property at the initial listing price for a predetermined period of time.

iii) Upon expiration of the right of first refusal, the occupant may put the property up for sale to a real estate agent who is the preferred supplier of the network.

iv) Notwithstanding the provisions of this Article 1(c)(iii), if the Tenant is a licensed real estate agent, they may act as a listing agent provided that they comply with all predefined terms and conditions. However, they may only receive a commission based on the proportional TIC interest in the home. In addition, they may only offer a buyer’s agent commission equal to or less than a pre-determined amount (e.g., a % of the sale price).

v) The Tenant may use the listing and purchase agreement addendum provided by the Platform, which may state that any liability (e.g., specific performance claims, etc.) arising from the Tenant’s breach of the listing and/or purchase agreement cannot be imposed on the property, and that the Investor is released and indemnified from all claims related to the listing and/or purchase.

vi) Upon receipt of a notice of acceptance of an offer and/or offer lower than the List Price, the Investor shall have a right of first refusal for a predetermined period of time to submit a price that matches the offer.

vii) If there is notice from the Occupant that an Offer has been received that does not give rise to a Preemptive Right as set forth in Section 1(c)(vi), and/or the Investor declines the Preemptive Right and/or a new Buyer seeks to purchase the Home using the Platform and is eligible to do so, the Investor may have a predetermined amount of time to decide whether or not to retain his or her interest and whether or not to include it in the sale.

(1) Even if an investor decides to retain an interest in the property, there is no guarantee that he will retain the same proportion of the interest he previously held, as the exact amount of the interest may vary depending on the amount the new occupant purchases compared to the amount the original occupant held at the time of sale. The reallocation of interest may be proportionately made among all previous investors who wish to retain their interest.

viii) If the home is sold to a buyer using the platform, the rent and base rent may be recalculated based on the sale price of the home. This may be true even if the original investor chooses to retain ownership.

ix) The real estate agent commission for the sale of real estate may be deducted from the occupant's settlement income by deducting a pre-determined amount (e.g. 0.00041677%) of the contract sale price for each month the occupant holds the occupancy token, up to a maximum of 96 months. The capital required for the loan may come from the real estate commission fund.

x) The Tenant may be charged a termination fee equal to a pre-determined amount (e.g., 1% of the sale price of the home), provided that the fee is a pre-determined amount (e.g., 0.5% of the sale price of the home) if the Tenant immediately purchases another home on the Platform using the proceeds.

xi) If a home is sold to a buyer who is unable to finance the acquisition using the network, the Occupancy Tokens (and/or Asset Tokens) may be redeemed and/or burned, the TIC Contract may be terminated, and the SPE may be dissolved.

xii) Payment for the purchase of a home may be made in U.S. legal tender.

2) Occupancy tokens grant the holder the right to make capital improvements to their home and benefit from those improvements.

a) The Tenant may notify the Platform as SPE Manager not less than a pre-determined amount of time before any plans for capital improvements to the Home are made.

b) The Platform may order a current improved appraisal to determine a pre- and post-improvement appraisal of the home in order to calculate the capital improvement value of the home. The post-improvement appraisal may require an on-site inspection to verify that the work has been completed.

i) The tenant may bear the cost of the assessment.

c) The capital improvement value can be calculated by subtracting the subsequent improvement value from the previous improvement value.

d) The TIC contract may be amended to allocate the capital improvement value to the net proceeds the tenant may receive upon sale of the home.

Asset Tokens

3) Asset Tokens may be fungible tokens issued by SPEs, which may confer certain rights and obligations on holders as described herein.

a) Asset tokens may represent ownership of a home in any combination of the following:

i) SPE may be designated as the entity named in the TIC certificate on behalf of the investor and may hold real estate interests.

ii) The special purpose entity may initially be a limited liability company (LLC), but may also be a Delaware statutory trust (DST), a series LLC, a land trust, or any other entity legally entitled to hold real estate in the jurisdiction where the home is located.

iii) There may be more than one SPE, for example, an LLC and a DST, stated on the TIC certificate of the home.

iv) Asset tokens may be allocated proportionally to investors in the same proportion as their SPE ownership and may be issued in exchange for fiat currency (USD) investments in the SPE.

(1) The platform may decide to accept other payment methods in the future, such as stable coins or other fiat currencies.

v) Token holders may have predetermined governance rights over the SPE.

b) Asset token holders may have any combination of the following rights:

i) the right to receive rent payments based on the SPE's proportionate ownership interest calculated using a formula that multiplies the sum of the base rent and the late fees under Section 3(b)(1) by the proportionate number of Asset Tokens owned;

(1) Late fees paid to tenants may be distributed to the holders of the asset tokens in proportion to their holdings, but if the underlying payment that gave rise to the late fee was prepaid from the maintained risk pool, the late fee may be distributed to the maintained risk pool.

(2) Payments may be made in fiat currency (USD) and optionally in other cryptocurrencies such as USDC, which may be determined by the platform from time to time.

ii) The right to receive HPI tokens in the same proportion as the ownership of the asset tokens.

iii) Payment of net proceeds from the sale of homes owned by SPE in proportion to the ownership of the asset tokens.

iv) A voluntary or involuntary (e.g., default by the occupant) sale of the entire property may be offered to the SPE without real estate commission, except as provided in Section 3(b)(iii)(1) below.

(1) If a real estate agent or broker is selected by the SPE owner (e.g., to the extent such selection is permitted or required) and/or the agent or broker is not a network preferred provider, the commission credit is limited to a maximum of 4% of the sale price.

v) Asset token holders will be able to receive rent payments without interruption if the tenant defaults on rent payments beyond the asset limit in the risk pool.

vi) Holders of asset tokens cannot be required to pay costs related to the default of a tenant within the limits of the assets held in the risk pool.

vii) Funds to advance payments and/or expenses (e.g., as detailed in Sections 3(b)(iii), 3(b)(iv) and 3(b)(v)) may be provided on behalf of the SPE through the Platform using a combination of assets in the retained risk pool.

viii) The initial holder of the asset tokens that may be offered pursuant to the US securities laws may resell them after a predetermined period (e.g., twelve (12) months) or, if the holder is a QIB, resell the tokens to another QIB without a holding period. Upon expiration of the holding period, the holder may freely trade the tokens on a secondary exchange with both accredited and/or non-accredited investors.

ix) There may be a right to collateralize asset tokens for leverage purposes.

x) Occupants may have the right to sell a portion of their TIC Shares (e.g., known as excess capital) in accordance with the underwriting guidelines. Asset Token Holders may be notified of the sale and may have the right, but not the obligation, to purchase additional Asset Tokens sold by the SPE, thereby raising capital to purchase TIC Shares from Occupants. In the event that two or more Asset Token Holders request to purchase additional Asset Tokens, the amount of Asset Tokens may be divided or sold proportionally based on the amount of Asset Tokens held by them immediately prior to the proposed transaction.

c) Asset Token Holders may have the following obligations:

i) Subject to compliance with all obligations as a holder of the Occupancy Token, the Occupant may at any time request and be required to purchase a portion of the TIC amount of the Home from the SPE.

ii) Any transaction conducted pursuant to Section 3(c)(i) may be conducted at the current assessed value of the home if the amount is less than the pre-determined amount (e.g., $ or % (partial amount) of the transaction amount), or at the current increased assessed value if the amount is greater (see also Section 1(b)(ii)).

iii) The net proceeds from any sale conducted by the SPE pursuant to this Section 3(c)(i) may be distributed proportionally to the holders of the Asset Tokens. The net proceeds may be calculated according to predetermined rules, for example, the total amount paid by the Tenant less the transaction fee and other sale or transfer expenses (such as registration fees, title fees, transfer taxes, etc.).

iv) In the case of a transfer of TIC interests from an SPE to a tenant, it may be recorded in an amended deed and may be recorded subject to an escrow agreement with a third-party title company or other settlement service provider.

HPI Token

4) HPI Tokens may be fungible tokens issued by bankruptcy (BK) remote SPEs that may exist for the purpose of holding HPI capital pool assets and issuing HPI Tokens, or fungible tokens issued by SPEs that have entered into an agreement with BK remote SPEs to allow each SPE to independently issue HPI Tokens. HPI Tokens may be backed by a pool of capital generated by the appreciation of all homes (or a subset of homes) on the platform. Ownership of this capital may be transferred to the HPI capital pool by asset token holders in exchange for HPI Tokens.

a) HPI tokens may be issued simultaneously with asset tokens when a home is first listed on the platform.

i) HPI Tokens issued with Asset Tokens may be locked upon issuance and may remain locked unless unlocked pursuant to Section 4(d)(i) of this Section.

ii) Locked HPI tokens are inseparable from the asset tokens and may be transferred as part of secondary transfers that occur after issuance.

iii) When registering a property, you can enter into a contract with an SPE, which will allocate the increase in the value of the home to the HPI asset pool, which can be collected when selling and selling the home on the platform.

b) The platform can set a predefined period of time called the HPI Interval, through which the platform can update the value of each house, thereby calculating the change in value of each house during that period.

c) At the end of each HPI interval, the house price appreciation (HPA) or house price decline (HPD) can be calculated at a specified time. The calculation can be the difference between the valuation made at the end of the previous HPI interval and the valuation made at the end of the current HPI interval.

i) If a home was boarded on the platform during the current or immediately preceding HPI interval, or an occupancy token was transferred to a new occupant during the current or immediately preceding HPI interval, the home’s valuation at the time of boarding or transfer will be replaced by the previous HPI interval valuation.

(1) Proportional adjustment is possible if the first period is within a predetermined period.

d) If the valuation at the end of the current HPI interval exceeds the valuation at the end of the previous HPI interval that occurred during the current asset token holder's ownership period, and/or the value at the time of boarding and/or transfer as described in Section 4(c)(i), then that valuation may also be designated as the HPI Highest Level.

e) HPI tokens cannot be unlocked if the current HPI interval valuation does not exceed the HPI maximum level.

f) If the current valuation falls below the HPI Highest Level due to one or more reasons during the HPD Period or the Asset Tokens can be transferred to another owner:

i) The high water level indicator can be removed.

ii) Future rights to unlock HPI tokens of a new owner may be based on the HPA calculated in accordance with Section 4(c), starting from the evaluation of the most recent HPI interval prior to transfer to the new owner.

iii) The original asset token face value may be replaced by the current adjusted asset token face value, which may be calculated as the proportional value of the asset token based on the lower of the current valuation at the previous point in time or the valuation at the end of the most recent HPI interval.

g) If the HPA of the current period is > 0 and the current valuation at the end of the period is greater than the highest, the HPI can be unlocked based on the following formula:

i) The number of unlocked HPI tokens for each asset token can be calculated by taking the smaller of the total HPA (e.g. USD) minus the HPI peak (e.g. USD) or the total HPA (e.g. USD) and dividing that by the market price of the HPI token (e.g. USD), then multiplying that quotient by the HPI realization rate (e.g. initial set of 90%), and then dividing that product by the total number of asset tokens held by the investor.

h) In the event that a house is sold that has increased in value enough to issue HPI tokens pursuant to this section, the net proceeds from the sale that the HPI token pool may receive from the issuance of HPI tokens may be used to purchase HPI tokens and subsequently burned.

Acquisition process

Property inspection

5) A standard due diligence process can be performed on all assets before they are loaded onto the network.

a) Current market value can be determined using a variety of possible methodologies. As defined in this document, there may be at least two layers of valuation available within the network: current valuation and/or current enhanced valuation.

i) The current assessment may be a baseline assessment recorded within the system or may be performed using a best-in-class, pre-determined third-party AVM.

ii) When a specific trigger event occurs, an enhanced valuation may be used in place of the current valuation. The enhanced valuation may include a combination of AVM, physical valuation, broker price opinion, buy/sell contract, asset token sale, or other pre-determined relevant inputs.

iii) All assessments may be independent and provided to the network through unaffiliated third parties.

b) The physical condition of the property can be assessed and documented. There may be a pre-determined standard set of tests (e.g., wood-destroying insects, radon testing, septic tank testing, water quality, mold, private well testing) supplemented by local practices that may be determined at the jurisdictional level. Multiple tests may be combined into a single home warranty inspection certificate and/or policy.

i) Physical condition can be assessed using best-in-class products and services from independent third-party suppliers.

c) Investigate the title to the property and issue title insurance policies so that the tenant and/or SPE can have a free interest and be protected by insurance in the event of a defect in the title after the transaction is concluded. This can apply both to new home purchases and to existing homeowners listing their current homes on the platform.

i) If you are purchasing a new home, you may be required to purchase an ALTA owner’s title insurance policy.

ii) If the home is currently occupied by a previous homeowner, ALTA owner’s title insurance may also be required (i.e., only to the extent that the occupant already has title and therefore must cover SPE).

iii) All necessary guarantees (e.g. survey, flood, environmental, etc.) can be provided.

iv) Ownership can be transferred to SPEs and occupants, and policies can form the basis for a blockchain ledger for tracking ownership.

v) Title insurance sales agents may be independent of or unaffiliated with the network.

d) All property records described in this section may be stored within the Platform and/or underlying blockchain.

Tenant diligence

6) Prior to boarding the network and being issued rider tokens, the following due diligence may be performed on each prospective rider (and/or current applicant) as part of the application process:

a) Applicant credit review may be performed by running a third-party credit report, which may be used to determine:

i) FICO (any version of FICO available). The minimum score may be a predetermined amount (e.g. 620) to qualify. The credit score may be stored and accessed by a predetermined party. The vendor may be required to store this information on behalf of the platform for a predetermined period of time.

b) The applicant's income may be determined by:

i) For TrueConnect applicants, a census file showing the only source of income required to qualify.

ii) Use an independent third-party income verification service.

c) The back-end debt-to-income ratio for each applicant/application may be determined through any combination of the following:

i) Collect data from application form.

ii) Collecting data from credit reports.

iii) Any discrepancies between the application and/or credit report may be reconciled using an independent third-party verification service.

d) The minimum maintenance capital amount may be determined by an algorithm using the applicant’s credit score, backend DTI, risk pool composition, property-specific data as inputs, or a combination of these. The minimum maintenance capital may be used to calculate the minimum cash outlay required for the applicant to close the transaction.

i) In the case of a new purchase, the Applicant may transfer to a fiat currency (e.g., USD) equivalent to the value of the minimum capital to (e.g., a settlement agent or other party) in order to proceed with the approval. The Applicant may be required to physically transfer the money or show funds in the account, or may be required to verify with a third party (e.g., Finlocker or a third-party asset verification service).

ii) In the case where the existing homeowner moves into the currently owned home, the net asset value of the property may be required to be at least the minimum asset requirement for the property after the sale is completed.

iii) Notwithstanding provisions 6(d)(i) and 6(d)(ii) above, a portion of the homeowner’s minimum holdings may be provided in part by impact investors as described in Section 7 herein.

On the platform Impact invest

7) To facilitate home purchases by applicants who are not qualified to purchase homes, the platform can provide infrastructure that allows impact investors to utilize the platform to support such applicants.

a) The requirement that occupants fund minimum maintenance capital as described in Section 6(e)(i) may be modified to allow impact investors to assist in funding minimum maintenance capital.

b) The minimum credit score requirement described in Section 6(a)(i) may be waived to allow impact investors to set their own minimum eligibility criteria.

c) If the tenant is required to purchase more than a minimum pre-determined amount (e.g. % of the capital at closing) from his/her own funds, the impact investor may purchase asset tokens for an amount calculated as the minimum holding capital minus the capital purchased by the tenant.

i) Asset tokens purchased by impact investors may be locked and may only be unlocked when any combination of the following occurs:

(1) If a tenant purchases capital from an impact investor, the corresponding number of asset tokens may be unlocked, redeemed and/or transferred to the treasury; or

(2) If the Occupant chooses to exercise their right to sell the property, the Asset Tokens may be (a) unlocked, redeemed and/or burned after distributing the proceeds of the sale of the property if the home leaves the network (e.g., if a new purchaser chooses not to use the platform), and/or (b) unlocked, redeemed and/or transferred to the treasury after distributing the net proceeds of the sale; or

(3) In the event that the tenant defaults and the home is sold, the asset tokens may be (a) unlocked, redeemed and/or burned after the distribution of the property sale proceeds if the home leaves the network (e.g., if a new buyer chooses not to use the platform), and/or (b) unlocked, redeemed and/or transferred to the treasury after the distribution of the net proceeds of the sale.

ii) Impact Investor Asset Tokens are entitled to a proportional share of the net proceeds from the sale of the home pursuant to Sections 6(b)(i)(2) and 6(b)(i)(3), as per the following formula:

(1) Net proceeds from sales less advance payments made by the Platform pursuant to Sections 3(b)(iii), 3(b)(iv) and 3(b)(v) of this Section and amounts recovered from the sale of the resident's TIC interest in the home.

d) Asset tokens held by impact investors are entitled to a proportional share of rent equal to 100% of the increased rent paid by tenants.

i) A portion of the enhanced rental payments may be used to purchase additional TIC benefits for the homes from the impact investor’s stake in the SPE.

ii) If the impact investors purchase a TIC stake equal to the entire stake in the SPE, the tenant’s enhanced rent payment obligation may be terminated.

Network boarding

Parties and Initial Transaction

8) Figure 11 is a diagram showing the parties and transactions that may be required to mount a home on the platform.

a) The Seller is an individual or entity that sells a house, and the SPE that purchases the house and registers on the platform can sell the house.

i) The seller may receive legal tender (e.g. US dollars) from the occupant upon completion of the real estate transaction and may issue a security deed to the occupant as one of the two co-owners.

ii) The seller may receive legal tender (e.g. USD) from the SPE upon completion of the real estate transaction and may issue a security certificate to the SPE as one of the two joint owners.

iii) Outside of real estate transactions, the seller may not have any affiliation or ongoing relationship with the platform or any other party.

b) The occupant may be a consumer who initiates the acquisition of real estate and may also be the holder of the occupant token.

i) The tenant may pay the seller legal currency (e.g., US dollars) in a real estate transaction and in return receive a security certificate granting the tenant a common interest in the house.

ii) A company that owns a platform that connects and/or manages relationships and transactions between all parties may establish an SPE on behalf of other SPE owners and/or manage ongoing management functions, and in return may be allocated HPI tokens from the SPE.

c) Investors can provide capital to the SPE, which in turn can purchase an interest in the home together with the occupants.

i) Investors can purchase assets and HPI tokens from SPE, which can be paid in fiat currency (USD). SPE can be an entity that can own real estate interests on behalf of investors.

ii) SPE may sell asset tokens to investors, who may purchase them with fiat currency (USD).

iii) The SPE may purchase an interest in the house from the seller in fiat currency, and in return receive a security certificate granting the SPE joint ownership of the house.

iv) SPE may enter into a joint ownership agreement and/or triple net lease agreement with the tenant and issue occupancy tokens in return.

v) SPE may enter into a contract granting the SPE a right to a proportional share of all future profits of the HPI Pool, in return for which the SPE may issue HPI tokens from the HPI Pool.

d) HPI Pool can be a BK Remote SPE that can receive all future HPI profits generated from SPE in return for issuing HPI tokens to SPE.

e) The risk pool can be a BK remote SPE that can enter into a contract to prepay rent and default costs to the SPE, in return for which the SPE can issue asset tokens.

Parties and Deals

9) Figure 12 illustrates examples of parties and/or transactions that may be required to list a home on the platform under an impact investor program.

a) A Seller may be an individual or entity that sells a home that can be purchased by a Tenant or SPE and listed on the Quota Platform.

i) The seller may receive legal tender (e.g. US dollars) from the occupant upon completion of the real estate transaction and may issue a security deed to the occupant as one of the two co-owners.

ii) The seller may receive legal tender (e.g. USD) from the SPE upon completion of the real estate transaction and may issue a security certificate to the SPE as one of the two joint owners.

iii) Beyond real estate transactions, sellers may not need to have any affiliation or ongoing relationship with the platform (or the platform owner and/or administrator) or any other party.

b) The occupant may be a consumer who can initiate the acquisition of real estate and may also be a holder of the occupant token.

i) The tenant may pay the seller legal currency (e.g., US dollars) in a real estate transaction and in return receive a security deed granting the tenant a joint interest in the house.

ii) The Tenant may enter into the following agreements with the Impact Investor and/or SPE:

(1) Purchase an amount of equity in the SPE equal to the impact investor’s proportionate ownership interest in the SPE;

(2) Pay an additional amount to the SPE each month, some of which may be used to finance purchases as described in Section 9(b)(ii)(1), and the remainder allocated to the impact investor as additional rent.

c) A company that owns a platform that connects and/or manages relationships and/or transactions between all parties.

i) The Company may establish an SPE and/or manage ongoing management functions on behalf of other SPE owners, and in return may be granted HPI tokens by the SPE.

d) The investor may be a person who provides capital to the SPE, which enables the SPE to purchase an interest in the home together with the occupants.

i) Investors can purchase assets and/or HPI tokens from the SPE, which can be paid for in fiat currency (e.g. USD).

e) Impact investors may be capital providers to SPEs and/or sponsors of tenants, and may purchase asset tokens from SPEs for an amount not less than the amount of TIC interest purchased by the tenant from the tenant’s MRE.

i) Impact investors may enter into contracts with SPEs and/or tenants under the following terms:

(1) Impact investors can guarantee the performance of tenants or provide asset tokens they own as collateral to the SPE.

(2) In exchange for additional monthly rent payments, impact investors may sell a portion of their asset tokens to the SPE equal to the amount of TIC interest purchased by the tenant each month.

(3) Impact investors may not be eligible to receive HPI tokens in certain pre-determined circumstances.

f) An SPE may be an entity that owns real estate interests on behalf of investors.

i) SPE may sell asset tokens to investors, who may purchase them with fiat currency (e.g. USD).

ii) SPEs may also sell asset tokens to impact investors, who may purchase them with fiat currency (e.g. USD).

iii) The SPE purchases an interest in the house from the seller in legal tender or in return receives a security deed granting joint ownership of the house.

iv) SPE enters into a joint ownership agreement and/or triple net lease agreement with the tenant and issues occupancy tokens in return.

v) SPE may enter into a contract granting the SPE the right to a proportional share of all future profits of the HPI Pool, in return for which it may be issued HPI tokens from the HPI Pool.

vi) SPE may enter into an agreement with an impact investor and a tenant that includes any combination of the following provisions:

(1) SPE may receive additional payments from tenants in fiat currency (e.g. USD) on a monthly basis, some of which may be designated for additional TIC profit purchases or the remainder may be paid to impact investors as additional rent, which may be supplemented by a proportional amount to which they are entitled based on their ownership of the asset tokens.

(2) Legal currency received from tenants pursuant to Section 9(f)(vi)(1) may be used to redeem asset tokens owned by impact investors in proportion to the TIC interests purchased by the tenants.

(3) Asset tokens owned by impact investors may not be eligible for HPI tokens.

(4) Asset tokens owned by impact investors may be provided as collateral to guarantee the performance of tenants.

g) HPI Pool can be a BK Remote SPE that can receive all future HPI profits generated from SPE in return for issuing HPI tokens to SPE.

h) The risk pool may be a BK Remote SPE and may enter into an agreement to prepay rent and/or default costs to the SPE, in return for which the SPE issues asset tokens.

service

10) The following services may be provided to register properties and residents on the network:

a) Consumer due diligence (e.g. third party insurers such as Evolve)

i) Credit analysis (e.g. credit reports and scores)

ii) Analysis of repayment capacity (e.g. income verification/asset verification in case of asset depletion)

iii) Asset verification (e.g. prepayment)

iv) Know your customer (KYC)/Anti-Money Laundering (AML)/etc.

b) Real estate inspection

i) Evaluation decisions (e.g. AVM, other as needed)

ii) Property status (e.g. inspection)

c) The Settlement Officer may provide one or more of the following services:

i) Preparation and review of documents (e.g. TIC certificate, closing statement, etc.)

ii) Calculation of collateral repayment

iii) Taxes and other proportional calculations

iv) Notary services

v) Fund and disburse funds to escrow accounts;

vi) Documentation

vii) Tracking Documents

d) Title insurance company

i) Title inspection and commitment issuance

ii) Policy Issuance

e) Home warranty

i) Issuance of policies or contracts;

f) Risk insurance

i) Policy issuance

g) Escrow Implant Account

i) Set-up and funding

ii) Ongoing management and reporting

h) Service

i) In non-basic cases, through the quarter platform

ii) Special service companies in non-basic cases

i) SPE setup and governance

i) The branch can perform the tasks necessary to set up and manage the SPE.

(1) Compliance with local regulations

(2) Ongoing Management and Governance

ii) Token Issuance

(1) SPE may issue possession and asset tokens upon receipt of (TDB).

(2) HPI Asset Pool SPE can issue HPI tokens.

Other exemplary aspects of disclosure

A method and system for conducting a transaction using asset tokens and blockchain-based smart contracts may be provided. The method and system may include: creating a split risk pool for a single-family home, the split risk pool comprising at least two types of tokens issued using a blockchain, each type of token being available for purchase by investors; selling at least two types of tokens to investors using a blockchain; and distributing a payment to investors using a blockchain. Multiple single-family homes may be combined for investment purposes. The single-family homes may be occupied single-family homes. The tokens may be blockchain-based smart contracts. The tokens may entitle the token holder to certain financial rights in the home. The token types may include asset tokens, HPI tokens, or occupancy tokens, or a combination thereof. The asset tokens may be issued to investors. The HPI tokens may be issued to investors and held in the HPI pool, and the HPI tokens may be unlocked and transferred to the asset token holder (e.g., the inventor when certain conditions are met). The resident tokens may be provided to single-family home residents. Some or all of the tokens may be resold or delayed.

The methods and systems provided herein may have many benefits, depending on the embodiments used. For example, homebuyers without the required down payment may now purchase a home and use investors to finance the down payment. Homeowners without the equity and/or MRE for refinancing may utilize investors to facilitate the refinancing. Investors who purchase tokens may be able to invest in the single-family home market in ways that were not previously possible. New asset classes may be available to investors that were not previously possible. Rent control issues may be avoided or mitigated. Many types of risk mitigation may be available (e.g., risk assessment may also be partitioned due to subdivision). Homeowners may also be able to leverage equity in their home (e.g., increased value) using the system.

Such methods and systems may also include the steps of: receiving a transaction request for an asset token; checking an inventory of assets associated with the asset token; performing a transaction associated with the transaction request when there is sufficient inventory, wherein the transaction comprises a transfer of the asset token between entities; and recording the transaction in a blockchain-based smart contract. This may automate matching requests between persons who wish to acquire or have an obligation to acquire the asset token and persons who wish to sell or have an obligation to sell the asset token. This may also automate and/or enforce compliance with contractual obligations. This may create a secure and/or immutable record of each transaction, thereby creating a chain of ownership that is difficult to dispute. This may use an algorithm to determine which tokens to include and exclude in a transaction claim, for example, FIFO (first in first out), pro-rata, etc.

The transfer of asset tokens can be performed to change the proportion of assets owned by a company. This can automate the existing transfer process by eliminating many manual, labor-intensive, offline steps, simplifying the transfer process to reduce costs, shortening the time it takes to complete the transfer, simplifying post-transfer accounting and auditing requirements, and enabling the rapid redistribution of the benefits from ownership.

Asset tokens could be based on real estate. This could create a dynamic market for real estate that could do at least one of the following: create liquidity in previously illiquid assets, reduce transaction costs associated with real estate transfers, democratize real estate investment by lowering minimum investment thresholds, thereby allowing more investors to participate, and open up opportunities in global markets. This could also help create opportunities for financial engineering constructs that are not available in standard real estate transactions, thereby lowering or redistributing the cost of capital for participants. This could allow industry participants such as title insurance companies and appraisal firms to participate in the stock market, expanding the market by participating in a series of small transactions that may occur in daily trading, but not in the case of large but infrequent single transactions in traditional real estate, such as home purchases, where the frequency can be measured in years.

The transaction can be made between a real estate occupant and a real estate investor. This can be done indirectly using fiat currency, where the occupant pays the issuing entity (SPE) for the TIC interest. The SPE can then use fiat currency to purchase (e.g. redeem) the asset token from the investor, deactivate it, and transfer it to the treasury. This can transfer TIC interests between an unaccredited occupant and an initially accredited investor (if residing in the US) who is the asset token holder.

The transaction may involve the transfer of asset tokens whereby the tenant pays rent to the investor, with the rent payments being made in proportion to the asset tokens owned by the investor. Each investor is entitled to a proportional share of the rent paid by the tenant, based on the proportion of asset tokens they own. This may enable the payment of periodic or pro rata rents to the owner of the asset tokens, which may be in fiat currency, stablecoins, Bitcion, or other cryptocurrencies. This may also facilitate payments by tracking ownership of the asset tokens and recording these payments on an immutable blockchain ledger. This may also create multiple cash flow waterfalls based on asset token ownership. This may also create risk mitigation strategies by allocating asset tokens to funds and/or pools specifically designed for risk mitigation purposes.

Rent payments can change based on the percentage of TIC owned by the tenant. This can help enable dynamic rent calculations. Unlike traditional real estate financing where payments are fixed regardless of upfront or current debt balances, rent payments based on a proportional amount of TIC interest owned by the tenant can change in real time. For example, a homeowner paying 4.39% annual rent to investors would see their TIC interest rate change immediately and their monthly payment immediately decrease by $3.66 per month if they purchased an additional $1,000 of equity in their home. From the tenant’s perspective, this can provide an immediate return on their investment as their rent payments decrease in real time as their percentage of TIC owned increases. On the other hand, investors can also realize an immediate return by increasing their proportional share of TIC by purchasing asset tokens. The reverse is also true in both examples.

A transaction may involve a TIC change between the occupant and the investor. This would allow the investor to initially hold a position in an owner-occupied single-family home property. This asset class may not exist today, as the current method for investors to access the single-family home property market is through direct or indirect ownership of rental properties, which may require property management and other operating expenses to maintain a non-owner-occupied rental property. This would allow the occupant to access housing equity above the minimum required equity threshold in real time, at a very low cost. This could eliminate the need for home refinancing by converting home ownership into cash.

The owner/administrator may use the server and/or mobile application. For example, in the case of the mobile application of Fig. 13, the occupant may use this system or a similar system on a desktop computer, etc., to verify the ownership location, sell shares if necessary, and transfer fiat currency (USD) to his/her account within seconds.

This transaction could also involve the transfer of asset tokens between multiple investors. This could develop a secondary market for fractional real estate ownership. This could create opportunities for price discovery in a way that has not previously existed with existing legacy fractional ownership structures such as commercial real estate.

Syndicates and REITs may have traded at a significant discount to the value of the assets they own, due to their lack of liquidity and robust secondary markets. This could democratize real estate investing by enabling trading between accredited investors who initially purchased the assets. Non-accredited investors can purchase the asset tokens after the issuer and SEC mandated holding period has expired. This could also provide an opportunity to expand the market for industry providers who provide third-party services, such as title companies, as they would have the opportunity to offer products and services whenever the asset tokens are transferred, as opposed to only offering products and services when the entire property is traded in the traditional environment. This could also provide investors with the opportunity to tailor their asset portfolios to manage risk based on specific diversification objectives. For example, an investor could sell a portion of the asset tokens in a housing portfolio in an area where housing prices are rising significantly, and allocate the proceeds to additional investments in areas with slower growth but higher rental yields.

An asset token can have a static nominal value (e.g., par value) and may not change value when it goes up (which is different when it goes down, as the price may go down). By removing the appreciation component from the asset token, all value derived from the appreciation in the value of the home can be contractually transferred to an HPI asset pool (e.g., some kind of BK remote entity), which can be the issuer of the HPI token. For example, if you invest $10 in an asset token, $10 of the sale proceeds will be returned to the holder when the home is sold.

The HPI asset pool can represent the appreciation of all homes within a group of homes. The HPI asset pool can consolidate the appreciation of all homes on the network into one location, which can be used to issue HPI tokens that can be used in various financial engineering structures.

HPI asset tokens can be backed by the appreciation of all the homes in a housing group. The act of issuing HPI tokens can unlock unrealized gains that would otherwise be available only by selling the home or taking out a cash-out refinancing mortgage. This can provide a floor for the value of the HPI tokens based on the value of the underlying home appreciation rights transferred to the pool. There can also be a compounding effect, with future HPAs or HPDs accruing on the value of the assets already in the pool. Given that there is no true HPI index based on real homes, this could be a unique opportunity to speculate on the future movements of the housing market using HPI tokens and create additional financial products and/or derivatives based on HPI tokens.

Minimum Equity refers to the minimum equity value that a homeowner must hold based on a predefined underwriting criteria. Calculating minimum equity can provide a basis for managing risk by leveraging asset token stakes (occupants, risk pools, and/or impact investors) and can move away from the traditional mortgage model, which tends to use higher interest rates to increase cash flow. Participation in the game can help predict future consumer outcomes, and the platform has designed the MRE model to reflect this. This is further strengthened as one of the key components that builds the ability for occupants to transfer ownership.

The minimum equity can be a dynamic number that varies based on the current property profile and current occupant profile, and is used to manage default risk. MRE as a risk mitigation tool can be helpful in that it can be combined with a fractional ownership structure to eliminate the need to subsidize defaulting consumers by generating additional cash flow through higher interest rates from the entire pool of similarly situated consumers, and can be replaced by a risk pool of contributed asset tokens from all homes on the platform, and requiring each homeowner to maintain a minimum TIC equity in the property, both of which can be applied even if the occupant is underperforming. In short, each homeowner can assume their own default risk, as they would lose equity, just like a mortgage, but they do not have to pay out in the form of a higher payout that they would not receive if they did not default. This can allow for much more dynamic risk mitigation strategies, not just for individual consumers, but within the overall risk pool. It can also dynamically adjust underwriting criteria based on the health of the overall risk pool, allowing new applications to be reviewed and MREs to be calculated based on risk pool and individual consumer demographics. Additionally, the amount of excess capital (defined as resident owned capital in excess of MRE) that can be transferred and/or redeemed for cash may change based on the consumer's risk profile, allowing the ability to manage the purchase or sale of capital in real time.

Ownership of HPI assets in real estate can be transferred to the HPI asset pool by asset holders exchanging HPI asset tokens. The ability to separate HPI from the underlying asset allows for real-time liquidation by carrying forward unrealized profits.

HPI tokens could be issued simultaneously with the asset tokens when a home is first listed on the housing group platform. This could run parallel to the holding period required by US (and potentially other jurisdictions) securities laws, which could measure home price appreciation (e.g., the HPI interval), and at the end of the holding period, the tokens would be unlocked, removing transfer restrictions and making the tokens freely transferable on a token exchange to both accredited and non-accredited investors. The suspension of the holding period could democratize investing by allowing non-accredited investors to acquire and hold HPI tokens. This could also reduce risk for asset token holders, as they could immediately transfer (e.g., sell) their HPI tokens to reduce their exposure to home price fluctuations. Without a holding period suspension, they could be exposed to a 12 month holding period.

HPI tokens issued with asset tokens may be locked upon issuance and remain locked unless unlocked under predefined conditions. This may reduce or eliminate the need for subsequent token offerings, as HPI tokens may be issued in sufficient quantities to satisfy asset token holders’ payment obligations for future HPA earnings.

Locked HPI tokens are inseparable from the asset tokens that are transferred after they are issued. This means that asset tokens can be transferred together with HPI tokens in a single transaction, which may be a claim to future HPA profits. This may also help increase the holding period by eliminating the need to issue new HPI tokens every time an asset token is transferred.

The platform can perform an up-to-date valuation for each house in a housing group to calculate the change in value of each house over the current period. This can calculate the value of the underlying appreciation asset transferred to the HPI pool. This also allows for immediate pricing and transfer of TIC profits between occupants and investors. This also creates a secondary market for asset tokens where frequent valuations can help with price discovery.

At each updated valuation point, the House Price Increase (HPA) or House Price Decrease (HPD) for the current period can be calculated, where HPA or HPD can be the difference between the valuation determined at the end of the previous period and the valuation determined at the end of the current period. This can provide a basis for calculating the number of HPI tokens to be unlocked for each asset token. This allows HPI tokens to act as a true house price index using houses on the platform.

The on-boarding value and/or transfer value can replace the difference between previous periods: for example, if a home was on-boarded to the platform during the current period or within a predefined time period prior to the current period, or if an occupancy token was transferred to a new occupant during the current period or within a predefined time period prior to the current period. This enables a way to avoid double-counting when issuing HPI tokens or transferring asset tokens. This also allows for the automatic tracking of the investor base and the notional value of the asset tokens, and the ability to adjust the notional value of the asset tokens when the home price declines. This allows investors holding asset roken to track and calculate their HPI token allocation differently depending on when they purchased it and how the home price has moved since then.

For example, if the first period is short (e.g. a predetermined time), a proportional adjustment can be made. If a second transfer occurs after a decrease in value, a reset can be made. In order to frequently realize HPI benefits through unlocking HPI tokens, a minimum holding period may need to be established, similar to how dividends are paid out on stocks. In the event of a decrease in value, the nominal value of the asset token can be reset to prevent asset token holders from receiving double payments for HPA. For example, a house where the investor stake is valued at 100K when the asset token is issued and then increases to 150K. The HPI tokens can be unlocked periodically whenever the value increases by 50K. Then the value drops to 120K and then increases to 140K. Asset token holders who do not sell their asset tokens during this period may not be eligible to unlock additional HPI tokens as the value increases from 120K to 140K. You can set a ceiling so that HPI tokens cannot be unlocked until the value exceeds the high of 150K. However, if the asset token holder decides to sell their tokens before reaching the high after the drop (let's say they sell at 100K), the notional value of the asset token will reset, so in this case they will only receive the net profit corresponding to the lower value of 100K. However, the new owner of the asset token can start at 100K, so they will be eligible to unlock HPI tokens for any amount exceeding 100K.

HPI can be unlocked if the HPA of the current period is > 0 and the following conditions are met: For each asset token, the number of unlocked HPI tokens is calculated by dividing the total HPA by the market price of the HPI tokens and/or multiplying the calculated number of unlocked HPI tokens for each asset token by a predefined amount (e.g. 0.9) and dividing by the total number of asset tokens held by the investor. HPI tokens may not be unlocked if there are HPDs in the current period, even though there may be no HPA. This is the value proposition of HPI tokens. These tokens can be unlocked along with HPA, allowing asset token holders to realize gains that would not otherwise be possible without selling and/or refinancing their home with an existing mortgage. This also creates opportunities for very small price movements to be realized, unlike in the case of a refinancing or sale, where the fees and costs associated with the transaction can eat up a significant portion of the HPA gains.

When a home is sold that has appreciated in value enough to warrant the issuance of HPI tokens, the proceeds from the sale that the HPI token pool is entitled to from the issuance of HPI tokens may be used to purchase HPI tokens, which are then burned. Burning HPI tokens may help manage inflationary pressures that affect the value of HPI tokens. This may also eliminate the need to distribute the proceeds from the sale of homes that form the basis of the HPI appreciation pool, which may increase costs and increase accounting and regulatory burdens, ultimately reducing the overall return potential for investors.

Minimum assets can be determined using the applicant's credit score, backend DTI, risk pool composition, or property-specific data as inputs, or a combination of these data.

Minimum Equity can be used to calculate the minimum cash down payment required by an applicant for a home purchase. Today's financial markets (e.g., real estate finance markets) can use interest rates as a first-line tool for risk management. As a result, those who can least afford it typically end up paying the most. To level the playing field and create a more accessible path to homeownership, the concept of minimum equity, or "MRE," was created.

The asset tokens purchased by the impact investor can be locked until: the occupant purchases equity from the impact investor, in which case the corresponding number of asset tokens are unlocked, redeemed and transferred to the treasury; and/or if the occupant chooses to exercise their right to sell their property, the asset tokens are: unlocked, redeemed and burned when the property leaves the network after the sale proceeds are distributed; unlocked, redeemed and transferred to the treasury after the sale proceeds are distributed; and/or if the occupant defaults and the home is sold, the asset tokens are: unlocked, redeemed and burned when the home leaves the network after the sale proceeds are distributed; unlocked, redeemed and transferred to the treasury after the net proceeds from the sale are distributed. In this way, the entire impact investor program can operate in a plug-and-play manner, which means it fits the overall design of the platform and is consistent with the asset token management. Impact investors can provide capital necessary to supplement the capital that occupants can provide to meet the MRE requirements to become homeowners. Combining the impact investor’s stake with the tenant’s stake would homogenize the asset investment opportunity with and without the impact investor enough that it could be treated exactly the same from a risk perspective from a non-impact investor’s perspective. It could be managed as a smart contract, which would automate everything described above. Furthermore, the smart contract could be customized to meet the specific needs of the impact investor, allowing a greater focus on client service. Owners/managers could provide a turnkey infrastructure for socially conscious capital to be deployed.

The Impact Investor’s Asset Tokens are eligible to receive a proportionate share of the net proceeds upon the sale of the Home, subject to one or more of the following circumstances: a) the Impact Investor’s Asset Tokens are eligible to receive 100% of the Increased Rent Paid by the Residents plus a Proportionate Share of the Increased Rent; b) a portion of the Increased Rent Payments are used to purchase additional TIC interests in the Home from the Impact Investor’s equity in the SPE; c) a Tenant’s Enhanced Rent Payment obligations are terminated upon the purchase of a TIC Interest equal to the entirety of the Impact Investor’s equity in the SPE; d) the Impact Investor’s Asset Tokens are eligible to receive a proportionate share of the net proceeds upon the sale of the Home; e) the Impact Investor’s Asset Tokens are eligible to receive 100% of the Increased Rent Paid by the Residents plus a Proportionate Share of the Increased Rent; f) a portion of the Increased Rent Payments are used to purchase additional TIC interests in the Home from the Impact Investor’s equity in the SPE; and g) the termination of the tenant’s enhanced rent obligations when the impact investor purchases a TIC stake equal to the entirety of the SPE. This can be helpful in that it can provide arbitrage opportunities created by the difference between the typical monthly rent in a particular zip code and the typical market rent. This can provide significant returns for impact investors and can attract both charities seeking superior returns and socially conscious capital. The ability to manage asset tokens provides the ability to merge the tenant and impact investor stakes, which can be a cornerstone of homogenizing the overall investment opportunity sufficiently to suppress additional risk-based pricing. Furthermore, the ability to reduce costs through smart contract automation can help to benefit tenants.

In some instances, an income interruption buffer could help leverage the concept of minimum assets to protect residents during turbulent times. Having a savings buffer (e.g., several months’ worth of housing costs during a period of significant income interruption) could cut a homeowner’s default rate in half. An income interruption buffer for rent payments could count toward a tenant’s minimum asset requirement, and the funds could be applied for and withdrawn to cover rent payments in the event of a qualifying life event (e.g., job loss, divorce, illness). Such an income interruption buffer could help empower homeowners.

In addition to the grant assistance program that investors can offer to new homebuyers, homeowner assistance programs can help existing homeowners who do not meet the MRE requirement to place their existing home on a quota platform. Homeowner assistance programs can operate in a similar manner to cash assistance programs, with the investor purchasing an amount of property equal to the amount required for the combined equity and homeowner equity to reach the minimum cash reserve (MRE). The arbitrage between market rents and low quarterly rents can be used to purchase a portion of the home with monthly payments until the homeowner purchases the entire property from the impact investor. As with the down payment assistance program, consumers can modify the inputs to the homeowner assistance program by modifying their credit score range, home profile, or other variables, or a combination of these, to create and view different scenarios that require different amounts of homeowner assistance.

In some embodiments, the method and system may include: using the platform to create a fractional risk pool and a fractional house price index (HPI) pool for real estate, wherein the fractional risk pool and the fractional HPI pool may include asset tokens, HPI tokens, and occupancy tokens, wherein the asset tokens, HPI tokens, and occupancy tokens are issued using a blockchain; transmitting, by a first computing device of a first computing system, a first network function request comprising selling the asset tokens to an asset token holder, wherein the asset tokens may include a blockchain-based smart contract for the decentralized network; and transmitting, by a second computing device of a second computing system, a second network function request to the decentralized network, wherein the second network function request comprises selling the HPI tokens to the HPI token holder, wherein the HPI tokens may include a blockchain-based smart contract that distributes payments to the asset token holders and the HPI token holders using a blockchain, wherein the occupancy tokens may grant the real estate occupant a financial right and a right of occupancy to the real estate after the blockchain-based smart contract is executed. The transfer between occupants can be supported using occupancy tokens. The HPI asset pool can be held in an account managed by a fund managed by the platform. The display can be used to display information including payment information, MRE information, cash withdrawal information, or a combination thereof. The display can be used to display properties that the occupant can afford. The information displayed can be based on self-reported data, data retrieved from third-party data sources using property address information, or both. The applicant can view properties that they are eligible to purchase. The properties can include MLS properties. The properties can include non-MLS properties. Non-MLS properties can include partners of the platform. Non-MLS properties include properties entered by the applicant. HPI tokens can be managed. HPI token management can include tracking property price appreciation or managing HPI token distribution, or both. HPI token management can include updating valuations for all listed properties. Suspicious data can be removed. Suspicious data can include data that falls outside of a predetermined expected range. HPI benefits and/or HPI token allocations may be determined at HPI intervals.

Additional exemplary conditions

Applicant: An individual who may submit an application to utilize the Platform (e.g., referred to herein as the Quarter Platform, but other terms or names may be used to describe or designate the Platform) to purchase or refinance a real estate interest in a home, but who has not received Occupancy Tokens.

Appreciation Value: This can be an appreciation of the value of a particular home (either realized when the home is sold or unrealized while the homeowner holds the occupancy tokens). Appreciation Value can be calculated by subtracting the current value of the home at a given point in time after initial onboarding from the current value of the home when the home is available for onboarding on the Quota Platform. If the Appreciation Value is negative, the Appreciation Value can be considered 0.

Base Rent: The amount a homeowner pays to the SPE each month for a particular home in consideration of his or her right to occupy the home, and this amount is determined quarterly.

Burning: Burning a token could mean that the token is transferred to an address that could become a “black hole”, i.e., not owned by any entity and whose private key would be virtually impossible to determine or guess using a computer based on currently known mathematical principles. This could render the token unusable in the future, effectively destroying it, and reducing the total number of tokens available from that point on.

Current Adjusted Asset Token Par Value: The par value of the Asset Token, expressed in fiat currency (USD), which may have been adjusted since issuance, possibly due to a decline in the value of the home owned by the SPE.

Current Enhanced Appraisal: This may be an on-the-record appraisal using an enhanced valuation methodology (excluding AVM) such as Broker Price Opinion (BPO) and/or a full appraisal adopted on a quarterly basis and/or other valuation methodology.

Current Valuation: The valuation recorded on the Quarter Platform, which can be determined through an Automated Valuation Model (AVM) that can be used to value residential properties in the real estate market.

Cash Funding Pool: This may be a cash escrow bank account that the Fund holds to store the purchase price paid by investors for the asset tokens they have sold. Each investor may have a separate ledger.

Digital Wallet: This can be in the form of a public key that can be presented and recorded on the blockchain. Therefore, ownership of tokens can be assigned on the Quarter Platform using the wallet address.

Enhanced Rent: An amount that a homeowner may pay to the SPE in addition to the property for the benefit of the impact investor, calculated as fair market rent in the submarket of the jurisdiction in which the property is located, as determined quarterly, less factors such as, but not limited to, the base rent for the property (e.g., as described in the actual real estate lease).

Excess Equity: The amount of unsecured equity held by a homeowner, which may exceed the homeowner's minimum equity requirement.

Home Value Appreciation Rights: Exposure and/or rights to a proportional share of the total appreciation in value of the homes listed on the Quota Platform at a given point in time. Home Value Appreciation Rights cannot be linked to a specific SPE (i.e., a specific home).

Homeowner: This could be an individual who has been granted permission to use the Quota Platform, an individual who has initiated the acquisition or refinancing of a home, an individual who has purchased a real estate interest in a home, or an individual who has become the sole occupant token holder of a home, or a combination of these two.

House Price Index (HPI): This can be the change in value of all homes on the quarter platform over a specific period of time. HPI can be expressed as real money (in fiat currency) or as a percentage change from a specific starting date.

Housing: May be residential property permitted to board the quarter platform.

HPI Asset Pool: This may be a housing asset pool that may contain the total increased value of all homes on the Quarter Platform, which may be held in an escrow account held by the Fund.

HPI Realization Rate: An amount, expressed as a percentage between 0 and 100, that can be used to calculate the number of HPI tokens that will be unlocked by applying the increase in the value of the home in the current period.

HPI Token Escrow Pool: A digital wallet controlled by Quota to store unlocked HPI tokens.

Impact Investor: An individual or entity that can help an applicant meet the minimum capital requirements to qualify as a homeowner or pay for a portion of the closing costs associated with the sale of a full home. An impact investor can be a capital provider that can purchase asset tokens from the fund for an amount not less than (i) the homeowner’s MRE minus (ii) the purchase price of the property interest paid by the homeowner.

Minimum Maintenance Equity (MRE): The minimum equity that a homeowner must maintain based on current underwriting standards imposed quarterly, which may change from time to time. This is a dynamic number that may change based on the value of the home and/or the homeowner profile at any given time, and may be used to manage default risk. The amount of the minimum maintenance equity may be determined by a proprietary algorithm that may use the homeowner’s credit score, backend debt-to-income ratio, quarterly risk pool composition, or property-specific data, or a combination of these, as inputs at any given time. The minimum maintenance equity may also be used to calculate the minimum purchase price that a homeowner must pay for the property interest in the home.

Occupancy Token: A token issued by the SPE to the homeowner once the real estate contract is fully concluded, which proves the homeowner’s sole right to occupy the home. Each home can have only one occupancy token. Occupancy tokens may or may not be sold by the fund or SPE.

Original Asset Token Nominal Value: The nominal value of the asset token at the time of issuance, which can be expressed in fiat currency (USD). The original asset token nominal value can initially be 1 dollar or another specified value.

Payment: An amount paid by the Homeowner to the SPE, which may include: (i) a base rent; (ii) a base rent service fee, which may be equal to a percentage (e.g., 1%) of the base rent, which is a platform transaction fee payable quarterly; (iii) an enhanced rent (e.g., for impact investors only); (iv) home warranty insurance and/or other insurance premiums payable by the Homeowner pursuant to the Property Agreement; (v) repayment of a portion or all of the fees or expenses prepaid by the Risk Pool quarterly pursuant to the Property Agreement; (vi) a monthly amount for future Property Sales Fees, which may be held in a quarterly Property Sales Fee Fund; or (vii) if there is a Property Deposit Amount (defined below), any accrued late fees for any of the foregoing (i) through (vii), or any combination of (i) through (vii).

Quarter Platform: A virtual two-sided network and infrastructure developed by Quarter that manages interactions between all parties involved in the purchase, refinance, management or sale of residential real estate, or any combination thereof.

Quarter Platform Homeowner Dashboard: A user interface accessible to homeowners, investors, or quarters or a combination thereof, that can be connected to the Quarter Platform.

Quota Preferred Agent Provider: Quota Platform may be a real estate agent and/or brokerage with whom the Quota Platform may negotiate an agreement to provide home listing and/or selling services.

Quarterly Real Estate Sales Commission Fund: This may be a reserve fund set up by the Quarter Platform to pay future real estate sales commissions on behalf of the homeowner. This may be funded monthly through the commissions collected by the homeowner on a quarterly basis.

Real Estate Contract: A contract signed by a homeowner and/or SPE to commemorate the agreement to take ownership and/or manage a home. A Real Estate Contract form is provided to the applicant for review and to sign once the home sale is completed.

Real Estate Interest: The real estate interest on a home expressed as a percentage.

Unlocked or Unlocked: May apply to HPI Tokens (and in some embodiments only) and may occur when any “time lock” and/or “transfer lock” on a particular HPI Token is removed and the HPI Token is released by the Fund from the HPI Token Escrow Pool to the Investor’s digital wallet.

Overview of the exemplary structure

Chart 1 of Figure 23 shows an example architecture of a platform. The parties to the architecture may include:

1. Fund or Holding Company: This could be an entity that issues both asset tokens and HPI tokens to raise capital from investors through a public offering.

2. Investors: Can purchase tokens through public offering.

3. Quarter: An entity that owns the Quarter Platform and can be the administrator (in some embodiments, the sole administrator) of the Fund, and can connect and/or manage relationships and/or transactions between all parties on the Quarter Platform. Quarter can establish SPEs and manage the ongoing administrative functions of the SPEs on behalf of the Fund, in return for which the Fund can issue HPI tokens.

4. Quarter Risk Pool: An entity that may be partially or wholly owned by the Fund, which may enter into a real estate contract with an SPE to cure a homeowner’s default under the real estate contract, and in return, the Fund may issue asset tokens. The asset tokens issued to the Quarter Risk Pool will be comprised of a predefined percentage (e.g. 1%) of the total asset tokens linked to each SPE (and therefore each home) on the Quarter Platform.

5. SPE: A special purpose entity wholly owned by the Fund, which may be established to purchase real estate interests in specific homes. The homeowners and/or the SPE may both own divided and/or undivided real estate interests in the specific homes. The rights and/or obligations of the SPE and/or the homeowners may be documented through real estate contracts.

6. Home Seller: Can be a homeowner and/or an individual or entity that is registered with the SPE and/or Quota Platform to sell a home available for purchase. The home seller must not have any affiliation or ongoing relationship with Quota and/or any other party on the Quota Platform after the sale of the home has been completed.

7. Homeowners and/or Homebuyers: This may be any individual who may be permitted to use the Quarter Platform, any individual who may initiate a home acquisition or refinancing, any individual who may purchase a real estate interest in a home, or any individual who may be a holder of Occupancy Tokens, or any combination of the two.

Example transaction structure

1. Issuance of Asset Tokens and HPI Tokens

HPI Tokens may be issued to Asset Token Holders when Asset Tokens are issued in connection with the Offering, upon payment of the full purchase price for the Asset Tokens pursuant to the Token Purchase Agreement, except that a certain amount of HPI Tokens, such as 5% of the total number of HPI Tokens issued by the Fund to Investors, may be issued in a Quarter as consideration for management services of the Quarter. The Asset Tokens and/or HPI Tokens may represent an investor's economic interest in the Fund.

The Fund may issue HPI tokens that may be included in the asset token sale. A contract between the SPE and the Fund may be entered into when the House is listed on the Quarter Platform, which may assign the Fund a right to an appreciation in value, which may be realized when the House is sold or exits the Quarter Platform. The HPI tokens may be fungible tokens issued by the Fund. The HPI tokens may be backed by a pool of capital generated by the appreciation in value of all the Houses listed on the Quarter Platform. Holding HPI tokens entitles the holder to a share in the appreciation in value of all the Houses listed on the Quarter Platform, which value may not be tied to a specific SPE or House. The asset tokens may entitle the holder to receive certain distributions from the fund, which distributions may be linked to a designated SPE (and therefore a particular home) as designated by the administrator, and may include a proportional payment to the homeowner and/or sale proceeds up to an amount equal to the home’s original appraised value when the home is placed on the Quota Platform (but may not include any accretive value that the SPE may allocate to the fund and which may be linked to the HPI tokens). When the fund issues HPI tokens to asset token holders, and asset token holders transfer HPI tokens, they are simply transferring a right to the appreciation in the value of their home. The amount of HPI tokens that a particular investor can receive and transfer upon unlocking of the HPI tokens. Investors may be divided into multiple tiers in terms of cash flow distributions, as investors may receive different cash flows from each home designated via the asset tokens linked to a particular SPE, and may not participate in distributions or cash flows from homes linked to other SPEs in the fund that are not linked to that asset token. Therefore, the contract may contain a distribution waterfall schedule for each investor and investor-specific tax allocation provisions applicable to each SPE and the asset tokens associated with that SPE. The fund manager, Quota, can create a smart contract to coordinate and track these distributions to help ensure that the cash flows generated by the SPE are appropriately distributed to each investor.

Figure 24 illustrates an example overview of the use of smart contracts in a quarter (the residents shown in the diagram are homeowners).

As shown in the diagram, it explains how to load a house onto a quarter platform using smart contracts and blockchain.

(i) The Fund may establish an SPE to purchase residential properties together with occupants. The Fund may be the sole member of the SPE.

(ii) Ownership of the home may be granted to both the occupant and the SPE by means of a deed.

(iii) Smart contracts may be created by the Fund to issue asset tokens and/or distribution rights to specific houses owned by the SPE. Asset tokens may be distributed to investors and quarterly risk pools.

(iv) Smart contracts can be entered into between homeowners and SPEs, thereby automating certain provisions of real estate contracts, including but not limited to payments.

(v) SPE can create a smart contract to issue occupancy tokens to homeowners. Occupancy tokens can prove the homeowners’ right to occupy their homes.

(vi) The Fund may create a smart contract, which may include a contract allocating a home appreciation right to the Fund, and in return, the Fund may issue HPI tokens that may be included in the asset token sale. The HPI tokens may represent home appreciation rights and may be distributed to investors and/or quarterly and/or quarterly risk pools.

(vii) All transactions can be recorded on the blockchain of the Quarter platform.

Digital wallets for investors may be maintained and/or adjusted in accordance with applicable regulations, and taxable income and/or losses may be appropriately distributed. Since each SPE may potentially have different investors, investors may receive different income and/or cash flows through the fund. Accordingly, income may be tracked by SPE according to the investor’s proportional share in a particular SPE, which flows through a single entity (the fund). The fund may allocate asset tokens based on the total number of asset tokens to be issued and/or the total investment amount of investors in proportion to the total amount invested by all investors. The fund may issue a predetermined number of HPI tokens per asset token.

For example, if the total investment required for an investor to purchase a home is $1,000,000, and the total asset tokens issued to investors are 1,000,000 (since each asset token costs $1), and investor #1 (see Chart 1) wants to invest $100,000, the number of asset tokens that investor #1 would receive would be 100,000, which would be calculated as follows:

(1) Total number of asset tokens issued = Total investment amount ÷ Price per asset token = $1,000,000 ÷ $1 = 1,000,000

(2) Asset tokens allocated to investor #1 = Total investment amount of investor #1 ÷ Price per asset token = $100,000 ÷ $1 = 100,000

Therefore, a pre-determined amount of HPI tokens are issued to investor #1. Figure 25 (Chart 2) illustrates an exemplary structure of HPI token and asset token issuance.

2. Transfer of asset tokens

The asset tokens may be issued to the investor or transferred to the investor’s digital wallet when the investor pays the full purchase price for the asset tokens. The investor’s funds for the purchase of the asset tokens may be held in a cash funding pool. This may be because the asset tokens may not be tied to a particular SPE (e.g., a particular home) at the time of purchase (and therefore the asset tokens and/or HPI tokens may need to be initially locked). The asset tokens may initially be subject to a “transfer lock” and/or a “time lock.” The asset tokens may be subject to a “transfer lock.” A “transfer lock” may be a temporary restriction preventing the investor from transferring the asset tokens for a period of one (1) year from the date the asset tokens were transferred to the investor’s digital wallet. A “time lock” may be a temporary general restriction preventing the asset tokens from being used for any purpose on the Quarter Platform, including but not limited to the right to receive dividends from the Fund. Such time locking may delay the full release of the issued Asset Tokens, and the Asset Tokens may not be burned and/or transferred and/or otherwise used for any other purpose on the Quota Platform until such time locking is released. The Asset Tokens may be released from the “Time Lock” upon the closing of a Home Purchase, at which time a certain amount of the Asset Tokens may be linked to the SPE and/or the specific Homes contained therein, and all or a portion of the Investor’s Asset Tokens may be released from the “Time Lock” when they are linked to such specific SPE and such Home. Asset Tokens released from the “Time Lock” may still be subject to the “Transfer Lock”.

Once a home is onboarded to the Quarter platform, the homeowner can set up an SPE with the homeowner to purchase the home. Once the investor asset token is linked to a particular SPE, the Quarter can release cash from the cash funding pool to the fund, allowing the fund to fund the SPE to purchase the TIC interest, and in return, the investor asset token (e.g., in proportion to the amount invested in the home) can be colored to indicate its link to a particular SPE, and the “time lock” of the colored asset token can be removed after the home purchase closes. The number of asset tokens released from the “time lock” can be based on the purchase price the SPE pays for the particular home and the TIC interest on the investor’s investment, for example, proportional to the total purchase price paid by the SPE, as well as the price per asset token after deducting the boarding fee.

For example, as illustrated in Chart 1, if the total purchase price of House #1 is $120,000 and the purchase price payable by SPE #1 is $100,000, and the quota is allocated from Investor #1's Cash Funds Pool Account and Investor #2's Cash Funds Pool Account each to $50,600 (including $600 for lodging (=$120,000×1%÷2) and $50,000 to cover the purchase price payable by SPE #1), then the 50,000 ($50,000/$1) asset tokens each held by Investor #1 and Investor #2 will be color-coded to be linked to SPE #1. Meanwhile, $50,600 is withdrawn from the cash escrow account in Investor #1’s cash funding pool, $50,600 is withdrawn from the cash escrow account in Investor #2’s cash funding pool to the fund, and the fund transfers $100,000 to SPE #1 to purchase SPE #1’s real estate interest in House #1, and $1,200 in lodging expenses quarterly. After the purchase of House #1 closes, 50,000 asset tokens of Investor #1 and Investor #2 will be activated (released from time lock), but 1% of the corresponding colored and activated asset tokens held by Investor #1 and Investor #2 must be redeemed from the fund and transferred to the Quarterly Risk Pool, and Investor #1 and Investor #2 must hold 49,500 colored and activated asset tokens in their respective digital wallets, and the Quarterly Risk Pool will receive 1,000 colored and activated asset tokens as a result of the purchase. Investor #1, Investor #2 and the Quarter Risk Pool will receive a share of the revenue generated by House #1 in proportion to the amount of colored and activated asset tokens they each hold. The Quarter Platform’s smart contract tracks the payments received from SPE #1 and distributes them to the Quarter Risk Pool’s cash account and Investor #1 and Investor #2’s respective cash funding pool cash escrow accounts. The Quarter Risk Pool advances payments and expenses to the SPE from its cash account (as described in the Key Terms section of the Real Estate Agreement), and in return, the Quarter Risk Pool issues a certain amount of asset tokens from the fund, providing cash flow and capital for service provider advances. The Quarter Risk Pool is a benefit for non-impact investors.

The section entitled “Overview of Asset Tokens” provides more details on investor rights related to asset tokens.

3. HPI Token Transfer

Instead of delivering HPI Tokens directly to investors and quarterly digital wallets, the Fund may first deliver HPI Tokens to an HPI Token Escrow Pool for escrow to investors and quarterly interests (see Chart 1). The HPI Token Escrow Pool may act as an escrow account for the purpose of escrowing HPI Tokens issued by the Fund to investors and/or quarterly. HPI Tokens may initially be subject to a “Transfer Lock” and a “Time Lock” when held in the HPI Token Escrow Pool. Since HPI Tokens may be “restricted securities” as defined in the securities laws, a “Transfer Lock” may be placed on HPI Tokens to restrict transfers of HPI Tokens in order to comply with the one-year holding period. Similar to the “Time Lock” added to an Asset Token, a “Time Lock” added to an HPI Token may be a temporary general restriction that prevents the HPI Tokens from being used for any purpose on the Quarter Platform, which may result in the HPI Tokens being burned, transferred, or the Fund not being entitled to receive dividends. Such “time locks” may delay the full release of the issued HPI Tokens, and HPI Tokens may not be burned, transferred, or otherwise used on the Quarter Platform until released from such “time lock.” HPI Tokens issued to asset token holders may be unlocked and/or delivered to investors and/or Quarterly digital wallets, and the number of HPI Tokens unlocked for each asset token for a particular SPE may vary depending on the future appreciation in value of the particular home to which the asset token may be linked. Unlike asset tokens, HPI Tokens may be fungible tokens and may not be linked to a particular SPE. Instead, the value of the HPI Tokens may vary depending on the appreciation in value of the home.

An example overview of asset tokens

Asset token holders will have the following distribution rights:

A. A proportional share of the payments received from the SPE to which the investor's asset tokens are linked.

(a) Each investor's proportionate share may be based on that investor's indirect proportionate investment in a particular SPE after setting aside an amount (e.g. 1%) of the total investment for the benefit of the quarterly risk pool according to the following formula:

Investor's proportional share =

(Total Colored and Activated Asset Tokens Linked to Investor's SPE/Total Colored and Activated Asset Tokens Linked to SPE) × (1-1%)

For example, as shown in Chart 1, if an SPE needs $100,000 to purchase the real estate interest in a home, and therefore requires 100,000 Asset Tokens (1 per Asset Token). If Investor #1’s contribution to SPE #1 is 50,000 Asset Tokens, Investor #2’s contribution to SPE #1 is also 50,000 Asset Tokens (after boarding fees), and no other investors contribute any Asset Tokens to SPE #1, then Investor #1 and Investor #2’s proportional share is 49.5% [(50,000/100,000) × (1-1%)]. Their proportional share of the quarterly risk pool is 1%.

(b) The default rent and/or late fees for the base rent received from the SPE may be amounts paid by the homeowner, but if the base payment giving rise to the late fee was prepaid from the quarterly risk pool, the late fees may be distributed to the quarterly risk pool.

B. Asset Token Holders may be entitled to receive a sale proceeds when a home owned by an SPE is sold, up to an amount equal to the current value of the home when it was listed on the Quota Platform (but in some embodiments does not include a right to receive an increased value).

Holders of asset tokens (excluding impact investors) will be entitled to uninterrupted base rent payments in the event of a homeowner default under the terms of the real estate contract, to the extent that the assets held in the quarterly risk pool are sufficient to resolve the homeowner’s default.

In the event that a Homeowner requests that an SPE purchase a real estate interest owned by the Homeowner, and the SPE agrees to purchase such real estate interest, the Quarter Platform will notify some or all of the Investors (as well as the holders of the Asset Tokens linked to the SPE) of the pending transaction, the amount of Asset Tokens that may be included in the transaction, and provide them with a period of time (e.g., five (5) business days) to indicate whether they wish to purchase the Asset Tokens linked to the SPE that is the subject of the purchase, and the amount of Asset Tokens that they wish to purchase. At the end of such period, the Quarter Platform may determine which Investors’ requests will be satisfied on a first-come, first-served and/or rolling basis, up to the total amount of Asset Tokens that are the subject of the purchase. Quarter may then remove the “time lock” of such Subscribed Asset Tokens in the Subscribed Investor’s digital wallet and/or release the purchase amount to the Homeowner from the Subscribed Investor’s account in the cash pool.

If a homeowner requests that an SPE sell its real estate interests to the homeowner and the SPE agrees to sell the real estate interests, the Quarter Platform may notify all holders of asset tokens that may be linked to the SPE of the pending transaction, or notify them of the proportional amount of their holdings that will be included in the transaction. Investors whose asset tokens are linked to the SPE are obligated to sell their asset tokens in proportion to the existing proportion of the total asset tokens linked to the SPE. The asset tokens sold by the investors may then be redeemed and burned by the fund.

HPI An exemplary overview of tokens

HPI tokens may represent a pool of capital generated by the appreciation of some or all of the homes listed on the Quarter Platform, and may provide holders with the right to an appreciation of the home value of some or all of the homes listed on the Quarter Platform. The amount of HPI tokens attributable to an asset token holder may be determined based on the number of asset tokens purchased and their link to a specific home. There may be a pre-determined amount of HPI tokens per asset token.

The quarter may set a predetermined period of time called an HPI interval (the HPI interval is initially set to annually), during which the current value of each house currently existing on the Quarter Platform may be updated to calculate the change in the current value of each house during that period. At a specified time at the end of each HPI interval, the House Price Increase (HPA) and/or House Price Decrease (HPD) may be calculated. The calculation date may be referred to as the "HPA/HPD Determination Date." The first HPA/HPD Determination Date cannot occur before the "Transfer Lock" of the HPI Tokens is removed. The calculation may be the difference between (i) the current valuation of a particular house existing on the Quarter Platform performed at the end of the current HPI interval and (ii) the current valuation of a particular house performed at the end of the immediately preceding HPI interval. If the difference is positive, then the difference may be considered a House Price Increase (HPA). If the difference is negative, then the difference may be considered a House Price Decrease (HPD). If the difference is 0, then there may be no HPA or HPD. If a home is boarded on the Quarter Platform during the current and/or immediately preceding HPI Interval, or if occupancy tokens are transferred to a new homeowner during the current and/or immediately preceding HPI Interval, the current valuation of that home at the time of boarding or transfer (hereinafter, a “Current Valuation Reset”) may be replaced with the current valuation of that home from the previous HPI Interval.

If the Current Assessment at the end of the current HPI interval for a particular home exceeds (i) the Current Assessment at the end of the previous HPI interval that occurred during the ownership period of the current asset token holders who hold asset tokens linked to the SPE for that home, or (ii) the reset Current Assessment, then that Current Assessment may be considered the HPI Peak for that home. If the Current Value of a particular home for the current HPI interval does not exceed the HPI Peak for that particular home, then HPI Tokens may not be unlocked for the current asset token holders who hold asset tokens linked to the SPE for that particular home. If (i) the Current Assessment of a particular home falls below the HPI Peak Level due to one or more periods of declining Current Assessment for that particular home, and/or (ii) the asset tokens linked to the SPE are transferred to a new investor:

A. The high water level indicator can be removed.

B. The future rights of the new asset token holder to the unlocked HPI tokens may be based on the current valuation of the relevant home at the previous point in time and/or the end of the HPI interval immediately prior to transfer to the new investor.

C. The original asset token nominal value may be replaced by the current adjusted asset token nominal value of the transferred token, which may be calculated as the proportional value of the asset token based on the lower of (i) the current valuation at the time of transfer and/or (ii) the current valuation at the end of the immediately preceding HPI interval.

In the event of rising house prices, if the current value of a particular house at the end of the current HPI interval is higher than the high point, the HPI tokens held by asset token holders linked to a particular SPE of that house may be unlocked according to the following example formula (many variations of this formula may also be used, e.g., in some embodiments, some variables may not be used and/or some variables may be added):

T _u = MIN(( V _c - V _p ) / V _p , ( V _c - H _w ) / H _w ) * R * MIN(N _o , N _p ) / TV

T _u = HPI Token Unlock

V _c = current evaluation

V _p = previous HPI interval current evaluation

H _w = HPI high water mark

R = HPI Realization Percentage

N _o = Original asset token nominal value

N _p = current adjusted asset token nominal value

T _v = HPI Token Market Value

As can be seen from the above formula, the number of unlocked HPI tokens for each asset token for a specific SPE can be calculated as follows:

Step 1: (A) the smaller of the following values: (a) the Present Value (USD) of a particular house at the valuation point minus the Present Value (USD) at the end of the immediately preceding HPI interval (hereinafter referred to as the “Previous HPI Interval Present Value”), multiply by the result, which must be divided by the Present Assessment (USD) of the particular house at the previous HPI interval, or (ii) the Present Assessment (USD) of a particular house at the valuation point minus the Highest HPI Price (USD), divide by the Highest HPI Price (USD), and (B) divide by the HPI Realization Rate (initial setting: 90%).

Step 2: The result of Step 1 can be multiplied by (a) the original asset token notional value and/or (b) the current adjusted asset token notional value.

Step 3: The results of Step 2 can be divided by (D) the market price of HPI Tokens at that time (“HPI Token Market Value”).

If the result of step 3 is negative, the HPI token cannot be unlocked.

When a home is sold and leaves the Quarter Platform, the proceeds can be distributed according to the real estate contract rules, as the value of the home has increased enough to unlock HPI tokens for the asset token holders.

In the event that a homeowner purchases a portion of a real estate interest owned by an SPE from an SPE during or prior to the HPI interval, the closing date for such purchase may be replaced by a certain HPI determination date, and the number of unlocked HPI tokens for each asset token of such SPE linked to the home may be calculated and released to the digital wallet of the asset token holder. The proceeds of the sale may be distributed in accordance with the provisions of the real estate contract.

In the event that a homeowner sells a portion of the real estate interest owned by the homeowner to an SPE during or prior to the HPI interval, the closing date of such sale may be replaced by the scheduled HPI determination date, and the number of unlocked HPI tokens for each asset token of such SPE linked to the home may be calculated and released to the digital wallet of the asset token holder.

(i) if the supply of HPI Tokens issued to the Asset Token Holders at the time the Asset Tokens were issued to them is exhausted, or (ii) if the total value of the issued but locked HPI Tokens falls below a predetermined amount and/or a percentage of the total current value, the Fund may issue additional locked HPI Tokens to the Investor, which may be transferred to the HPI Token Escrow Pool in proportion to the amount of Asset Tokens issued, to replenish the supply in an amount determined from time to time on a quarterly basis. In addition, the Fund may issue HPI Tokens on a quarterly basis in an amount and/or a percentage of the total HPI Tokens issued, but the HPI Tokens so issued may be initially locked. In the event of rising housing prices, if the current appraisal value of a particular home at the end of the current HPI interval is higher than its high, the HPI Tokens issued in the quarter pursuant to this paragraph may be unlocked in an amount calculated according to the following example formula (it should be noted that many variations of this formula may also be used, for example, in some embodiments, some variables may not be used and/or some variables may be added):

T _u = MIN( V _c - V _p , V _c - H _w ) * S _i * Q _h / T _v

T _u = Amount of unlocked HPI tokens

V _c = current evaluation

V _p = previous HPI interval current evaluation

H _w = HPI highest water level

S _i = real estate interests of a particular SPE

Q _h = branch proportional HPI

T _v = HPI Token Market Value

As can be seen from the above formula, the number of HPI tokens unlocked for quarterly benefits for a particular SPE can be calculated as follows:

Step 1: Multiply the lesser of (A) the Present Value (in USD) of the particular home at the valuation date minus the Present Value in the previous HPI interval, or (ii) the Present Value (in USD) of the particular home at the valuation date minus the HPI Highest Point, by (B) the equity of the particular SPE in the property.

Step 2: The results of Step 1 may be multiplied by the amount of HPI Tokens (i.e. 5%) that you are entitled to receive quarterly pursuant to these Offerings (“Quarterly Pro-Raised HPI”).

Step 3: The results of Step 2 can be divided by the (D) HPI token market value.

Sample Terms and Conditions for a Real Estate Contract

1. Payment. In consideration of the homeowner’s right to live in the home (via the occupancy token), the homeowner may make a payment through the Quarter Platform Homeowner Dashboard. For example, the occupancy token may not be sold. When a home is sold, the real estate sales commission may be paid from the quarterly real estate commission fund, up to the amount associated with the home in the quarterly real estate commission fund. If the amount deposited in the quarterly real estate sale commission fund is insufficient to pay the real estate sale commission, the homeowner may pay the shortfall at the closing of the sale. If the amount associated with the home in the quarterly real estate sale commission fund exceeds the actual real estate sale commission, the excess amount may be paid in the quarter. The payment received from the homeowner may be distributed as shown in Figure 26 (Chart 3), and the homeowner becomes a resident as shown in Chart 3.

The Quarter Platform may determine whether an escrow is required for real estate taxes, insurance, and HOA fees (“Real Estate Escrow Account”). Whether a Real Estate Escrow Account exists is determined based on an algorithm that utilizes various consumer and real estate data points and local jurisdiction requirements, and may be determined quarterly from time to time. All escrow payments (“Property Escrow Amounts”) may be paid by the Homeowner as part of the payment and distributed to a Property Escrow Account managed by a third-party escrow service provider. Real estate taxes, insurance, and HOA fees (including fines) may be paid by the Homeowner directly to the applicable tax, insurance, or HOA authority/agent when due, unless included in the payment as an Escrow Amount. Payments may be made in fiat currency (USD).

2. Right to sell

According to the following paragraph, the homeowner may have the right to sell a portion of the real estate interest held by the homeowner to the SPE. Some or all of the investors may have the right to purchase the real estate interest of the homeowner at a price determined by a predetermined formula in proportion to the total asset tokens linked to the SPE. As a result of the sale, the homeowner may receive the proceeds of the sale and the base rent paid by the homeowner may be increased in accordance with the predetermined formula set forth below. The homeowner may also have the right to purchase a portion of the real estate interest held by the SPE at a predetermined price, and the investors whose asset tokens are linked to the SPE are obligated to sell the asset tokens in proportion to the existing proportion of the total asset tokens linked to the SPE. Accordingly, the homeowner’s base rent may be reduced in accordance with the example predetermined formula set forth below. (It should be noted that many variations of this formula may also be used. For example, in some embodiments, some variables may not be used and/or some variables may be added.) The homeowner may pay a recording or transfer tax on the sale of the real estate interest or the home (if any).

A homeowner may have the right to purchase and/or sell real estate interests as follows:

(i) If the Homeowner defaults on any outstanding debts under the Real Estate Agreement, the Homeowner may have the right to purchase part or all of the Real Estate Interest held by the SPE (hereinafter referred to as the “Purchase Interest”) at any time. For example, the Purchase Price to be paid by the Homeowner may be (A) (i) the present value of the Purchase Interest determined quarterly at the time of purchase, provided that the Transaction Price does not exceed a predetermined amount and the Purchase Interest does not exceed a predetermined amount and/or percentage of the total interest of the Real Estate, or the present incremental valuation of the Purchase Interest determined quarterly at the time of purchase, provided that the Transaction Price exceeds a predetermined amount or the Purchase Interest exceeds a predetermined amount and/or percentage of the total interest of the Home, (B) the amount of all transfer taxes, registration taxes and other fees incurred due to the purchase of the Real Estate Interest, plus the applicable platform transaction fee.

(ii) In the absence of any default by the Homeowner under the Real Estate Agreement, the Homeowner may have the right to sell a portion (but not all in some embodiments) of the Real Estate Interest up to the amount of the excess equity (the “Sales Profit”). [The Purchase Price to be paid by the Homeowner may be equal to (A) (i) the present value of the Sales Profit determined quarterly at the time of sale, if the amount of the Excess Equity does not exceed a predetermined amount and the Sales Profit does not exceed a predetermined amount or percentage of the total Real Estate Interest of the Home, or (ii) the present incremental assessment of the Sales Profit determined quarterly at the time of sale, if the amount of the Excess Equity exceeds a predetermined amount or percentage of the total Real Estate Interest of the Home, plus (B) all transfer taxes, registration taxes and other fees incurred by the sale of such Real Estate Interest, and any applicable Platform Transaction Fee.

(iii) In the event that a homeowner purchases or sells a real estate interest, the Quarter Platform may change the respective real estate interests held by the homeowner and the SPE of the home by amending the real estate deed. The escrow mechanism may be used to deliver the deed to a third-party escrow agent engaged by the Quarter to be recorded to evidence the change in the respective real estate interests held by the homeowner and/or the SPE of the home (e.g., to avoid frequent deed registration and/or for other reasons). The homeowner, SPE, and escrow officer may enter into a three-party escrow agreement whereby the escrow officer may record the then-existing deed between the homeowner and the SPE at a designated time on a quarterly basis (e.g., annually, quarterly, or otherwise). In the event of any further changes to the respective real property interests held by the Homeowner and SPE prior to the next specified record time, the newly amended instrument may supersede the prior instrument in the possession of the Escrow Agent and/or the prior instrument may be destroyed so that the Escrow Agent may retain the most recent instrument to reflect the then current interests held by the Homeowner and SPE.

A homeowner may have the right to sell the entire home to a third party buyer as follows:

(i) A homeowner may notify Quarter of his or her intent to sell his or her home through the Quarter Platform Homeowner Dashboard.

(ii) A homeowner may be prohibited from requesting the sale of the entire home within a predetermined number of days after the purchase or sale of the homeowner's real estate interest without first obtaining an exemption from the quota.

(iii) The Quarter Platform may notify the investor holding the asset token linked to the home of the homeowner’s intention to sell the home, and further trading of the asset token linked to the SPE by the investor may be prohibited unless a waiver is obtained from Quarter.

(iv) Upon receipt of a homeowner's intent to sell, the Quarter Platform may recommend the home to a Quarter Preferred Agent Provider, who may then recommend a listing price.

(1) If the proposed listing price is equal to or higher than the current appraised value of the house, the homeowner may sell the house on the quota platform or another platform or website.

(2) If the proposed listing price is lower than the current valuation, the branch may perform a current enhanced valuation. Upon receiving a current enhanced valuation, the listing price may be set to the greater amount of the proposed listing price or the current enhanced valuation amount.

(3) The listing price that satisfies the requirements of paragraphs (1) and (2) above shall be considered the “final listing price.”

(v) The homeowner may reimburse the Quota Platform for the costs incurred by the Quota Platform in connection with the sale of the home, i.e. the fees incurred by the Quota Platform in connection with the determination of the current valuation and the current augmented valuation.

(vi) Homeowners may use the listing and purchase agreement addendums (collectively, “ Real Estate Documents ”) provided on the Quarter Platform.

(vii) If an offer is received that is acceptable to the homeowner and is at least a predetermined amount and/or percentage lower than the final listing price (hereinafter referred to as the “Listing Price Reserve”), the sale may be considered approved and the home may proceed to closing in accordance with the real estate documents.

(viii) When an offer is received that is acceptable to the homeowner and is less than the list price reserve, and the homeowner agrees to pay SPE the difference between the list price reserve and the actual list price, the sale is considered approved and the home may proceed to be sold in accordance with the real estate documents.

(ix) If there is no offer acceptable to the homeowner or no offer is made within a predetermined time period after the quota platform receives the homeowner's notice of intent to sell the home, the homeowner has the right to lower the final listing price or the minimum listing price with the consent of the quota, which consent may be given at the sole discretion of the quota.

(x) If a home is sold to a third-party buyer who is an existing user of the Quota Platform or who financed the purchase of the home using the Quota Platform, the occupancy tokens held by the homeowner may be transferred to the third-party buyer, and the amount paid at that time may be recalculated based on the sale price of the home.

(xi) In the event that the amount (including any commission credit) associated with a Home deposited into the Quarterly Real Estate Commission Fund is insufficient to pay the Real Estate Sale Commission on the closing date of the Home sale (the “Sale Closing”), such shortfall (the “Real Estate Commission Shortfall”) may be deducted from the Homeowner’s settlement proceeds. The amount available from the Quarterly Real Estate Commission Fund with respect to a Home may be calculated using (A) a credit for a predetermined amount and/or a percentage of the total sale price (the assessed value at the time the Home was placed on the Home’s Quarter Platform, each month the Homeowner held Occupancy Tokens, up to a predetermined period of time (e.g., 96 months)) (the “Commission Credit”) and/or (B) the actual amount referred to the House together with the Quarterly Real Estate Commission Fund. The capital to fund such commission credit shall be from the Quarterly Real Estate Commission Fund. If the amount associated with house sittings (including any fee credits) held in the Quarterly Real Estate Fee Fund exceeds the actual real estate sales fees payable at closing, the excess may be paid quarterly to the General Fund without further obligation.

(xii) The Homeowner may be charged a termination fee equal to a pre-determined amount and/or percentage of the total sale price of the Home (the “Termination Fee”), which shall be payable quarterly upon closing of the sale, and if the Homeowner uses the sale proceeds to purchase another Home on the Quarter Platform, the termination fee may be a pre-determined amount and/or percentage of the total sale price of the Home (the “Reduced Termination Fee”), provided that any or all of the following conditions are met:

(1) To qualify for a reduced exit fee, a homeowner may sign a letter indicating his or her intent to purchase a new home using the Quota Platform prior to the completion of the sale of his or her existing home (hereinafter referred to as “Completion”).

(2) Homeowners can find a replacement home within 90 days from the contract termination date and complete the sale of a new home through the quota platform within 180 days from the contract termination date.

(3) Homeowners may pay registration tax or transfer tax when selling existing homes.

(xiii) If a home is sold to a third-party buyer who is not an existing Quota Platform user, or is sold to a third-party buyer who is an existing Quota Platform user but did not finance the acquisition through the Quota Platform, thereby causing the home to be excluded from the Quota Platform, the Occupancy Tokens held by the homeowner may be redeemed and burned by the SPE, and the real estate contract may be automatically terminated on the date the sale to the relevant third-party buyer is concluded.

(xiv) Homeowners can pay in legal tender (USD).

(xv) The proceeds from the sale of the entire home may be distributed at closing as set forth below (distribution cascade). The proceeds may be distributed in a different order.

(1) The proceeds may first be used to pay SPE in proportion to the SPE’s real estate interests (e.g., if the proceeds are $300,000 and SPE’s real estate interests are 80%, it may pay SPE $240,000). SPE may then distribute the proceeds received to the Fund, and the Fund may distribute the proceeds received (i) first to non-impact investor asset token holders, (ii) second to HPI token holders, and (iii) third to impact investors, all in proportion to the amount of active asset tokens held for the House and unlocked HPI tokens.

(2) The proceeds may be used to pay any outstanding amounts arising from the quarterly risk pool.

(3) Subsequent proceeds may be used to pay any accrued accrued payments (excluding payments to the quarterly risk pool).

(4) The proceeds may then be used to pay the termination fee or reduced termination fee, as applicable.

(5) The proceeds can then be used to pay the RE fee shortfall.

(6) The proceeds may then be used to pay the costs incurred by the Quarter Platform in connection with the sale of the home, including, where applicable, fees incurred by the Quarter Platform in connection with the determination of the current valuation and the current augmented valuation.

(7) The proceeds may then be used to pay the registration and transfer taxes associated with the closing, the title insurance premiums and other fees charged by the title company, and any other seller fees shown on the settlement statement associated with the closing, but the homeowner shall have the right to use the balance of the real estate escrow funds held in the real estate escrow account to pay the seller's pro rata real estate taxes and HOA dues. After the homeowner has applied the real estate escrow funds associated with the home held in the real estate escrow account, the remaining balance of the escrow funds may be refunded to the homeowner.

(8) Any remaining proceeds may be paid to the homeowner.

Notwithstanding the foregoing, if the proceeds are insufficient to pay the costs (1) through (7) above (hereinafter referred to as the “Closing Costs Shortage”), the homeowner shall be responsible for paying the Closing Costs Shortage. If the homeowner does not have the financial ability to pay such Closing Costs Shortage, the real estate contract rules may apply.

3. Default

A homeowner's default may include failure to make payments, the imposition of liens on the home, failure to repair and maintain the property in good condition, and/or other events specified in the real estate contract.

If for any reason a homeowner is found to be non-compliant, the cost is added to the next scheduled payment and distributed to the quarterly risk pool.

In the event that a Homeowner fails to pay any payments, platform transaction fees, or other fees imposed on the Homeowner under the Real Estate Agreement, SPE shall have the right, but shall not be obligated, to advance funds to the Quarter Risk Pool to pay the defaulted amount, and any such advance payment by the Quarter Risk Pool at the request of the Homeowner may constitute a relief loan to the Homeowner. In the event that SPE does not have sufficient excess capital to fully repay such advance payment, a lien may be imposed on the entirety of the Homeowner’s minimum equity represented by the relevant interest held by the Homeowner for the amount of the shortfall. The creation of a lien may trigger eviction proceedings, cancellation of occupancy tokens, sale of the Property, and termination of the Real Estate Agreement, as determined by Quarter on behalf of SPE in its sole discretion.

4. Capital Improvements. Subject to the terms and conditions set forth below and other terms and conditions set forth in the real estate contract, the homeowner has the right to make capital improvements to the home.

A. Homeowners must notify the Quarter Platform at least a specified amount of time in advance before planning capital improvements to their home.

B. Current augmentation assessments may be ordered quarterly to determine the pre-improvement and post-improvement value of the home to calculate the capital improvement value. The post-improvement assessment may require an on-site inspection to verify that the work has been completed. The homeowner may be responsible for all costs of the assessment and inspection. The capital improvement value may be calculated by subtracting the post-improvement value from the pre-improvement value. When the homeowner sells the home, the homeowner is entitled to a credit equal to the capital improvement value.

On the quarterly platform Impact invest

In order to facilitate the purchase of homes by applicants who would otherwise not be eligible to purchase homes on the quota platform and/or to reduce the risk of homeowner default, as homeowners may be evicted from their homes due to default, quotas can use the infrastructure to support such applicants and homeowners by enabling impact investors to leverage the quota platform.

Below is a description of the support accepted by an exemplary impact investor.

1. Impact investors have the right to purchase asset tokens linked to the SPE (and therefore, the specific home) to help finance a portion of the minimum maintenance capital and/or closing costs, which amount is equal to the difference between the minimum maintenance capital and/or purchase price that the applicant must pay to purchase the home; however, the applicant may pay more than the minimum pre-determined amount and/or a percentage of the total purchase price for the purchase of the home with their own funds without the assistance of the impact investor.

2. The minimum credit score requirement imposed by the quota platform can be waived to allow impact investors to set their own minimum qualification criteria.

3. The Asset Tokens held by Impact Investors are entitled to a proportional share of the base rent and enhanced rent paid by the homeowner. The Impact Investors Asset Tokens are entitled to a proportional share of the net proceeds from the sale of the entire home, as detailed in the “Distribution Waterfall” clause in the “Key Terms of the Real Estate Agreement” section. The section entitled “Asset Token Overview” provides further details on the rights of Impact Investors with respect to their Asset Tokens.

4. The following key terms and conditions may apply to the impact investor subscription agreement:

(1) Impact investors can guarantee the performance of homeowners and provide asset tokens they own as collateral to the fund.

(2) In return for the homeowner paying a supplemental payment to purchase additional real estate interests from the SPE each month, the SPE may redeem a portion of the asset tokens held by the impact investor in an amount equal to the amount of real estate interests purchased by the homeowner from the SPE each month.

(3) Impact investors are not eligible to receive HPI tokens.

(4) The fiat currency paid by impact investors to purchase asset tokens may be held in a cash funding pool or released to the SPE upon acquisition of the house.

Exemplary requirements

Exemplary requirements are discussed here. All items listed here are optional, and any requirements included in this document may be removed and additional requirements may be added to achieve various embodiments.

1. Overview

a. Landing Page (e.g., marketing deployment, measurement of results, and campaign coordination to convert leads into actions)

i. Ability to independently create and maintain separate landing pages for different user types, such as consumers and investors (e.g., home investors, home angels), vendors, real estate agents, and settlement agents.

1. You can create and deploy n landing pages (N>1) for each user type, which allows for both a marketing campaign to drive traffic to the landing pages and an ongoing effort to test and improve the call-to-action message on those pages.

ii. Ability to perform A/B testing.

iii. You can track and report statistics on your traffic sources (e.g. you can bill/pay lead providers for unique clicks).

iv. We may use common web tracking technologies, such as cookies, to identify and track unique users.

b. Account registration (e.g., allowing consumers or investors or other types of users to register to use the Quota Platform).

i. It can support various types of users (consumers, investors, suppliers, real estate agents, etc.)

1. Additional user types can be added.

2. You can delete a user type.

ii. Registration can be divided into two pages.

1. The first page can be (i) email, password and/or (ii) third-party OAuth.

a. Your user ID may be different from your email address.

i. User ID follows best practices.

b. Password configuration can follow best practices.

i. Password can display weak, medium, strong message when user creates password.

ii. Passwords that do not meet the minimum security requirements may not be accepted.

iii. You can enter it twice when creating or changing a password.

2. You can verify your email address before continuing (double entry match).

3. Name and other information may be collected.

iii. Two-step authentication is possible (e.g. email and/or text and/or physical authentication device such as USB).

iv. It can support general self-help functions (user ID/password reset, etc.)

v. Can support general customer service functions such as live chat.

c. Maintain user accounts . (Duties - Users can maintain and update branch account preferences and request support)

i. Allow users to edit their user profiles and preferences.

ii. Allows users to request customer or technical support.

iii. Allow users to close their accounts.

d. Pre-application of consumers (job - determine if consumers are suitable candidates for the quarter before investing resources in due diligence)

i. Initial applicant data (entered by users via an online form used for pre-screening) may be collected.

1. Allow users to enter data for more than one applicant (e.g., husband and wife).

2. Data may include: self-reported income and credit data, cash flow, home equity information, zip code at time of home purchase, refinancing address, etc., or a combination of these.

ii. Based on the information provided by the user, the applicant's path can be divided into refinancing or purchasing.

1. If the consumer is a buyer, he or she can enter a target price for purchasing a home, and can derive the target price by using a home price calculator or simply entering a price.

2. If the transaction proposed by the consumer is a refinance, data can be collected on the homes that are being refinanced.

a. This data may include addresses, values and estimated assets, which may be calculated by collecting the mortgage balance and subtracting it from the estimated value.

b. Address data may be used to provide value estimates by querying third-party sites (e.g., Zillow).

i. Allow users to edit provided third party reviews.

iii. The MRE engine can be run using unverified consumer-provided data as input (which can be an estimated MRE to use for making initial go/no-go decisions).

iv. Initial approval/denial decisions may be made based on user self-reported data, including initial determinations of the need for down payment assistance for purchase or homeowner assistance for refinancing.

1. In the case of refinancing, self-reported assets and MRE for the home can be used to assess the need for assistance.

2. In the case of purchase, the need for support can be assessed using the home value generated from the calculator or entered by the applicant.

3. If the decision is not passed, no action can be taken.

a. Generate all necessary negative decision notices and display and/or send them to the applicant if the decision is not passed.

v. May be matched with cash assistance programs (purchases) or homeowner assistance programs (refinancing) if needed.

1. Only self-reported data can be used.

2. You can run a matching engine for the support program that uses both the self-reported data described here and the data verified later in the application process.

3. Matching may occur if the applicant has at least one eligible application program based on the user-reported data.

vi. Using the MRE calculation and prepayment support decision (if applicable), a proceed/suspend decision may be made and the applicant may be notified of the decision.

1. Generate all necessary negative decision notifications and display/send them to the applicant if the decision is not passed.

2. If a decision to pass is made, the applicant may be informed that this is not a final approval but rather a confirmation that the quarterly self-reported information is sufficient to meet the requirements.

vii. If the proposed transaction is a purchase, a calculator can be displayed that shows the payment and MRE and can display homes on the MLS that are available for purchase using the self-reported data collected.

1. User can view and select/save, but must navigate to the application to proceed to the next step.

viii. If the proposed transaction is a refinance and the applicant does not require any assistance programs, a calculator may be presented that displays the MRE, payment amount, and cash-out amount, all of which are based on self-reported data and/or data found from third-party data sources using property addresses.

1. This calculator can show you how your monthly payment will change as your cash withdrawal amount increases or decreases.

2. You can also display various scenarios such as % ownership based on cash withdrawal amount, capital position based on various future HPI increases or decreases, etc.

ix. It can display the message "Next Step" or "Apply".

e. Consumer applications (e.g., collecting information from consumers to determine if they are eligible for quarterly payments)

i. More than one applicant may be permitted to apply for the same transaction.

1. You can allow each person to have their own unique login and account.

a. Applicants may invite other applicants to register an account.

b. Allow all co-applicants to jointly complete the application and hold applicants until all parties have completed it.

i. Status update/notification messages can be sent to all parties involved in the joint application.

ii. Data required for fund approval and KYC/AML checks may be collected.

iii. Consent may be collected for credit execution/employment verification/KYC/AML checks/asset verification, etc.

iv. An application fee may be collected from the applicant(s).

1. Joint applications may use different fees.

2. The same payment options may be allowed for rent, property purchases and other payments and must be integrated into the same payment system.

v. You can complete the prepayment or homeowner assistance application based on the applicant data entry.

1. Applicants can see all the support programs they seem eligible for and choose which support program to apply for.

2. May include application for prepayment or homeowner assistance as needed.

vi. Document download/upload can be enabled as needed during the application process.

vii. Unique applications can be tracked by lead source for lead provider invoice/payment.

1. You can report on applications started, abandoned, and completed by lead source.

a. This may include collecting general statistics such as the time taken to apply, where they left, how many times they returned, etc.

viii. Application-centric customer service features (chat, phone, etc.) can be enabled.

f. Pre-approval after application submission (e.g., to enable consumers to track application status, communicate with underwriting/support programs, and provide additional information upon request)

i. You can create some kind of application tracking dashboard that shows where you are in the process, what needs to be done, what's pending, etc.

1. The same tracking can be included in the support program.

ⅱ. Messaging can be enabled to allow the applicant and the insurer to communicate.

iii. Messaging can be enabled to allow applicants and support programs to communicate.

iv. Additional documents can be downloaded/uploaded as needed.

v. All communications that occur can be tracked and stored.

g. Acquisition (e.g., verifying that the applicant is eligible for quarterly use)

i. If the applicant needs a down payment or homeowner assistance program, the application data can be used to determine if there are any eligible programs.

1. If there is no program available, the applicant is notified and no further acquisition procedures are conducted. That is, this is first conducted based only on completed but unverified application data.

a. Ensure that all adverse action notifications are transmitted.

ii. Data files and copies of consent forms may be sent to the transferee.

1. Initially, you may go through one vendor (Evolve), but the platform can support multiple vendors and decide which vendor receives a given application.

2. API can transmit data safely.

iii. You can receive credit and income acquisition information again from the acquisition.

1. For example, through the security API.

iv. Credit, income and asset data can be fed into the MRE engine to determine the MRE amount.

v. You can decide whether or not you need an escrow account.

1. This decision can be automated using algorithms.

a. Manual override may be allowed.

b. Homeowners and prepayment assistance program providers may make decisions when relevant.

i. The support program may allow the option to use a branching algorithm for decision making.

1. This option can be selected when setting up the support program.

ii. If you do not use a branching algorithm, you can input data on a case-by-case basis or create parameters that can be applied automatically.

1. Allows the support program provider to edit the parameters of each program it operates.

vi. Notify the applicant of the proceed/suspend decision, the MRE amount, and the escrow account decision (if applicable) if the support program is not required.

1. In case of refusal, notice of adverse action may be sent as necessary.

vii. For applicants who require support programs, the support program matching can be re-run using the data verified during the acquisition process to ensure that the applicant is still matched to at least one program.

viii. If an applicant is eligible for multiple support programs, data for each program may be presented to the consumer and the consumer may choose which program to apply to.

1. If there have been no material changes to the program details since this step was previously performed, the applicant may submit the application according to the previous selections, but may be removed if they are no longer eligible.

ix. Applicant data may be forwarded to the homeowner or prepayment assistance program for acquisition (if applicable).

x. The homeowner or down payment assistance program may approve or disapprove and notify the applicant of the decision.

xi. If more than one program approves an applicant, details of all approvals received may be presented and the applicant may choose which one to accept.

1. The escrow account requirements can be finalized based on the support program selected.

a. It may be determined by the support program as previously explained.

xii. In case of rejection in all programs, notice of adverse action may be sent (as necessary).

h. Post-Approval - Pre-Boarding (Purchase Only) (e.g., helping consumers choose a home to purchase)

i. Allows buyers to view homes that are eligible for purchase on the MLS. This can also support properties that are not listed on the MLS, such as homes owned by the Quarter’s builder partners or other homes entered by the applicant.

1. Collect property-specific data, such as estimated taxes, HOA fees, etc., and present them in a calculator format so you can compare homes against each other.

a. We may use third-party data sources (e.g., Zillow) to collect or supplement data not provided by the MLS.

ii. You can enable the ability to select and add houses to your shopping cart.

iii. Applicants may be able to schedule a tour of the homes they have placed in their cart by connecting directly with a Quota, Partner Supply or Consumer Supply real estate agent.

1. You can share/send the list in your shopping cart to other people (applicant's family, real estate agent, etc.).

2. You can define how this communication will occur (e.g. email, text, platform messaging)

iv. Data on the houses selected in this way can be stored for future review.

v. You can remove the house from the cart.

i. Pre-registration for network investors

i. After a network investor successfully completes the account registration process, a message may be presented indicating that pre-registration is the next step.

ii. You can enable A/B testing of various next step messages.

iii. You may need to track unique applications per lead source for lead supplier billing/payment purposes (if permitted)

1. You may need to report on applications started, stopped, and completed by lead source.

iv. Initial data may be collected to determine whether network investors are eligible to proceed with the full application.

v. Data collection may need to be customized based on jurisdictional requirements.

1. This may mean that several countries have different securities law requirements than the United States, and therefore may require different data to evaluate investors under the laws of those jurisdictions.

2. The platform may need to have the ability to set and maintain data collection requirements based on the needs of individual jurisdictions.

vi. Initial approval/disapproval decisions can be made based on user-entered data (e.g., whether authorized, jurisdiction, etc.)

1. Depending on jurisdictional requirements, an algorithm/rule engine may be used for this (e.g. a third-party compliance provider).

2. A notice of adverse action may be sent (if necessary).

j. Network investor applications (e.g., collecting information to be used in conducting due diligence on network investors to determine eligibility as a branch network investor).

i. After successfully passing the pre-application screening, the network investor can be notified of the next step of application.

ii. You can enable A/B testing for next-step messaging.

iii. Application fees (if any) may be collected.

iv. Ability to collect sufficient network investor information to conduct due diligence on KYC/AML/authentication/etc.

1. By applying the data initially collected in the pre-application, you can determine which jurisdictional rules will apply and what data to collect accordingly, and collect data in a specific order so that you can dynamically generate the application during the session to comply with the correct jurisdictional requirements based on user input.

v. Collect consent from network investors to perform credit execution/employment verification/KYC/AML checks/asset verification, etc.

vi. You can download/upload documents as needed during the application process.

vii. Application-centric customer service features (chat, phone, etc.) can be enabled.

k. Pre-approval of applications (e.g., to enable network investor applicants to track the status of their applications, communicate with others (e.g., compliance vendors, branch managers), and provide additional information when requested)

i. You can create some kind of application tracking dashboard that shows where you are in the process, what needs to be done, what's pending, etc.

ii. You can send messages to network investors.

iii. Additional documents can be downloaded/uploaded as needed.

iv. All communications that occur can be tracked and stored.

l. Network investor due diligence (e.g., to determine if the applicant is eligible to become a branch network investor)

i. Share information about network investor applicants with third-party compliance providers to enable them to conduct appropriate audits;

1. For example, via the security API.

ii. Data may be received back from third party compliance vendors.

1. For example, via the security API.

iii. May make a decision to proceed/suspend and notify network investors.

a. may send adverse action notices (if necessary).

m. Funding after approval by network investors (e.g., raising and deploying capital from approved network investors)

i. Provide approved network investors with access to the PPM, subscription agreement and other documents necessary to close the investment and raise funds;

1. Documents can be automatically filled in with previously collected data, if possible.

2. Approved network investors may complete/edit the data in the document as needed.

ii. You can enable document execution (docusign if allowed, otherwise download, wet sign and upload).

iii. Upon receipt of the executed document, you may review the completeness and accuracy of the document and confirm your final approval for the investment.

iv. A holding company escrow account can be established for network investors.

v. We may collect your funding account details (bank and/or wallet)

1. It can support various types of payments, including the latest versions of stablecoins and cryptocurrency payments.

vi. Network investors may be permitted to transfer funds to the holding company escrow account.

vii. By minting asset tokens (holding 509), the funds can be transferred to the holding company escrow wallet when they reach the Funding Cash Pool.

1. This token can be initially empty and can have both time locks and transfer locks.

2. Also, you can mint HPI tokens and transfer them to the HPI token escrow pool wallet.

a. HPI tokens may also be subject to time locks and transfer locks.

b. Different tokens can be minted simultaneously or at different times.

n. Home Angel Pre-registration

i. After successfully completing the account registration process, the impact investor can be presented with a pre-application message as the next step.

ii. You can enable A/B testing of the next step message.

iii. Track unique applications by lead source for lead provider billing/payment purposes (where permitted).

1. You can perform reports on applications started, abandoned, and completed by lead source.

iv. Initial data may be collected to determine whether impact investors are eligible to proceed with a full application.

v. Data collection can be customized based on jurisdictional requirements.

1. Other countries may have different securities law requirements than the United States, so different data may be required to evaluate impact investors under the laws of that jurisdiction.

2. The platform may have the ability to set and maintain data collection requirements based on the needs of individual jurisdictions.

vi. Initial approval/disapproval decisions can be made based on user-entered data (e.g., whether authorized, jurisdiction, etc.)

1. You can use an algorithm/rule engine for this (e.g. a third-party compliance provider).

2. May send adverse action notice (if necessary).

o. Apply to be an impact investor (e.g., conduct due diligence to gather information from impact investors to determine if they are eligible to be a quarterly impact investor)

i. After successfully passing the pre-application screening, the next step for impact investors can be to present a full application.

ii. You can enable A/B testing for next-step messaging.

iii. Application fees (if any) may be collected.

iv. Collect sufficient impact investor information to conduct due diligence on KYC/AML/authentication/etc.

1. Apply the data initially collected in the pre-application to determine which jurisdictional rules apply and therefore which data to collect, or collect data in a specific order so that the application can be generated dynamically during the session, so that the correct jurisdictional requirements are met based on user input.

v. Collect consent from impact investors to perform credit execution/employment verification/KYC/AML checks/asset verification, etc.

vi. You can download/upload documents as needed during the application process.

vii. Application-centric customer service features (chat, phone, etc.) can be enabled.

p. Impact investor due diligence (e.g., checking whether the applicant qualifies to be a quarterly impact investor)

i. We may share information with third-party compliance vendors to conduct due diligence audits.

1. For example, via the security API.

ii. Data may be received back from third party compliance vendors.

1. For example, via the security API.

iii. Ability to make a decision to proceed/suspend and inform impact investors.

1. (If necessary) may send notice of adverse action

q. Funding after approval by impact investors (e.g., raising and deploying capital from approved impact investors)

i. Provide access to the PPM, subscription agreement and other documents necessary to close the investment and raise funds;

1. Documents can be automatically filled in with previously collected data, if possible.

2. It can allow impact investors to input/edit data as needed.

ii. You can enable document execution (docusign if allowed, otherwise download, wet sign and upload).

iii. We may collect your funding account details (bank and/or wallet).

iv. Fund transfer to the holding company escrow account can be activated.

v. Upon receipt of the executed document, you may review the completeness and accuracy of the document and confirm your final approval for the investment.

vi. A holding company escrow account may be established for impact investors.

vii. We may collect your funding account details (bank and/or wallet).

viii. Once the funds arrive in the pool, the asset tokens can be minted and transferred to the holding company’s escrow wallet.

1. These tokens may be initially empty and may have both time locks and transfer locks applied.

r. Managing support programs (e.g., impact investors set criteria that define the support programs they offer and into which they will deploy capital);

i. May allow impact investors to establish one or more unique prepaid or homeowner assistance programs.

1. It can allow impact investors to define the attributes of each program they wish to offer.

a. Allow impact investors to choose a unique name for each program.

i. All names may be submitted to the quarter for approval.

b. You can set financial parameters for each program (subject to specific terms set quarterly).

i. You can set a maximum and minimum amount to invest for each consumer.

ii. You can set the investment return rate.

iii. Rules for escrow accounts can be defined.

iv. The total funding commitment may allocate funding amounts to each program.

v. You can prioritize the allocation of funds in your escrow account to the highest priority program.

c. It could allow impact investors to define the demographics of consumers they want to help in each program.

i. Optional fields can be selected from a predefined set of fields that only the branch will approve and maintain.

ii. A review process may be established to determine the legitimacy and suitability of any program that an impact investor seeks to offer.

d. Impact investors can define the characteristics of the properties they will fund for each program (e.g. SFR vs. townhouse, geographic location, etc.)

i. Property characteristics can be selected from a pre-defined set of fields that the quota can approve and maintain.

2. Impact investors can add, edit, and delete these programs as they wish.

s. Collecting data on consumer support applications (e.g., collecting data needed for impact investors to underwrite support applications);

i. Information collected during the consumer application process can be passed onto the support application form and fields can be pre-filled to avoid duplicate data entry.

ii. A dynamic application form can be created for each consumer based on the specific support program the consumer matches.

iii. The superset of consumer-provided data can be filtered to a specific subset needed for each unique support program application.

1. For example, you could create a single application flow that collects a superset of information that allows a consumer to complete all applications for all programs they are matched with.

t. Accepting applications for support (e.g. deciding which applications to accept or reject)

i. Human intervention may be possible.

ii. Acquisitions may be made within the online impact investor portal and PII must not leave our servers.

1. Shared applicant data can be drawn from a superset of the information collected during the application process and then filtered to a subset needed for each specific program being supported.

iii. A workflow queue for pending applications can be created to help each impact investor manage the application flow (or create a submission sequence for an automated underwriting engine). This workflow and queue could include the following features:

1. It can be time-based with the option to change the order based on TBD criteria (priority).

2. You can filter and sort by program.

iv. Can approve/reject and notify consumers

1. In the case of prepayment assistance programs, approval may be conditional only on the basis of data provided by the consumer (e.g., approval subject to finding an acceptable property).

a. Once the assets are verified and pass due diligence, final approval can be issued.

2. For homeowner assistance programs, final approval may be issued immediately.

3. In the event of a refusal of advance payment or homeowner assistance, the applicant may be notified and a notice of adverse action (if necessary) may be issued.

4. Track the balance of the impact investor fund account and block/hold any funds that have been approved or conditionally approved but not yet disbursed.

a. You can send a preset notification message when your account balance reaches a certain level.

u. Real estate approval (purchase) (e.g., a consumer identifies and approves a home they wish to purchase using the Quota platform)

i. Applicants may be permitted to invite their real estate agent to create an account (if applicable).

1. You can generate invitations and emails in the system.

ii. The Applicant may allow the real estate agent to create a user account (if applicable).

1. Real estate agents can manage multiple clients simultaneously in the system through one account.

iii. It can enable communication between applicants and real estate agents.

iv. Allow consumers to terminate their real estate broker relationship.

1. You can remove real estate agents from transactions/communications.

2. Enable feedback/comments from consumers and real estate agents at the end

v. Allow consumers to add new real estate agents.

vi. Initial data about a home can be collected from homes entered by the user or from other data sources (e.g., MLS data for homes in a shopping cart).

vii. The data may be used to analyze homes for quarterly eligibility, make initial approval/disapproval decisions, and notify applicants and, where applicable, real estate agents.

1. It should be noted that these filters should be run on all MLS listings in advance to ensure that only homes that meet the quarterly criteria are displayed.

viii. Provide access to the R/E Agreement Documents (including any additional terms) to the Applicant and, where applicable, real estate agents and other authorized users.

1. All data from MLS or other data sources can be flowed into the contract document.

a. For properties not selected from the MLS listings, you can check with third-party data sources (Zillow, CoreLogic, etc.) to ensure the information used in the contract documents is accurate.

2. You can create/edit the purchase contract document by enabling user data input.

ix. Allow downloading of generated purchase contract documents.

1. Authorized users with access rights can do this.

x. Allow authorized users to upload executed contracts and appendices and allow sellers to document them in our system.

xi. May review and approve executed contracts and appendices.

1. You may have a work queue for this to notify the appropriate parties of the need for review and approval.

xii. You can enter contract details into the quarter platform.

1. This can be done by a real estate agent, transaction coordinator, or other agency.

xiii. You may order real estate due diligence and closing services such as title, inspection, appraisal, settlement, etc.

xiv. May allow real estate due diligence providers and closing service providers to create user accounts.

xiv. May allow real estate due diligence providers and closing service providers to create user accounts.

1. Allows real estate agents/transaction coordinators/other authorized users to send invitations to vendors to create accounts during the closing quarter.

2. Suppliers may receive quarterly approval.

3. Each supplier can service multiple transactions from one account.

xv. You can enable uploading of real-world documents.

1. It may authorize various parties to do so.

a. Applicant

b. Real estate agent

c. Transaction Coordinator

d. Supplier

e. Branch System Administrator

xvi. Review of factual documents.

1. You can have a workflow queue to manage this.

xvii. Approve the property or notify the applicant/real estate agent of any defects.

xviii. may correct defects or reject the property.

1. This can be an exception queue and workflow.

2. The same party may upload additional documents.

3. You can have a review and approval process.

v. Asset Approval (Refinancing) (e.g., verifying that the consumer’s existing home qualifies for the quota platform)

i. You can create a document using the information entered into the quarter platform.

a. Obtain consumer consent for an inspection of the home.

ii. You can order real estate inspection and closing services (title, inspection, appraisal, settlement, etc.)

iii. May allow real estate due diligence suppliers and closing service providers to create user accounts.

1. Allows the quarterly closing transaction coordinator to send account creation invitations.

2. Suppliers may receive quarterly approval.

3. Each supplier can service multiple transactions from one account.

iv. You can enable uploading of real-world documents.

1. May authorize various parties to do so:

a. Applicant

b. Transaction Coordinator

c. Supplier

d. Branch System Administrator

v. You can review the actual documents.

1. You can manage this using a workflow queue.

vi. may approve the property or notify the applicant of any defects;

vii. May cure defects or refuse property;

1. This can be an exception queue and workflow.

2. Additional documents may be uploaded by the same party as described in (1)(v)(iv)(1).

3. (1)(v)(v) The same review and approval process starting from may be reused.

w. Closing of quarterly financing transactions (e.g., closing a real estate transaction using quarterly investor funds)

i. Can create SPE

ii. May notify investors of a hold on their home purchase.

1. You can calculate the amount of funding you need and send a message to network investors via:

a. Investment amount.

b. Expected deadline.

2. You can calculate your funding needs and send a message to impact investors by:

a. Amount of required prepayment support funds.

b. Expected deadline.

iii. Access to asset/applicant due diligence data and documentation (anonymized and PII-free for network investors, more detailed information for impact investors).

iv. Can obtain funding approval from network investors

v. Create a closing document and allow the closing service provider to download/access it.

vi. Closing service providers can upload closing documents.

vii. Can review and approve closing documents.

viii. You can execute the document on behalf of SPE (docusign if possible).

ix. The purchase may be funded from the holding company escrow account on behalf of the SPE.

x. Asset tokens can be colored and transferred to network investors, impact investors, and risk pools.

xi. HPI tokens (holding 509) can be minted and transferred to the HPI token escrow pool wallet.

xii. You can mint SPE tokens and transfer them to your wallet.

xiii. Fund the escrow account and collect boarding and other fees from the closing service provider.

xiv. You can save the final closing document.

1. Hash the closing document, put the hash on-chain, and store the original image in storage.

2. Allows subsequent documents to be collected, hashed, and stored (e.g., copies of deeds, ownership policies).

3. The system can generate reminders to take periodic follow-up actions until all trailing documents are collected.

x. Services (e.g., collecting payments from consumers and monitoring compliance with TIC/rental agreement terms)

i. Resident Payment Settings can be activated via the online app (mobile and desktop).

ii. You may accept payments via ACH and may add an interchange fee to the payment amount if it is a debit or CC.

iii. You can deposit the payment into your F.B.O. account (ask your accountant for the actual bank account fund flow).

iv. You can move payments from your F.B.O. account to various target accounts/wallets.

v. All payments can be tracked in the ledger/blockchain

vi. Can monitor/supervise tax/insurance/HOA dues payments

1. Third-party service providers may perform this service.

a. For example, via some type of integration/API.

vii. TIC/Lease Agreement compliance can be monitored.

viii. Manage customer support issues including renovation requests, hazard insurance claims, income cessation requests, etc.

ix. Messages/notifications may be sent to tenants in case of late payment or non-compliance with the TIC/rental agreement.

1. Email/text/in-app notification/snail mail are available.

2. Allows for customizable content and notification workflows based on local legal requirements.

x. If the tenant does not pay on time, the payment can be collected from the risk pool.

xi. In case of non-performance, it may be sent to a special service.

1. You can set a custom trigger for this.

xii. Funds may be advanced from the risk pool to pay basic expenses.

xiii. Support the prepayment assistance program by managing the split transfer between SPE and tenants.

1. It can be automated and can occur upon receipt of each monthly payment made by the tenant.

2. You can define the point in time when the certificate is changed.

xiv. Can manage split sales between SPE and tenants.

1. Real-time recalculation of MRE amount and excess assets and display to tenants to know which assets are available for sale.

2. Provide a calculator to model various simulated split transactions by showing tenants the impact on their rent payments for purchase and sale transactions.

xv. Manage the selling process if the homeowner decides to sell the entire home.

xvi. You can manage basic processes as needed.

y. Customer support (e.g., providing technical support to users of the Quota platform);

i. Level 1 support can be self-help.

ii. Humans must provide two-level technical support to users.

1. You can enter, track, and close tickets (e.g. Zendesk)

2. You can record items in the customer record.

z. HPI token management (e.g. tracking house price increases and managing HPI token distribution)

i. The evaluation for all board homes can be updated periodically.

1. For example, via API.

2. Automatically scrub and identify suspicious data (e.g. >n% change or out of sync with expected range)

3. You can have a review process for exceptions.

4. It could have the ability to upload enhanced assessments that ignore AVM.

ii. Calculate HPI gains and determine HPI token allocation in HPI intervals.

iii. Unlock the transfer and transfer HPI tokens to the asset token holder wallet in the HPI interval.

iv. The HPI token escrow pool can track the number of HPI tokens and mint, lock, and transfer additional tokens to the pool as needed.

v. HPI tokens can be redeemed and burned as needed.

1. You can use the cash generated from the sale of a home to acquire and burn HPI tokens on the marketplace.

2. When a home is sold and removed from the network, the HPI token escrow pool may burn the locked HPI tokens.

aa. Manage your occupied tokens

i. The occupied tokens may be locked and held in escrow and/or wallets.

ii. Occupancy tokens can be exchanged and burned when the connected home is sold and leaves the network.

iii. The possession token can be transferred to another possessor later.

1. It can support transfer between occupants.

bb. Accounting

i. All movements of cash and other payments can be tracked on the platform.

ii. All setup and ongoing management costs for each SPE can be tracked.

iii. All purchases and sales of homes coming in and out of SPE can be tracked.

iv. All expenses related to home ownership of each SPE can be tracked.

v. Track all TIC purchases of homeowners

vi. You can track all expenses related to home ownership for each homeowner.

vii. Track all capital improvements to each home.

xiii. The escrow account balance for each network investor can be tracked.

xiv. The escrow account balance for each impact investor can be tracked.

xv. You can track the risk pool advance payment for each house.

xvi. You can track the repayment of the risk pool advance payment for each house.

xvii. You can track the real estate commission account balance for each home.

xviii. You can track the rent paid by each homeowner.

xix. You can track all non-rental payments made by each homeowner.

xx. You can track any late fees or fines incurred by each homeowner.

xxi. You can track the issuance, redemption, purchase and sale of all assets and HPI tokens.

xxii. HPI pool assets can be tracked.

xxiii. All sales costs and expenses can be tracked when the home leaves the network.

xxiv. You can track all real estate related items (depreciation, taxes paid, etc.)

xxv. Generate periodic tax reporting documents and reports for all platform users, including residents/network investors/impact investors/vendors and branch entities.

xxvi. You can enter entries into the blockchain ledger for the required transactions.

xxvii. You can search/download transactions recorded on the blockchain.

xxviii. CRMStore can hold contact information of all platform users, including consumers, investors, third-party suppliers, and real estate agents.

xxix. Consumer and investor registration data may be collected by status, including lead, full and partial (waiver) registrations.

xxx. You can enable data collection/upload to generate a list of marketing leads outside of your platform user base.

xxxi. Can store enough information to support a marketing campaign.

2. Required Components

a. In-house technology

i. Available web applications:

1. Application Portal (Resident)

2. Application Portal (Network Investor)

3. Application Portal (Impact Investor)

4. Prepaid Fund Support Configuration Portal (Impact Investor)

5. Acquisition Portal (Supplier)

6. Takeover Portal (Tenant)

7. Acquisition Portal (Impact Investor if not automated)

8. Occupant Dashboard

9. Network Investor Dashboard

10. Impact Investor Dashboard

11. Customer Service Dashboard

12. System Management Dashboard

13. Closing Coordinator Portal

14. Account Management (All User Types)

ii. The mobile app can be used for:

1. Occupant (TBD)

2. Network Investor (TBD)

iii. Blockchain can be used for:

1. Token Creation/Tracking

a. Asset Tokens

b. HPI Token

c. Occupancy Tokens

2. Transaction tracking (writing to ledger)

3. Reporting and/or integration with accounting systems and other branch services

iv. Secondary exchange is possible in:

1. A place to sell a portion of a home using asset tokens

2. All secondary transactions that must be recorded in the blockchain ledger

v. payment

1. Ability to accept inbound payments from network investors, impact investors, tenants and suppliers (closing/payment providers).

2. Ability to perform outbound transfers (including internal transfers)

3. Ability to transact payments in fiat currency and cryptocurrencies

4. Reporting and/or integration with blockchain and/or accounting systems and other branch services

vi. Data and Document Storage

1. Ability to collect, store, search and output data of text and images created/uploaded by all user types.

2. Ability to collect, store, retrieve and output all data generated from all quarter services.

3. Function to hash all of the above

b. Exemplary suppliers and third-party solutions and services

1. Website Tracking Conversion Tool (Optimizely)

2. Applicant Due Diligence and Acquisition (Evolve)

3. Investor Due Diligence KYC/AML/Other (Polymath)

4. AVM/Valuation Provider (Quantarium/Valligent)

5. Title Insurance Provider (FirstAm/ORT)

6. Real Estate Form Provider (NAR/Docmagic)

7. Closing/Payment Service

8. Electronic Signature Provider (Docusign)

9. Online/Remote Notary

10. Blockchain Platform (Polymath/Etherum/Toko)

11. Token Exchange

12. Accounting Platform

13. MLS Data Provider (CoreLogic-Trestle)

14. Real Estate Data Providers (CoreLogic/Attom/Zillow/Drew)

15. Property Tax and Insurance Escrow Service (CoreLogic/FirstAm)

16. Property Tax, Insurance, and HOA Monitoring Services (CoreLogic/FirstAm)

17. Collateral Monitoring Service (Corelogic/FirstAm)

18. Credit Report Provider Initial Pull (Evolve) and Ongoing

19. Payment Processing

20. Token Exchange

21. Special Service Provider (Statebridge)

22. Quarterly Preferred Real Estate Network

Example computer system

Various embodiments of the present disclosure are described in terms of the exemplary computer system of FIG. 5. After reading this description, one skilled in the relevant art will be able to recognize how to implement the present disclosure using other computer systems and/or computer architectures. The present disclosure can be implemented in a computer system or a mobile application. Furthermore, the present disclosure can be implemented with or without a blockchain. Although the operations may be described as a sequential process, in practice some of the operations may be performed in a parallel, concurrent, and/or distributed environment, and the program code may be stored locally or remotely so as to be accessible from a single or multiprocessor machine. Furthermore, in some embodiments, the order of the operations may be rearranged without departing from the spirit of the disclosed subject matter.

The processor device may be a special purpose processor device or a general purpose processor device specifically configured to perform the functions described herein. The processor device may be connected to a communication infrastructure, such as a bus, a message queue, a network, a multi-core message passing scheme, etc. The network may be any network suitable for performing the functions disclosed herein, and may include a local area network (LAN), a wide area network (WAN), a wireless network (e.g., WiFi), a cellular network, a satellite network, the Internet, fiber optics, coaxial cable, infrared, radio frequency (RF), or any combination thereof. Other suitable network types and configurations will be apparent to those skilled in the art. The computer system may also include main memory (e.g., random access memory, read-only memory, etc.), and may also include auxiliary memory. The auxiliary memory may include a hard disk drive and a removable storage drive, such as a floppy disk drive, a magnetic tape drive, an optical disk drive, flash memory, etc.

The removable storage drive can read from and/or write to the removable storage device in a known manner. The removable storage device can include a removable storage medium capable of reading from and writing to the removable storage drive. For example, if the removable storage drive is a floppy disk drive or a universal serial bus port, the removable storage device can be a floppy disk or a portable flash drive, respectively. In one embodiment, the removable storage device can be a non-transitory computer-readable recording medium.

In some embodiments, the secondary memory may include alternative means, such as removable storage devices and interfaces, through which computer programs or other instructions may be loaded into the computer system. Examples of such means may include program cartridges and cartridge interfaces (such as those found in video game systems), removable memory chips (such as EEPROMs, PROMs, etc.) and associated sockets, and other removable storage devices and interfaces apparent to those skilled in the art.

Data stored in a computer system (e.g., main memory and/or secondary memory) may be stored on any type of suitable computer-readable medium, such as an optical storage device (e.g., a compact disc, a digital versatile disc, a Blu-ray disc, etc.) or a magnetic tape storage device (e.g., a hard disk drive). The data may be organized in any type of suitable database configuration, such as a relational database, a structured query language (SQL) database, a distributed database, an object database, etc. Suitable configurations and storage types will be apparent to those skilled in the relevant art.

The computer system may also include a communications interface. The communications interface may be configured to allow software and data to be transmitted between the computer system and external devices. Exemplary communications interfaces may include modems, network interfaces (e.g., Ethernet cards), communications ports, PCMCIA slots and cards, and the like. The software and data transmitted via the communications interface may be in the form of signals, which may be electronic, electromagnetic, optical, or other signals apparent to those skilled in the art. The signals may travel over a communications path, and the communications path may be configured to carry the signals, and may be implemented using wires, cables, fiber optics, telephone lines, cellular phone links, radio frequency links, and the like.

The computer system may further include a display interface. The display interface may be configured to transmit data between the computer system and an external display. Representative display interfaces include high definition multimedia interface (HDMI), digital visual interface (DVI), video graphics array (VGA), etc. The display may be any type of display suitable for displaying data transmitted via the display interface of the computer system, including cathode ray tube (CRT) displays, liquid crystal displays (LCDs), light emitting diode (LED) displays, capacitive touch displays, thin film transistor (TFT) displays, etc.

The computer program medium and the computer-usable medium may refer to memory such as a main memory, an auxiliary memory, and the auxiliary memory may be a memory semiconductor (e.g., DRAM, etc.). These computer program products may be a means of providing software to a computer system. The computer program (e.g., computer control logic) may be stored in the main memory and/or the auxiliary memory. The computer program may also be received via a communication interface. Such a computer program, when executed, may cause the computer system to implement the present method as discussed herein. In particular, the computer program, when executed, may cause the processor device to implement the method as discussed herein. Accordingly, such a computer program may represent a controller of the computer system. When the present disclosure is implemented using software, the software may be stored in the computer program product and loaded into the computer system using a removable storage drive, an interface, a hard disk drive, or a communication interface.

The processor device may include one or more modules or engines configured to perform the functions of the computer system. Each module or engine may be implemented using hardware, and in some cases may utilize program code and/or software corresponding to the program stored in main memory or auxiliary memory. In such cases, the program code may be compiled by the processor device (e.g., a compiling module or engine) prior to being executed by the hardware of the computer system. For example, the program code may be source code written in a programming language that is translated into a lower-level language, such as assembly language or machine code, for execution by the processor device and/or additional hardware components of the computer system. The compilation process may include lexical analysis, preprocessing, syntactic analysis, semantic analysis, syntax-oriented translation, code generation, code optimization, and any other technique suitable for translating the program code into a lower-level language suitable for controlling the computer system to perform the functions disclosed herein. Those skilled in the art will appreciate that the result of such a process is a computer system of a special configuration that is uniquely programmed to perform the functions discussed above.

The technology according to the present disclosure provides various functions, including systems and methods for conducting transactions using asset tokens and blockchain-based smart contracts.

conclusion

While various exemplary embodiments of the systems and methods disclosed above have been described, it should be understood that they have been presented for illustrative purposes only and not as limitations. They are not exhaustive and do not limit the disclosure to the precise form disclosed. Modifications and variations are possible in accordance with the above teachings or may be obtained by practicing the disclosure without departing from its scope or breadth.

Although the present disclosure has been described with reference to many specific details, it will be apparent to those skilled in the art that the present disclosure may be embodied in other specific forms without departing from the spirit of the present disclosure. In addition, many of the drawings illustrate processes. The specific operations of these processes may not be performed in the precise order shown and described. The specific operations may not be performed in one continuous series of operations, and different specific operations may be performed in different embodiments. Accordingly, those skilled in the art will appreciate that the present invention is not to be limited by the foregoing illustrative details, but is instead to be defined by the appended claims.

While various embodiments have been described above, it should be understood that they are intended to be illustrative and not limiting. It will be apparent to those skilled in the relevant art that various changes in form and detail can be made without departing from the spirit and scope of the invention. In fact, after reading the above description, it will be apparent to those skilled in the relevant art how to implement alternative embodiments. Accordingly, the present embodiments should not be limited by any of the embodiments described above.

It should also be understood that any drawings emphasizing features and advantages are presented for illustrative purposes only. The disclosed methodology and system are each sufficiently flexible and configurable to be utilized in other ways than those shown.

Furthermore, the purpose of any summary of the disclosure is to enable the United States Patent and Trademark Office and the general public, particularly scientists, engineers, and practitioners in the field who are not familiar with patent or legal terminology or phrases, to quickly determine the nature and substance of the technical disclosure of the application upon simple review. This summary of the disclosure is not intended to limit the scope of the invention in any way.

Although the term "at least one" is frequently used in the specification, claims, and drawings, the terms "a," "an," "the," "said," and the like may also be used in the specification, claims, and drawings to mean "at least one" or "said at least one."

Additionally, in the specification, claims and drawings, the terms “including,” “comprising,” or similar terms should be construed to mean “including but not limited to.”

Finally, applicant intends that only those claims that contain the express language “means for” or “step for” should be construed under 35 U.S.C. 212, paragraph 6. Any claims that do not explicitly contain the phrases “means for” or “step for” should not be construed under 35 U.S.C. 212, paragraph 6.

Claims (1)

As a method,
A step of transmitting, by a first computing device of a first computing system, a first network function request including first information to a decentralized network, and
A step of transmitting a second network function request including second information to a distributed network by a second computing device of a second computing system,
method.