PY - General Terms & Risk Factors

General Terms for PYs

Definitions

• Prop Yields (PYs): PYs are symbolic units representing a share of the net rental income generated by real estate properties managed by Propvance. They do not confer ownership rights over any asset or property.
• Symbolic Nature: PYs are a crowdfunding mechanism that enables participants to receive discretionary gifts based on the performance of properties in our portfolio.
  
  

Purpose and Symbolism

• PYs are designed to provide participants with a simplified way to engage with real estate income streams without the complexities of direct ownership.
• They symbolize a contribution to the Propvance ecosystem and do not imply any legal or financial claim over assets.
  
  

Gifting Policy and Discretionary Nature

• Gifts associated with PYs are voluntary and not guaranteed. They depend on the financial performance of properties, operational costs, and other factors.
• Gifts are distributed at the sole discretion of Propvance and are subject to adjustments based on prevailing conditions.
  
  

PY Lifecycle and Expiry

• 20-Year Validity: PYs expire 20 years after issuance.
• Declining Value: Starting from the 6th year, the symbolic value of PYs decreases annually, reflecting their diminishing contribution to the portfolio.
• Expired PYs do not entitle holders to further gifts or any other financial benefits.
  
  

Refund Policy

• A potential refund of the original donation amount is possible after a minimum holding period of 5 years. Refunds are:
  • Discretionary: Based on the operational and financial health of Propvance.
  • Non-Guaranteed: Subject to applicable processing times and policies.
    
    

Amendments and Notifications

• Propvance reserves the right to amend these terms or the PY framework to comply with legal, operational, or strategic requirements.
• Participants will be notified of any significant changes through official communication channels.

Risk Factors

Operational Risks

• Vacancies: Income fluctuations due to unoccupied properties.
• Maintenance Costs: Unexpected expenses for property upkeep and repairs.
• Management Decisions: Operational strategies that may impact net income.
  
  

Financial Risks

• Market Fluctuations: Changes in real estate market conditions may affect rental income and property valuation.
• Devaluation: PYs lose symbolic value over time, and there is no guarantee of maintaining the same level of discretionary gifts.
  
  

Limitations of Discretionary Gifts

• Gifts are calculated after deducting operational costs such as taxes, maintenance, and administrative expenses.
• There is no fixed or predictable income, as gifts depend entirely on the portfolio’s performance.
  
  

Platform and Operational Risks

• System Outages: Temporary disruptions in the Propvance platform may delay gift distributions or updates.
• Regulatory Changes: Adjustments in local or international regulations could impact operational processes.

Disclaimers

No Ownership Rights

• PY holders have no legal or financial claim over any property or its underlying assets. PYs are purely symbolic.
  
  

Not a Financial Product

• PYs are not classified as investment products, securities, or financial instruments.
• Propvance operates outside the supervision of financial regulatory authorities such as the AFM.
  
  

Participation at Own Risk

• Participants engage with PYs voluntarily and assume full responsibility for any potential financial outcomes or risks associated with their participation.
  
  

Tax Obligations

• Participants are solely responsible for understanding and fulfilling their tax obligations related to PYs in their respective jurisdictions.
• Propvance provides basic reporting to facilitate compliance but does not offer tax advice.

Building Transparency and Trust

Regular Updates

• Propvance commits to providing detailed financial reports and performance metrics for properties associated with PYs.
  
  

Accessible Support

• A dedicated customer service team is available to address questions or concerns related to PYs and their terms.
  
  

Conflict Resolution

• Disputes will be addressed through negotiation or arbitration to ensure fair and efficient outcomes.