FAQ
How do I get started?
Chateau tokenizes Private Equity deals with ERC-7540 and corresponding ERC-20 tokens to enable on chain trading.
Legally, Chateau uses Special Purpose Vehicles in the British Virgin Islands to purchase the underlying asset, then issue corresponding chTokens to enable on-chain trading.
Chateau's novel turnkey tokenization framework allows us to bring premium RWAs, such as Private Equity, PreIPOs, Private Credit, and Fund products to DeFi. On chain access enables 24/7 trading with lower entry cost, and global access to all investors in the world.
We are starting with the most popular private secondaries, or Pre-IPO deals like Klarna, SpaceX, or Scale AI.
How to start?
1. Connect your Web3 Wallet to Chateau
2. Complete the onboarding process
Regulatory requirements obligate us to conduct appropriate verification checks. You will be requested to verify yourself and your residence by uploading relevant documents. The process will not take more than a few minutes!
3. Start trading
What do I get when I invest?
When you purchase a chToken you buy a token representing an underlying claim to a unit of equity in our SPV which holds shares or contracts for shares of a particular company. Chateau smart contract guarantees the ownership right for the underlying company.
How do I get profit?
In general, venture investors get profit when the company they invested in increases its valuation through the funding round or when it goes public, initiating a liquidity (exit) event. chToken holders profit exactly the same way, either when an underlying company increases its valuation or goes public, or by reselling their chToken on Chateau.
Can I sell my GELT?
Yes. Simply create a sell order for your chToken on the corresponding company page or a DEX.
Who can invest?
Chateau is democratizing access to institutional grade investments.
You don't have to be an accredited investor or have a lot of capital. There are only several conditions for you to start investing in unicorns!
You must be at least 18 years old to be able to use the app. Make sure to read our terms of service, where you can find the information on restricted countries, which are prohibited to use Chateau.
Please note that residents from the USA, Iran and North Korea are strictly prohibited from using Chateau.
Is it all regulated?
We take pride in being fully legal and transparent with our operations. CHΛTEΛU abides by all regulations in its jurisdiction of operation and is seeking licensing in more jurisdictions.
However, Chateau is not compliant with U.S. securities regulations, and as such, no U.S. Persons inclusive of qualified funds and entities are allowed to use Chateau.
chToken and Mechanics ⚙
chTokens represent a claim on the corresponding asset SPVs.
Many types of equity agreements, inclusive of option rights to purchase equity, as well as warrants, and even types of fractional Fund Ownership, exist along side one another on semi-fungible terms. Chateau creates chTokens to enable DeFi functionality for equity, or claims on equity, held in an underlying SPV.
For specifics, please read our documentation.
What is your minimum investment size?
There us no minimum investment size. Available tokens can be purchased with USDT with the appropriate gas fees.
Do I own the stock in these companies?
No. You own tokens that represent ownership in SPVs operated by Chateau.
How do you price the shares?
The industry uses the last round of financing and expected IPO range as a pricing guidepost. Other factors may include investor demand, access to the company, other secondary transactions that have occurred and publicly available information.
Freely trading chTokens are priced according to the market
How long can I hold these tokens?
As long as indicated on a contract.
chTokens are cash settled upon expiry following an IPO lockup period, the tokens you hold are redeemed against market prices in stablecoins.
When can I expect the company I’m in investing in to go public or get acquired?
We cannot guarantee an exit nor a timeline for any of your holdings. However, the majority of investment opportunities are companies who have received institutional financing and have a typical investment horizon of 2-5 years.
Can you provide the company’s financials, exit strategy, and prospectus?
Unfortunately, our network does not guarantee access to the company’s most recent financials, or their investor presentation. Our networks leverage the due diligence performed by the company’s most recent investors and base our offerings on the price those investors paid.
Information will be provided as available.
Before the Investment
What is a late venture?
Late venture investments are usually categorized by a funding round. Venture capital firms consider Round C and further as a late-stage investment.Additionally, late venture is when you invest in a company with a valuation of over $1 billion or in other words in a Unicorn.We have made it easier for you to understand using our stage tags.
What are the benefits?
Investments in large private tech companies performed several times better over last years than the broad market index – S&P 500.
Moreover, venture investments have almost no volatility as companies' valuation change only on the funding rounds. Late venture investments are also considered less risky compared to Seed and Early stage. Late stage companies usually have working technology, proven business models and are backed by the leading venture capital firms. Such companies tend to disclose information regarding their metrics, development, and financial performance.
For investors, it is important to make an informative decision prior to investing in a particular company. On Chateau anyone can create a portfolio of late venture companies with all available public information for each investment opportunity right in the app.
How to minimize risks?
Despite the companies listed on our protocol being carefully selected by our expert team of analytics and with a track record of revenue and success, nobody can predict the future. Investors should be aware that late venture is considered as a high-risk strategy and be prepared not only for possible profit but for loss as well.In order to minimize risk, you should diversify not only a venture capital portfolio, but also use other investment classes like stocks, bonds, real estate, crypto, and others. On our side, we guarantee full transparency and legality of all operations.
Do you own research
Prior to investing in a company, look into the market, competitors, technology, patents, metrics, founders, and management. You can check the relevant public data related to every investment opportunity on the Chateau protocol, but make sure to do your own research as well.
Chateau does not provide any investment advice or make any investment recommendations concerning any digital and other types of securities. The information provided on this website or any other medium is solely informative. Neither Chateau nor any of its officers, directors, agents, or employees make any recommendation or endorsement whatsoever regarding any digital securities powered by Raison’s technology.
About CHΛTEΛU Protocol
Private secondaries enable investors access to upside that may not be represented in the public markets. Private secondaries and Pre-IPOs are idiosyncratic bets on companies prior to their public listings. Investments in companies with a valuation of over $1 billion are less risky than investments in small startups, which have a greater chance to go bankrupt.
At the same time, Pre-IPO can bring high returns compared to the public market.
Still, this does not make these investments risk free.
There are currently six status tags:
Coming Soon
This chToken is coming soon.
Issue on Demand
This chToken will be issued once there is sufficient demonstrated demand.
Issue on Demand allows investors to stake stable coins to demonstrate to Chateau that there exists sufficient demand for a chToken. The coins are held in a smart contract escrow and can be withdrawn any time prior to issuance. Upon reaching the limit, the coins are sent to Chateau, and a corresponding number of chToken is issued in proportion to amount staked.
Active
This chToken is actively trading.
Halted
This chToken has halted trading.
Settled
This chToken has been cash settled.
With these tags, you can easily and quickly understand in which industry the company is operating.
Company analytics
You are welcome to read the company overview to know more about its financial performance, associated risks, and potential return on investments in the app. Analytics is loaded from Crunchbase
After the Investment
What is the exit strategy?
After the investment you have two exit strategies:
1. Wait for the company's Public Listing. When a company goes public and after the lock-up period ends, according to offering details, the fund sell shares on the public market and distribute returns among all GELT holders. You will receive a stable coin payment equal to the number of GELT multiplied by the new share price
2. Sell your chToken on Chateau or DEXs to other traders.
Why diversification?
The golden rule of investing is to have a well-diversified portfolio in order to minimize risks. Fractional shares help you easily create a diverse portfolio using an amount of capital that you are comfortable with.The best practice is to diversify investments based on stage, industry, and geographical location.
What is a public listing?
Public listing is a process when a private company decides to list its shares on a stock exchange like NYSE, NASDAQ, and others. The most popular way to do so is Initial Public Offering (IPO), however, some companies choose alternative options such as SPAC or Direct listing.
For venture investors, a public listing is one way to exit the investment. In the case of an IPO, companies put a lock-up period, after which investors can sell their stake and receive a return.When a company listed on Chateau goes public, chToken holders will have to wait for the end of the lock-up period to receive a profit.
What is a lock-up period?
An initial public offering (IPO) lock-up period is a contract provision preventing insiders who already have shares from selling them for a certain amount of time after the IPO. Although the waiting period varies on a case-by-case basis, it typically ranges from 90 to 180 days.Lock-up periods generally apply to insiders, such as a company's founders, owners, managers, and employees. However, it also applies to venture capitalists and other early private investors.
Commisions
CHΛTEΛU takes a flat 5% commission per instrument issuance.
Feedback and Support
Send any inquiries, feedback and support to contact@chateau.capital or ping us on our social channels!
