Frequently Asked Questions
How can we help?
FAQS
FOR INVESTOR
What is Token Interest?
           Token Interest is a funding portal operating under Regulation Crowdfunding. The company brings together investors and companies seeking to raise capital. We evaluate all companies posted on the platform for possible fraud with the main priority of keeping our investors’ money safe. Once evaluated, companies can raise money for a small business bond.
Is Token Interest Regulated?
Yes, funding portals go through an intense regulatory process with both the SEC and FINRA. There are many laws that regulate what we may do and who can sell securities on our platform. Both agencies have checks in place to assure compliance.
How is Token Interest Different from the Bond market?
           The bond market sells debt instruments from publicly traded companies. In order to become a publicly traded company, a company must go through an intense financial scrutinization process and file with the SEC. This is a very costly process for companies to undergo. Token Interest acts as an intermediary for bonds for start-ups and growth companies. These companies generally cannot afford to go public or will not benefit from the process. There is less scrutiny for companies who do not go public which mean less financial information is available and may contain more errors.
How long until I get a return?
      The return on investment will depend on the terms of the bond. Payment schedules vary depending on the needs of the issuer. If the bond has fixed monthly payments, then payments will be given monthly with interest and principal. If the bond has a balloon payment, regular payments will contain interest but no principal until the end of the funding period.  Additionally, the issuer may determine to pay back the bond quicker if that is best suited for their company. Make sure to read the terms of the bond closely.
Can you give advice?
           Legally, we cannot give any investment advice. It would be unfair to companies listed on our platform and is unethical to use our influential position to sway investors to purchase securities that might not be suited to their needs. Investors must rely on their own knowledge or a financial adviser to determine if an investment opportunity is right for them.
How much can I invest?
           Due to the inherent risks associated with Regulation Crowdfunding, the Security Exchange Commission has set limits on the amount of capital individuals may invest during a 12 month period. Investors with an annual income or net worth of up to $124,000 may invest $2,500 or 5% of their net worth or annual income, whichever is greater, during a 12 month period. For investors with a net worth and annual income over $124,000, they may invest 10% of their net worth or annual income, whichever is great, but may not surpass the total investment amount of $124,000 during a 12 month period. Accredited investors have no limitations on the amount of capital they may invest.
After investing, how often will I get updates?
           We encourage those selling bonds on our platform to reach out to investors quarterly with updates on the company. Updates may include financial information, project updates, or request for help with marketing. Token Interest does not monitor correspondence once the bond has been funded. Continued correspondence is the sole responsibility of the issuer.
           The law requires issuers give a yearly update. Below are the legal requirements for financial information from the company:
$124,000 or less: If outstanding capital raised through crowdfunding plus current capital raised is less than or equal to $107,000, then information from the most recent tax return should be posted. This information must be certified by the principal executive officer. If the company has financial statements available, those must be provided instead of the tax return information.
Between $124,000.01 to $618,000: If outstanding capital plus current capital raised is between $124,000 and $618,000, the company must provide financial statements reviewed by a CPA. If audited financial statements are available, these must be provided instead.
Between $618,000.01 to $5 million: When gross capital raised is above $618,000, companies must provide audited financial statements. If this is the company’s first time funding through Regulation crowdfunding, financial statements are only required to be audited if raising above $1,235,000.
     These financial statements are posted to the SEC’s website and are available for review by investors.
What are smart contracts?
           A smart contract is a contract written in code that will execute itself. Most people have experience with smart contracts. Vending machines are type of smart contract. You give money to the vending machine, and it retrieves and delivers the desired item. Â
     The smart contract used on our platform will keep track of individual investors’ commitments. Once the bond is funded, the smart contract will calculate the interest owed to investors. It will then distribute the money from the issuer and to each investor. Â
What happens if the campaign fails?
           If the issuer does not receive the desired amount of capital during the funding period, the campaign has failed. When that happens, the escrow will send the capital back to investors. Capital will be returned to the investors in the account that sent the funds. It may take up to 3-5 business days.
Password problems?
           If you are having problems accessing your account, use the forgot user ID and forgot password links located on the login screen. If you have tried this and are still having difficulties, email us at support@tokeninterest.finance.
How do I get a refund?
You may cancel your commitment any time before the final 48 hours of the campaign. Once the campaign is within the final, you may no longer cancel your commitment. In order to cancel, please email us at support@tokeninterest.finance. Once your cancellation has been processed, you will receive a confirmation email. The refund will be returned to the investor in the account used to send the funds. A refund may take up to 7-10 business days to receive.
If the issuer reaches its goal early, it may determine to close the offering early provided it gives investors a warning five day in advance. If the issuer has a material change of information, investors must reconfirm their commitment, otherwise their commitment will be returned.