Glossary

Accredited Investor

An individual or entity that meets financial thresholds defined by regulators (e.g., income, net worth) and is allowed to participate in certain private investment offerings.

AML (Anti-Money Laundering)

Laws and procedures designed to prevent illegal money laundering through financial systems, including tokenized platforms.

Asset-Backed Token

A digital token whose value or ownership rights are tied to a real-world asset, such as land or real estate.

Blockchain

A decentralized, digital ledger that records transactions securely and transparently across a network of computers.

Blue Sky Laws

State-level securities regulations in the U.S. that govern investment offerings and protect investors.

Collateral

An asset pledged to secure a loan or obligation. In land investing, property may be used as collateral in financing.

Cryptocurrency

A digital currency that operates on blockchain technology, such as Bitcoin or Ethereum, often used for payments or transactions within tokenized platforms.

Custodian

A regulated entity responsible for safeguarding investors’ funds or assets.

Deed

A legal document that transfers ownership of land or property.

Due Diligence

The process of investigating and verifying important details about a property, investment, or transaction before making a commitment.

Distributions

Payments made to investors from profits generated by land sales or other income-producing activities.

Fractional Ownership

Dividing ownership of an asset into smaller shares (or tokens) so multiple investors can own a portion of it.

Fair Market Value (FMV)

The price a property would sell for in an open and competitive market.

Governance Token

A type of token that grants holders voting rights in the decision-making processes of a blockchain ecosystem.

Illiquidity

The difficulty of converting an investment into cash quickly without a loss of value.

Initial Coin Offering (ICO)

A fundraising method in which new digital tokens are sold to investors. (Note: LandInvest.io uses regulated structures instead.)

Investor Relations

Communication between a company and its investors, providing updates, reports, and disclosures.

KYC (Know Your Customer)

A verification process requiring users to provide identity documents to comply with financial regulations and prevent fraud.

Land Auction

A public sale of land, often involving tax-defaulted properties sold below assessed value.

Land Tokenization

The process of representing ownership of land through blockchain-based digital tokens.

Liquidity

The ease with which an asset can be bought or sold in a market without significantly affecting its value.

Offering Memorandum (OM)

A legal document that provides details about an investment offering, including risks, structure, and terms.

Ownership Rights

The legal rights associated with possessing land or a tokenized share of land.

Parcel

A defined piece of land, usually identified by its boundaries and legal description.

Private Placement Memorandum (PPM)

A document provided to potential investors in a private offering, outlining terms, risks, and disclosures.

Profit Margin

The percentage of profit earned after subtracting costs from revenue.

Real World Asset (RWA)
A physical, tangible asset (such as land, real estate, or commodities) that can be represented digitally through tokenization.

Regulation D (Reg D)

A U.S. securities exemption that allows companies to raise capital from accredited investors without registering with the SEC.

Regulation S (Reg S)

A U.S. securities exemption that allows offerings to be made to investors outside the United States.

Return on Investment (ROI)

A measure of profitability, showing the percentage gain or loss on an investment.

Secondary Market

A marketplace where investors can resell their tokens to other investors, providing potential liquidity.

Smart Contract

A self-executing contract with terms written into code on the blockchain, automatically enforcing rules and transactions.

SPV (Special Purpose Vehicle)

A legal entity (often an LLC) created to isolate financial risk by holding specific assets, such as land investments.

Staking

Locking tokens in a blockchain protocol to earn rewards or participate in governance.

Token

A digital unit of value on a blockchain that represents ownership, rights, or access to an asset or ecosystem.

Tokenization

The process of converting ownership of a real-world asset into digital tokens on a blockchain.

Title

The legal right to own, use, and control land or property.

Vacant Land

Undeveloped land with no structures, often purchased for investment, development, or resale.

Volatility

The degree of variation in the price of an asset over time, often associated with market risk.

Final Note

This glossary is for informational purposes only and does not replace legal, financial, or investment advice. For detailed explanations, please consult the official offering documents or speak with a licensed advisor.