How your capital is protected with an escrow account and suspensive clause
In this article, we would like to detail the steps we take to ensure your capital is protected when you invest on BlocHome today. We are mindful of the fact our project is bringing a new concept to the Luxembourg market, and as such we want to offer reassurance to our users who trust us with their money.
What are BlocHomers’ investments used for?
As you probably know if you’ve been following us, the very first building in the BlocHome portfolio is the Clapton Residence, a luxurious 8-lots building located in Cessange. The residence’s construction is already progressing well and has been pre-financed by our team and partners. We are projecting to deliver the finished residence in 2023.
So where do BlocHomers’ investments fit into that?
We have set ourselves the target to raise a total of 4 million € through investments made by BlocHomers. Each time a BlocHomer purchases BlocHome Tokens, the money is added to this pool. The purpose of those 4 million € will be to cover the cost of construction of Clapton. However, the construction is not dependent on how quickly we can raise the money, thanks to the pre-financing secured by our team.
In fact, all the money raised through BlocHomers is held in escrow and cannot be touched until the 4 million € target is reached.
How the Escrow account works:
If you invest in BlocHome today, your money will be secured in a separate escrow account and effectively locked away until we reach our entire target of 4 million € in BlocHomers’ investments. The suspensive clause in place ensures that none of our team members can have access to the escrow account until the investment threshold is reached. Your money cannot be moved or used for anything until then.
What will happen to my money if BlocHome fails to hit its target?
As a new company on the market, we understand this question may be lingering in the minds of some of our potential investors. In the event BlocHome fails to reach its target investment amount, our escrow account’s suspensive clause would ensure the money would simply be returned to investors.
We hope to have brought some clarity on the handling of your money as an investor in this article. However, if you feel there is anything that was not addressed, feel free to contact us to ask your questions.