Frequently Asked Questions

In order to sell securities, we're required by law to collect information about people who invest through us. To meet these requirements, we'll ask for things like your name, address, date of birth, citizenship, and potentially your Social Security Number or national ID / passport too.

We take your privacy and the security of your data very seriously. Want to learn more? Check out our FAQ answering "How do you keep my data safe?".

There are many reasons why verifying your identity may take longer than expected, and a lot of times it's not your fault.

If you're stuck, please reach out to us at support@freeport.app for help.

Our curation team utilizes market trends and historical art sale data to select art from the world’s most renowned artists. We look for artists whose artwork has historically appreciated year over year, as well as art that can eventually be sold at a profitable price point.  Lastly, we look for artwork that will be fun to own and tells a unique story.

We expect each artwork to be held for a different period of time, which will be determined by market forces and offers received by Freeport. We can make no guarantee of when a particular piece of artwork will be sold.  However, Freeport will be actively encouraging buyout offers to benefit our investors.

All of our artwork has been professionally appraised and authenticated by independent entities. Additionally, to mitigate any authenticity risks, we source all of our art from trusted collectors.  While no one can fully guarantee authenticity with 100% certainty, we take great efforts to mitigate risk in this area.

All physical artwork will be insured.

The physical artwork is stored in a specialized, secured vault that minimizes exposure to the elements.

Not only has the art market outperformed traditional asset classes like the S&P 500, it can provide a hedge against economic downturn and inflation and worsening economic conditions, given its low correlation to traditional equity markets. Additionally, while there are fluctuations, the overall trend in the top of the art market has been positive, making it not only a potentially viable investment opportunity, but proving it is largely uncorrelated with stock market volatility.

Since January 2000, the Artprice100, an index of the 100 most successful artists, has consistently outperformed the S&P 500, particularly during down markets. From 2000 to 2022, the Artprice100 achieved annualized returns of 8.9%, compared to 6.2% for the S&P 500 across the same time period. 

Past performance does not guarantee future results

When purchasing through one of our primary offerings, shares will be delivered to your account once the offering has been fully subscribed and reviewed by our broker-dealer partner and your payment and personal details have been validated.

This could take anywhere from a day to a few weeks, but don't worry—we'll keep you up to date every step of the way.

When investors purchase shares in a Freeport artwork, they are directly purchasing a membership interest in the individual LLC that owns that art asset.

For example if an investor purchases 10% of the shares of Freeport Holdings Series Warhol AWMARILYN, LLC, they would then be entitled to 10% of the economic interests of the underlying asset over time.

If an offering is not fully sold out by the end of the offering period, funds will be returned to investors and the offering will be canceled.

Shortly after the launch of our initial offerings, we will launch an investor dashboard, where you can find performance information.

Investors in Freeport may receive a 1099 form during periods where taxable events occur, most likely when the underlying artwork is sold or if you sold your shares on the secondary market.  These tax forms will be sent to addresses on file prior to that year’s tax deadline, which usually falls on or around April 15.

No. For instance, an investment in Series Warhol AWMARILYN will only give you an ownership interest in Series Warhol AWMARILYN.  No additional rights in other series offerings will be bestowed upon an investor in Series Warhol AWMARILYN.

An investment in Freeport artwork is inherently risky.  There is no guarantee of a liquid secondary market and we plan to hold the physical artwork for many years.  Therefore, the capital invested may not be able to be converted to cash for an extended period of time.  As such, you should only make an investment if you can afford to do so.  A full discussion of the risks can be found in our latest Offering Circular, which can be found Here

You will receive limited liability company interests of the series into which you invest. These limited liability company interests, which we call shares, provide investors with an ownership interest in the series. You are not receiving ownership in any other series.

The minimum investment at primary issuance is 10 shares.  However, investors who purchase on the secondary market will be able to purchase a single share.

For each individual piece of artwork, the maximum number of shares each investor can own is 10%. This number may increase or decrease at the sole discretion of Freeport.

Freeport investors are not limited in the number of pieces of artwork they can invest in.

Freeport charges a 1.5% annual management fee to cover the costs incurred of managing the asset such as insurance, storage, upkeep and maintenance, etc.  As an investor, you will never pay out of pocket for these fees.  They are handled through new share issuances. Freeport also earns a share of the profits when the artwork is sold.

See a full breakdown on our "How we make money" page.

Users over the age of 18 years old who have passed “Know Your Customer” (KYC) and AML checks, are deemed “qualified” under securities law, and can legally invest in Freeport.

While we don’t anticipate this scenario occurring, you would not lose the entirety of your investment if Freeport goes out of business. Each Freeport share represents legal ownership in the LLC that owns the asset.  Even if Freeport shuts down, the assets of the LLC would remain independent and unaffected.  If Freeport were to go out of business, the company would attempt to liquidate the underlying physical artwork, and would then return proceeds to investors according to each investor’s pro rata ownership.

We sought qualification under Regulation A, which exempts companies from certain registration requirements and allows for broader investor participation in its offerings.  We submitted a host of documents to the SEC through Form 1-A, which explains the proposed securities offering and provides background information about the company, its executives, and its business plan.  SEC examiners then reviewed Freeport’s Form 1-A, asked a series of questions, and then ‘qualified’ the offering, meaning Freeport could accept investments in its offerings. This process is expensive and lasts many months, but we believe SEC qualification is the best way to protect investors and signal to the market our confidence in our offerings and company. 

Freeport plans to establish a secondary marketplace for each offering on its platform.  However, no such market exists yet, and even when it does, there is no guarantee that the secondary market will experience ample liquidity to sell shares. The ability to sell shares should not be relied upon.

The Freeport Secondary Marketplace will allow investors to to buy and sell shares from other investors. The marketplace will serve as a space for peers to interact transactionally. While Freeport will make best efforts to develop a secondary market, it cannot guarantee that one will exist for any individual piece of artwork.

To make Freeport as inclusive a platform as possible, we made the decision to make token minting an optional process for our investors.  Therefore, the only tokens displayed on Etherscan will be those of active investors who have chosen to mint tokens.  Regardless of the number of tokens minted, there will always be only 10,000 shares of each piece of artwork, and your percentage of ownership will not be affected by your decision to mint or not mint tokens.

Unlike most tokens on the Ethereum blockchain, the structure of our tokens allows for tokens to be retired and reissued if they are deemed lost, stolen, or otherwise inaccessible.  If you lose access, you would need to contact Freeport at support@freeport.app, and we would burn the previous set of tokens and re-issue your tokens.  To avoid this issue, we strongly suggest investors to save their private keys in multiple places both physically and digitally and never share their private keys with anyone.

Freeport currently uses the Ethereum blockchain to host our token offerings, given its long tested history. Tokens may be offered on multiple chains in the future, depending on things like demand and gas fees.

Tokens can be withdrawn to a self-custodied wallet (e.g. Metamask).  In the self-custodied wallet, series tokens will be able to interact with other tokens on the Ethereum blockchain.  However, series tokens will not be able to be sold, transferred, staked or exchanged on any external platform such as a decentralized exchange, per current SEC regulations.  Tokens can only be transacted with on the secondary market provided by a registered alternative trading system, which will be accessible via www.freeport.app, or through smart contracts developed by Freeport and its partners.

Upon the conclusion of primary issuance, you will have the option to transfer your tokens to your non-custodial wallet through the ‘My Account’ page on the Freeport website. 

The benefits of the tokens living on the blockchain are still evolving at this time and will be subject to partnerships developed by Freeport and the overall rate of adoption of blockchain technology by the general public.  However, some of the benefits known at this time are the ability for series tokens to interact with other tokens on the blockchain (e.g. holding a Freeport token may provide benefits in other blockchain communities); the tokens can be easily staked or locked and serve as a form of collateral; and tokens can be represented in a visual format that may enhance the ownership experience.

The tokens are simply a representation of ownership of shares in the corresponding series.  All transactions will not only be confirmed on the blockchain, but also through traditional means with proven technology providers such as transfer agents.  If a token happened to be lost, stolen, or otherwise compromised, an investor would have the ability to contact Freeport, and replacement tokens could be issued.

Blockchain technology is a distributed ledger of transactions across a peer-to-peer network.  Transactions can be confirmed through the use of “smart contracts,” meaning transactions can be confirmed automatically when specified criteria are met.  Blockchain technology is relatively early in its adoption cycle.

Connect your wallet and follow the step by step directions to add your personal NFT collection.

There are many social features and sharing capabilities built into the gallery. You can customize your gallery with your art tokens as well as Ethereum blockchain NFTs

You can display your artwork after the offering has closed and your shares have been delivered, and your wallet has been connected.