Openfinance FAQs

Openfinance

Openfinance is transforming alternative asset investing with the leading trading platform for the secondary trading of digital securities. Backed by a team of industry veterans and key partnerships, Openfinance provides unprecedented access to liquidity and investment opportunity in the $8.8 trillion alternative asset market.

Through our wholly owned broker/dealer, Sageworks Capital, LLC, Member FINRA/SIPC, Openfinance is an SEC designated ATS set up to trade digitally formatted securities, including blockchain based STOs.

We are proudly based in Chicago with offices in California, New York, and Colorado.


OPENING A USER ACCOUNT WITH Openfinance

You must complete our Investor Passport onboarding application, located here: Openfinance Investor Passport. The Investor Passport is a registration process, where you will be asked to provide information that fulfills the obligations and verifications for Anti-Money Laundering / Know Your Customer regulations, investor accreditation, investing requirements, banking information and other required personal information.

If all requested information and documents are provided in your Investor Passport, account applications are reviewed and processed within 5 business days. If you have completed your Investor Passport and have not received an email about your account status after 5 business days,, please contact us at help@openfinance.io.

Your account cannot be reviewed for approval unless you supply the following information and agree to the Terms of Service and Digital Trading Agreement.

ALL APPLICANTS MUST SUPPLY THE FOLLOWING:

  1. Name of Applicant - Full legal name on your government is sued photo ID. This is how the account will be titled.
  2. Email address.
  3. Phone Number.
  4. Date of Birth.
  5. Passport # if a non-U.S. resident OR Social Security # if a U.S. resident.
  6. Address of record (where you live)

    U.S. resident applicant - The legal physical address must match the address on your government issued driver’s license. P.O. Box is not acceptable.

    Non U.S. resident applicant - The legal physical address must match the address on the residency document that you are required to provide. (see instructions - Proof of Residency)

  7. Annual income & net worth
  8. Accreditation documents (if applying as Accredited Investor).
  9. Years of investing experience.
  10. Employment information.
  11. Risk Tolerance & Investment Profile.
  12. Proof of Funds (non-U.S. residents only)
  13. Proof of Account (non-U.S residents only)
  14. Link your bank to your Trading Wallet (more information below).
  15. Download MetaMask (more information below).
  16. Agree to Terms of Service and Digital Trading Agreement
  17. Required identification:

    U.S. Resident Applicant

    Current Government issued photo ID. Must have photo and address of user on the ID.
    Passports are not acceptable for U.S. Users.
    Sample of acceptable ID for U.S. User - MUST BE .png or .jpeg

    Non U.S. Resident Applicant

    Government issued Passport - current, legible and full copy of photo page and page above.
    Sample of acceptable Passport for non U.S. resident applicant - MUST BE .png or .jpeg

Proof of Residency - NON-U.S. RESIDENTS APPLICANTS ONLY:

Acceptable Forms of proof of residency are:

Proof of Address:

  • Valid driver's license or national identification card with address
  • Various types of bills (gas, electricity, water, landline/cell phone, credit card, tuition, internet provider)*
  • Current lease agreement
  • University enrollment documents
  • Bank statement*
  • Mortgage statement*
  • Correspondence between the applicant and a government authority regarding the receipt of benefits such as a pension, unemployment benefits, housing benefits, health insurance, voter registration, etc.

At a minimum, should include the following:

  • * Issued within the previous 90 days
  • Match full name of User
  • Match address on Openfinance application

WHO CAN HAVE ACCESS TO Openfinance AND WHO CAN TRADE?

To trade on Openfinance, you must be an approved User. To become an approved User, you must first fully complete the Investor Passport (please see above). All approved Users are required to link their MetaMask account to their Openfinance account.

No, not necessarily. Each individual security has its own specific regulatory characteristics. For example, some may only be available to non-US residents while others may only be available to verified, accredited U.S. Users. There are other regulatory restrictions that may prevent a User from trading certain securities on Openfinance.

Yes, you can view the trading screens by completing the Investor Passport.

No, you do not need to be an accredited investor to open an account with OFN. However, certain securities are only available to users who are verified, accredited investors.

No. At this time, due to regulations and issuer preference, the securities listed on the platform are only available to verified accredited U.S. and non-U.S. investors. We are constantly working to bring a diverse set of listings to the platform and expect to open access to non-accredited U.S. investors in the near future.

You are given the opportunity to indicate that you are an accredited investor in the Investor Passport application. If you do so, you will be prompted to upload documentation to verify your status.

Please provide documents that satisfy ONE of the following OR your country’s equivalent:

(a) Income Verification Method - Must document that earned income exceeds 200,000 USD (or 300,000 USD together with a spouse) in each of the prior two years, and that you reasonably expect the same for the current year. Depending on your registration type, the following can be used and must be provided to verify your income: W-2, tax return, form 1099, form 1065, form 1040, K-1 or any other form purporting to show income. Two years of documentation are required to demonstrate accreditation. Tax documents valid until April 30th of following year. Other documents valid for 12 months from the date on documentation.

(b) Net Worth Method -Must document a net worth over 1 million USD, either alone or together with a spouse (excluding the value of the person's primary residence). The following can be used to document your assets and liabilities and must be provided: credit report (shows all liabilities), bank statements, brokerage statements, CD, tax assessments or other statements showing assets in excess of 1 million USD. Valid for 12 months from the date on documentation.

(c) Letter Certifying Accreditation - A User may obtain a written confirmation from a registered broker-dealer, an investment adviser registered with the Securities and Exchange Commission, a licensed attorney who is in good standing under the laws of the jurisdiction in which he or she is admitted to practice law, or a certified public accountant who is duly registered and in good standing under the laws of the place of his or her residence or principal office. The written confirmation provided must certify that reasonable steps were taken to verify that the investor is an accredited investor within the prior three months and that it was actually determined that such investor is an accredited investor. Void 12 months after the date of certification or earlier if letter offers earlier expiration date.

Currently we are reviewing applicants from these countries: Australia, Denmark, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, Poland, Portugal, Romania, Singapore, Slovenia, South Korea, Spain, Sweden, Taiwan, United Kingdom, United States.

Yes. The Openfinance platform is available to residents of countries around the world. We can currently accept applications from residents of the following countries: Australia, Denmark, France, Germany, Ireland, Israel, Italy, Japan, Netherlands, Norway, Poland, Portugal, Romania, Singapore, Slovenia, South Korea, Spain, Sweden, Taiwan, United Kingdom, United States.

We are unable to accept Users from any country on the U.S. maintained OFAC list. Currently these countries include: Afghanistan, Balkans, Belarus, Burma (Myanmar) Burundi, Cote d”Ivoire, Central African Republic, Cuba, Democratic Republic of Congo, Iran, Iraq, Lebanon, Liberian Regime of Charles Taylor, Libya, Nicaragua, North Korea, Somalia, Sudan, Syria, Venezuela, Yemen, Zimbabwe.

Users from the following countries are currently restricted from trading on Openfinance: South Africa, Greece, Malaysia, Thailand, India, Philippines, Gibraltar, Cyprus, Indonesia, United Arab Emirates, Russia, Ukraine, Vietnam. We are working with our banking partner to re-open trading access for these countries.

ALL SUBJECT TO CHANGE WITHOUT NOTICE

For questions about specific countries, please email us at help@openfinance.io.


LINKING TOKENS TO TRADING WALLET AND ETH REQUIREMENTS

Simply put, MetaMask is an Ethereum wallet that allows you hold the tokenized securities that are traded on Openfinance. MetaMask includes a secure identity vault, providing a user interface to manage your identities on different sites and sign blockchain transactions.

Openfinance utilizes peer-to-peer settlement on the Ethereum Blockchain. The Ethereum Blockchain makes keeping track of ownership easy. There is a cost to securely and successfully verify transactions on the Ethereum Blockchain. This cost - called ‘Gas’ - is paid for via ETH from your MetaMask Wallet. You must have ETH in your MetaMask wallet to place a sell order. If you have questions about how to get ETH into your Metamask wallet and/or how to link it to your Openfinance Trading Wallet, please contact us at help@openfinance.io.


TRADING and FUNDING TRADING WALLET

Digital User Brokerage Rate and Fee Schedule

You can place Limit Orders (orders will only execute at a specific price).

Limit orders are “partial until filled or canceled”.

24 hours, 7 days a week, 365 days a year.

All trades are settled in USD.

No. Openfinance is a trading platform for securities only.

Certain securities are considered “restricted securities” under SEC Rule 144. Generally, these securities require a minimum period of one year from issuance before U.S. resident investors can sell or buy in the secondary market. Please consult the issuer of the security for more information regarding transfer and resale restrictions.

The Trading Wallet shows you the $USD you have available to trade, your open obligations and your trading history.

Total Cash Value - The current amount of $USD held in your Trading Wallet.

Open Commitments - Each open order or bid must be “covered” by an equal value of USD from your total cash value. The amount equal to your open buy orders is “held” to cover to cost of your bids.

Buying Power - This is your Total Cash Value ($USD) less your Open Commitments. If you want more buying power you will need to deposit $USD into your Trading Wallet or reduce your open commitments.

DEPOSIT

U.S. resident users can deposit funds in one of three ways:

  1. ACH - This method requires that you link a bank account to your Openfinance account. From the Navigation Bar on the top of the screen, select “Wallet”. Next, click the DEPOSIT button. From the drop down menu, select your bank and the amount you would like to deposit. Lastly, click the SUBMIT DEPOSIT button. Note, an ACH deposit can take up to three (3) US banking business days to settle and be available for trading. If you have not added a bank account to your profile or if your bank does not appear on the drop down menu, you will need to use one of the following options to fund your Trading Wallet. SeeOpenfinance Funds Availability Disclosure for important information about deposits made via ACH.
  2. External USD Wire - From the Navigation Bar on the top of the screen, select “Wallet”. Next, click the DEPOSIT button. From the drop down menu, select EXTERNAL WIRE INSTRUCTIONS. Upon doing so, wire instructions will be presented on your screen. Print or write down this information and click the DONE tab. Present this information to your preferred bank and request that they wire funds to Evolve Bank & Trust for further credit to your account. Once Openfinance receives the deposit, funds will be added to your Trading Wallet. See Openfinance Funds Availability Disclosure for important information about deposits made via external USD wire.
  3. Ethereum Deposit - This method requires that you have ETH in your linked MetaMask wallet before starting this process. From the Navigation Bar on the top of the screen, select “Wallet”. Next, click the DEPOSIT button. From the drop down menu, select ETHEREUM INSTRUCTIONS. Upon doing so, instructions will be presented on your screen. The ETH will be converted to USD by a banking partner and the funds will be added to your Trading Wallet. See Openfinance Funds Availability Disclosure for important information about depositing ETH.

Non U.S. resident users can deposit funds in one of two ways:

  1. External USD Wire - From the Navigation Bar on the top of the screen, select “Wallet”. Next, click the DEPOSIT button. From the drop down menu, select EXTERNAL WIRE INSTRUCTIONS. Upon doing so, wire instructions will be presented on your screen. Print or write down this information and click the DONE tab. Present this information to your preferred bank and request that they wire funds to Evolve Bank & Trust for further credit to your account. Once Openfinance receives the deposit, funds will be added to your Trading Wallet. See Openfinance Funds Availability Disclosure for important information about deposits made via external USD wire.
  2. Ethereum Deposit - This method requires that you have ETH in your linked MetaMask wallet before starting this process. From the Navigation Bar on the top of the screen, select “Wallet”. Next, click the DEPOSIT button. From the drop down menu, select ETHEREUM INSTRUCTIONS. Upon doing so, instructions will be presented on your screen. The ETH will be converted to USD by a banking partner and the funds will be added to your Trading Wallet. See Openfinance Funds Availability Disclosure for important information about depositing ETH.

WITHDRAW

You can withdraw funds in one of two ways:

  1. Wire to Linked Bank - This method requires that you link a bank account to your Openfinance account. From the Navigation Bar on the top of the screen, select “Wallet”. Next, click the WITHDRAWALbutton. Enter the amount you want to withdraw. From the drop down menu, select your bank account. Lastly, click the WITHDRAW FUNDS button. If you have not added a bank account to your profile or if your bank does not appear on the drop down menu, you will need to use one of the following options to withdraw funds from your Trading Wallet. See Openfinance Funds Availability Disclosure for important information about USD withdrawals.
  2. Ethereum Withdrawal - From the Navigation Bar on the top of the screen, select “Wallet”. Next, click the WITHDRAWAL button. Enter the amount you want to withdraw. From the drop down menu, select ETHEREUM WITHDRAWAL. Lastly, click the WITHDRAW FUNDS button. A banking partner will convert USD>ETH and deposit the ETH to your Metamask account. See Openfinance Funds Availability Disclosure for important information about USD>ETH withdrawals.

Funds are available for withdrawal after a trade has settled (user accounts are credited and Trading Wallets are updated). This occurs when the banking partner that holds your funds receives confirmation that the token has transferred from the buyer to the seller and completes the reconciliation of the buyer and seller accounts. Note that settlement is NOT instant and that the Openfinance platform utilizes US-based banking systems, regulations and hours. Please read the Openfinance Funds Availability Disclosure e for more information.

Evolve Bank & Trust, which is an FDIC member, with accounts insured up to a balance of $250,000.

You will receive an auto-generated email if a match fails to execute and settle. The Buyer and the Seller should consider the transaction null and void and the orders canceled.

help@openfinance.io - Live Chat is open M-F from 9:00am to 7:00pm EST.


ISSUER QUESTIONS


MISCELLANEOUS

U.S. regulations limit the number of U.S. holders for certain types of securities.

If a Security is at its limit for U.S. holders, U.S. Users will only be able to bid if they are already holders of the security. Bids will not be accepted from U.S. Users not currently holders of the security until the holder count is below its limit.

Any open bid orders by U.S. Users not currently holders of the security will be cancelled when a security reaches its U.S. holder limit.

Read More Information »

Openfinance is a registered and licensed trading platform. Harbor, Securitize and Polymath are issuance platforms. We have partnered with all three.

Canadian securities regulations prevent U.S. broker/dealers from trading with Canadian citizens unless they are registered as a broker/dealer in Canada. Currently, Sageworks Capital, LLC is not registered in Canada and is not affiliated with a Canadian broker/dealer.

This depends on the type of registration or exemption the issuer has used. Please check with the issuer for the most current information.

To open an entity account, you must first create an individual account. This individual will be designated as the authorized trader for the entity. Upon completing your individual Investor Passport, you will be given the opportunity to add and entity account.

Please complete the Investor Passport process again, inputting information for the entity.

Once you have completed and submitted the Investor Passport, we will begin the account review process for both accounts. Note that the individual account will need to be approved in order for the entity account to be approved.

Not currently. Please contact us at help@openfinance.io for more information.


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