Openfinance FAQs

Openfinance

Openfinance is the first U.S. regulated security token trading platform to market. A trusted player in the alternative assets space since 2017, Openfinance addresses the lack of liquidity by providing a regulated and efficient trading platform for security tokens.

Through our affiliated broker/dealer (Sageworks Capital, LLC, Member FINRA/SIPC), Openfinance is an SEC designated ATS set up to trade security tokens. Openfinance has strategic partnerships with several key players in the security token and blockchain space and is the first regulated security token trading platform to market.

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


OPENING A USER ACCOUNT WITH Openfinance

All users must complete their Investor Passport that is located here: Openfinance Investor Passport. During this process 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.

Currently we are reviewing and processing all applications within 10 days. If you have completed your Investor Passport, and 10 days have passed, please contact us at help@openfinance.io for a status on the review and acceptance our your account.

ALL APPLICANTS MUST SUPPLY THE FOLLOWING:

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

  1. Name of Applicant - Full legal name on your government issued photo ID. This is how the account will be titled.
  2. Email address
  3. EPhone Number
  4. Date of Birth
  5. Passport # if non-U.S. resident.
  6. Social Security # if U.S. resident.
  7. Address of record

    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)

  8. Annual income & net worth
  9. Accreditation documents if applying as Accredited Investor.
  10. Years of investing experience
  11. Employment information
  12. Risk Tolerance & Investment Profile
  13. Link your bank to your Trading Wallet (more information below).
  14. Download MetaMask (more information below).
  15. Agree to Terms of Service and Digital Trading Agreement
  16. 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

    Non U.S. Resident Applicant

    Government issued Passport - current, legible and full copy of side with photo.
    Sample of acceptable Passport for non U.S. resident applicant

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. Approved Users are required to link a bank account and Metamask to their Openfinance account.

No, certain tokens are only available to non-US residents. Others may only be available to approved accredited Users. There are other regulatory restrictions that may prevent a User from trading certain assets on Openfinance.

Yes, you can view the trading screens by offering your name and email address and completing your Investor Passport.

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

While completing the Investor Passport, you can indicate that you wish to be processed as an accredited user. Additional documentation is required and can be uploaded directly to your user profile or provided during the onboarding process when using the Investor Passport.

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.

(b) Net Worth Method -( Must document a new 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. If you have no liability, you will need to make an affirmative representation that no liabilities exist.

(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 jurisdictions 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. The letter must be dated within the last 6 months.

We are unable to accept Users from any country on the US 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. Subject to change.

Openfinance further restricts Users from these countries 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.

Please inquire at help@openfinance.io to determine if we can approve an account in your country of residence.


LINKING TOKENS TO TRADING WALLET AND ETH REQUIREMENTS

MetaMask is a bridge that allows you to visit the distributed web in your browser. It allows you to run Ethereum dApps right in your browser without running a full Ethereum node.

MetaMask includes a secure identity vault, providing a user interface to manage your identities on different sites and sign blockchain transactions. For the purposes of trading on Openfinance, Metamask is the wallet that holds the tokens that you wish to buy or sell and your ETH.

Openfinance utilizes peer-to-peer settlement on the Ethereum Blockchain. The Ethereum Blockchain makes keeping track of ownership easy. Its shared source of truth means that it cannot be hacked by outsiders or manipulated by insiders. To securely and successfully verify transactions on the Ethereum Blockchain, the chain requires users to cover the cost of conducting transactions on the chain. This fee - called ‘Gas’ - is paid for via ETH from your MetaMask Wallet. Be sure to purchase ETH and have it in your MetaMask wallet in time for live trading. If you have questions about how to get ETH into your Metamask and linked to your Trading Wallet with Openfinance, please contact us at help@openfinance.io.


TRADING and FUNDING TRADING WALLET

Digital User Brokerage Rate and Fee Schedule

Currently we are only taking Limit Orders. IE: orders will only execute at a specific price.

Currently we are executing limit orders “partial until filled or canceled”. There is not an “all or none” option”.

24 hours 7 days a week 365 days a year

USD only.

No. Currently only tokens that are defined as securities can trade on Openfinance. Types include, Reg D, Reg A+, Reg CF, and Reg S.

Certain tokens are considered a “restricted security” under SEC Rule 144. Generally, these securities require a minimum period of one year from issuance before US resident investors can purchase in the secondary market. Please consult the issuer of the security for more information regarding transfer and resale restrictions for the security you wish to trade.

This is where you can see the status of the funds you have in your wallet

Total Cash Value - The current amount of USD held in your Trading Wallet. The USD needs to be transferred to your wallet from your linked bank account before you can begin trading.

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 to your Trading Wallet or reduce your open commitments.

DEPOSIT

US Resident User - Deposits

  1. ACH - If your preferred ACH bank has been approved and linked to your Openfinance Trading Wallet you can deposit USD to your Trading Wallet by opening your Trading Wallet (left side of screen), and clicking the click the DEPOSIT button. Select your bank on the drop down and follow the instructions to complete your deposit. The ACH deposit can take up to three (3) US banking business days to settle and be available for trading. If your bank does not appear on the drop down menu, it means your bank has not been approved and you will need to use one of the following options to fund your Trading Wallet. See Openfinance Funds Availability Disclosure for important information about deposits made via ACH.
  2. External USD Wire - Open your Trading Wallet (left side of screen), click the DEPOSIT button and select EXTERNAL WIRE INSTRUCTIONS from the drop down menu. The information that appears is the wire instructions to fund your Trading Wallet. Print or write down this information and click the DONE tab. Present these instructions to your preferred bank and request that they wire funds to Evolve Bank & Trust for further credit to your account. Once the Openfinance Platform has received information about the deposit, it 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 - Open your Trading Wallet (left side of screen), click the DEPOSIT button and select ETHEREUM INSTRUCTIONS from the drop down menu. Follow the instructions on the drop down to fund your Trading Wallet with ETH. You must have ETH in your Metamask wallet BEFORE you start this process. The ETH will be converted by a banking partner to USD and the deposit will show in your Trading Wallet when Openfinance receives information about the deposit from the banking partner that holds the USD credited to your account. See Openfinance Funds Availability Disclosure for important information about depositing ETH.

Non US Resident User - Deposits

  1. External USD Wire - Open your Trading Wallet (left side of screen), click the DEPOSIT button and select EXTERNAL WIRE INSTRUCTIONS from the drop down menu. The information that appears is the wire instructions to fund your Trading Wallet. Print or write down this information and click the DONE tab. Present these instructions to your preferred bank and request that they wire funds to Evolve Bank & Trust for further credit to your account. Once the Openfinance Platform has received information about the deposit, it 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 - Open your Trading Wallet (left side of screen), click the DEPOSIT button and select ETHEREUM INSTRUCTIONS from the drop down menu. Follow the instructions on the drop down to fund your Trading Wallet with ETH. You must have ETH in your Metamask wallet BEFORE you start this process. The ETH will be converted by a banking partner to USD and the deposit will show in your Trading Wallet when Openfinance receives information about the deposit from the banking partner that holds the USD credited to your account. See Openfinance Funds Availability Disclosure for important information about depositing ETH.

WITHDRAW

US Resident User - Withdrawals

  1. Wire to Linked Bank - Open your Trading Wallet (left side of screen), click the WITHDRAWAL button and select your bank as the “withdrawal type” from the drop down menu. Enter the amount you want to withdraw and click the WITHDRAW FUNDS button. If your bank does not appear on the drop down menu, it means your bank has not been approved and you will need to use another option to complete your withdrawal. See Openfinance Funds Availability Disclosure
  2. Ethereum Withdrawal - Open your Trading Wallet (left side of screen), click the WITHDRAWAL button and select ETHEREUM WITHDRAWAL as the “withdrawal type” from the drop down menu. Enter the amount you want to withdraw and 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.

Non US Resident User - Withdrawals

  1. Wire to Linked Bank - Open your Trading Wallet (left side of screen), click the WITHDRAWAL button and select your bank as the “withdrawal type” from the drop down menu. Enter the amount you want to withdraw and click the WITHDRAW FUNDS button. If your bank does not appear on the drop down menu, it means your bank has not been approved and you will need to use another option to complete your withdrawal. See Openfinance Funds Availability Disclosure for important information about withdrawals.
  2. Ethereum Withdrawal - Open your Trading Wallet (left side of screen), click the WITHDRAWAL button and select ETHEREUM WITHDRAWAL as the “withdrawal type” from the drop down menu. Enter the amount you want to withdraw and 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 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. Settlement is NOT instant. Openfinance must wait for the banking partner to credit User accounts before Trading Wallets are updated and funds are available. Note that the Openfinance platform utilizes US-based banking systems, regulations and hours. Please read the Openfinance Funds Availability Disclosure 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 9am to 7pm 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 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.

It depends on the issuers’ type of registration. Please check with the issuers for the most current information.

Please contact a User Support Specialist at help@openfinance.io for more information.

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


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