# Token price and profitability

Last updated

Last updated

There are 2 measures of profitability in every property - **ROI **and **APR**.

**ROI **or Return on investment is the return on investment, which shows your total return on investment as a percentage.

**APR **or Average percentage rate is the average annual percentage return on your investment.

The price of each fraction (token) of the property under construction is not equal to each other: **each next token is more expensive than the previous one. **

During the entire fundraising period, the token price increases smoothly. **After the end of the down payment collection (the first stage of fundraising), the token price rises by 5%**.

This token pricing mechanism was designed specifically to fairly distribute the level of returns between early and late investors. **The earlier an investor buys tokens, the lower their price — and the higher the return on completion**.

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Example: ***At the very beginning of investment collection, the first token purchased by Villa A under construction costs $32. The price of the second token is $32.0005, the third token is $32.001, the tenth token is $32.005, and the hundredth token is $32.05. The last (10,000th) token will cost $37. As we can see from the example, the difference in the price of the first and the last token is 15.6%. The price of tokens and its growth will be individual for each property.*

**The price of a token*** after the construction and the sale are completed will be $45. This is the amount investors will receive per token when the facility is sold. *

When the construction is completed and the property is sold, the income is evenly distributed among investors: for example, each token pays $45 regardless of the entry point and their purchase price. Therefore, **profitability indicators for each investor will be individual: they will depend on the entry point and the number of fractions purchased**.