A bunch of Security and Utility Tokens as well as various other crypto and digital assets created on on our sister site www.twexsec.com

Some of these assets are unique as their characteristics change the minute they are traded!

For example we took a preferred share issued by a company listed on our sister site, tokenised it and offered it for sale.

A Preferred share gives you a first lien on the assets of the issuer in case of default and failure to pay a debt.

In our system they come accompanied by actual tokenised debt obligations to repay back loans granted to companies and tokenised profit participations.

Their life cycle is indexed on the entire duration the company takes to repay back its debt. The minute the debt is repaid they cease to exist.

Their value, notwithstanding their initial utility of giving the investor a first lien on all assets of the company is also based on the payments made yearly by the issuer based on their sales augmentation!

As such, an ERC20 token is created and offered for trading. The value of the token is based on the payouts made. If owner of said TPS also holds the smart contracts for capital repayment then and only then he is also entitled to the security offered by the lien on all assets of the company.

If the owner acquired the TPS ERC20 Token on the secondary market alone, then he is only entitled to the payouts made quarterly, semi annually or yearly by issuer based on a percentage of sales augmentation post and prior funding without the security granted by the first lien on all assets of the company. Unless also owner of the capital repayment smart contracts, these rights are shifted back to the capital repayment portion. These unique tokens will then be split into two equal parts: TPS1 and TPS2. TPS1 will be attached to the smart contract for capital repayment and TPS2 will hold the rights associated with the initial offering: percentage of sales augmentation post and prior funding!