Concierge · Chapter 06

Fees, Costs & How Blockx Earns

Full transparency on how Blockx is compensated, because every fee ultimately affects investor returns.

How does Blockx make money from fractional investments?

Blockx's Phase 1 revenue model is built on five complementary streams: sales commission on the sale of investment assets, fraction sales commission (structuring, marketing and selling individual fractions), strategic fraction ownership (Blockx retaining one fraction in suitable opportunities), rental and asset management income, and investment introduction and success fees on larger transactions it facilitates.

What is 'fraction sales commission' and how is it charged to me?

When a property is structured into fractions, Blockx earns income from structuring the investment, marketing the opportunity, acquiring investors and selling the individual fractions. This commission is incorporated into the pricing model of the fractions themselves, rather than charged as a separate, itemised fee on top of your purchase price.

What is 'strategic fraction ownership' — does Blockx compete with me for the same asset?

Blockx aims to retain ownership of one investment fraction in each suitable opportunity, without paying cash for it — its value is instead built into the pricing of the remaining fractions sold to investors. This is designed to align Blockx's interests with investors: Blockx earns rental income, appreciation and profit distributions on that fraction exactly as any other fraction holder does, rather than only earning fees regardless of performance.

Because Blockx both structures the offering and can retain a fraction in it, this creates a related-party interest that should be clearly and specifically disclosed to investors at the point of each offering, alongside the exact percentage retained. Investors should ask for this disclosure explicitly if it is not already provided in the offering documentation.

What is rental and asset management income, and how much does it cost me?

Blockx manages income-producing investments through rental marketing, booking management, guest communication, payment processing, owner reporting and property coordination, and earns a percentage of rental income for this service. The exact percentage is asset-specific and should be disclosed in the offering documentation and Fraction Holder Agreement for that property.

Are there fees I pay only once, versus fees I pay on an ongoing basis?

Based on the disclosed revenue model, fraction sales commission is effectively a one-time cost embedded in your purchase price, while rental and asset management income is an ongoing percentage-based fee deducted from rental proceeds over the life of the investment. Structuring, onboarding, capital raising, asset management, performance, transaction, success, advisory and exit fees are additional categories referenced at the platform level; which of these apply to a specific offering, and at what rate, should be confirmed in that offering's documentation.

Does Blockx charge a fee when I exit or resell my fraction?

Exit-related fees (such as a success fee, transaction commission, or exit fee) may apply depending on the exit route used — full sale of the property versus resale of an individual fraction through an internal marketplace. Investors should confirm applicable exit fees before investing, as these directly affect net realised returns.

Where can I see a full, itemised fee schedule for a specific property?

A complete, asset-specific fee schedule should be part of the offering documentation and Fraction Holder Agreement provided before you commit capital to any individual opportunity. If a fee schedule has not been provided, investors should request one before proceeding.