A 'Biskit' is our way of referring to a share of an Asset listed on our Platform. This could range from shares in Commercial Real Estate, Development Projects, Businesses and everything in-between. Think of the whole asset as a jar of biscuits, each biscuit within represents a piece of the asset as a whole.

Buying and holding a Biskit entitles it’s owner to the Asset’s monthly income earnings and the opportunity to grow capital gains. This is calculated in proportion to how many Biskits of the asset you own. If an Asset has 100 Biskits, and you own 10 of them, then you’re entitled to 10% of the asset’s benefits.

Fractional Investing is made possible on the Biskit platform by dividing an asset into smaller shares through the use of a Unit Trust. Biskit establishes a Trust Deed for each investment, wherein the rules and terms under how the Trust operates, and how Units of the Trust are able to be assigned, transferred and created through the Biskit platform are clearly defined. The number of units in each Trust varies but together they represent 100% of an asset listed on the Biskit platform.

When an Investor purchases a Biskit on our platform, they are essentially buying a single unit in the Trust that corresponds with their selected investment. The assignment of the purchased units are allocated to the buyers account within Biskit and recorded in the Trust’s unit registry.

There are essentially two ways an Investor on the Biskit platform can generate a profit - Income Distribution and Capital Gains.

Income DistributionWhen an investor purchases a Biskit, particularly in assets that generate an income or dividends like commercial real estate or business equity, they're entitled to a share of the income generated by that asset. In these cases, each Biskit has what we call an "Estimated Monthly Income per Biskit." This value gives investors a snapshot of what they can expect to earn each month from their investment.

The estimated monthly income per Biskit is derived from the asset's recent performance. To illustrate let's have a look at how income distribution from a Commercial Real Estate Asset might work:

1. Rental Income Collection - The Commercial Property generates income primarily through rent by it’s tenants. This of course only happens if the Commercial Property has tenants.
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2. Outgoings - From this rental income, we deduct normal outgoings which may include strata fees, maintenance costs and other mandatory expenses to keep the property tenanted and operational.
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3. Income Allocation to Biskit Holders - The remaining net income from the above, is then divided across all the Biskits associated with that asset, assigned within it’s relevant trust. The share of income that each Biskit holder receives is multiplied by how ever many Biskits of that asset the investor owns.
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Capturing Capital GainsPeriodically, assets listed on the Biskit platform undergo evaluations which in turn, update the quoted price of the Biskits held within the asset’s associated Trust automatically. This means that the quoted value of a Biskit is always it’s current value.

For example, if the original price you paid for your Biskit was $200, and upon completing the asset’s first valuation, we found that the asset’s value increased year on year by 7.02%, Investors would see a proportional increase in the value of the Biskits they own (now $267.55 in this example).

To capture this increase in value, Investors have an option to ‘Sell’ their Biskits from within their account on the Biskit platform. Biskits that are offered for sale are added to a queue in order of date of offer, and are made available to purchase to the general public.

Biskit applies a simple fee structure that accounts for the vetting, management and purchase of listed assets on the platform as well as maintaining and improving the technology behind the platform itself.

Biskit fees are applied in two instances - the first is incurred as part of the procurement stage of an Investment asset, this fee takes care of our vetting and research team to not only find great investments to pass on to Biskit users, but actually handle the purchase and Unit Trust process. You can find this fee in each of our available Investment Offer’s PDP. The second instance is a 1.5% transaction fee that is incurred only at the time of Biskit purchases. This does not apply to Sell transactions for the current holder of Biskits.

To capture Capital Gains, Investors have an option to ‘Sell’ their Biskits from within their account on the Biskit platform. Biskits that are offered for sale are added to a queue in order of date of offer, and are made available to purchase to the general public.

Like most forms of Investing, Fractional Investing carries risk. While we take precautions when we vett Investment Opportunities, the Assets listed on our platform are subject to normal market factors and fluctuations, including unforeseen circumstances that may result in losses of your entire investment.

Biskit operates an Australian Financial Services License under strict legal requirements to ensure compliance to ASIC regulations, including management and enforcement of Unit Trusts and adherence to any managed investment schemes (MIS) when applicable.

Please contact us for further information. Full Disclosure Statements, Warning Statements, Target Market Determination and Financial Services guide will be made available when we officially launch.