Things to Know Before Fractionalizing NFT(s)

gm Fractional Fam 🌅☕️

Below are some of the most frequently asked questions by Fractional vault curators.

Frequently Asked Questions by Curators

1. What happens to airdrops to NFT(s) which are in Fractional vaults?
   a. If the airdrop is sent directly to the NFT vault, and the NFT vault on fractional has 2+ NFTs in it, then the airdrop will go in the basket with the other vaulted NFTs and will be claimable by a future vault auction winner.
   b. If the airdrop is sent directly to the NFT vault, but the vault only has 1 NFT in it, then the airdrop will not be claimable by a future vault auction winner.
   c. If the airdrop requires the NFT vault to claim them, that is not currently possible.
2. Can creators of the vault claim new NFT(s) using existing NFT(s) in the vault?
   No, right now vault owners cannot sign as the vault to claim airdrops or new NFT(s).
3. Who owns the Fractional vault?
   No one “owns” the vault in the sense that no one can sign as the vault address or move anything out of the vault. Vault creators have the option to edit the description, socials, and auction length on the Fractional page.
4. Can Fractional retrieve my NFT(s) from a vault?
   The only way to retrieve NFT(s) from a vault is by redeeming 100% of the fractions for the vault, or by buying out the vault through an auction. Fractional cannot transfer any NFT(s) out of vaults.
5. Can I sell NFT(s) on Opensea or Rarible from a fractional vault?
   No, you cannot sell or transfer any NFT(s) from a Fractional Vault until the vault is bought-out through an auction or all fractional ERC-20s are redeemed for the vault.
6. What is the best way to describe a fraction of an NFT?
   We find words like fractions, fractional tokens, shards, and fractional NFTs best represent what a collector owns, not to mention different vault-specific utilities and community membership depending on the circumstances. We’ve also found that avoiding words that give the impression a collector will be buying a ‘share’ or ‘equity interest’ or ‘investment’ in a vault helps collectors understand what fractional collecting is, and perhaps more importantly, what it is not.

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Disclaimer: The Fractional Token Company, its officers, team, and community representatives are not registered financial advisors. All opinions shared on Twitter, Discord, or through other public channels are those of the respective individuals alone. Fractions (fractional ownership tokens) are solely intended to increase participant access to collectable, provable ownership of digital art and their respective communities. Fractional does not condone the creation, buying, or selling fractions as a means of investment. The Fractional Token Company is not responsible for how curators choose to market their NFTs. Similarly, The Fractional Token Company does not create, handle, or manage the intermediary platforms, or networks through which fractions can be transferred, sold, or purchased. Publications from Fractional.art are solely for information and entertainment purposes only. Please consult and work directly with tax, legal, financial, and investment professionals before making any fractional creation, transferring, and purchasing decisions.