Frequently Asked Questions
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FAQS
FOR INVESTOR
What is Token Interest?
Token Interest operates as a Regulation Crowdfunding (Reg CF) intermediary, bringing together investors and U.S. companies raising capital. Under Reg CF, every offering must run on a single online platform operated by an SEC-registered broker-dealer or funding portal that is also a FINRA member. We screen issuers for potential fraud before an offering goes live, but this screening is not investment advice
Is Token Interest Regulated?
Yes, Reg CF requires offerings to be conducted through an intermediary that is registered with the SEC and a member of FINRA (the national securities association). Both agencies have laws and checks in place regulating funding portals
How is Token Interest Different from the Bond market?
Public bond markets feature publicly traded debt from larger, reporting companies with extensive disclosures. Reg CF offerings are private securities sold through a portal; disclosures are different, there’s less liquidity, and resale is restricted for one year (with limited exceptions). Risk and volatility may be higher.
How long until I get a return?
The return on investment will depend on the terms of the bond. Some bonds amortize monthly (principal + interest); others are interest-only with a balloon at maturity; some permit prepayment. Always review the offering’s “Terms” section and repayment schedule.
Can you give advice?
No. Funding portals cannot provide investment advice or recommendations or solicit purchases. Consider independent advice if you need help deciding.
How much can I invest?
Non-accredited investors (12-month total across all Reg CF):
If either income or net worth is less than $124,000 → the greater of $2,500 or 5% of the greater of income or net worth.
If both income and net worth are more than or equal to $124,000 → 10% of the greater of income or net worth, capped at $124,000.
Accredited investors: no Reg CF limit.
*Net worth excludes your primary residence CF
What financial information must companies disclose when raising under Regulation Crowdfunding?
Requirements are based on what the company has offered and sold in reliance on Reg CF during the prior 12 months, plus the amount it intends to raise in this offering. Financials are filed on Form C through EDGAR and displayed on the offering page. (Dollar thresholds are subject to SEC inflation updates.)
Up to $124,000 – Provide financial statements and certain tax return line items, certified by the principal executive officer. If reviewed or audited statements are available, provide those instead (no tax return data/CEO certification needed). SEC
More than $124,000 up to $618,000 – Provide financial statements reviewed by an independent public accountant (or audited if available).
More than $618,000 –
First-time Reg CF issuers offering not more than $1,235,000: reviewed financial statements (audited if available).
Issuers offering more than $1,235,000 or any issuer that has previously sold under Reg CF: audited financial statements by an independent public accountant
After investing, how often will I get updates?
Issuers often share quarterly updates as a best practice. By law, any issuer that sold Reg CF securities must file an annual report (Form C-AR) on EDGAR and post it on its website within 120 days after fiscal year end. (Annual reports do not require audited/reviewed financials.)
When can annual reports stop? For example, after filing at least one annual report and having fewer than 300 holders of record, or after three annual reports with less than $10 million in assets, or if all Reg CF securities are repurchased/paid off, the company becomes a reporting company, or it dissolves.
What are smart contracts?
A smart contract is simply a computer program—stored on a blockchain—that enforces agreed-upon rules automatically. When specific conditions are met, the code executes the next step without manual intervention. A familiar example is a vending machine: you choose an item, insert payment, and the machine—following its built-in rules—either dispenses the item or returns your money. No clerk, no negotiation, just code doing what it was programmed to do.
On Token Interest, the smart contract serves as the record of ownership and the payment engine for each offering. It keeps track of every investor’s commitment and allocation. After a bond successfully closes, the contract records/assigns investors’ positions, then calculates interest according to the offering’s terms (e.g., rate, compounding, payment schedule). On each payment date, it prepares the payout amounts for all investors and initiates distribution from the issuer through our servicing flow, updating the ownership ledger as payments are made or positions change. In short: the contract handles the math and mechanics so repayments are consistent, transparent, and on schedule.
What happens if the campaign fails?
Investor funds are held in escrow. If the minimum target isn’t reached or the issuer doesn’t complete the offering, funds are returned through the original payment method. ACH refunds typically show up in a few business days (timing depends on your bank).
Password problems?
If you are having problems accessing your account, use the “Forgot User ID”/”Forgot Password” links on the login screen. If you still need help, email us at support@tokeninterest.finance.
How do I get a refund/cancel?
You may cancel your commitment any time before the final 48 hours of the campaign. Once the campaign is within the final, you may no longer cancel your commitment. In order to cancel, please email us at support@tokeninterest.finance. Once your cancellation has been processed, you will receive a confirmation email. The refund will be returned to the investor in the account used to send the funds. A refund may take up to 7-10 business days to receive.
If the issuer reaches its goal early, it may determine to close the offering early provided it gives investors a warning five day in advance. If the issuer has a material change of information, investors must reconfirm their commitment, otherwise their commitment will be returned.