Guild FAQs
What does OpenGuild Finance provide for gaming guilds?
OpenGuild Finance allows whitelisted gaming guilds receive capital from investors to scale their operations. With the additional capital, guilds can increase the size of the asset and player base they manage and share profits with investors.
How do I become a whitelisted guild on OpenGuild Finance?
Guilds can sign up to be whitelisted on OpenGuild Finance. Guild managers will need to go through a strict diligence process which includes an interview, providing evidence of a successful track record of managing a guild, signing legal contracts agreeing to the terms of the arrangement with investors, and submitting their government issued photo ID and proof of address. Ultimately, only guilds that are deemed creditworthy and trustworthy will be whitelisted.
Why do I need to submit my ID and proof of address?
The ID and proof of address allows us to verify the identity of the guild managers and so that the legal contracts can be enforced if breached.
How does it work?
Interested investors will be able to deposit USDT into an aggregate pool. The funds are split evenly to be managed by each guild that is part of the initial program. Guilds will withdraw the funds into their own wallet and take 2% of the capital they receive as a fee and deploy the rest into crypto gaming assets. When income is earned through gameplay or selling NFTs, guilds can either reinvest into the pool of assets or issue dividends. Income must be first converted into USDT before being issued as a dividend. 85% of dividends are sent back to the pool and 15% will be sent to an escrow wallet. Once 100% of the capital that the guild received has been returned through dividend payments, the escrow will unlock and the manager’s share of dividends which have accrued will be sent to the manager. After the escrow has unlocked, the manager can keep 15% of any dividend payout before sending the remaining 85% back to their individual pool.
How much do I get paid as a guild manager?
You will get paid 2% of the capital received from investors and then 15% of all dividends. However, your 15% share of dividends will accrue and only be paid to you once you have returned 100% of the capital you received from investors.
What are some of the risks I face?
You will not be paid the 15% of dividends you have accrued if you are unable to return 100% of the capital you receive. This could happen for reasons that are in your control (such as bad capital allocation decisions) or out of your control (the game decreases the amount of earnings or the price of the utility token decreases significantly).
What can I do with the capital I receive?
You may use the capital for activities related to generating returns from crypto games.
How does the escrow work?
The escrow is designed to incentivize guilds to return investor capital as quickly as possible. Until guilds have returned dividends to investors equivalent to at least 100% of the capital they received, the guild’s 15% of dividends is sent to an escrow wallet controlled by OpenGuild Finance. Once 100% of capital received has been returned, the accrued amount in the escrow will be sent to the guild and they no longer have to send their 15% share of future dividends into the escrow wallet.
What if Pegaxy earnings fall and I can’t return 100% of the capital I received from investors?
You will need to continue returning dividends until 100% of the capital is returned or potentially cut losses and liquidate the assets in the portfolio and return the proceeds back to the investors. You should only participate in this program if you are confident in the game you’re investing in as well as your ability to quickly return investor capital and unlock your escrow.
Do I own the assets acquired using the capital I received?
You do not own all of the assets acquired with capital received from investors. The capital and acquired assets belong to the pool, which is owned by the investors. After your escrow unlocks, you will effectively own 15% of the pool through your rights to 15% of all dividends.
How long do I keep paying back dividends for?
You will continue managing the pool and paying dividends until the pool has been liquidated.
What happens when I don’t pay back my investors?
If you stop making payments or run off with any capital or assets that belong to the pool, you will face legal prosecution.
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