Vessel Tutorial

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Tutorial of Math

Annual Income & Yield

Investors are entitled to an annual payment from the property owner; this payment may be made with cash or additional equity sharing rights at the property owner's discretion.

The amount of the payment is the product of [the

interim home value⁠

at the beginning of each period], [the

equity sharing percentage⁠

] and the [fixed yield percentage].

The yield percentage differs for each property and is determined at the time of issuance and is fixed for the duration of the contract through an auction process. Details about the auction are available by request.

Next Topic:

Conversion to Equity⁠

⁠

Adjust the sliders below to try it out.

Input:

Interim Home Value⁠

at year n-1

0000000

500000

⁠

Equity Sharing Percentage⁠

at year n-1

⁠

Yield Percentage

⁠

Output:

Annual Payment Owed at year n

500000

⁠

10

⁠

% *

5

⁠

2500

⁠

Next Topic:

Conversion to Equity⁠

⁠

More Info about Annual Income

On top of the payment from the property sale, investors are also entitled to annual income payments, which may be paid with cash or with additional equity rights by the property owner. These payments are based on a fixed “yield” percentage, determined at the time of issuance, producing variable annual payments. The payments owed are equal the product of the yield percentage and the estimated value of the investors' equity stake:

⁠

Note that income payments may be underpaid at the homeowner's discretion via optional

conversion of income to equity⁠

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