Table Of Contents
- PURPOSE OF THIS USER GUIDE
- WHAT IS ARTSPLIT?
- WHAT IS THE ARTSPLIT APP?
- WHY ARTSPLIT?
- SPLIT CONTRACT
- LEASE CONTRACT
- IMAGE RIGHTS
- Primary Market
- Secondary Market
- Market Price
- KEY THINGS YOU CAN DO ON THE APP
- LOADING AND WITHDRAWAL OF FUNDS
- THE SOCIAL FEATURE
- HOW TO GET ON THE APP
Help and Support
- SPLIT CONTRACT
- Lease Contract
- Image Rights
Purpose of the USER GUIDE
This user guide aims to introduce our unique model of art acquisition, trading, re-trading, and collecting, to first time art buyers and distinguished art patrons.
What is ARTSPLIT?
ARTSPLIT is an art trading technology company that makes it possible to buy into investment grade African art. We are on a mission to introduce African art as a currency, making it more accessible to invest, trade and collect, with as little as $10.
What is the ARTSPLIT APP?
The ARTSPLIT app is an art trading and social platform. It is an interactive space that provides users with access to sign-up and participate in live auctions, bids, trades, portfolio management as well as access to invest and lease African artworks. The app also provides such social engagements functions as community building amongst users.
ARTSPLIT is a business with a primary focus on elevating the stature of African art in the global art market. We believe the African artist has the power and capacity to inform and direct the value of their works. However, we are democratizing the access to investment grade artworks through the purchase of full or shared ownership of artworks through leasing, as well as trading.
A split contract is ARTSPLIT’s process of taking the current value of a piece of art and breaking it up into 100,000 units. These units (also known as “splits”) are put up for auction to enable the co-ownership of that artwork. The owner of the artwork can determine the percentage of ownership they would want to put up for auction. However, the minimum percentage that can be put up on the ARTSPLIT app is 10% (i.e 10,000 units).
As a result of the split contract, the lease contract becomes necessary. When 10 or 20 people now own an artwork, it brings up the question, where would the artwork sit? The lease contract makes it possible for physical custodianship of an artwork. It means a user can bid to have the artwork seating on his/her wall. If the user win’s the bid, based on the eligibility criteria of having that artwork and any other insurance conditions, that artwork would be transported to the winner of the bid. The artwork would be in the bid winner’s custody for the specified period of time.
An image right is the Intellectual Property (IP) of an image. ARTSPLIT would be responsible for getting the image rights of the most priced African artworks by master artists. People would be able to bid for these IP and when they do, they can decide to hold on to it, re-trade it in the secondary market and can also make commercial decisions that are independent of ARTSPLIT. 5 All of the bids that happen in the primary market can all move to the secondary market for re-trading and portfolio asset management based on the discretion of the owners.
A user is anyone engaging with the ARTSPLIT app for business and social purposes. This individual would have completed a sign-up process and must have received a blue verification tick and the completion of the profile registration process.
The primary market is where ARTSPLIT opens an auction and introduces artworks and image rights on the ARTSPLIT platform to all its users. The users would have the ability to place bids on these offerings/artworks.
Artworks and image rights listed on ARTSPLIT go through a timed bidding process through which ownership is transferred to one or more users.
The highest bidder pays to own the work either in splits (in the case of split contract) for a specified period (in the case of lease contract) or permanently (in the case of Image rights). The bid duration can be between 5 to 10 days.
For split contracts, a minimum of 10% (10,000 units) out of 100% (100,000 units) of splits of the artwork is put up in the primary market for auction/bidding, while the remaining 90% remains with the owner of the artwork who put it up for listing. The primary market therefore refers to the activities around the auction process.
The secondary market is the trading section on ARTSPLIT that allows users easily transfer ownership (split contracts) of artworks they have won in the primary market (during the bidding/auction process) to other users who are willing to own them. It takes place after auctions are concluded from the primary market. ARTSPLIT transfers the artwork to the (splits) portfolio of winner(s) of the bid who then can re-trade or sell it to other users on the ARTSPLIT platform whenever they want and at whatever price they want and/or for the highest available price that is on the market as defined by potential buyer (s) or bid (s) or bidder (s).
All the bids that happen in the primary market can all move to the secondary market for re-trading and portfolio asset management based on the discretion of the owners.
The secondary market is the free market where owners can trade and re-trade all the assets within their portfolio whether it is the units, the lease, or the image rights.
This is a process of onboarding a new artwork onto the ARTSPLIT platform for auction on the primary market. This could either be for split contract auctions or Image rights.
There are two ways a user can list an artwork on ARTSPLIT’s platform. This is through uploading your entire artwork for sale (which would be quantified as 100k units/splits) or alternatively uploading for sale a portion of the artwork (a minimum of 10% will be required or a sum of 10k units/splits).
These sales go directly to the primary market where bidders will procure splits and acquire split contract/s for the portions/ units/ splits owned by buyer. Another way to list for is the sale of 7 legitimately owned Intellectual Property (IP) of Image Rights, this refers to the sale of the digital image right/s– see more details below.
Note that the listing process, requirements and their related terms and conditions, differ for each listing type.
After a user submits a listing request, ARTSPLIT will verify ownership of the artwork via several acceptable standard checks and balances, including but not limited to provenance checks. ARTSPLIT will arrange for pick-up of physical artworks and logistics and processing fees charged to the user are non-refundable. If the request for listing is successful, a timed auction is created on the platform. A bid for ownership by other users or potential buyers commences.
This is a term used in the secondary market to represent the last known value of an artwork on the ARTSPLIT app. This is the last price that the artwork was last sold on the platform.
When an artwork is listed on ARTSPLIT for the first time and auctioned in the primary market, the market price of the artwork will be determined at the end of the bidding by:
- Multiplying each users bid amount by their desired number of units to get total amount spent by the user,
- Adding up all total amounts spent by each user who has won the bid to get a cumulative total amount bided for the artwork
- Dividing this cumulative amount by the total number of units won in the bidding process for that artwork to get the market price.,
The market price determined above will then form the current value of a unit of the artwork when traded in the secondary market.
However, if the artwork is already traded in the secondary market, then the market price of the artwork becomes the last price at which a seller sold a unit of the artwork to a buyer.
This value fluctuates relative to the forces of demand and supply in the secondary market and determines the total value of a user’s portfolio.
SPLITS (ALSO KNOWN AS UNITS)
This term is used by ARTSPLIT to represent a fraction of an artwork, which can be owned by a user through auction or trade and is managed as an asset within their portfolio.
A piece of investment grade art listed is divided into 100,000 splits (units) and the minimum percentage of ownership that can be listed is 10% (10,000 Splits).
- Owned units refer to the total number of units of an artwork a user current owns.
- Available units represent the total number of units put up for sale by different people who currently own units of the artwork.
This is a representation of a user’s assets on the ARTSPLIT platform. Artworks that users own in ARTSPLIT are recorded here and their value is determined by the market price of each artwork. Hence, the value is subject to fluctuation based on trading activities in the secondary market.
This refers to a user’s available funds in the ARTSPLIT ecosystem. It reflects cash deposits and withdrawal activities of a user on the 9 ARTSPLIT platform. While cash deposits go into the user’s wallet, cash withdrawals, platform fees, bid amounts and trade amounts are taken from the user’s wallet. There are limits tied to user’s wallet for both deposits and withdrawals, and these limits are determined by users KYC level.
KEY THINGS YOU CAN DO ON THE APP
The app enables a user bid, trade, follow and engage with other users and artists.
The ARTSPLIT app has many other functions such as:
- Ability to create a profile and upload a display picture.
- Funding your account through credit or debit cards.
- Quick conversion of local currency for funding wallet
- Uploading own artworks into a personal catalogue.
- Management of portfolio from profile.
- Verification of updates and status updates.
LOADING AND WITHDRAWAL OF FUNDS
The currency for the ARTSPLIT app is the US dollars ($). Users can purchase and perform their transaction from the app by funding their account. If a user wants to withdraw down from app fund, they can do so using one of these five currencies –US Dollars, GBP, Euros, Cedis and Naira.
A user in the US, England, Europe, Ghana or Nigeria can withdraw down from their app fund in these countries into their local currency account. However, if a user is not in any of these countries, the user 10 will need to withdraw into a domiciliary account that reflects any of the five currencies above.
The Social Feature
The timeline feature allows users to to post, like and comment on other users posts that are shared on the app. In upcoming iteration, users will be able to share artworks that are on live auctions or upcoming auctions unto their timeline, like and comment on articles and general updates from ARTSPLIT. Also on the app, a user can follow other users, creating an art community. Users can also follow artist.
HOW TO GET ON THE APP
For Android Devices
- Search for ARTSPLIT in the Google Play Store. Install the application.
For Apple Devices
- Search for ARTSPLIT in the Apple Store. Install the application
For Web Browsers
- Visit https://artsplit.com
SIGNUP & LOGIN
For a new user, click the “Sign Up” link to complete the process. On the “Create Account” page, insert your information, including your email and desired password or you can use the single sign-on option to login with a Google or Facebook account.
You will be prompted to verify your email if you did not sign-up using the single sign-on feature on the app. All new users will be prompted to verify their phone number by inserting the OTP (one time password) sent via message to the selected number used for registration.
Alternatively, mobile users who have signed into the app before can consequently use their biometrics for future sign-in attempts.
HELP & SUPPORT
You can connect with a customer representative through the help and support tab under account setting in the app or on the support tab on the website.