Use Cases
Supported Asset Verticals
LiquitX infrastructure supports multiple real-world asset classes, each with specialized characteristics and risk profiles:
Litigation Finance
Tokenized legal claims and settlement rights, pioneered through LitigateX.
Asset Characteristics
| Attribute | Typical Value |
|---|---|
| Duration | 2-5 years |
| Return profile | Binary (win/lose) with high upside |
| Correlation | Low to traditional markets |
| Typical size | $100K - $10M per case |
How It Works
- Case origination: Litigation manager identifies viable cases
- Due diligence: Legal review, probability assessment
- Tokenization: Case rights minted as ERC-20 tokens
- Fund formation: Senior/Junior tranches for investor choice
- Resolution: Settlement or judgment distributes proceeds
Risk Mitigation
- Portfolio diversification across case types and jurisdictions
- Junior tranche absorbs early losses
- Manager alignment through fee structure
- Insurance fund backstop
Venture Capital
Tokenized LP interests, secondary shares, and startup equity.
Asset Characteristics
| Attribute | Typical Value |
|---|---|
| Duration | 7-10 years (fund life) |
| Return profile | Power law (few winners drive returns) |
| Liquidity need | High (LPs often locked) |
| Typical size | $1M - $100M per position |
Use Cases
- LP secondary sales: Limited partners selling fund interests
- Direct secondary: Employees/founders selling vested shares
- Fund tokenization: New funds with token-native structure
- SPV fractionalization: Access to specific company investments
Trade Finance
Receivables, invoice factoring, and supply chain financing.
Asset Characteristics
| Attribute | Typical Value |
|---|---|
| Duration | 30-180 days |
| Return profile | Stable, predictable yield |
| Collateralization | Often over-collateralized |
| Typical size | $50K - $5M per invoice |
How It Works
- Invoice submission: Supplier uploads verified receivables
- Verification: Buyer confirmation, credit check
- Tokenization: Invoice minted with payment rights
- Financing: Investors provide advance (e.g., 90% of face value)
- Settlement: Buyer pays at maturity, investors receive principal + yield
Creative Economy
Royalties, IP rights, and content revenue streams.
Asset Characteristics
| Attribute | Typical Value |
|---|---|
| Duration | Perpetual or fixed term |
| Return profile | Streaming cashflows |
| Volatility | High (hit-driven) |
| Typical size | $10K - $10M per catalog |
Examples
- Music royalties: Streaming revenue from song catalogs
- Patent licensing: Technology IP revenue streams
- Content rights: Film/TV distribution revenues
- Brand licensing: Trademark and franchise fees
Real Estate
Tokenized property investments and rental income rights.
Asset Characteristics
| Attribute | Typical Value |
|---|---|
| Duration | 5-30 years |
| Return profile | Rental yield + appreciation |
| Collateralization | Hard asset backing |
| Typical size | $100K - $100M per property |
Private Credit
Corporate loans and structured credit products.
Asset Characteristics
| Attribute | Typical Value |
|---|---|
| Duration | 1-7 years |
| Return profile | Fixed or floating rate |
| Seniority | Often secured/senior |
| Typical size | $1M - $500M per loan |
Integration Requirements
For a vertical to integrate with LiquitX infrastructure:
| Requirement | Attribute |
|---|---|
| Tokenization standard | ERC-20 compliant with metadata |
| Risk rating | Compatible with 4-bucket system |
| Jurisdiction mapping | Clear currency/legal jurisdiction |
| Oracle integration | Off-chain data feeds for valuation |
| Manager structure | Registered managers with funds |