The Initial Litigation Offering (“ILO”) is an offering with a blockchain-enabled payment to finance individual litigation. This financial product is offered under Regulation Crowdfunding, and almost all investors regardless of accreditation status (you must be over 18 to participate). ILOs tokenize the funding required to pursue litigation in civil cases where a plaintiff (party initiating lawsuit) or a plaintiff’s counsel wishes to raise capital to ease the financial burdens of litigation.
Investors in an ILO will be issued a token in the amount equal to their investment whereby one token is typically equal to one US Dollar. In the event the litigation is ultimately successful, investors will get a multiplier based on the amount of tokens they hold and the time it takes to resolve the litigation.
For most Republic offerings, investors will be required to provide an Avalanche wallet address (https://wallet.avax.network/). Within 60 days after executing the agreement to purchase the tokens, investors will receive the tokens at the Avalanche wallet address they provide.
As detailed below, investors will be entitled to a multiplier that increases over time as the case continues. If the litigation results in a recovery, investors will be entitled to receive a multiplier on their investment (in the form of a stablecoin payment to the Avalanche wallet holding the the tokens). However, there are a few important limitations to the investors right to receive its multiplier upon a recovery in the litigation.
For more information, please refer to the terms and conditions for each ILO.