Royalties
Understanding royalties
Royalties are a share of revenue that a business pays back to its investors, each quarter, up to a cap. Here is the mechanism, in plain terms.
When you invest in a business through Futur, you do not earn a fixed interest like at the bank. You receive royalties: a share of revenue that the business actually takes in, paid each quarter, in proportion to your stake.
This mechanism aligns the interests. The owner is not crushed by a fixed monthly payment in a quiet period: they pay back a share of what they take in, no more and no less. The investor, in turn, shares the real success of the business rather than a return promised in advance.
The contract sets a cap: a maximum total amount you can receive. Once this cap is reached, the payments stop and the commitment ends. So you know, from the outset, the most you can receive. The only unknown is the speed at which this cap is reached, or whether it is reached.
It is a cap, not a promise. If the business sells little, you can receive less than your stake. Investing carries a risk of capital loss, and the royalties mentioned are never guaranteed. This is why every project is verified before it appears on the platform.
The money never passes through Futur: the flows are direct between you and the owner, within a bilateral contractual framework prepared by the platform. Futur connects, verifies and reports; it does not hold your funds.
Investing carries a risk of capital loss. The returns mentioned are not guaranteed. Projects are illustrative during the beta phase.