Lofty.ai
RWA · Real Estate · LOFTY
Lofty.ai offers fractional US real estate on Algorand — sub-cent transactions, a $50 minimum, and per-property ASA (Algorand Standard Asset) governance. Daily rental yield is distributed in USDC.
Fractional US real estate on Algorand.
Assets under management
$100.1M
Latest data · 15 min delay
Risks identified
- Regulatory
Tokens are structured as LLC membership interests and Lofty asserts they are not securities, but under the SEC's Howey test tokenized real estate promising passive rental income can be deemed investment contracts. An adverse SEC determination could force registration, restrict trading, or halt the marketplace.
- Counterparty
Each property is held in a per-property DAO LLC administered by Lofty. Investors depend on Lofty AI, Inc. and its property managers for title custody, rent collection, maintenance and record-keeping; company insolvency, mismanagement, fraud, or a title/deed defect at the LLC level could impair the underlying asset and holders' claims.
- Systemic
Secondary-market liquidity is thin and platform-dependent. Despite the PMM and liquidity pools, tokens for a given property can be hard to exit at fair value; in a downturn or platform stress holders may face wide spreads, no buyers, or effective illiquidity.
- Smart Contract
Ownership, transfers and rent distribution rely on Algorand Standard Assets and Lofty's on-chain logic and custodial wallets. Bugs, mispriced AMM/PMM pools, or a compromise of the managed-wallet infrastructure could cause loss of tokens or funds.
- Collateral
Returns depend entirely on single, concentrated US residential properties. Vacancy, non-paying tenants, unexpected repairs, local market declines, or property damage directly cut rental yield and token value, with no diversification within a single property token.