Glossary
Key terms used on OpenHouse, explained in plain language.
Glossary
Key terms used on OpenHouse.
A
AML (Anti-Money Laundering) Regulations designed to prevent criminals from disguising illegally obtained funds as legitimate income.
APY (Annual Percentage Yield) Total return on an investment over one year, including compounding.
B
Base The Ethereum layer-2 network OpenHouse runs on. It offers Ethereum's security with lower costs and faster transactions.
C
Claim The action of collecting your yield distribution to your wallet.
Contractual Rights Legal entitlements created by agreement between two parties. Your tokens give you contractual rights to economic benefits from property — not ownership of the property itself.
D
Distribution Monthly division of rental income among shareholders based on a snapshot date.
E
ERC-20 The technical standard for tokens on Ethereum-compatible networks. Your property shares are ERC-20 tokens.
K
KYC (Know Your Customer) Identity verification required before you can invest.
L
Liquidity Pool Reserve funds that enable you to buy and sell without waiting for a counterparty.
N
Net Yield Rental income after the 8% property management fee is deducted. This is what gets distributed to shareholders.
P
Property Management Fee 8% of rental income, deducted before distribution. The only ongoing cost taken from rent.
S
SPV (Special Purpose Vehicle) A limited company created to hold a single property. Each OpenHouse property is owned by its own SPV. The SPV is owned by OpenHouse, not by token holders.
Synthetic Phase The period before a property is acquired. Your shares are backed by treasury funds, not real property. You hold contractual rights, not ownership.
T
Token Holder Someone who holds OpenHouse property tokens. Token holders have contractual rights to rental income and capital appreciation. They are not shareholders in the SPV or legal owners of property.
U
USDC A stablecoin that maintains a 1:1 value with the US dollar. All transactions on OpenHouse happen in USDC.
Unsecured Creditor Someone owed money without collateral backing the debt. If OpenHouse fails, token holders are unsecured creditors — meaning they have a claim, but it ranks below secured creditors.
Y
Yield The return you receive from your investment. In the synthetic phase, yield comes from treasury. In the real asset phase, yield comes from rental income.
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