FAQs - TheArt.Exchange

TheArt.Exchange
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Introduction
Market opportunity
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FAQs
What is The Art Exchange (TAEX)?
TAEX is the first platform for trading peer-to-peer crypto assets linked to art prices. TAEX does not offer any trade execution or clearing services. To put it simply, TAEX is a software that enables the execution of contracts and validates the transactions, without getting in any way involved in the transactions and agreements among the parties.
Which blockchain do you use?
We build the platform and the wallet on Ethereum.
Can I participate?
You can unless you are:
a US person (as defined in the Securities Act of 1933, as amended); or
a citizen or resident of Canada; or
a citizen or resident of Japan
We are working to comply with the legislations of the above-mentioned countries and provide access to everyone. 
Are you a cryptocurrency?
No, but you can deposit stablecoins like DAI, USDC, USDT, which are digital analogs of dollars, used in blockchain. Currently, we don’t provide our own cryptocurrency or tokens.
Will you have an ICO? No, we are a privately-owned company and we prefer to raise funds privately.
Is it legal?
Yes, it is. We built the platform following the best practices and in full compliance with the financial sector regulations. Currently, the market lacks dedicated blockchain legislation. We closely follow its development and once in place, the flexibility in the design of the platform will ensure that any new regulations are matched accordingly.
How can I log in to the platform?
You need to scan the QR code with a wallet and then confirm the login.
What is a wallet? Why do I need one?
A ‘wallet’ is a core component of a blockchain system. In line with blockchain principles, users will need a wallet to scan the QR code to access the platform, sign the transactions and manage balance. This way, we eliminate the need to store users’ account details, making the platform more secure. A wallet is composed of two parts: a ‘public address’ and a ‘private key’. A good metaphor for this is ‘a mailbox’ and ‘a mailbox key’. Anyone can drop anything in the mailbox, but only the owner of the private key can open it up and access it. The link between a ‘public’ and ‘private’ key is rooted in public-private key cryptography. The private key usually can be found in the settings section of a wallet.
What wallet can I use?
You can use our own The Art Exchange Wallet for Apple and Android or any other compatible wallet, including a browser wallet.
What is a recovery phrase?
As we don’t use passwords to log in, you’ll need to have a way to confirm your identity if you want to access your wallet. In blockchain, it is done with a 12-word recovery phrase. You will need to write down the phrase and keep it in a safe place, where others can’t get hold of it. If another person gets access to your phrase, they can use it to access your wallet and your funds. You can start using the wallet specifying your email and set up a recovery phrase later.
What happens if I lose access to my wallet?
If you lose your recovery phrase, it will be impossible to restore your access to the wallet and to your funds.
Do I need to pass KYC checks?
Currently no. A user deposits money to The Art Exchange wallet through a third-party authorized organization or from another cryptocurrency wallet. In both ways, it is the third party that runs KYC checks.
How do you select works?
The Art Exchange experts cherry-pick the most interesting artworks among those to be offered on the evening sales by one of the auction houses. An evening sale tends to offer more valuable and more expensive works and attract more press attention.
How do I place an order?
To place an order, you have to select one of the lots listed on the platform and try to guess its hammer price (for how much it will be sold in the upcoming auction). We provide the auction house lower and upper estimates to guide your decision. To place an order, you’ll need to specify an estimate breakeven and position. For example, if you want to place an order that a painting will sell for at least 200,000 DAI, put 200,000 as the estimate breakeven and select the ‘long’ position. In the nominal, specify how much money you want to ‘bet’ on your assumption. In the lower part of the screen, you’ll see the calculator that will help you estimate your possible gain.
What is the matching probability?
As ‘art derivatives’ are contracts between two or more parties, the matching probability indicated how easy it will be to find another person to finalise the contract. If the possibility is low, you can place the order, but it may take time to find a match. It may happen that the match won’t be found.
What happens after I place the order?
Once your order is matched, the system will block the specified sum of money from your account until the auction. Once the lot is sold, you will receive payout in case your prediction was correct. If your order is still ‘matching’, you can cancel it.
What if I don’t have enough money on my account?
The system won’t allow you to place the order.
Can I cancel my order?
Only if it hasn’t been matched yet. You can try to offset your order with another order though.
How is the possible gain calculated?
We use the following formula:
When can I place the order?
You can place the order as soon as a lot appears on the platform until the beginning of the sales at an auction house (the sale time is taken from auction house official website).
What happens if the lot fails to sell?
The money will be returned to you within 14 days. In the future, we will add an insurance against non-sale to our platform.
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Last modified 1yr ago