HOW IT WORKS

Our all-in-one solution allows you to sell or buy your aircraft, yacht or car on your own online without assistance of third-parties. All processes are simple but comprehensive.

FREQUENTLY ASKED QUESTIONS

What is JetSet?

JetSet Smartplace is a technology platform that facilitates, automates and simplifies the sale of real-world assets through the use of emerging technologies. JetSet aims to revolutionize the aircraft, yachts, and luxury car industry.

What services does JetSet offer?

JetSet Smartplace offers its users:

a) conducting sales & acquisitions transactions in a structured step-by-step way;

b) automatically generated legal documentation;

c) digital signatures;

d) seamless online payments;

e) escrow services to secure each deal.

Does JetSet participate in sales transactions?

No. JetSet only runs a platform to facilitate trading of an asset (whether an aircraft, yacht, or car), allowing sellers and buyers to make secure and efficient sales transactions directly. Purchasers and sellers can interact, negotiate and agree upon the terms of the purchase directly or with the assistance of authorized third parties. JetSet, however, is not and will not be the owner, seller or buyer of any of the assets on the platform.

What benefits arise from using JetSet to sell or buy high value assets?

The platform allows to make P2P transactions between confirmed counterparties privately, securely and efficiently through the use of blockchain technologies, structured deal flow, automatically drafted legal documents, digital signatures and in-built escrow and payment solutions. The users benefit from time and cost savings, transparency of transactions and privacy.

What blockchain technologies are implemented?

Integration of non-fungible tokens, smart contracts, digital assets custody and cryptocurrency payments in the sales transactions provides privacy, security and transparency.

What tokens are used by JetSet?

We use Non-fungible tokens (NFT). Standard ERC-721. These tokens are unique and represent a single asset in its entirety. They are not interchangeable as compared to fungible tokens. NFTs are digital representations of assets on blockchain. They contain metadata (files) that describe or confirm the assets characteristics and/or associated rights. Metadata cannot be modified thus providing security and immutability of information on the asset and transactions.

Why Non-fungible tokens (NFTs) are used in sales transactions?

JetSet Smartplace implements the use of NFTs for its technological features and benefits that this type of token brings to the business process of selling and purchasing an asset. Non-fungible tokens in JetSet act as a token container model, or basket, that encapsulates all technical specifications of the asset, identity of the owner, photo of the asset, and related legal documentation (title, purchase agreement, bill of sale, warranty assignment, and more). Furthermore, NFTs can be easily integrated into smart contracts, implemented to facilitate and secure each deal between a seller and a purchaser.

What functions do assets’ NFTs accomplish in JetSet ecosystem?

NFTs in JetSet function as a blockchain tool that allow us to: enclose the asset’s information and legal documentation; confirm the owner's rights to sell the asset; confirm potential buyers’ intentions to buy the asset by reserving the token; grant access to buyers who confirmed their intentions regarding the seller and asset, previously maintained hidden; control the deal flow through the use of smart contracts; store digitally signed legal documents on the transaction; prove an asset's transaction on the blockchain.

Do assets’ NFTs have monetary value?

No. Assets' NFTs are used for the purposes of providing security and transparency of information on the asset and the transaction. They do not have an intrinsic monetary value. There is no price associated with an NFT created within JetSet's ecosystem. All processes associated with the title transfer are accomplished through a legally compliant sales process on the platform.

Can I sell an asset by selling the NFT?

No. NFTs of assets are just a tool to encapsulate the asset’s technical specifications and legal documentation. Assets still need to be sold by legally binding agreements and be registered in the corresponding registers.

How are NFTs of the assets created?

NFTs are created (minted) by the platform before publishing the listing. Costs associated with minting and transferring the NFT are covered by JetSet.

Where are documents stored?

All documents created on the platform or uploaded by parties of the transaction are stored on the Interplanetary File System (IPFS). This is a distributed file storage system that provides immutability of documents and limited access.

Who owns the NFTs created on JetSet?

Given the technical and non-monetary nature of an assets' NFTs, they will exclusively exist within the JetSet's ecosystem. To avoid misuse of NFTs or misunderstanding of their nature (e.g. non-tradability on a secondary market), NFT's are not allowed to be transferred to external wallets. However, parties of the sales transaction are granted full life-long access to the information and documents contained in the NFT in their private vaults on the platform.

Can I send the NFT to other wallets?

No. NFTs are used as a mechanism to encapsulate data and help the deal process during an asset transaction; they are not able to be transferred to other wallets outside of the platform.

Does anybody else have access to the NFT and documents?

No. Only the parties to a deal are granted access to the NFT and encapsulated documents.

Are sales transactions on JetSet legally compliant?

Yes. All transactions on JetSet Smartplace are compliant with local regulations and international standards. During a transaction all legal documents required by law or existing business practices are automatically drafted and digitally signed by the parties. 

How are sales transactions initiated?

To provide privacy and minimize time on pre-negotiation, JetSet offers direct owners and buyers (or their authorized representatives) a new approach to entering into sales transactions:

1. An asset's owner creates the listing with all information on the asset and ownership. He/she signs a public offer manifesting his/her intention to sell the asset and enter into negotiations. A listing is then published anonymously after minting the NFT that contains all asset’s information.

2. To get information on the asset and the owner, potential buyers interested in acquiring the asset need to confirm their intentions by placing a refundable deposit into their account on JetSet platform, either in cryptocurrency or fiat. This deposit will be used as a pre-payment for the asset if parties enter into a transaction. The NFT gets reserved in favor of the potential buyer.

3. The buyer and the seller get all necessary information on the potential counterparty and the asset. All participants must go through the compliance checks before they publish any listing or reserve the token.

4. The parties can start online negotiations on major terms and conditions (price, delivery location, scope of inspection, governing law and corresponding arbitration center). When parties agree on the terms, they continue to the next stage of the transaction.

How are sales transactions performed on JetSet? How comprehensive is the deal flow?

JetSet's deal flow is comprehensive, allowing parties to perform all necessary steps of a transaction online while complying with legal requirements and business practices. 

Based on agreed terms and conditions, a purchase agreement is automatically drafted and signed by the parties electronically. The timelines of the deal's steps are automatically generated to provide adequate time to accomplish them. Parties can renegotiate the timelines in the course of the transaction if necessary. 

The funds deposited by the purchaser are automatically transferred to the escrow account. They become refundable in accordance with the signed purchase agreement.  

The purchaser and the seller are advised on necessary actions needed to organize the pre-purchase inspection (if necessary) and discrepancies removal (if any). They discuss online the inspection facility, dates of inspection, upload an inspection report, sign necessary documents generated automatically, negotiate the scope of work, etc. At this stage, both parties can renegotiate the terms of the transaction including asset price.  

The final payment is deposited by the purchaser to the escrow account on the platform.

Parties confirm their pre-closing obligations including delivery of the asset to the delivery location, upload necessary documents, digitally sign closing documents. All documents on the transaction are added to the asset's NFT to be immutably stored on blockchain. Parties can access them at any time. 

On closing, the asset price is automatically transferred from the escrow account to the seller's account.

How required offline actions are managed?

Parties are advised on necessary physical actions needed to be taken to complete the transaction, such as pre-purchase inspection, discrepancies removal, deregistration, getting necessary official permissions, etc. The platform allows negotiating necessary aspects of these actions, uploading external documents, and approving them by counterparties.

Can I invite third parties to help me perform the transaction?

Yes. In case you need help you could invite other authorized parties (e.g. operators, internal lawyers) to assist you with the asset transaction, checking the legal documentation and assisting you with the asset inspection.

How are legal documents drafted and signed?

Each sale and purchase transaction under JetSet is performed by utilizing carefully drafted legal agreements prepared by qualified attorneys and highly-skilled professionals with exceptional expertise in the space. Legal documents are electronically signed using SignNow. Please be aware that the jurisdiction in which your company is registered recognises electronic signatures as a valid method of execution for the corresponding agreements.

What means of payment are available on JetSet?

Payment can be accomplished both in crypto currency and fiat. Crypto payments can be made in stablecoins only (USDC, USDT) to avoid risks associated with exchange rate fluctuations. Fiat payments can be made in US dollars.

Where are funds stored during the transaction?

For crypto payments, a top-tier 3d-party custody provider Fireblocks is integrated in the platform. All funds in the transaction are securely stored in separate accounts created automatically for the seller and the buyer. A multi-layer authorization system of Fireblocks guarantees safety of funds. For fiat payments, the platform is currently being integrated with leading banks providing services for international transfers and custody. These options will be available soon.

Who acts as an escrow agent?

There are no separate escrow agents. JetSet’s proprietary platform controls the flow of funds. Coupled with custody providers, the platform assures that funds in the transaction are stored safe and transferred only when all necessary conditions of the sales transaction are met. Deposits locked in the course of the transaction are stored on separate escrow accounts in Fireblocks or in a bank.

How can I manage my funds?

You can see the balances in personal and escrow accounts, make deposits and withdraw idle funds in the Vault section on the platform. Assets NFTs are also reflected in the Vault with all documents on each separate asset and transaction. Crypto payments and balances can also be traced on blockchain.

What fees are charged by JetSet?

JetSet charges a commission as a certain percentage of the asset price.

The size of the commission depends on the asset price (the higher the price, the lower the commission), but not higher than 1%.

The minimum and maximum amounts of the commission can be set by the platform. 

In what cases are fees charged by Jetset?

Fees are charged only in the case of a successfully closed transaction. If the deal is terminated by parties for any reason, fees are not charged.

Who pays the commission?

By default, the commissions are equally divided between the parties. An option to negotiate the distribution of commissions is also available.

What is included in the commission?

The commission covers all the costs associated with the platform functionality (compliance checks, digital signatures), minting and circulation of tokens, custody of funds, bank fees or gas for outcoming payments to parties' external accounts. The costs incurred by parties in the course of the transaction for offline actions and services (title search, asset relocation, inspections, etc.) are covered by parties directly and are not included in the commission.

What information is available to potential buyers?

When publishing the advert for sale, sensitive information (owner's details, serial and reg numbers, etc) is hidden. Potential buyers can evaluate their interest in buying the asset on general technical and usage information and get access to detailed data afterwards by confirming their eligibility and intentions.

Who can reserve the token?

Only potential buyers who undertook compliance checks (KYC/KYB/AML) are allowed to reserve the token to get access to data and start negotiations with the seller. To reserve the token, potential buyers have to place a totally refundable deposit in the designated crypto or fiat account.

Who is responsible for checking accuracy of data on the asset and the counterparty?

It is the responsibility of parties to check accuracy of information on the counterparty and the asset (title clearance, signee's authority, asset's characteristics, etc.). JetSet requires its users to provide this information but does not guarantee its accuracy. However, JetSet guarantees the identity of users and their KYC/KYB/AML compliance. 

What information is available on blockchain to external users?

Blockchain allows for transparency and traceability of operations with virtual assets. This allows JetSet's users to be confident on the funds and deal flows. 

However, this information is limited to unauthorized users. If the payments are accomplished in cryptocurrencies, external users can trace the amounts being sent between blockchain addresses (wallets) of buyers and sellers but the information on the owners of those addresses is unavailable. 

Payments in fiat are not traceable on blockchain.
Information (documents, files) contained in NFTs are encrypted by JetSet so they cannot be read by external users. These documents and files can be assessed by a seller or buyer in JetSet's Vault. 

What anti-fraud measures are used by JetSet?

We use Shufti Pro screening for Fraud Prevention, which includes:

• Robust combination of Machine Learning, A.I. and Human Experts

• Removing fake IDs use, and Identity Theft from the system

• Completing verification done in real-time to reduce change of bots

More info available at: https://shuftipro.com/industries/#fraud-prevention  

Are KYC/KYB/AML checks obligatory?

Yes. All individuals and legal entities are required to undertake compliance checks (KYC/KYB/AML) to be onboarded to JetSet. JetSet aims to provide the highest degree of compliance and trust to our users, this is why it is important for us checking users’ identity, verifying personal identifiable information and documentation, assessing users’ eligibility and risk, and providing accurate sanction, anti-money-laundering and fraud screening before accepting any user or undertaking any actions on JetSet. 

What jurisdictions are restricted from using JetSet?

You may not access or use the services offered by JetSet if you, as an individual, are resident or if your company is incorporated or operates from a jurisdiction that does not have adequate Anti-Money Laundering/Combating the Financing of Terrorism standards or represent a risk to our platform.