> For the complete documentation index, see [llms.txt](https://liquidestate.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://liquidestate.gitbook.io/docs/documentation/faq-and-glossary.md).

# FAQ & Glossary

## Frequently Asked Questions

**Q: What exactly am I buying when I purchase a property token?**

A: You're buying a digital token that represents a **legally binding right** to a share of rental income, capital appreciation, and sale profits from a real property – held by a regulated legal entity.

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**Q: Am I becoming a shareholder or co-owner of the property?**

A: No. The legal entity is the sole owner on paper. You’re entitled to the **economic benefits**, not the legal title. This avoids complications and streamlines execution.

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**Q: Can I really invest with just $1?**

A: Yes. Thanks to tokenization and AMM liquidity, there’s no minimum investment amount. You can get exposure to real estate with as little as $1.

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**Q: How do I earn yield from my property tokens?**

A: Rental income and other profits are collected by the legal entity, converted into the property token, and distributed via **ERC4626 vaults** to all token holders proportionally.

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**Q: How can I sell my tokens? Do I need a buyer?**

A: No buyer needed. You can sell any time via our **AMM system**, where every property token is paired with **$leLIQD**, which in turn is liquid against USDT0. Always-on liquidity, no waiting.

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**Q: What is $LE and why is it important?**

A: $LE is the **platform and revenue-sharing token**. 10% of all platform profits flow back into $LE – making it the economic engine of Liquid Estate.

## Glossary

| Term                             | Meaning                                                                                |
| -------------------------------- | -------------------------------------------------------------------------------------- |
| **Tokenization**                 | Converting ownership or rights into tradable digital tokens                            |
| **ERC20**                        | A standard for fungible tokens on Ethereum and compatible chains                       |
| **ERC4626**                      | A vault standard that automates yield distribution to token holders                    |
| **GmbH**                         | German limited liability company – holds the real property in the land registry        |
| **AMM (Automated Market Maker)** | A smart contract that enables instant token swaps without needing a buyer/seller match |
| **$LE**                          | Liquid Estate platform token – buy & burn mechanic through platform profits            |
| **Vault**                        | A smart contract that receives income and distributes it to token holders              |
| **Liquidity Pool**               | A pool of tokens used to facilitate decentralized trading                              |
| **Yield**                        | Income generated from property (rent, appreciation, sale)                              |