# 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.

***

**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.

***

**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.

***

**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.

***

**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.

***

**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)                              |


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://liquidestate.gitbook.io/docs/documentation/faq-and-glossary.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.