Part of the Crestox Legal Framework. By creating an account or participating in any capacity — as a Collector, Artist, Curator, or Owner — you agree to be bound by this document together with the other documents that make up the Crestox legal framework (Terms of Use, Risk Disclosure, Privacy Policy, Artist Agreement, and Secondary Marketplace Terms).
Effective Date: [Date]
Last Updated: [Date]
5.1 Introduction
These Secondary Marketplace Terms ("Terms") govern all activity on the Crestox Secondary Marketplace, through which Collectors may list Fractals for resale to other Collectors.
These Terms supplement the Crestox Terms of Use, which are incorporated by reference. Capitalised terms not defined in these Terms carry the meanings set out in the Terms of Use. In the event of a conflict between these Terms and the main Terms of Use, these Terms shall prevail with respect to Secondary Marketplace activity.
By creating a Secondary Marketplace listing or purchasing Fractals through the Secondary Marketplace, you agree to be bound by these Terms.
5.2 What Is the Secondary Marketplace?
The Secondary Marketplace is the environment on the Platform through which Collectors who hold Fractals may offer those Fractals for resale, and through which other Collectors may purchase them.
The Secondary Marketplace is distinct from the primary Marketplace:
- Primary Marketplace: Fractals are sold for the first time, by or on behalf of the Artist, Owner, or Curator.
- Secondary Marketplace: Fractals already held by Collectors are offered for resale between Collectors.
Crestox facilitates the Secondary Marketplace as a platform provider. Crestox is not a party to individual transactions between Collectors.
5.3 Creating a Listing
To list Fractals for resale on the Secondary Marketplace, you must:
- Hold the relevant Fractals in your Account Portfolio.
- Select the quantity of Fractals you wish to list.
- Set a price per Fractal in accordance with the Platform's pricing parameters.
- Select a listing duration, after which the listing will expire if not fulfilled.
By creating a listing, you confirm that:
- You are the lawful holder of the Fractals you are offering for resale.
- The listing price and terms are accurate.
- You are not engaging in any activity prohibited under Section 5.9 of these Terms.
Listings are subject to Crestox's review rights. Crestox may remove any listing that it believes violates these Terms or poses a risk to marketplace integrity.
5.4 Matching Logic and Purchase Execution
This is a fundamental feature of the Crestox Secondary Marketplace. Please read this section carefully.
When a Collector initiates a purchase of Fractals associated with a particular Artwork, the Platform automatically fills that purchase from the lowest available price source first, regardless of whether that source is a primary listing or a Secondary Marketplace listing.
This means:
- If a primary listing and a secondary listing for the same Artwork's Fractals exist simultaneously, your purchase will first be matched against whichever listing offers the lower price per Fractal.
- Multiple secondary listings may exist for the same Artwork at different prices. Your purchase will be filled starting from the lowest-priced available listing upward, until your requested quantity is fulfilled.
- You may receive Fractals from more than one listing at different prices if your order spans multiple price points.
This matching logic is applied automatically by the Platform. By initiating a purchase, you agree to this method of execution.
5.5 Pricing
User-Set Prices. Sellers set their own listing price per Fractal. There is no obligation to list at or near the original purchase price or any assessed value.
Market Dynamics. Fractal prices on the Secondary Marketplace are determined by the supply and demand behaviour of participating Collectors. Crestox does not set, guarantee, or manipulate secondary prices.
Price Reference Information. Where the Platform displays price history, average prices, or other market reference data, this information is provided for informational purposes only and does not constitute a recommendation to buy or sell at any particular price, nor a guarantee of future price performance.
Minimum and Maximum Pricing. Crestox may, at its discretion, apply minimum or maximum pricing parameters to the Secondary Marketplace for specific Artworks or categories. Where such parameters apply, they will be communicated to relevant Users.
5.6 Fees and Deductions
The following fees and deductions apply to Secondary Marketplace transactions:
Platform Fee. Crestox charges a platform fee on each completed Secondary Marketplace transaction, deducted from the seller's proceeds. The applicable fee rate is set out in the fee schedule published on the Platform.
Artist Royalty. Where a Secondary Marketplace royalty has been enabled for the relevant Artwork, a royalty deduction will be applied to each completed transaction and remitted to the eligible Artist or rights-holder. The applicable royalty rate, where applicable, is displayed on the relevant Artwork's listing page.
Taxes. Sellers are responsible for all tax obligations arising from Secondary Marketplace sales in their jurisdiction. Crestox does not withhold or remit seller taxes except where expressly required to do so by applicable law.
All applicable fees and deductions are disclosed at the point of listing and before any transaction is confirmed.
5.7 Settlement
Payment Flow. Upon a successful Secondary Marketplace transaction:
- The buyer's payment is processed by the Platform's payment infrastructure.
- The Fractals are transferred to the buyer's Portfolio.
- The seller receives their net proceeds (gross price less platform fee, applicable royalty deduction, and any taxes required by law) within the settlement period published on the Platform.
Settlement Timing. Settlement of proceeds to sellers is processed within [X] business days of transaction completion, subject to payment provider processing times and any applicable review or compliance holds.
Confirmation. Both parties will receive transaction confirmation from the Platform upon successful settlement.
5.8 Cancellations
Listings. A seller may cancel a Secondary Marketplace listing at any time before a buyer initiates a matching purchase. Once a purchase has been matched to your listing, the transaction is binding and cannot be cancelled by the seller.
Purchases. A buyer may cancel a purchase only before the Platform confirms execution. Once the Platform confirms that a purchase has been matched and executed, the transaction is binding.
Platform-Initiated Cancellation. Crestox reserves the right to cancel any listing or transaction where it has reasonable grounds to believe the transaction involves prohibited activity, including the activities described in Section 5.9, or where cancellation is required to meet Crestox's legal or regulatory obligations.
5.9 Market Integrity Rules
The integrity of the Crestox Secondary Marketplace depends on the genuine, independent participation of all Collectors. The following activities are strictly prohibited:
- Wash Trading: Buying and selling Fractals between related or controlled parties to create a false impression of trading volume or price activity.
- Artificial Price Inflation: Creating listings or coordinating purchases with the intent of artificially driving up the price of Fractals.
- Coordinated Activity: Coordinating with other Users to manipulate Secondary Marketplace pricing, demand signals, or trading patterns.
- Spoofing: Creating listings with no genuine intention to complete a sale.
- False Demand Signals: Any activity designed to mislead other Collectors about the actual demand for or value of any Fractal.
Crestox actively monitors Secondary Marketplace activity. Users found to be engaging in prohibited activity will be subject to immediate suspension, removal of listings, reversal of transactions where technically feasible, and referral to relevant authorities.
5.10 Suspicious Activity Monitoring
Crestox reserves the right to:
- Freeze Secondary Marketplace activity on any Account where suspicious or anomalous behaviour is detected.
- Request supporting documentation or verification from any User in connection with Secondary Marketplace activity.
- Remove listings and withhold settlement pending the outcome of any investigation.
- Refer activity to law enforcement or regulatory authorities where required.
Crestox will communicate with affected Users in connection with any such action to the extent permitted by applicable law and its legal obligations.
5.11 No Liquidity Guarantee
Listing a Fractal for sale on the Secondary Marketplace does not guarantee that it will be sold.
The Secondary Marketplace operates on the basis of genuine supply and demand. Crestox does not guarantee:
- That any Fractal listed for sale will attract a buyer.
- That any Fractal will sell at or above the listing price.
- That any particular level of secondary market activity will exist for any Artwork's Fractals at any time.
Fractals should be considered illiquid assets. You should not list or purchase Fractals on the basis of an assumption of liquidity.
5.12 Dispute Resolution
Failed Transactions. Where a transaction fails to complete due to a technical error, payment failure, or Platform issue, Crestox will investigate and, where appropriate, restore the relevant Fractals and/or funds to the affected parties' Accounts.
Settlement Disputes. If you believe that a Secondary Marketplace transaction has been settled incorrectly, you must notify Crestox via support@crestox.com within [X] days of the transaction confirmation date. Crestox will investigate and respond within a reasonable timeframe.
Marketplace Complaints. All complaints regarding Secondary Marketplace conduct — including suspected market manipulation or prohibited activity by other Users — should be submitted to compliance@crestox.com. Crestox will investigate all complaints but may not be able to disclose the outcome of investigations where doing so would breach its legal obligations.
Escalation. Where a dispute cannot be resolved through the above process, the dispute resolution provisions of the main Terms of Use apply.
5.13 Amendments
Crestox may amend these Secondary Marketplace Terms at any time. Material changes will be communicated with reasonable prior notice. Your continued use of the Secondary Marketplace following the effective date of any amendment constitutes your acceptance of the revised Terms.
5.14 Contact
For Secondary Marketplace enquiries, contact: support@crestox.com
For compliance and market integrity concerns: compliance@crestox.com
All five documents in this legal framework — Terms of Use, Risk Disclosure, Privacy Policy, Artist Agreement, and Secondary Marketplace Terms — are intended to be read together. Definitions established in the Terms of Use apply throughout. In the event of a conflict between documents, the more specific document shall prevail to the extent of the inconsistency.
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Related Documents
This document is part of the Crestox Legal Framework. For the complete framework, also see: