What is a Horse Lease Token (HLT)?
The Horse Lease Token (HLT) represents a fractional interest in the economic rights of a real, live racehorse for a set period of time. These may include rights to a share in any race winnings, potential breeding revenue or a portion of sale proceeds depending on the structure. Please refer to the Whitepaper and Token Terms (located in the Documents tab of the individual offering on the Tokinvest investor platform) for specific details of the asset-backed rights.
How are horses selected, and what data support their performance potential?
Each horse offered in the Tokinvest marketplace is selected based on its pedigree, training history, performance track record (if applicable), and detailed assessment by licensed equine professionals. You’ll find the horse’s race history, trainer credentials, and video footage in the asset profile and whitepaper.
Do I own part of the physical horse?
No. The token grants economic rights as detailed in the underlying lease only — such as a share of profits, winnings, or resale proceeds — not legal or physical ownership of the animal.
What happens if the horse is injured, becomes ill, or dies?
This is a known risk of investing in living assets. If the horse is unable to race or is euthanised, investors may lose some or all of their capital. The specific potential scenarios are outlined in the whitepaper, and any relevant insurance policy (if applicable) will also be referenced in the Whitepaper.
What returns can I expect from a horse token investment?
There are no guaranteed returns from the HLT. Returns from a horse token investment are variable and depend on several factors, including the horse’s racing performance and prize earnings.
It is important to note:
No guaranteed returns – The economic performance of a racehorse is uncertain and can be highly unpredictable.
High variability – Exceptional horses may deliver significant earnings, but many horses return little or no prize money.
Diversification helps – Investing across multiple horse tokens may spread risk and balance potential returns.
As with all investments, returns are not guaranteed. You should only invest what you can afford to lose and consider horse tokens as part of a diversified investment portfolio.
How often is performance or financial information updated? Where can I find this information?
Performance and financial information for First Gear will be published directly on its product page within the Tokinvest marketplace.
Race performance – Updates will be posted after each race so you can track results in real time.
Financial performance – Earnings and other key financial data will be reported on a quarterly basis.
Notifications – Investors will also receive updates via email, so you don’t miss important milestones.
This ensures you always have transparent, up-to-date information on how your investment is performing.
What are the key risks of investing in the economic performance of a racehorse?
Investing in a racehorse carries unique risks compared to traditional assets. Key risks include:
Performance risk – The horse may not perform as expected in training or competition, directly affecting earnings.
Health and injury risk – Horses are living animals and can suffer from illness or injury, which may limit or end their racing career.
Market and demand risk – The value of a horse’s economic rights depends on demand within the racing and breeding industry, which can fluctuate.
Management risk – Success also depends on the trainer, jockey, and stable decisions, all of which are outside an investor’s control.
Regulatory and event risk – Changes in racing regulations, unforeseen events (e.g. race cancellations, pandemics), or legal disputes can impact returns.
As with all investments, past performance is not a guide to future results.
What happens at the end of the lease period?
The Horse Lease Token (HLT) is a fixed-term investment. Its expiry date is aligned with the underlying horse lease and is clearly stated in the offering documents.
Final settlement – At expiry, any remaining cashflows due to the token (if applicable) will be distributed to investors.
Token closure – Once all obligations are settled, the token will be burned and will hold no further value.
This ensures a clear, transparent end to the investment lifecycle.
Can I visit the horse in person?
Yes, absolutely. Investors are welcome to visit First Gear at the stable. Simply contact us with your preferred dates, and we’ll coordinate with the trainer to arrange your visit.
Who can I contact about questions I have about the horse?
All information about the horse, its trainer and stables can be found within the marketplace listing and/or whitepaper. Should your question not be covered within those areas, please drop a note to the team using “Contact Us” and someone will respond to you as soon as possible.
What happens if I change my mind after I have purchased a token(s)?
Be sure to read all the relevant details about an investment within the marketplace, Risk Disclosure Statement and Brokerage Terms and Conditions ahead of making an investment. Once a purchase is executed, the token sale cannot be altered; however, if the token has a secondary market, it may be possible to sell to other potential buyers through the Tokinvest secondary market (liquidity is not guaranteed and is subject to market conditions).
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