Cost Breakdown and Revenue Sharing
Token Fleet maintains full transparency in how costs are structured and how revenue is shared to maximize investor returns. Every financial transaction is tracked on-chain, ensuring real-time visibility into earnings and expenses.
Initial Investment Breakdown
Each fleet’s total investment includes the following cost components:
- Vehicle Purchase Price – The base cost of acquiring the car(s).
- Company Fee (10%) – Covers operations, marketing, and administration.
- Security Deposit (10%) –
- Covers maintenance and unexpected expenses (e.g., major repairs).
- Returned to investors at the end of the investment term, minus unreplenished costs.
- Insurance Costs – Covers damage, theft, and liability (varies by vehicle type).
- Fixed Annual Costs – Includes registration, GPS tracking, storage, and other fees.
Example: Investment Breakdown for a Fleet
| Cost Component | Amount ($) |
|---|---|
| Car Purchase Price | $50,000 |
| Company Fee (10%) | $5,000 |
| Security Deposit (10%) | $5,000 |
| Insurance Costs | $2,000 |
| Fixed Annual Costs | $1,000 |
| Total Investment | $63,000 |
📌 Key Benefit: Investors see exactly how funds are allocated, ensuring full transparency from the start.
Revenue from Rentals
Each time a fleet is rented, earnings are distributed immediately.
💰 Revenue Split Per Rental Transaction:
- 70% → Claimable by investors on the platform.
- 30% → Allocated to platform operations:
- 10% → Maintenance reserve (routine servicing & minor repairs).
- 20% → Platform growth (marketing, service optimization, and expansion).
Example: Monthly Rental Income Distribution
| Total Monthly Rental Revenue | $4,000 |
|---|---|
| Investor Share (70%) | $2,800 |
| Maintenance Fund (10%) | $400 |
| Platform Growth & Operations (20%) | $800 |
📌 Key Benefit: Investors receive continuous passive income while ensuring vehicles remain in top condition.
Security Deposit Replenishment & Usage
🔹 Purpose: Covers unexpected vehicle-related expenses (e.g., tire replacements, major repairs).
🔹 Refill Mechanism: If funds are used, the next rental replenishes the deposit first before profits are distributed.
🔹 Documentation: All expenses are documented and visible on-chain, including invoices, receipts, and insurance claims.
🔹 Investor Refund: Any remaining deposit is returned at the end of the investment term.
Example: Security Deposit Replenishment Process
| Scenario | Amount ($) |
|---|---|
| Initial Security Deposit | $5,000 |
| Major Repair Expense | -$1,000 |
| Next Rental Revenue | $4,000 |
| Replenished to Deposit | +$1,000 |
| Remaining Rental Income for Distribution | $3,000 |
📌 Key Benefit: Investors never have to cover unexpected costs—funds are strategically managed.
Sale of the Fleet & Exit Strategy
At the end of the 4-year investment term, the fleet is sold at market value, and proceeds are distributed on-chain.
💰 Revenue Split Upon Sale:
- 90% → Claimable by investors.
- 10% → Allocated to platform operations and value retention efforts.
Example: Vehicle Sale Proceeds
| Sale Price | $40,000 |
|---|---|
| Company Share (10%) | $4,000 |
| Investor Share (90%) | $36,000 |
| Security Deposit Return | $5,000 |
📌 Key Benefit: Investors retain the majority of sale profits, plus their remaining security deposit.
Investor Returns Summary
✔ Rental Income: 70% of earnings per rental (claimable after each booking).
✔ Fleet Sale Proceeds: 90% of the final sale value.
✔ Security Deposit Return: Refunded at the end of the investment term, minus unreplenished expenses.
Company Earnings & Fund Allocation
🚀 Initial Fee (10%) – Covers platform operations, marketing, and administration.
🔹 Rental Share (30%) – Ensures fleet upkeep, service quality, and long-term growth.
📈 Sale Share (10%) – Supports sustainable operations and future expansion.
📌 Key Benefit: Transparent fund allocation ensures platform sustainability without hidden costs.
Investor Protection & Risk Mitigation
✅ Security Deposit System – Ensures major expenses are covered without affecting profits.
✅ On-Chain Transparency – All transactions are recorded on the blockchain, allowing investors to track earnings, expenses, and vehicle performance.
✅ Reinvestment Opportunities – Investors can roll over profits into new fleets for continuous earnings.
FAQs
What happens if the security deposit isn’t fully replenished by the end of the term?
Unreplenished amounts are deducted from the final security deposit return to investors.
Can the security deposit be used for non-vehicle expenses?
No, it is strictly for vehicle-related expenses such as repairs, replacements, and maintenance.
How often is rental income distributed?
Investors can claim earnings within 1-3 days after each rental.
Where can I track revenue and expenses?
All financial transactions are recorded on-chain, and investors can access:
📑 Rental earnings reports
📄 Maintenance & repair receipts
🚗 Fleet resale value & transaction history
Transparent, Profitable, and On-Chain
Token Fleet’s cost structure and revenue sharing model ensures maximum investor earnings with full financial transparency.
🚀 Invest today and start earning from real-world rental assets!