How to Execute a Sell Order
One of the ways that Linqto stands out from competitors is by providing access to liquidity on your assets. In an asset class that is typically illiquid, Linqto members may enjoy the benefit of being able to redeem their investment.
Since our "sell" feature is essentially a buy-back, or "redemption", of your holdings, there is typically a spread between the price you see on the buy side versus the price we are able to buy it back for. There may also be a 10% fee for your redemption to cover the cost associated with the transaction.
Currently, 90 days is the mandatory holding period for all assets before they become eligible for a redemption. So long as liquidity is available, the “Sell” feature will be active for any asset in your portfolio after that time. Liquidity availability is based on our internal risk assessments. With that, selling is not always available for every asset and can be turned off for reasons including lack of demand from the buy-side, or a pending company event.
Creating and Submitting a Sell Order
After you’ve held your asset for at least 90 days, you may have the option to redeem your positions on Linqto by utilizing the ‘Sell Order’ feature. To do so, select the My Portfolio tab from the Account drop down.
Once here, you will be able to see all of the assets you currently hold. Select the asset you’d like to redeem, then the Sell button. If the Sell button is greyed out on this screen, it means that the asset you’re viewing is not currently able to be redeemed.
From the Sell Order Creation page, you can input the number of units you’d like to redeem. Once you’ve input this number, the transaction details will calculate, including any applicable fees and what your total proceeds will be if executed.
- PLEASE NOTE: The minimum Sell Order size is $5,000 (subtotal) or your entire position, whichever is lower. What this means is that if you have only $2,500 in holdings for one asset, you’ll be required to liquidate your entire position.
Once you click the Sell button on this page, you’ll be brought to the Sell Order Summary page for a final review of the transaction details. Clicking Submit will instantly execute your Sell Order and the funds will be deposited into your Linqto wallet.
You will also receive an Order Confirmation email with every order you place that includes the details of the transaction.
Frequently Asked Questions
Can I set the price at which my assets are redeemed?
Prices cannot be set for redemptions as our system is not peer to peer. Linqto is purchasing back the units.
Why is the selling price different than the buying price?
The difference between the buying and redemption price is referred to as the "spread". When redeeming your assets, Linqto is buying back the units from members, and, in order to reduce the risk of offering this service, a markdown is charged.
Why am I receiving an error message when attempting to redeem my holdings?
This is typically seen when there is not enough liquidity available for the asset. More liquidity will be freed up as more members purchase the asset, which will create more opportunities for redemptions. Reach out to our Customer Success team if you receive an error when attempting to redeem your assets.
When will my funds be available after a redemption?
After a redemption, the funds will immediately be added to your account.
Unable to find the answers you're looking for? Contact our Customer Success team here.