A security deposit is a measure used to cover any losses suffered by the rental property, however, handing over the funds to the other party for storage is an issue of trust. The paying party cannot be certain that the deposit has been stored safely and that the other party will return the deposit. Furthermore, at the end of the agreement, it can take weeks for a lessee to receive their deposit back, and there is a potential for disputes to be resolved in courts, taking up even longer periods of time.
RxEAL is a solution for eliminating a growing number of fraud cases in rental transactions associated with unfair withholding of funds from the security deposit at the end of the rental agreement by providing an interface to engage in these activities using smart contracts requiring no technical knowledge. Not only does RxEAL solve the aforementioned problem, it also provides much faster deposit return rates and cost effectiveness compared to current off-chain solutions.
The number of people involved in real estate, car and other rental transactions is greater than ever. The favorable conditions for travelers, emerging economies and the increasing flow of human resources across borders are causing a rapid growth in the number of transactions.
Global real estate industry had total revenues of 3.5 trillion USD in 2016. In United States alone, the total number of renters in October 2017 was almost 112 million while the number of landlords was almost 23 million.
RxEAL has all the potential to become a one-stop-solution for security deposit transactions in ever growing rental markets.
By combining blockchain technology with everyday rental transactions we are able to build an entirely new way for users with no technical knowledge to take advantage of the benefits offered by smart contracts.
RxEAL is an interface designed to create and deploy smart contracts for rental security deposit storage on the Ethereum blockchain in the form of cryptocurrencies providing the ability to interact with the smart contract during the course of the agreement. Additionally, RxEAL provides a decentralized dispute resolution process ensuring the fair and timely security deposit distribution at the end of the contract term.
All service fees are paid exclusively in RxEAL token – RXL. Fees are calculated based on the security deposit amount in USD equivalent. This approach prevents the service fee from being affected by the token price fluctuations.
The current pricing model is lessor orientated where lessors use the RXL to pay for the contract deployment. If the dispute is initiated, additional arbitrator commission is paid in RXL tokens.
Proposed rates are as follows: 2.3% for 0-1500 USD equivalent deposits (minimum 4USD); 34.5 USD + 0.3% for 1500.01+ USD equivalent deposits; fixed arbitrator commission of 9 USD equivalent in case of the dispute.
This model provides competitive pricing for clients and ensures efficient function and profitability of the company, while at the same time providing a financial initiative for arbitrators.
Security deposits will stored in Ethers (ETH), meaning that users are required to be in possession of Ethereum wallets and ETH tokens in order to use the services provided by RxEAL.
Additional options for storing security deposits in Dai Stablecoin will be provided.
How can one be sure that stored deposits are safe?
The main security benefit arises from the operating principle of the RxEAL platform. RxEAL is an interface designed to create and deploy smart contracts; we do not store deposits nor do we have any access to the funds kept in the smart contracts.
Deposits are stored inside the smart contracts on the nodes within Ethereum network and are irrevocable by any party unilaterally unless a previously programmed condition both parties agreed on is triggered by a smart contract. This approach eliminates the possibility of breaching the contract terms.
Smart contracts are available for public inspection which means that any malicious intent inside the smart contract code would be discovered by the community, competitors or anyone inspecting the contract.
RxEAL will offer an alternative to standard ETH security deposits in form of ERC20 standard compliant Dai Stablecoin.
Dai is a cryptocurrency that maintains stable value against USD. Ultimately, this option will ensure that upon contract termination users will receive the amount of ETH relative to the value of the USD that was initially deposited.
Considering that the volatility of cryptocurrency is one of the main factors that discourages people from using it, the implementation of Dai deposits would notably expand the client base.
If the lessee does not agree with the split between themselves and the lessor, the dispute can be initiated by paying an arbitrator commission in RXL tokens. The dispute process involves providing information by both parties supporting their claims. Our legal experts will prepare the template with all the required information to be provided in a simple and understandable manner allowing to conduct dispute review in the shortest time possible.
The dispute will be handed to arbitrators who are registered on RxEAL platform for review and the decision-making process. Three verified, independent and randomly assigned arbitrators will review each case and the result will be determined by the decision of the majority based on the evidence each party has provided. Each arbitrator will receive an equal share of the RXL tokens from the arbitrator commission. To become a verified arbitrator the user will have to pass an online test to prove they are qualified to participate in the dispute resolution.
RXL token is a crucial element of RxEAL platform and ensures flexibility and control over the project growth. Payments for services, payouts to arbitrators and other interactions with platform will be exclusively conducted in RXL.
RXL will be distributed during the token sale. The proceeds will be used for the project development and business expansion according to the roadmap.
Early adopters and token sale participants will be able to first use the RxEAL service at discounted rates once it is available for limited user base as a first phase of the release. Companies and individuals in possession of RXL tokens will be able to first profit from the competitive advantage RxEAL enables.
Being a native platform token, RXL will directly correlate with the success of the RxEAL, resulting in the increased demand for the RXL, therefore benefiting RXL holders.
Ann is the owner of the apartment and offers it for rent for 1000 USD a month. John wants to rent Ann’s apartment for a year and they sign the rental agreement. Ann asks for the security deposit of one months’ rent.
John wants to use RxEAL to ensure his deposit is stored safely and returned timely without the unfair withholding. Ann and John create accounts on RxEAL platform. Ann creates a smart contract with 1000 USD equivalent storage in supported cryptocurrency and defines the timeframe, whole process is performed easily inside a user friendly interface. John reviews the contract, accepts it and sends cryptocurrency to the smart contract address. Deposit is safely stored on the Ethereum blockchain throughout the course of the agreement.
When the contract term comes to an end, Ann wants to withhold the 200 USD equivalent of deposited cryptocurrency for the property damage and proposes the split to John. John does not agree with Ann’s decision and believes Ann’s claim is unfair, he evaluates the damage done to the property as a regular wear that he cannot be held eligible for. John initiates the dispute and pays arbitrator commission. Both parties submit documents and visual materials supporting their claims within the allowed timeframe. Three verified, independent and randomly assigned arbitrators review the case including all the supplied documents. One arbitrator takes Ann’s side, while other two arbitrators vote in John’s favor, the decision is made by the majority. The security deposit is returned to John in full.
RXL token is a native platform token and is required to use RxEAL products. Service fees, payouts to arbitrators and other interactions with platform will be exclusively conducted in RXL.
The value of the RXL token directly correlates with the success of the RxEAL platform. Given the fixed token supply, increase in RxEAL service usage directly leads to an appreciation of the token value making RXL a valuable asset for its holders.
Early token pre-sale and sale participants will be able to benefit from the bonus rates RXL will be distributed at. The base price is 1 ETH = 1200 RXL, while the bonus price for pre-sale participants will be fixed at as low as 1 ETH = 2400 RXL.
Additionally, RXL token holders will be able to first use the RxEAL service during the limited access development phase.
To benefit the RxEAL ecosystem, we will be working towards listing RXL on major exchanges that are able to provide large trading volumes and continuous liquidity.
Given the fact that the RXL token is a utility token and its purpose is the use of RxEAL services, we strongly believe that listing tokens on exchanges prior to service release will only be driven by speculative motives. Considering this, we will be listing RXL on exchanges when we have the final product on the market but no later than 3 months starting from the first token sale round.
The token pre-sale will begin on January 15th at 12:00 UTC and end on February 5th at 12:00 UTC or upon reaching the token pre-sale cap.
The token sale will begin on March 12th at 12:00 UTC and end on May 11th at 12:00 UTC or upon reaching the token sale hard cap.
What is the token sale policy?
Total token supply is 96,000,000 RXL, there will be no more tokens issued. During the token sale process, we will offer a total of 56% of RXL tokens that equals 53,760,000 RXL. This number consists of 6% pre-sale and 50% main sale tokens. The unsold tokens from pre-sale will be transferred to the main sale, therefore, the total number of offered tokens will equal 56% in all scenarios.
The minimum cap is the lower target for the token sale that consists of the pre-sale and the main sale. If 300 ETH are not raised, all contributions received during the main sale will be returned to their sender address by the sale contract, while amount raised in pre-sale will be used for the main sale promotion.
If soft cap is reached and there are any outstanding tokens left, they will be burned decreasing the total supply.
In case the number of tokens sold is between the minimum cap and the soft cap at the end of the token sale, any outstanding tokens will be offered in a shortened second contribution round no later than 3 months after the initial token sale completion. This approach will allow RxEAL to deliver the final product and to conduct a marketing campaign for the second contribution round to raise additional funding for future development and market expansion, thus benefiting the token holders. The token allocation percentages will be recalculated after the second round and tokens will be redistributed to the company reserves, the team and bounty program based on the final total supply. Any outstanding tokens after the second round will be burned.
Upon reaching the hard cap no more contributions will be accepted.