Analyze fractional art, wine, collectibles, and alternative asset terms for illiquidity traps and hidden fees.
Fractional ownership of art and collectibles sounds exciting—until you can't sell.
Many platforms have no functioning secondary market. Your money is locked until the asset sells—which could be 5-10+ years or never.
Acquisition fees (1-5%), annual management (1-2%), storage/insurance, and sales fees (20%+ of profits). Returns must clear high hurdles.
Art and collectibles don't have market prices like stocks. Platform valuations may be optimistic. Actual sale price often disappoints.
Can't sell your shares for 3-5 years minimum. Even then, redemption depends on platform finding buyers.
Many offerings limited to accredited investors ($200K+ income or $1M+ net worth). Non-accredited options have more restrictions.
Art can be damaged or faked. Wine storage can fail. Collectibles markets crash. These aren't diversified investments.
Paste offering documents to identify illiquidity and fee risks.