Why Royalties
Royalties are recurring payments tied to the use or commercial performance of intellectual property and other contracted revenue streams.
Why royalties fit the strategy
Royalty cash flows can come from many sectors and counterparties. The launch materials describe exposure across entertainment and beyond, including music, television, pharmaceuticals, brands and energy-transition related royalties.
- Diversification can reduce dependence on one creator, title or sector.
- Royalty cash flows are economically different from typical crypto-native yield sources.
- Returns remain exposed to manager selection, valuation, liquidity and underlying asset performance.
Diversification
The underlying strategy is designed around a portfolio rather than ownership of a single song, film or patent. This means IP Vault share performance reflects the broader accounted portfolio and not one specific royalty stream.
Royalty income and yield
The Vault interface currently displays a 5–9% target yield. Target yield is an estimate rather than a promised return, and actual performance depends on the portfolio, NAV changes, costs, liquidity and timing.
Key risks
Royalty-backed assets are still investments. Values can fall, cash flows can underperform, RWA settlement can take time, and the Vault may not always have enough instant liquidity for immediate exits.