Where does the name Liminal come from
Liminal is by definition something that occupies a position at a boundary. As Liminal is connecting the on-chain and off-chain world, the name was fitting.
I got offended by how expensive the current pension system is in Iceland to operate and thought that blockchain would be able to lower that cost. After investigation I found out that I can't set up a pension fund that invests in crypto since only securities are allowed, defined by law. I search for a project where you could buy securities and own those underlying assets but could not find it, so I had to make it
How do I know for sure you bought my securities?
With every trade a document is created by the broker. This document will be accessible in the user interface. This gives you all the details about the security. You should then be able to confirm with the broker or stock exchange that the securities belong to you.
Do I own the security and the underlying asset
Do I get dividends and voting rights
Why not put securities straight to blockchain? Why off-chain?
We believe that the fastest way to get securities on the blockchain is to create this bridge between the on-chain and off-chain world. Currently there are protocols setting up tools for companies to register their stock on the blockchain, this is the purest and the final destination, but will take time.
Why wouldn’t I use Synthetix or Mirror
Synthetix & Mirror you can buy securities, but you don’t own the underlying security. This is done with a pool of tokens to mirror the price of the synthetic. This can be limiting because of regulatory requirements. There is also risk in how those protocols implement the algorithm to keep the correct price of the securities.
Can’t I just sell my share by calling the broker and then sell it again through Liminal?
No. In theory, you should be able to sell your share by calling the broker, although this is not supported. But let's say you manage to do that and then try to sell it again through Liminal. Liminal would detect this and see that your shares have been sold and burn the tokens after you execute the order to sell them.
Can somebody at the broker company sell my shares?
In theory, yes, but this should never happen. Being in the off-chain world we need to trust people not to do bad things. This is where governmental oversight comes in.
Can the government take my funds?
In theory, yes, you are on the stock exchange, the same rules apply as in the “real” world.
Is Liminal fully transparent
What Liminal does is fully transparent but it uses a service that is not fully transparent. Since the stock market is not running on the blockchain that part will be off-chain. The parts that are off-chain are runned by licensed broker companies that follow governmental regulations.