FAQ
Common questions about Mithril.
Straight answers to the 25 things investors ask before they wire money or sign a wrap agreement. No legalese, no marketing — if the answer is “it depends,” we say what it depends on.
S-01
What is Mithril?
3 questionsWhat is Mithril, in one line?
Mithril is a non-custodial interface that aggregates four ways to get exposure to private companies — tokenized equity, OTC secondaries, prediction markets, and private-company perps — in one account, across 71 companies.
Is Mithril a broker-dealer?
No. Slopshop Inc. (d/b/a Mithril) is not a registered broker-dealer, investment adviser, or securities exchange. We provide software that helps you discover and configure transactions; every trade is signed and broadcast from your own wallet. See the compliance page for a condition-by-condition map.
What is the SEC's April 2026 framework and why does it matter?
In April 2026 the SEC adopted a framework that lets accredited investors trade tokenized private-company securities through qualified interfaces without a registered broker-dealer in the middle, provided the interface is non-custodial, discloses fees up front, and does not give investment advice. Mithril is built to operate inside that framework. It does not change the underlying risk of the assets, but it removes the 3–5% broker spread and the multi-week settlement cycle that legacy venues inherit from the broker-dealer rulebook.
S-02
Getting started
4 questionsWho can use Mithril?
Tokenized equity and OTC secondaries are restricted to accredited investors in the US, plus non-US users outside OFAC-sanctioned jurisdictions. Prediction markets and perps are blocked for US users and available to non-US users outside sanctioned jurisdictions. Jurisdiction is checked at onboarding and enforced on every order.
Do I need to be accredited?
For tokenized equity and OTC, yes — net worth above $1M excluding primary residence, or annual income above $200K ($300K joint). We verify through our KYC flow. Prediction markets and perps have no accreditation requirement but are not available in the US.
What's the minimum investment?
Tokenized equity: $100 per trade — there is no separate “SPV” stack and no per-ticker minimum. OTC secondaries: $10,000 per deal, set by counterparties. Prediction markets and perps: no minimum beyond gas. Compare against Forge ($100K), Hiive ($25–50K), and EquityZen ($10–20K) on the compare page.
What wallets and chains work?
Any WalletConnect-compatible EVM wallet (MetaMask, Coinbase Wallet, Rainbow, Trust) for Base L2, plus Phantom and Solflare for Solana-based tokens (PreStocks). Fiat on-ramp is available through Coinbase Onramp, MoonPay, Transak, or direct wire. Ledger and Trezor hardware-wallet signing is supported through any of the above via WalletConnect.
S-03
Tokenized equity
4 questionsWhat does "wrapped" equity mean?
A seller who holds real shares (common or preferred) in a private company deposits them with a qualified custodian, and the custodian mints a 1:1 ERC-20 token representing that share. The token trades on-chain; the underlying share stays in custody. When someone unwraps, the token is burned and the share is released to them. Mithril uses Jarsy contracts on Base and PreStocks on Solana as the wrapping layer — we do not hold the shares.
How do I buy tokenized equity?
On a company’s trading page, place a limit or market order. Orders route through the Mithril CLOB plus external liquidity on Base (Uniswap-style pools) and Solana (Jupiter). You sign the transaction from your wallet; settlement is atomic and typically completes in under 10 seconds on Base. You can also buy directly from the explore page by clicking any company card.
What happens if the company IPOs or gets acquired?
On IPO, the wrapping custodian distributes the public shares to token holders on a 1:1 basis after the lock-up expires (typically 180 days). On acquisition for cash, the custodian distributes the cash proceeds pro rata. On acquisition for stock, new tokens representing the acquiring company’s shares are minted. Terms are set in the wrap agreement you sign at wrap time — we surface them in the UI before confirmation.
Can I transfer tokens to another wallet?
Yes. Tokens are standard ERC-20 (Base) or SPL (Solana) and can be transferred to any other wallet address, subject to the transfer-allowlist on the token contract. The allowlist blocks OFAC-sanctioned addresses; it does not block peer-to-peer transfers between accredited wallets. Transfers off-platform do not incur Mithril fees, only network gas.
S-04
OTC secondaries
4 questionsWhat's the OTC minimum?
$10,000 per deal. This is set by the counterparties — Mithril does not impose a floor. In practice deals cluster between $25K and $500K per lot; larger blocks are negotiated off the bulletin board.
How long does an OTC deal take?
From matched IOI to signed purchase agreement: 1–3 days on Mithril (versus 2–6 weeks on Forge / Hiive). From signed agreement to closed transfer depends on the issuer’s ROFR clock — usually 30 days. Cash escrow releases on the same day as share transfer.
How does escrow work?
Cash is held by a third-party qualified escrow agent (not Mithril). The buyer wires funds to escrow when the purchase agreement is signed. The seller delivers the stock power to escrow at the same time. When the issuer waives or exhausts ROFR, escrow releases cash to the seller and delivers the stock power to the transfer agent in a single atomic step. If the deal breaks, funds return to the buyer net of a small escrow fee.
Who handles ROFR?
The seller is responsible for notifying the issuer of the proposed transfer and running the ROFR clock. Mithril provides a templated notice and tracks the clock in-app, but the notice is sent by the seller (or the seller’s counsel) to the issuer’s corporate secretary. We do not act as the seller’s agent.
S-05
Prediction markets
3 questionsWhat can I bet on?
Discrete, resolvable events tied to the 71 covered companies: IPO timing (“Will X file an S-1 before Dec 2027?”), valuation milestones (“Will X raise at >$200B post-money by Q4?”), product launches, regulatory outcomes, and hiring milestones. You can see all live markets on the predict page.
How do I create a market?
Submit a market proposal from your profile: a resolvable question, a resolution date, a clear resolution source, and an initial YES/NO seed. Markets are reviewed within 24 hours for resolvability, then listed. As the creator you earn 2% of the market’s total volume in perpetuity.
How are markets resolved?
Resolution runs through the UMA Optimistic Oracle. At the resolution date an answer is proposed on-chain; anyone can dispute within the challenge window by posting a bond. Disputed markets go to a UMA token-holder vote. Resolved markets pay out automatically to YES or NO holders. Mithril does not adjudicate — we publish the market question, UMA publishes the truth.
S-06
Perps
2 questionsWhat are private-company perps?
A perpetual futures contract on a private company’s valuation — long or short, cash-settled, no expiry. The mark price uses a 5-second TWAP of the underlying tokenized pool when one exists, or a 2-venue index composite (Hyperliquid + on-chain) when it does not. Perps let you take directional exposure without ever wrapping or holding the underlying share token.
How does leverage work here?
Initial leverage caps at 3x for illiquid tickers and 5x for deep-book tickers — well below the 20–50x available on public-company perps, because private-company mark prices are inherently less liquid. Margin is posted in USDC. Liquidation runs at 80% of maintenance margin. Funding rate is recomputed every 8 hours based on the premium or discount of the perp to the index.
S-07
Fees & taxes
3 questionsWhat are the total fees?
Tokenized trades: 0.25% per side + 0.50% interface fee (0.75% round-trip total). Wrap: 1.5%. Unwrap: 1.0%. OTC: 0% if you bring your own counterparty, 1% if Mithril matches you. Prediction markets: 2% on volume. Perps: 0.04% taker, 0.02% maker. No payment for order flow, no hidden spreads, no platform fee on top. See the fees page for the complete schedule.
Who pays gas?
The user signing the transaction pays network gas directly from their wallet. On Base L2 a typical trade is under $0.10 in gas; on Solana a typical trade is a few hundredths of a cent. Mithril does not mark up gas, does not sponsor gas, and does not receive any portion of it.
Do I get a 1099?
For US accredited users: yes. At year-end we issue a 1099-B for realized gains and losses on tokenized equity and OTC transactions, and a 1099-MISC for prediction-market winnings above $600. Non-US users receive a transaction statement in the same format but no US tax form. Cost basis, wash-sale flags, and long/short holding-period splits are computed per lot.
S-08
Security & custody
2 questionsDoes Mithril hold my funds?
No. Tokens live in your own wallet under your own keys. Cash in active OTC deals is held by a third-party qualified escrow agent for the duration of the deal, not by Mithril. Wrapped-share certificates sit with the wrapping custodian (Jarsy on Base, PreStocks on Solana) — also not Mithril. Our code signs nothing on your behalf, and our backend never sees your private key.
What if Mithril shuts down?
Your tokens keep trading. The smart contracts for wrapping, unwrapping, trading, and escrow are deployed on Base and Solana independently of the Mithril interface — they can be interacted with directly through a block explorer or a different frontend. The wrapping custodians continue to honor unwrap requests independently. This is the point of a non-custodial design: nothing about your position depends on Mithril staying online.
Still have questions?
We answer every email from an accredited investor.
If something here is unclear or missing, the links below cover the technical detail, the legal posture, and the regulatory map.