# Proceeds from Purchases

# Should Flamingo Members expect to receive any profit by contributing to Flamingo?

Purchases contemplated by Flamingo are inherently speculative and are made by the Flamingo Members or their express designees and agents. The results of Flamingo's purchases will likely vary from period to period, and purchases made by Flamingo will involve a high degree of financial and market risk that can result in a complete loss of any Member's contribution to Flamingo.

# If I'm a Member of Flamingo, what interest do I receive in any purchases that receive financing from Flamingo?

Flamingo will be the record holder of all securities and/or any other rights secured via Flamingo-related purchases. Members, acting via a vote via the Dapp, will have the right to determine the amount, timing, and form of all distributions related to proceeds from those purchases.

Since these are NFTs, Members reserve the right to fractionalize the NFT for the benefit of each Member, lend the collection to other gaming platforms, or show any purchased NFTs at digital galleries, etc. The Members have full discretion on how the NFTs will be used once acquired.

# How will proceeds be distributed?

Members will receive proceeds, if any, on a pro-rata basis based on the number of Flamingo Units each Member holds.

If a Member rage quits, the Member will be entitled to receive their pro rata portion of any undeployed capital. However, the Member will not be entitled to distribution with respect to any purchases made by Flamingo after the date the Member quits Flamingo.

Please note, that prior to proceed distribution, Members must provide a copy of the applicable Form W-9 or Form W-8, when requested by the service provider.

# Will proceeds be paid in Ether, Dai, or cash?

Members have the right to determine how proceeds will be paid.

# Can Flamingo recycle or reinvest proceeds?

Members acting by a majority vote (based on the number of Flamingo Member Units) may reinvest or retain for purchase any proceeds to effect Flamingo purchases, pay expenses (outlined here or otherwise provided for in Flamingo's Operating Agreement), or create reserves.

# If a Member votes against a proposed deal, but does not “ragequit,” will he or she still benefit from possible future profits? In other words, are all projects’ possible future returns shared equally amongst the members?

Yes, the Member would benefit from the future profits even if the Member voted against the purchases.  In effect, you're agreeing to the will of the voting members and if you don't like the decision you have the right to rage quit all or part of your undeployed Ether.

Last updated: 9/24/2020, 8:08:31 AM