Pre-IPO Transactions

Create a Transaction to provide Monark the information required to facilitate an investment on the primary issuance of a PreIPOCompanySPV. *Please Note: This API call constitutes a binding legal commitment on behalf of the investor. Please ensure that all prerequisites, signatures, and disclosures have been satisfied and that sufficient investor funds are available for the transaction prior to creating a Transaction. Alternative investments are non margin-able securities. As such, they cannot be purchased on margin, and investors must use their own funds to buy these assets.

Transaction can be created on a 24/7 basis. There are no "trading hours" associated with creating Transactions.

Logic to Create Pre-IPO Transactions

When creating Transactions, there are a few requirements that must be met:

• The amountReservedDollars must be larger than the minCommitmentAmount in the associated SPV, unless theremainingDollarAllocation is smaller than the minCommitmentAmount. If the dollar amount remaining in the SPV is less than the minimum commitment amount, the last investor must take all remaining dollars. In other words, if the remainingDollarAllocation is smaller than the minCommitmentAmount, then the amountReservedDollars in the last investor's Transaction must be equal to the remainingDollarAllocation in the SPV.
• The amountReservedDollars must be a decimal up to two decimals. Monark supports fractional shares, and we calculate the fractional number of shares allocated to each transaction, up to 9 decimal places.
• The amountReservedDollars of the Transaction must be less than or equal to the remainingDollarAllocation in the associated SPV.
• Investors can only have one Pendingor Processing Transaction at a time, per SPV. If an investor tries to create a Transaction while they have an open Pendingor Processing Transaction in that SPV, an error will be returned. If an Investor tries to create a Transaction while they have one or multiple Rejected Transaction, the Transaction will be processed normally.
• The SPV associated with the Transaction must be in PRIMARY_FUNDRAISE.
• The SPV must be approved, which can be done through the Monark Alts Desk or via API, using the /primary/v1/pre-ipo-company-spv-partner-approval/spv/{spvId}/approve endpoint.

The system will reject any Transaction that is submitted if all of the above criteria are not met.

Frontend Suggestion

When creating the frontend experience that will enable investors to submit Transactions, Monark suggests collecting from the user the dollar amount of their transaction, up to two decimal places. Partners should then display to the user an estimate of the number of shares that they will receive, which can be calculated by taking the dollar amount input by the user and dividing it by the allInPricePerShare of the associated SPV.

Here's a samplevideo of what this might look like in the frontend. Note the dynamic "shares to receive" field that continuously updates as the user changes their intended investment amount.

Completing Transaction Actions

**After creating a Transaction, the investor must complete a series of Transaction Actions in order for their Transaction status to be marked asCOMPLETE - at which point they will be accepted into the SPV. Transaction Actions can be executed via the Complete Transaction Actions, or by signing documents through the Document Signature endpoint.