Understanding the Price Buffer: Before Fees vs. After Fees

Splint Invest always shows two numbers for the price buffer on an asset: one before fees and one after fees. A user asked us to explain the difference, and we want to thank them for the question. Feedback like this helps us improve how we communicate our process.

Due diligence vs. monthly valuation updates

Splint Invest runs two separate valuation processes. The first is due diligence, which happens once before an asset is released on the platform. The second is the monthly valuation update, which happens after release and adjusts the asset's value over time. This article covers due diligence and the price buffer it produces. For details on the monthly valuation process, read our methodology update.

Why every asset needs a reference price

Every asset offered to Splint Invest comes from an expert. The expert must justify the price they propose. This proposed price is the price used in the app and the price investors pay.

Splint Invest does not rely on the expert's price alone. Our team independently calculates a reference price for the asset. This reference price is our own estimate of the asset's market value, based on the information available at the time.

The method we use to calculate the reference price depends on the asset and its category. For some assets, we have extensive transactional data, so the calculation is straightforward. For unique items, we may use an index instead, since comparable transactions are rare. If you want to know how we calculated the reference price for a specific asset, contact our team directly.

Price buffer before fees

Once we have a reference price, we compare it to the expert's proposed price. If the asset passes every other step of due diligence, we release it on the platform. At release, we show the price buffer before fees. This number compares the acquisition price of the asset to our reference price. It shows the conditions under which Splint Invest acquired the asset itself, before any additional costs are added.

Price buffer after fees

The acquisition price is not the final release value. Splint Invest adds the costs of storage, insurance, maintenance, transportation, and the platform fee. Adding these costs produces the final release value, which includes all fees.

We compare this final release value to the same reference price used earlier. The result is the price buffer after fees. In some cases, the final release value can exceed the reference price. When this happens, we show a premium after fees instead of a buffer.

Why we show both numbers

Showing the price buffer before fees and after fees separates two different things. The buffer before fees shows how well Splint Invest negotiated the acquisition of the asset. The buffer after fees shows the full economics of the deal, including all costs required to make the asset investable. Both numbers together give investors a transparent view of how the price was built.

What is the reference price?

The reference price is Splint Invest's independent estimate of an asset's market value. Our team calculates it during due diligence, using transactional data or an index, depending on the asset category.

What happens if the price buffer after fees is negative?

When the final release value, including all fees, is higher than the reference price, Splint Invest shows a premium after fees instead of a buffer. This means the asset is offered above our estimated reference price once all costs are included.

How is the monthly valuation update different from due diligence?

Due diligence happens once, before an asset is released. The monthly valuation update happens afterward, on a recurring basis, and adjusts the asset's value over time. Read more about the monthly valuation process in our methodology update.

Who can I contact to learn how a specific reference price was calculated?

Contact the Splint Invest team directly. We are happy to explain the method used for any specific asset.

Capital at risk. Forecasts and return scenarios are estimates and not guarantees. Please review the full investment documentation before investing.