Film royalty share risk disclosure
This document is the per-film counterpart to the $bMovies prospectus. It applies to every BSV-21 royalty share issued against an individual film on the bMovies Platform — pitch, trailer, short, or feature. Before committing to any film commission, read the $bMovies prospectus first (for the issuer, custody, and regulatory framing) and then this document (for the film-specific risks).
1. What you are buying
When you commission a film on bMovies at any of the four tiers (pitch $0.99, trailer $9.99, short $99, feature $999), you receive 99% of that film's royalty shares as a BSV-21 token on Bitcoin SV. The remaining 1% is retained by the Platform as its infrastructure fee. The token gives you a pro-rata right to that film's ticket revenue.
If your film was commissioned as a derivative of an existing trailer or short in the catalogue, the IP cascade applies and your share percentage is reduced as described in the Terms of Service §6.
2. The Issuer's view: these are likely securities
Film royalty shares, like $bMovies, are treated by the Issuer as likely financial instruments under the UK Financial Services and Markets Act 2000. They give the holder a passive expectation of revenue from a common enterprise operated by third parties (the AI agent swarm), and as such they are at least arguably within the FCA's definition of a collective investment scheme or a specified investment.
Consequences: KYC is required before delivery, the offer may be restricted by jurisdiction, and the Issuer is in the process of mapping its activities to the FCA perimeter.
3. Non-custodial delivery
Film royalty shares are delivered directly to a BSV address you control. The Platform does not hold your private keys. See the Non-custodial disclosure for the full explanation of what that means for your rights and your operational responsibilities.
4. Film-specific risks
The film may not be made
AI production pipelines fail. Your commission may be partially delivered, significantly delayed, or abandoned. The Issuer will attempt to deliver every commission in full and will offer a refund path for abandoned commissions at its discretion, but this is not a contractual guarantee.
The film may be bad
This is not a flippant risk disclosure. The commercial value of a royalty share depends on how many viewers pay to watch the film. An AI-produced film that no one wants to watch generates zero revenue and your share is worth zero. There is no minimum floor on creative quality. You should assume most films will fail to attract any meaningful audience, and structure your commissioning budget accordingly (i.e. commission with money you are prepared to lose in full).
The cascade may not work in your favour
If you commission a derivative of an upstream trailer or short, the upstream holders receive a perpetual cascade of 5–10% of your revenue. This is disclosed clearly at commission time, but it is worth emphasising: the cascade is forever, and it is paid from your side of the split.
Copyright and likeness risk
AI-generated films may inadvertently reproduce copyrighted material or resemble real people. The Issuer takes reasonable steps to prevent this but does not warrant the outputs are free of such risks. If a completed film is subject to a valid takedown request, it may be removed from the catalogue — removing its revenue stream and, effectively, the value of its royalty shares.
Content moderation risk
AI safety guardrails may reject a commissioned idea, reduce the ambition of the output, or generate milder content than the commissioner intended. Refunds for commissions that hit safety guardrails are handled on a case-by-case basis; the Issuer does not warrant a specific outcome.
Platform risk
As with $bMovies, the film royalty share mechanism depends on the bMovies Platform operating. If the Platform shuts down, your tokens continue to exist on the BSV blockchain but the ticket-sale distribution path may cease. See the $bMovies prospectus §8 "Platform risk" for the detailed case.
Secondary market illiquidity
Like $bMovies, film royalty shares can be listed for sale on the Platform's exchange or peer-to-peer on 1sat.market. Neither venue guarantees a counterparty. You may not be able to sell on demand.
5. Revenue math, in full
A ticket priced at $2.99 sells. The film's royalty pool receives $2.96 (after the 1% platform fee). That pool is distributed to holders pro-rata. If the film has only the commissioner (holding 990,000,000 out of 1,000,000,000 shares, i.e. 99% because the cascade doesn't apply to fresh commissions), the commissioner receives ~$2.93 of that ticket. Ten tickets → ~$29.30. One hundred tickets → ~$293. One thousand tickets → ~$2,930.
To recover a $999 feature commission, the film must sell approximately 340 tickets to viewers who were not already shareholders. This is not a guarantee; it is an accounting calculation.
6. How to verify this document is current
The canonical version lives at https://bmovies.online/legal/film-token-risk-disclosure.html. When a lawyer-reviewed edition is published, the draft warning will be removed and a "Reviewed by [firm] on [date]" stamp will appear above.
7. Contact
Questions to online.bmovies@gmail.com.
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$bMovies prospectus ·
Non-custodial disclosure ·
Terms of Service