About the sale of artworks on Art-Derivatives.com

The artworks for sale on Art-Derivatives.com are financial goods in the form of digital files. These files can be thought of as physical pieces of art composed of digital objects and their certifications by the artist. The digital objects and financial goods sold on this site are artworks made by the artist Paolo Cirio using visual compositions of numerical values overlayed on photos of artifacts sold at art auctions. The digital artworks for sale have higher resolution (on average 2000px) than the thumbnails and they can be freely printed or shared online once they are bought on this site. The signed document of the certificate of authenticity and agreement must remain private. All artworks are unique editions and their value increases based on the terms of the sale agreement. All the revenues from the sales will be used to fund the regulation campaign.


Follow these simple steps for the artwork you would like to buy:

  1. Read and sign the agreement for buying the artwork. The agreement is a simple contract with terms that designate your ownership and future value increases of the artwork you buy. The agreement is signed online before purchasing but it will be valid only after the payment is completed. The purchase is private; your name and data will not be published or disclosed.

  2. Make the payment for the artwork you want to buy. Artworks are purchased via PayPal individually. After payment you will be redirected back to the site for the delivery of your artwork. PayPal is secure and the payment will be made toward the company Paolo Cirio LTD. After the payment you will be redirected to Art-Derivatives.com for delivery of the artwork.

  1. Receive the artwork via email and verify it. Once payment is completed you will receive the artwork via email with the certificate of authenticity and agreement document signed by the artist. Authenticity and property of the artwork can be verified simply by comparing encrypted signature ids on the page of the artwork bought on Art-Derivatives.com.


How the price of the artworks is calculated

The prices of individual artworks on sale on Art-Derivatives are the 0.00001 percent of the price or estimate publically reported by the auction house. Such price records are indicated as Price Point Value and they are determined by the hammer price at auction or the maximum amount estimated for the artifact in case it failed to sell. Estimates are also considered value points since they dictate the way people perceive the value of an artist and their work. For each time the same artifact went to auction there is a unique artwork on Art-Derivatives.com and a related Price Point Value. The final sale prices and Price Point Values are always indicated in USD dollars and they were converted from other currencies on March 1st 2020.

Eventual prints of the artworks are considered mere physical reproductions of digital objects. The financial value is detached from the material and form of the artwork whether reproduced digitally or physically and it is only determined by the signed certificate of authenticity and agreement document.


How the value increase of artworks is calculated

The artworks can be resold only 5 years after purchase and their value increases to 5 times the price paid on Art-Derivatives.com. However, the value of the artwork increases 10 times if the original artifact is auctioned for less or failed to sell at auctions within the 5 year period. The incremental value is proportional every 5 years, thus the work can be sold after 10 or multiples of 5 years with appreciation of 5 or 10 times for each cycle. These terms are defined in the agreement, which works as a “future” financial contract to bet against art auction houses while working also as investment for the buyers of artworks on Art-Derivatives.com

These terms of financial appreciation of the artworks must be claimed during the resale negotiation of the digital artworks between individual collectors or in any marketplace such as online platforms, blockchain networks, and including physical galleries and art fairs.


How the ownership of artworks is defined

Buyers on Art-Derivatives.com are the owners of the artworks they buy until eventual future resale. Ownership of the artworks is defined through the signed certificate of authenticity and the sales agreement document sent at the time of purchase. This document defining ownership is private and contains unique cryptographic signatures to verify the ownership, authorship, and authenticity of the artwork, and also the integrity of the document itself. 

The artworks sold on Art-Derivatives.com can be freely shared and reproduced digitally or physically. Even if all the digital artworks are single editions they can be copied and distributed publicly, since the ownership and authenticity are defined only by the private document which integrates the sales agreement and certificate of authenticity. The display and sharing of the artworks have no limitations except that they must be attributed to the artist Paolo Cirio. The artworks are not a fractionalization of the original images and works sold at auctions, instead they are actual unique artworks created by the artist Paolo Cirio. Only their financial value is attached to the fluctuation of the original artifact’s prices at auction. The copyright holder is, and remains, the artist Paolo Cirio and his artworks sold on Art-Derivatives.com are licensed under Attribution-ShareAlike Creative Commons.


How the authenticity of artworks is verified

After the purchase of the artwork and the registration process is completed, the certificate of authenticity and sales agreement document is sent via email. This document contains digitally coded signatures, time stamps, and file certifications using MD5 cryptography, which work as unique and irreproducible verification ids of signatures, documents, artworks, and transactions. The signature ids of the owner and transaction need to be kept private and stored safely, while the signature ids by the artist and of the document will be public. For each artwork a new signatures set is created from the transaction data. The property may be compromised if the private signatures are made public, however the ownership can always be verified manually since the owner contact information is indicated in the private document.

The verification of the authenticity and ownership of artwork is done by comparing the coded private signatures in the document with the public signatures indicated on the page of the artwork Art-Derivatives.com. After purchase the work will be indicated as unavailable and the public signatures of the sale will be published. Further authenticity can be verified by comparing an integrity checksum public id, which compiles all the coded ids of the sale together: private signatures of the collector and transaction, public signatures of the artist, the artwork, and of the sale agreement.


Example of the document attached to the artworks on sale
Certificate of Authenticity & Sale Agreement & Future Value Contract

Artist: Paolo Cirio
Collector: John Doe
Amount value for the artwork: $1.5 USD
Date: April 30, 2020

Title: Andy Warhol, Dollar Sign - L.598 at Contemporary Art Day Auction in New York on 2014 November 12
Artist: Paolo Cirio
Series: Art Derivatives
Year: 2020
Edition: One-off 1/1
Medium: Digital file
Material: PNG file
Size: 2000x1556px
MD5 file: 9604dfba908cfff9cdce
Artwork: (title + md5_file of high res image artwork)
Artist: (artist name + email + passcode always the same)
Collector: (collector name + email + personal passcode)
Contract: (text document with sale + artwork data without signatures)
Transaction: (financial transaction id + timestamp)
Checksum: (all five signatures together)
Signed on: (date of the order)

The Artist has created an Artwork consisting of a digital file. Attached to the Artwork, this digital Document integrates the Certificate of Authenticity of the Artwork, the Sale Agreement of the purchase, and the Future Value Contract for the resale of the Artwork. The ownership, value, and authenticity of the Artwork is null without this Document signed and verified. The Artwork is public while this Document must be kept private.

Sale Agreement with Future Value and Resale Contract
The Artist is willing to sell the Artwork to the Collector and the Collector is willing to purchase the Artwork from Artist.

The Parties expect the value of the Artwork to increase under the future value conditions of this contract; and the parties wish the integrity and clarity of the Artist's ideas, statements, and conditions in the Artwork to be maintained. This Agreement shall not be subject to amendment, modification, or expiration.

In consideration of the foregoing premises Parties are subjects to mutual obligations, covenants, and conditions herein and therefore they agree as follow:

The Artist hereby sells to Collector and Collector hereby purchases the Artwork from Artist, subject to all the covenants herein set forth for the price indicated in this Document as the same amount for the agreed valuation for the purposes of this agreement.

Collector shall make every reasonable effort to transfer this Document containing the information set forth to procure such transferee's ratification and affirmation of all the terms of this Document. An ancillary new Document must be issued with the signature of the new Collector.

Collector covenants that in the event Collector shall hereafter sell the Artwork, any transfer or sale of the Artwork will occur only after a period of 5 years from the date of this signed Document.

The "Appreciated Value" of the Artwork for the purpose of this agreement must increase only under the terms set forth in this Document.

The financial appreciation value increases 5 times every 5 years from the price stated in this Document. However, the appreciation value of the Artwork increases 10 times every 5 years if the original artifact fails to achieve the estimate, is bought in-house, or does not sell at all at art auctions within the 5 years. The Collector is allowed to sell the Artwork at the appreciated price only after a period of 5 years, or multiples thereof, from the date of this signed Document.

The resale royalties of 15% are owed to the Artist when the resale is over a thousand dollars. The Artist is not responsible for the resale outcome of the Artwork. The value of physical reproductions of the digital object is considered only as production cost. The financial value of the Artwork is detached from the form and material of the Artwork whether it is reproduced digitally or physically and it is only determined and guaranteed by this Document.

The Artist is strictly prohibited from issuing any multiples or editions of the Artwork. Collector is prohibited from reproducing and publishing this Document and its signatures. The Artwork can be reproduced digitally or physically with copies in any form, size, and material on any space, platform, and context so long as this Document is not reproduced, modified, or published.

The Artist retains copyright and is allowed to publish and display the Artwork for public exhibitions and publicity. The Artist is strictly prohibited from publishing this Document and the identity of the Collector. The Collector has non-exclusive publishing rights and is under obligation to clearly attribute Artist authorship in every instance wherein the Artwork is displayed publicly, reproduced, or used for publicity. The copyright of the Artwork belongs exclusively to the Artist and the Artwork is licensed under Attribution-ShareAlike Creative Commons.

This Document's integrity and the Artwork's authenticity can be verified by comparing public and private unique IDs compiled with the algorithm MD5 for cryptography. After both Parties sign this Document and the purchase is completed the Artist undertakes to publish the IDs for verifying the authenticity and integrity of the Artwork and Document. The Collector shall not publish or alter the original digital files of this Document and the Artwork. Failure to comply with these terms will result in termination of this contract, effectively revoking ownership. Future Collectors shall verify the integrity and authenticity of this Document and Artwork before agreeing to purchase. In the case that the MD5 signatures are compromised the identity of Collector can be verified with personal contacts such as email or name of the Collector and the Artwork can also be authenticated with records of the transactions if documented otherwise.

The Collector of the Artwork is not liable for the initial creation, sale, and distribution of the Artwork. Only the Artist business firm is legally liable for the creation of the Artwork and its first sale. The Collector is liable for future use and sale of the Artwork. Any attorney's fee due to eventual litigation will be recovered by the first litigant.

Collector covenants that the Collector will not intentionally destroy, damage, alter, modify or change the Artwork and the Document in any way whatsoever.

The Artist may revoke the ownership of the Artwork if the Collector uses the Artwork unethically or if the terms of this agreement and contract are breached. If ownership is revoked the Artwork goes back for sale and the digital signatures are deleted and annulled.
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Art-Derivatives.com legal discalimer. The copyright of the original works of art belong to the respective owners, artists, and their estate. The copyright of the derivative artworks belong to the artist Paolo Cirio. For any complaint or to remove images of works of art please send your inquiry to info@paolo-cirio.com. Art-Derivatives.com is published by Paolo Cirio Ltd registered in England, number 8188080, office: 43 Berkeley Square, London, W1J 5FJ, United Kingdom. Art-Derivatives.com's clients are advised and served by Paolo Cirio Ltd and not by its members, directors, or employees. Paolo Cirio Ltd alone is responsible and liable for advice, services, and goods provided to its clients through Art-Derivatives.com