LOGIC:The IP-Exchange will primarily generate revenue through an initial listing/structuring fee (e.g., 3-5% of capital raised) and an ongoing platform management fee (e.g., 0.5-1% annually of the fractionalized IP's value). Assuming a target average capital raise of $1M per deep-tech project, the upfront revenue per listing is $30k-$50k. Direct costs include legal review for the SPV (variable, but budget $5k-$10k), Safety-Audit tool processing ($2k-$5k per case), and platform tech overhead (low variable cost). This leaves a gross margin percentage of roughly 22-28% before significant fixed costs. However, San Francisco's operating environment imposes crushing fixed costs. Rent for a modest ~1,500 sq ft office in SOMA or Dogpatch (Class B/C space suitable for a core team and light R&D audit lab) will easily run $7,500-$10,000 per month ($60-$80/sq ft/year in the current climate), representing a substantial fixed drain. Labor costs for 3-5 specialized compliance officers, IP lawyers, and FinTech engineers will average $180,000-$250,000 annually per person, driving a significant portion of the remaining ~70% of revenue to operational expenditures, leaving little room for profit unless transaction volume is extremely high. The rent impact is 'High' because a disproportionate amount of early-stage revenue will be absorbed by physical space costs before scaling sufficiently.