Blackmoon Whitepaper

Tuesday, June 19, 2018
Download document
Save for later
Add to list

WHUTEPAPER ver. 1.21 March 28, 2018

TABLE OD CONTENTS Executive summary 3 Vision 4 Value proposition 5 Advantages for the investors 6 Market overview 7 Our History 11 The Blackmoon Platform 13 Technology 19 Blackmoon Tools / Interfaces 21 Leadership team 22 Advisors 24 Our partners 25

EXECUTUVE SUMMARY Blackmoon is part of the Blackmoon Financial Group, a financial technology company founded in 2014. The Blackmoon team has extensive experience in setting up and managing investment funds, as well as developing automated investment interfaces and asset management tools while effectively working with regulatory authorities. Blackmoon’s vision is to create a new standard for tokenized investment vehicles that will bridge the gap between the fiat* and crypto universes. The Blackmoon Platform focuses on all aspects of tokenized investment vehicles, from technology and infrastructure, to legal compliance and corporate structuring. The Blackmoon Platform will be the one-stop solution for asset managers to create and manage tokenized funds. This white paper outlines the value proposition of the Blackmoon Platform and the company’s business model. * Fiat money is a currency established as money by government regulation or law. USD, EUR, CNY and other similar currencies are fiat currencies. BLACKMOON PAGE 3 OF 27 WHITEPAPER: EXECUTIVE SUMMARY

VUSUON Blackmoon is part of the Blackmoon Financial Group, a financial technology company incorporated in Ireland with a solid track record since 2014. We bring investment transparency, globalization, and decentralization to the next level by implementing blockchain technology -- all with a commitment to sustainable continuous development in cooperation with financial regulators. We combine our ready-to-use technologies with our deep expertise in structuring investment funds both internally and through our partnerships with external investment teams. Working closely with the best investment managers, lawyers, and financial authorities, we are creating a solid bridge between the blockchain universe and the classic investment world by providing a transparent and legally compliant framework for tokenized fund structuring and operation. We are helping to expand the boundaries of investment possibilities and to encourage regulators to recognize blockchain tools as the new reality in classic financial markets. Ultimately, Blackmoon aims to set the benchmark for tokenized investment funds and vehicles that invest in traditional investment instruments as well as in emerging distributed economy opportunities. BLACKMOON PAGE 4 OF 27 WHITEPAPER: VISION

VALUE PROPOSUTUON Blackmoon addresses the main issues of the current tokenized investment vehicles, such as: lack of diversification, non-compliance with existing and foreseen regulation, and lack of standardization. Our goal is to become the industry standard and one-stop solution in setting up tokenized funds, regardless of whether such funds invest in the fiat or crypto world. Blackmoon bridges the gap between these two worlds while taking advantage of both. KEY VALUE PROPOSUTUONS Best of both worlds Sustainability Currently the majority of tokenized investment Funds’ legal structure is reviewed and approved vehicles are either fully crypto-oriented by our legal advisors to ensure they are compliant (invested in cryptocurrencies) or pegged to with existing laws and regulations. As many some tradable asset (such as the US dollar or current investors in tokenized funds are at best in gold). Each of these approaches is siloed, Terra Incognita, this eye toward legal hindering diversification. Access to fiat responsibility dramatically decreases legal risks investment opportunities provides for the investors. Blackmoon has vetted the unprecedented diversification in terms of proposed structure with several financial income sources while retaining all the institutions and has received an indicative benefits of the crypto universe, including approval that it will pass internal procedures, decentralization, transparency, and enabling funds to be transferred from and into the exchangeability. crypto world. By sorting out these risks from the beginning, Blackmoon improves investor confidence and provide necessary sustainability of Standardized platform the investment process. Setting up the proper investment structure is a costly endeavour. Not all tokenized funds set Scalable fund creation up a proper structure, which leads to greater Using the system put in place by Blackmoon, the regulatory risk. Blackmoon believes that now Blackmoon Platform, any approved investment is the right time to introduce industry manager is able to set up and run a tokenized standards for setting up tokenized investment investment fund without having to go through the vehicles that can attract investments from pain and effort of creating the necessary IT and private individuals and institutional investors legal infrastructure. This effectively eliminates of any kind. We undertake this effort in order the barriers for tokenized fund creation, which is to reduce or remove regulatory risk from an important milestone toward bringing the fiat investors. and crypto economies into the same realm. Transparency Bringing in new liquidity and users Tokenization of interests in funds (share in We believe that the Blackmoon Platform is a profits) provides auditability and transparency turnkey solution that leads to further to the investment process as well as to the proliferation of the decentralized economy. results. This transparency means the Investment managers from the fiat world are now investment funds are no longer “black boxes” able to easily create compliant tokenized for the investors, with reporting full of fine investment funds and offer their existing print. This much-needed transparency will customers all the benefits of the blockchain that substantially improve accountability of the has been a buzzword among investment investment managers. managers for several years. BLACKMOON PAGE 5 OF 27 WHITEPAPER: VALUE PROPOSITION

ADVANTAGES DOR UNVESTORS Tokenized investment funds on the Blackmoon Platform provide any type of investor with important advantages over existing investment opportunities. ADVANTAGES FOR ADVANTAGES FOR CRYPTO INVESTORS FIAT INVESTORS • New opportunities to access assets from • Higher net return, thanks to the the fiat world, without leaving the cost-efficient structure of tokenized crypto universe. funds. (For comparison, the setup cost of a structured note is at USD 50,000 to • Unparalleled diversification 100,000 plus 2% - 5% of the invested opportunities, thanks to low correlation assets, which is a substantial drag on between fiat and crypto assets. the net result to investors.) • Access to a wider range of investment • Access to new classes of assets thanks opportunities with a lower risk profile to lower barriers for funds set up and to complement and balance existing administration on the Blackmoon speculative exposures. Platform. • Exchangeability and anonymity as the inherent features of the tokenized assets. (KYC process is still required upon deposit and withdrawal of fiat currencies.) BLACKMOON PAGE 6 OF 27 WHITEPAPER: ADVANTAGES FOR THE INVESTORS

MARKET OVERVUEW Blockchain has been a buzzword in the financial sector since 2009. It has sparked substantial interest in the industry through its advantages of a distributed ledger, value transfer, and resilience to counterfeiting. The creation of Ethereum (ETH) introduced smart contracts to a wide range of business users. Application of these smart contracts leads to increasing decentralization and democratization of contractual relationships, effectively leaving no place for interpretation of the fine print in the agreements and introducing dramatic cost advantages. This has resulted in the proliferation of various tokenized investment vehicles, from which we can single out three main types: currency trading, venture capital funds, and tokens pegged to assets (such as gold, the US dollar, etc.). New entrants to the financial technology market aim to disrupt the highly concentrated and over-regulated financial industry. In this environment incumbents are taking steps to keep up with the pace of technology and with customers' demands. For example, in mid-2017 it was unveiled* that Barclays had been in discussion with the British financial regulator Financial Conduct Authority (FCA) about bringing cryptocurrencies into play. Regulators themselves are also moving to embrace blockchain and cryptocurrencies. For example, Bitcoin** is accepted in Japan, and Swiss tax authorities confirmed*** Bitcoin VAT-free status. Still, there is much that needs to be done to make the tokenization of these investment vehicles a seamless, transparent, and regulatory-compliant process. Blackmoon is the company to bridge the existing gap. Tokenized investment funds are the future of the financial industry, offering compelling advantages such as transparency, tradability, and cost efficiency. To compare Blackmoon positioning in the existing ecosystem, we plotted some of the most notable companies on two axes, as shown in the chart in Figure 1 below. * ** *** BLACKMOON PAGE 7 OF 27 WHITEPAPER: MARKET OVERVIEW

DUGURE 1 Blackmoon positioning in the existing ecosystem SPECIALIZED PLAYERS MARKET MOVERS ACCESS TO FUND PROVIDERS VENTURE CAPITAL Blockchain FinShi Capital Capital Bitcoin Growth Fund PEGGED CRYPTOCURRENCIES ICONOMI Melonport Onegram NuBits Digix Gold Tether BitUSD Zengold DIVERSIFICATION Satoshi Fund Compcoin TRADED FUNDS The Token Fund SCALERS IMPACT BROADENERS The vertical axis ranks the impact on the industry, measured as a magnitude of market size change or other influence on the blockchain universe. The horizontal axis measures the diversification introduced to the crypto world. The more investment options are offered, the more diversity is brought to the ecosystem. New currencies traded, new companies created, and new asset classes used as a source of income increase the diversity of the crypto world and thus efficiency. Along these axes, the quadrants move from the low-impact, low-diversity Scalers, to the high-impact, high-diversity Market movers. Specialized players Market movers contribute to the overall development of combine high impact to crypto ecosystem the crypto ecosystem but tend to offer development with diversified options to only one option to the users. the users. Scalers Broadeners exploit existing approaches within use existing solutions to offer a broad already available options inside the range of opportunities to users. crypto ecosystem. THUS CHART SHOWS THAT BLACKMOON PROVUDES UNDUSTRY UMPACT WHULE DELUVERUNG THE GREATEST DUVERSUTY OD UNVESTMENT OPTUONS BLACKMOON PAGE 8 OF 27 WHITEPAPER: MARKET OVERVIEW

Next, we compared the features of Blackmoon with other providers of access to the investment vehicles, revealing that the approach planned with Blackmoon will consistently provide the best advantages to its investors BLACKMOON Access to fiat funds Access to crypto funds Fund diversity Distribution of fund management * income to the token-holders Focus on compliance ** Team experience in launching and *** managing funds Reserves for tokens buyout * ICONOMI introduced token repurchases in 2Q 2017. Still, there is no rule how much money will be allocated each quarter to this program. Thus there is no certainty of cash flows as opposed to Blackmoon tokens held by Continuous Contributors (as defined further). ** It is stated that “ICONOMIs management will be provided by an EU legislation compliant and regulated service operator.”Still it is not clear whether the investment vehicles themselves will be legally compliant or whether the company has such a goal, as opposed to Blackmoon’s mission to create a fully legally-compliant tokenized funds ecosystem. *** Melonport’s CEO has extensive experience in financial institutions and funds. However Blackmoon’s team has the advantage of having set up from scratch and successfully running venture capital and alternative fixed-income funds. BLACKMOON PAGE 9 OF 27 WHITEPAPER: MARKET OVERVIEW


OUR HUSTORY Blackmoon Financial Group is a financial technology and investment management company incorporated in Ireland that has been operational since August 2014, having its roots in venture capital investments in financial technology since 2012. The company is lead by Oleg Seydak*, entrepreneur, financial technology investor, founder of Blackmoon Financial Group, former co-founding partner of Flint Capital; and Ilya Perekopsky**, entrepreneur and IT angel-investor, and former vice president and chief commercial officer of Following is a timeline of the company’s history, from the initial vision in 2014 to the new opportunities of today. (See the Leadership Team section later in this document for more details.) 2014 VISION Oleg Seydak has a talent for identifying Company profiles opportunities for automation among lenders. Flint Capital is an international venture capital fund Through Flint Capital, the venture capital firm investing across the US, Israel, and Europe. The fund was founded by Oleg Seydak and Dmitry Smirnov, that he co-founded, Oleg participated in the former managing director and former CEO of the pre-IPO buy-out investment of LendingClub and FINAM Global Investment Fund, respectively. the buyout of Prosper, as well as in investments is the largest European online social media and social networking service and is ranked 17 (as of in a set of alternative lenders in Europe. June 2017) in Alexa's global Top 500 Sites. Lending Club operates an online lending platform that Oleg and his friend Ilya Perekopsky, then vice enables borrowers to obtain a loan, and investors to president at, teamed up to found and purchase notes backed by payments made on loans. Lending Club is the world's largest peer-to-peer make initial investments in Blackmoon Financial lending platform. Group. Prosper Marketplace, America's first peer-to-peer lending marketplace, enables borrowers to obtain a Blackmoon’s first alternative debt fund was loan and investors to purchase notes backed by incorporated to make fixed-income investments payments made on loans. in August 2014. 2015 DEVELOPMENT Work began on technical development of the automation and machine learning algorithms to process and assess loans issued by alternative lenders in the fiat world. Blackmoon’s automated platform for institutional-class investment in alternative lenders was created in May 2015 and testing began. The Blackmoon Lending Marketplace platform was launched and the first loan was processed in June 2015. By the end of 2015, Blackmoon had ten full-time employees, four originators, and nine investors on the platform among three different European countries and had processed $3M in loans after just six months in production. * ** BLACKMOON PAGE 11 OF 27 WHITEPAPER: OUR HISTORY

2016 PROOF OF CONCEPT The Blackmoon Lending Marketplace platform continued to grow in Europe. We expanded our team to 16 full-time employees, and ended the year with eight originators among seven different European countries, 17 investors on the platform, and $40M in aggregate loan value processed. We made our US debut with demos and a company presentation at LendIt 2016 in San Francisco. JAN — JUNE 2017 GROWTH The Blackmoon Lending Marketplace platform processed its first US-based loans as a proof of concept in the US-based market, entered the Spanish market, and reached $13M in monthly volumes. Version 2.0 of the Blackmoon Lending Marketplace platform was unveiled at LendIt 2017 in New York. Discussions with other technology and service providers in the US solidified Blackmoon Lending Marketplace platform’s unique competitive positioning of deal automation, third-party monitoring and verification, and transparency. Based on market intelligence development began on an originator-facing interface. JULY 2017 — TODAY NEW OPPORTUNITY Blackmoon Financial Group identified an opportunity to leverage internal expertise in setting up investment products for institutional investors and managing dedicated investment funds. Work began on creating the first tokenized asset management platform, Blackmoon Platform, to set up and operate tokenized investment funds with a wide range of investment mandates.

THE BLACKMOON PLATDORM The Blackmoon Platform is a set of technologies, techniques, interfaces, know-how, legal frame- works, and partnerships with banks and other licensed players in the financial market. The resulting platform allows investment advisors to structure, promote, and maintain tokenized investment funds for their clients. DUGURE 5 The structure of the Blackmoon Platform and the distribution of BMC tokens HOLDING COMPANY (HC) Distribution 100% BMC Distribution of Management Company (MC) Investment Advisors (IA) proceeds among Continuous Contributors General Partner Investment Management Management Fee, Performance Fee Fund 1 (IF1) Fund 2 (IF2) Fund N (IFN) LLP LLP LLP Creation fee, Sole LP Sole LP Sole LP Redemption fee F1 Tokenizer F2 Tokenizer FN Tokenizer LTD LTD LTD Tokenization Tokenization Tokenization Asset 1 Asset 2 Asset N Token Token Token BLACKMOON PAGE 13 OF 27 WHITEPAPER: THE BLACKMOON PLATFORM

At the base of the structure is the holding company, owned by Blackmoon Financial Group, with a subsidiary management company to manage the funds. The holding company develops all aspects of the Blackmoon Platform, as well as work on attracting and evaluating investment advisors, who establish tokenized funds within the Blackmoon Platform. These funds are investment vehicles, each of which is dedicated to executing a particular investment strategy under the management of its investment advisor. The management company, and by extension, the holding company, is responsible for compliance, licensing, partnering with banks, and working with legal advisors. Holders of BMC tokens are able to register as Continuous Contributors to the Platform via the Platform’s website. Continuous Contributors are able to deposit BMCs in a depository wallet linked to their account. To register as a Continuous Contributor the holder of BMC tokens can choose the role that she/he is willing to execute as a contributor to the Platform. The list of available roles are publicly available on the website and are updated as needed to reflect the current needs of the Platform’s continuous development. One of the main roles will be that of an Investment Advisor. Other roles will be platform promoters, investment analysts, legal advisors, public auditors, GR advisors, etc. Each role has a specific minimum and maximum amount of BMCs that can be deposited by a Continuous Contributor while executing such a role. The minimum limit will be mostly applicable to Investment Advisors (please refer to the “Contribution of Investment Advisors” section below). The majority of roles do not have a minimum deposit limit. Continuous Contributors have the right to participate in “members-only” discussions regarding the Platform strategy and development plan. At least once a year or as needed, the Platform will initiate a vote among the Continuous Contributors to gather opinions of the contributing community on strategic development matters. The results of such voting will not be binding but will be strongly considered by the operational management. Continuous Contributors from time to time confirm the execution of their roles on the platform to keep their status and depository wallets active. The process of the status confirmation will be specified for each role. BLACKMOON PAGE 14 OF 27 WHITEPAPER: THE BLACKMOON PLATFORM

UMPORTANT Because of current regulatory uncertainty and before additional information is publicly released by the Platform on the matter, green card holders of the United States or citizens or residents (tax or otherwise) of the United States of America or Singapore, or other U.S. or Singapore Persons, are not eligible to register as Continuous Contributors therefore preventing transfer of their BMC tokens to a depository wallet to receive proceeds from them. At such time, Blackmoon will evaluate the currently applicable legal framework and take all required steps to ensure compliance. Continuous Contributors who do not execute their roles or appear to violate the rules applicable for Continuous Contributors (i.e. appear to be a U.S. or Singapore Person) may have their status recalled, depository wallet closed, and their deposited BMCs will be transferred to the holder’s personal wallet without accruing any proceeds. It is important to note that Continuous Contributors will receive only proceeds from the funds they contribute to. Participants of the Continuous Contributor program do not need to wait for the company to reach breakeven to be awarded. All Continuous Contributors regardless of their role will be awarded in BMC tokens. Participants of the Continuous Contributor program will have the option to convert accrued BMC tokens to ETH via Bancor Protocol account. . Roles of Continuous Contributors might differ from fund to fund, the roles available will be subject to the funds needs and each role will have its own life span (expiration date). Meaning that not all roles last for the same period of time. If in the case a certain role expires (i.e. fund completed their fundraising stage) redemption fees, explained in the section below might accrue for a long term thereafter to other active roles. For those roles which expire rewards will be accrued to the initially registered BMC account. Important notice: If the participant does not redeem BMC tokens within half a year (6 months) the accrual of additional BMC tokens will be suspended and the unredeemed tokens will be repossessed by the platform. BLACKMOON PAGE 15 OF 27 WHITEPAPER: THE BLACKMOON PLATFORM

SOURCES OF PROCEEDS FOR SOURCES OF INCOME FOR CONTINUOUS CONTRIBUTORS INVESTMENT ADVISORS The Blackmoon Tokens, BMCs, provide proceeds Investment advisors working with the Blackmoon to Continuous Contributors who deposited BMCs Platform earn income as follows: in depository wallets as follows: Creation fee Management fee 0-10% from the amount of the issued The management fee averages 2% per asset tokens. On average 2.5%. This fee annum paid daily. will be paid by investors of the fund directly. Performance (or success) fee Redemption fee The performance fee is paid either monthly or quarterly or yearly or upon All investors of a fund who choose to exit from investment based on the fund redeem their asset tokens will pay a fee distribution policy, and is on average for this type of operation. The fee of 20% from the fund’s performance. redemption will depend on the asset Calculation of the fund’s performance is token redeemed. All redemption fees will audited and published on the Blackmoon be stated in the fund’s info-window and Platform and cannot be different from the might be subject to change. one that is used for income distribution among holders of the asset tokens. Continuous Contributors can hold their BMC tokens in special depository wallets linked to their accounts to receive their share of proceeds in proportion to the amount of BMCs deposited by the Continuous Contributor to the total amount of deposited BMCs. Only BMCs held in such a manner receive the proceeds. This is to discourage transferring of the proceeds to exchanges, holders that do not contribute to the Platform in operational manner, or other unrelated parties. Tokens stored on exchanges or transferred to other wallets cannot receive proceeds. Owners can withdraw BMCs from the depository wallets and sell them to other parties at any time subject to applicable regulations in the jurisdictions of the purchaser and the seller BLACKMOON PAGE 16 OF 27 WHITEPAPER: THE BLACKMOON PLATFORM

CONTRUBUTUON OD UNVESTMENT ADVUSORS To be qualified as an investment advisor on the Blackmoon Platform, an asset manager must (a) contribute to the company and (b) hold a specified number of BMC tokens in a depository account. The amounts of the contribution and deposit will be case specific, but generally vary from 10,000 to 1,000,000 BMCs. This increases the level of partnership responsibility for the investment advisor on the Blackmoon Platform and is the final step of the qualification process. Another benefit of this level of participation and partnership with the investment advisors is that it forms a foundation for future self-regulation of the system. THE DUND STRUCTURE The fund structure can differ from one case to another. While it will evolve as new data becomes available, it will be overseen by reputable legal counsel and summaries of such reviews will be published. Fully compliant with applicable laws, each investment fund is incorporated as a Limited Partnership or another form as is suitable for the specific case The fund tokenizer domiciled in the Cayman Islands or comparable jurisdiction is the only limited partner of the fund. This tokenizer performs distribution of the asset tokens to attract fiat and/or crypto-currencies, then the proceeds are transferred to the fund to provide capital for future investments. All fund transfers will be transparent and their tokens will be continuously tradable to provide investors with necessary liquidity, subject to any applicable legal restrictions in specific jurisdictions, such as the United States and Singapore. An example of this process is shown in Figure 4 below. DUGURE 4 Example of the fiat / crypto investment fundraising process Data on amount of tokens to be issued given exchange rate €, Ƀ Sole LP €/Ƀ INVESTORS Fund Tokenizer Fund (F) ASSETS Asset tokens Owners LTD LLP €/Ƀ Asset tokens Exchange Ƀ/€ €/Ƀ BLACKMOON PAGE 17 OF 27 WHITEPAPER: THE BLACKMOON PLATFORM

EXAMPLE DUSTRUBUTUON OD THE DUNDS’ UNCOME Another important function of the Blackmoon Platform is the regular distribution of fund income to the asset token holders. This process is shown in Figure 5 below and is illustrated as follows: 25% 25% of the proceeds are reinvested to multiply the of the proceeds are paid to the investment return to the investors via compound interest. advisor in form of a performance fee. 50% 50% of the proceeds are distributed among the asset token holders via a buy-back process. In this way, distribution of income provides liquidity of the asset tokens. Bought-out tokens are burned so that income will continue to increase for the remaining asset tokens. DUGURE 5 Example of the distribution of the fund’s income 25% of €€€ reinvestment Buyout applications and Asset Tokens €€€ Interest ASSETS Fund (F) Fund Tokenizer INVESTORS LLP LTD Asset tokens Owners € € / Ƀ = 50% of €€€ Exchange € Ƀ 25% performance fee Bought out tokens The amount of Asset tokens is Investment Advisor Burn decreasing => income on one Asset tokens is increasing BLACKMOON PAGE 18 OF 27 WHITEPAPER: THE BLACKMOON PLATFORM

TECHNOLOGY The Blackmoon Platform applies blockchain technology to create, manage, and govern tokenized investment vehicles and the platform itself. The platform operates on Ethereum-based smart-contracts. OVERVUEW OD THE SMART CONTRACTS Blackmoon Platform technology has a two-level infrastructure: Tokens Tools • BMC tokens to receive income from • Asset Proxy Blackmoon Platform for those registered • Exchange as Continuous Contributors and performing certain roles in Platform • Asset Interface development. • Others • Funds’ tokens that relate to the investment activities of the respective funds. This combination of tokens and tools allows the investment process to remain flexible to accommodate the wide diversity of the funds with various investment mandates and structures that are available on the Blackmoon Platform. BLACKMOON PAGE 19 OF 27 WHITEPAPER: TECHNOLOGY

BLACKMOON PLATDORM BASE CONTRACT The Blackmoon Platform base contract covers base roles (Contract Owner, Team member, Advisor, Holder) and interfaces to Asset Proxies, Exchanges, BMC token and Asset Tokens. The platform contract holds the deposit wallets’ logic based on Asset Proxies. Each Asset Proxy is an ECR20-compatible contract and implements an interface between the depository Platform Wallet with income, and external addresses such as exchanges or ETH wallets. BMC TOKENS BMC tokens are implemented as token-as-a-currency instruments and receive proceeds from the Blackmoon Platform by Continuous Contributors. BMC tokens are connected to the platform via the platform Asset and Asset Proxy interfaces. ASSET TOKENS CONTRACT The Asset Tokens contract is made up of specific contracts that govern the investment vehicle structure, fees, and assets. It is implemented as a token-as-a-currency instrument and receives distributions from the corresponding fund’s capital appreciation. Each contract connects and interacts with the platform via the asset interface. Roles Contract Owner (BMC Owner), holder, advisor Holder's fees Advisor's income Structuring fee: once Management fee: daily based on annual %% Promotion fee: once Performance/success fee: Maintenance fee: daily based on annual %% monthly/quarterly/yearly based on BMC Transaction fee: per each transaction based on Platform Asset Token related rule the rule applicable to the asset token PLATDORM EXCHANGES Platform exchanges hold the exchange rates (BMC-ETH, for example) and provide holders with the ability to transfer their BMC tokens from the platform. Platform exchanges support major cryptocurrencies, such as BTC and ETH. Other types of tokens as well as compatibility with fiat currencies are contemplated. BLACKMOON PAGE 20 OF 27 WHITEPAPER: TECHNOLOGY

BLACKMOON TOOLS / UNTERDACES Blackmoon offers two main interfaces, aimed toward two types of users. The Fund Issuer Administrative Tool is designed for investment advisors and asset managers; and the Token Holder’s Analytical Interface is designed for fund investors. DUND USSUER TOKEN HOLDER’S ANALYTUCAL AND ADMUNUSTRATUVE TOOL MANAGEMENT UNTERDACE This tool is the comprehensive fund management The Blackmoon Investment Interface provides system that acts as a one-stop solution. It covers all tools for investment portfolio structuring and the aspects of running the tokenized investment management as well as a holistic view of the vehicle and provides the investment advisor or asset available investment opportunities and the fund’s manager with access to the Blackmoon Platform IT historical and current investment performance. and legal infrastructure. This system enables the The interface allows the investor to: investment manager to: • Pick and order the legal structure of the fund, • Analyse and pick investment opportunities from including the incorporation of the investment the list of options that are available on the vehicle, opening up the bank account, and more. Blackmoon Platform. • Determine the structure of the smart contract for • Structure the investment portfolio and allocate the asset token, including income distribution and capital to desired assets. redemption methods. • Track the portfolio performance. • Perform the distribution of the asset tokens. • Drill down to get the decomposition and verify • Track and report investment results. the investment results. • Distribute income between the token holders. • Submit tokens for redemption to participate in the distribution of the fund’s income. • Upload necessary documents, reports, and other related data. • Download reports and export necessary analytical data. This tool allows investment advisors and asset managers to focus on managing the investment for the This investment interface is based on the benefit of the token holders while Blackmoon takes institutional grade investment interfaces created by care of all the rest. Blackmoon Financial Group. OTHER PRODUCTS The Fund Issuer Administrative Tool and the Token Holder’s Analytical Interface are only the tip of an iceberg visible to the users. Behind the scenes is all the development of the technology and smart contracts, API integrations with the financial institutions, clearing operations, reporting, and intensive work on the legal track. BLACKMOON PAGE 21 OF 27 WHITEPAPER: BLACKMOON TOOLS / INTERFACES

LEADERSHUP TEAM OLEG SEYDAK ILYA PEREKOPSKY DOUNDER & CEO CO-DOUNDER Lead for all operations and key strategic decisions for the Key contributor in corporate partnerships, managing and company promoting relationships with investors Co-founder of Flint Capital, a venture capital firm that Former VP and CCO of, the largest European social pioneered alternative lending in Europe. Former Managing network Director at FINAM Global venture fund ILYA REMIZOV SERGEY VASIN CHUED TECHNOLOGY ODDUCER CHUED OPERATUNG ODDUCER Lead for all IT development projects and personnel Lead for managing cooperation with investment targets, finance personnel, and business development CTO for 8 years at Nanosemantics, leading AI for speech recognition. Played an instrumental role in open-source Former Investment Director at Flint Capital with a focus on development, specifically PHP4/5 alternative lending investments. Holds CFA charter FELIPE LEMA VOROBEY MOSHE JOSHUA PR&MARKETUNG DURECTOR CHUED PRODUCT ODDUCER Leads the Company’s marketing and PR efforts Responsible for all technology architecture, design and development and entire project lifecycle Former Senior Brand Marketing manager for Coca-Cola and Qiwi electronic payments. Former Head of Marketing Moshe Joshua has been providing innovative software Department at solutions and tools for a host of novel and unconventional companies for over 20 years. Moshe has developed high frequency arbitrage systems to trade cross-border securities markets in the US, Brazil, India, Dubai, Singapore and Europe ANDREY RETINSKIY CHUED DESUGN ODDUCER Leads visual design of company’s products and services, supervises design staff Has 15+ years experience in product design. Creator of Blackmoon’s official imagery branding BLACKMOON PAGE 22 OF 27 WHITEPAPER: LEADERSHIP TEAM


ADVUSORS OSKAR HARTMANN ARTEM TOLKACHEV Investor, serial entrepreneur. Member of Board of Artem is Head of Legal for Tech Group at Deloitte CIS, as Directors of Alfa-Bank JSC, Largest Private Commercial well as Chairman of the Blockchain community in Russia. Bank in Russia. Founder and President of KupiVip (Leading online Fashion Retailer of Luxury brands) and CarPrice - Second largest C2B online used car marketplace that in 2015 raised 40 Million USD in a series B funding round. VASYL LATSANYCH MOE LEVIN Vice President of Major Markets at Veon. Board member CEO of Keynote, a global technology conference of Veon - Sixth largest mobile operator in the world, with company which has been responsible for over $250MM over 235 million customers worldwide (serves 10% of of investments into cryptocurrency / blockchain startups. the world’s population). Veon’s revenue in 2016 exceeded Co-Founded the first accredited Blockchain Academy. Sits 8.5 Billion USD. Veon capitalization to this day exceeds on multiple government councils in the UAE, France, 10 Billion USD. Former Vice President of Marketing and Netherlands, and Belgium, and works closely with Board member of JSC Mobile TeleSystems - Largest regulators and banks promoting the use of bitcoin and mobile operator of Russia and CIS, European blockchain technology. Board Member of Unsung, Communications CMO of the year 2016. hacking homeless hunger. NICOLAS TRANTER JOHN HYMAN Founding director of Bibbsworth Ltd, a company Partner at Ondra Partners, a leading corporate finance providing advisory services to Institutional asset advisory boutique. John has 30 years experience in managers. Executive at Gordian Knot, an FCA regulated investment banking and asset management. John has asset manager based in London. Nick has been focused spent the bulk of his career at Morgan Stanley, where he on the asset management industry for over 25 years, held a variety of senior roles, including Global Head of covering many of the world’s largest asset managers, Capital Markets, and was a member of the firmwide hedge funds, insurance companies and sovereign wealth management committee. He has also held senior roles funds. Nick started his career at JPMorgan, and has held as Head of Equities at Cheyne Capital, one of the senior roles as Managing Director in sales and coverage Europe’s most prominent hedge funds, and was also at Morgan Stanley, BNP Paribas and HSBC. Chairman and CEO of Renaissance Capital, a leading emerging market focused investment bank. SEBASTIAN STUPURAC Co-Founder of WINGS, a successful community engagement, social promotion and smart contract facilitation platform and one of the only working DAPPS on the Ethereum blockchain. Previously at Crypti, Sebastian is a big believer in cryptographic solutions and blockchain technology, in which he has been involved since 2013. Sebastian has vast experience in decentralized solutions, information systems, and management. BLACKMOON PAGE 24 OF 27 WHITEPAPER: ADVISORS

OUR PARTNERS Bancor protocol is a Target Global is an Flint Capital is an standard for a new international VC firm with international venture capital generation of tokens on over $300 million in assets fund investing across US, smart contract blockchains. under management and Israel and Europe. "Smart Tokens" offer offices in San Francisco, continuous liquidity and Berlin and Moscow. Target The fund is focused on automatic price discovery Global focuses primarily on Artificial through the world's first fast-growing Intelligence/Machine autonomous market makers. digital-enabled B2C and B2 Learning, Enterprise The Bancor platform and SMB companies in Software, Cyber Security, liquidity network will allow e-Commerce, finTech, travel, Mobility (technologies for anyone to create, manage software and mobile. vehicles and transportation and trade Smart Tokens. The infrastructure), project's token generation Networks/Marketplaces. event broke an industry record raising $153M in June 2017. A&NN Investments is an Deloitte provides Group-IB is a global leader investment holding with industry-leading audit, in preventing and focus on Russian market, consulting, tax, and advisory investigating high-tech founded in 2002 to pursue services to many of the crimes and online fraud. The friendly acquisitions of world's most admired company has been businesses with good brands, including 80 percent operating since 2003, fusing fundamentals, growth of the Fortune 500. its experience and threat perspectives and apparent intelligence into an exit opportunities. Today, eco-system of highly after almost 15 years, A&NN sophisticated software and Investments is an hardware solutions to investment firm with more monitor, identify and than $2.4 billion of assets prevent cyber threats. under management and 50 Group-IB products and thousand people employed services are used by global by companies comprising clients, including Fortune the fund's portfolio. 500 companies in the US, Western Europe, Middle East, Asia and Australia. Group-IB Threat Intelligence is highly ranked by Gartner, Forrester, and IDC. BLACKMOON PAGE 25 OF 27 WHITEPAPER: OUR PARTNERS

Arendt & Medernach is the Harneys is a leading Debevoise & Plimpton LLP leading independent international offshore law is a premier law firm with business law firm in firm who provides advice on market-leading practices, a Luxembourg. The firm’s British Virgin Islands, global perspective and international team of 325 Cayman Islands, Cyprus, strong New York roots. The legal professionals Bermuda and Anguilla law firm employs 650 lawyers in represents clients in all to a diverse international 9 offices across three areas of Luxembourg client base which includes continents. Debevoise is business law, with the world’s top law firms, among the leading law representative offices in financial institutions, firms in the world. Nearly Dubai, Hong Kong, London, investment funds and 85% of their partners are Moscow, New York and Paris. private individuals. Key recognized by Chambers, Service to clients is areas of practice include The Legal 500 or IFLR. differentiated by the end to Investment Funds, Banking end specialist advice the and Finance, Dispute company offers, covering all Resolution, Insolvency and legal, regulatory, taxation Restructuring, Corporate and and advisory aspects of Commercial, Trusts and doing business in Private Client. Luxembourg. A&M advises international and domestic clients in all areas of business law relevant to their business activities, ranging from fund formation, banking, insurance, private equity and real estate to corporate and tax matters. BLACKMOON PAGE 26 OF 27 WHITEPAPER: OUR PARTNERS