Covesting Whitepaper

Wednesday, June 20, 2018
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Cryptocurrency Trading Platform offering the most complete infrastructure for investors and traders 1

This document is not an offer of securities or a collective investment scheme. Contributors are advised to read this document carefully in full and perform due diligence on their own. Please read terms and conditions before making any investment decision.

COVESTING is led by a world-class team with backgrounds in trading, investment banking, blockchain, AI, data, and fintech (Saxo Bank, SEB Bank, JP Morgan, Zurich Insurance and others) with accumulated trading experience of over 100 years. 3

LEGAL CONSIDERATIONS, RISKS AND DISCLAIMER IMPORTANT NOTICE: PLEASE READ THE ENTIRETY OF THE “Legal Considerations, Risks and Disclaimer” SECTION CAREFULLY. WE RECOMMEND YOU CONSULT A LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) OR EXPERTS FOR FURTHER GUIDANCE PRIOR TO PARTICIPATING IN THE COVESTING LIMITED TOKEN SALE OUTLINED IN THIS WHITE PAPER. Please note that this is a summary of the legal considerations, risks and disclaimers document which can be found https://covesting.io/summary_legal_disclaimer.pdf and which you must read in full: (i) making use of this White Paper and any and all information available on the website(s) of COVESTING LIMITED (the “Company”) and/or (ii) participating in the Company’s token sale outlined in this White Paper (the “Token Sale”). Any undefined capitalised terms below shall have the meaning set out in the “Legal Considerations, Risks and Disclaimer” section. This summary should not be relied on in place of reading the “Legal Considerations, Risks and Disclaimer” section in full. The “Legal Considerations, Risks and Disclaimer” section the full version of which can be found at https://covesting.io/legal_disclaimer.pdf applies to this White Paper and any and all information available on the Website. The contents of the “Legal Considerations, Risks and Disclaimer” section outlines the terms and conditions applicable to you in connection with (i) your use of this White Paper and of any and all information available on the Website; and/or (ii) your participation in the Token Sale, in each case in addition to any other terms and conditions that we may publish from time to time relating to this White Paper, the Website and the Token Sale (such terms hereinafter referred to as the “Terms”). The information set forth in the “Legal Considerations, Risks and Disclaimer” section may not be exhaustive and does not imply any elements of a contractual relationship. While we make every reasonable effort to ensure that all information: (i) in this White Paper; and (ii) available on the Website (all the information in the White Paper and all information available on the Website hereinafter referred to as the “Available Information”) is accurate and up to date, such material in no way constitutes professional advice. The Company does not recommend purchasing Tokens for speculative investment purposes. Tokens do not entitle you to any equity, governance, voting or similar right or entitlement in the Company or in any of its affiliated companies. Tokens are sold as digital assets, similar to downloadable software, digital music and the like. The Company does not recommend that you purchase Tokens unless you have prior experience with 4

cryptographic tokens, blockchain-based software and distributed ledger technology and unless you have taken independent professional advice. Citizens, nationals, residents (tax or otherwise) and/or green card holders of each of: (i) the United States of America; (ii) Singapore; (iii) South Korea; (iv) the People’s Republic of China; or (v) any other jurisdiction which prohibits the possession, dissemination or communication of the Available Information and/or prohibits participation in the Token Sale or the purchase of Tokens or any such similar activity or any other Restricted Persons are not permitted to participate in the Token Sale. In no event shall the Company or any current or former Company Representatives be liable for the Excluded Liability Matters. The Company does not make or purport to make, and hereby disclaims, any representation, warranty or undertaking in any form whatsoever to any entity or person, including any representation, warranty or undertaking in relation to the truth, accuracy and completeness of any of the information set out in the Available Information. You should carefully consider and evaluate each of the risk factors and all other information contained in the Terms before deciding to participate in the Token Sale. 5

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Executive summary 1.1 The Future of Cryptocurrency Investing scalability opportunities have arisen which brought COVESTING to a completely new level. Over the past few years, cryptocurrencies proved to be the fastest growing asset class and offered By way of it’s unique platform which operates phenomenal rewards for those who decided to differently to existing traditional investment invest. Long term investors, as well as day traders, structures, like funds, COVESTING is about benefit from the unique opportunities offered by to disrupt investment management industry the most promising market we have ever seen. and become one of the leading players on the However, investments into cryptocurrencies cryptocurrency market by introducing the most require time, specific knowledge, analytical skills, complete infrastructure for investors and traders as well as professional tools to be successful. The which includes: difficulty is the main reason why most people simply miss tremendous opportunities offered • COVESTING peer-2-peer Asset Platform – the by a booming market. essence and core of the COVESTING infrastructure. This was the case until the COVESTING was It implements a successful peer-2-peer business introduced. model and disrupts the traditional investment management industry. Investors can easily browse through hundreds of trading Models (strategies), provided by professional cryptocurrency traders 1.2 COVESTING and in effect “follow” the ones matching their goals. All members can get a clear picture of current COVESTING is not a collective investment and past performances of each trading Model. By scheme. Rather it is a platform for investors following, the platform does not allocate monies and cryptocurrency traders who are looking to anyone but rather implement the person own to utilize the most advanced trading tools and decision whereby the platform automatically technology, as well as the combined wisdom replicates all trading activity of a chosen Model of the community in order achieve maximum directly into investors’ accounts at COVESTING, returns in cryptocurrency markets. providing a unique peer-2-peer experience along with the safety of funds. In its infancy, COVESTING has experienced rapid changes and conceptual upgrades from the “It’s like a thousand of traders moment when the first idea of a peer-2-peer all working for you!” digital asset platform was disclosed by the founder, former Saxo Bank trader, Dmitrij Pruglo. Technological discoveries, as well as ambitious 7

• Crypto Intelligence Portal – the most complete Terminal creates unique opportunities for its educational resource and knowledge base built users, offering an aggregated Level 2 order book by traders for traders; featuring latest market from combined quotes of multiple vendors and news, unique content created by leading crypto provides essential features such as: experts aimed at educating the community, sharing trading ideas and discussing latest 1. Advanced charting software market developments. 2. Aggregated market depth with combined It will include Crypto trading 101, explaining the liquidity from top exchanges essentials of cryptocurrency investing, as well 3. User friendly interface with advanced as video tutorials to help new investors. For functionality experienced traders, advanced trading tutorials, 4. Advanced trading tools and algorithms such strategies, and technical analysis from industry as VWAP and Iceberg orders professionals will be included. The Crypto 5. 24/7 customer support/Live chat Intelligence Portal will become the largest, community-oriented and continuously growing 1.3 Summary knowledge resource for investors, as well as a one-stop place to receive the latest information Backed by a strong team of industry from top crypto-related media outlets, live professionals, COVESTING is on a clear path quotes, charts and latest analysis – everything that you may need to become successful in to become an ultimate solution for investors cryptocurrency trading. and cryptocurrency traders. It will cover every aspect related to cryptocurrency trading, from “We are basically creating Bloomberg for education, market overview and trading ideas to the crypto-market, plus education, plus the unique concept of p2p asset trading, liquidity community” aggregation and ultimately the most advanced trading station ever. • Liquidity aggregation / Algorithmic trading– We aim to establish direct API bridging with 1.4 ICO Overview cryptocurrency exchanges from all over the world. By aggregating liquidity from top Start Date 24th Novemser 2017, 13:00 GMT cryptocurrency exchanges, COVESTING allows End Date 31st of Decemser, 15:00 GMT Token Name COV all users to benefit from trades executing at the Minimum Contribution 0.1 ETH best possible rates. Such offerings, previously Price of COV Token Varies sased on amount collected available only for institutional clients, provides Total limit of COV Tokens 20,000,000 COV internal liquidity with significantly reduced No tokens to se issued after the ICO Further Token Issuance pricing on all trading activities occurring on the Hard cap 25,000 ETH COVESTING Platform. Aggregated liquidity offers unlimited opportunities for further expansion: 1. Market making and deal matching 2. Options/Binary options market making 3. Algorithmic trading strategies (arbitrage, HFT trading.) • The COVESTING Trading Terminal – An advanced trading platform, adapted to the needs of traders using various strategies ranging from day trading and spread trading, to long term investments. Experience brought from one of the leading investment banks – Saxo Bank, the COVESTING team has unique knowledge on how the ultimate trading solution should operate. Aggregated liquidity offers COVESTING members access to top crypto-exchanges and trade all possible coins from one single account. The Trading 8

Intro 2.1 Market Analysis 2,000 new cryptocurrencies being created and traded on daily basis, leading to high returns for With the enormous development of the many investors. blockchain technology, new opportunities are In order to fully realize market potential, here is arising in the field of investing. Crypto markets the market capitalization of the top technology are borderless, open 24/7, and offer huge based companies listed on the Nasdaq and potential for growth. A rapidly growing number NYSE, compared to the market capitalization of of initial coin offerings (ICO) has led to more than cryptocurrencies: Alphabet – $717B USD Total Crypto Market - $200B USD Microsoft – $645B USD Bitcoin - $105B USD Facebook – $516B USD Ethereum - $30B USD Alibaba Group – $480B USD Ripple - $8B USD The combined market capitalization of all volume has grown significantly in the past few cryptocurrencies together is currently only years for the speculative purposes of gaining around $200B USD, which leaves lots of room to capital profit or by supporting projects that are expand. The overall cryptocurrency transaction built on decentralized platforms. $200B $150B Market Cap $100B $50B $0 24h Vol 0 Combined market capitalization of all cryptocurrencies. Coinmarketcap 9

There is no cryptocurrency in the world today “financial experts” once deeming blockchain and that is being used for the reason it was made for cryptocurrency a “niche market”. This increase in more than it is being used by investors trading transaction volume is mainly driven by Bitcoin it. Even Bitcoin, Ethereum and Ripple have and Ethereum. Bitcoin and Ethereum are both more transactions centred around trading and inching closer to creating a scalable ecosystem, investing than they do the actual use case of the interesting things are bound to happen in the project or currency. future. According to Juniper research, total cryptocurrency transaction value may surpass During the first half of 2017, transactions $1 Trillion USD by 2022. surpassed the $325B USD mark, despite Triple digit growth, amazing risk-reward ratios, and promising global perspectives are only a few reasons why cryptocurrencies shouldn’t be overlooked by any investor willing to diversify their portfolio and profit from opportunities offered by a booming market. 2.2 Investor Opportunities Only several digital asset funds have gained the reputation necessary for backing, while private After someone decides they may be ready to crypto traders and newly established funds tend invest in digital assets, there is a sticking point: to look for investors in online forums, social cryptocurrency trading takes place on multiple networks or amongst their friends. exchanges, all of which have different rules and regulations, and often require a lengthy It takes many years of effort to build trust and verification process. Most potential Investors are reputation in order to attract proper funding. As a lost at this stage. Another problem is volatility, result, many successful traders and digital asset which can negatively affect the overall trading traders are being overlooked and end up having result of any inexperienced private investor. no access to investors capital, limiting their The learning curve for investing in crypto assets opportunities and narrowing earnings potential. is extremely steep and experienced digital asset traders are in the best position to fully Professional digital asset managers or funds benefit from arising opportunities offered in the could be a smart solution for anyone, willing to blockchain revolution. get exposure in the cryptocurrency market. But how will retail investors find and choose the Investors may evaluate options of trusting most suitable cryptocurrency fund? How will money to a private crypto trader or a fund, in they guarantee the security of their investment? order to gain profit in newly established markets. Is the declared performance of a chosen asset Such decisions can be very risky due to lack of trader trustworthy? regulations and the high possibility of fraud. 2.4 Problems with Traditional Asset 2.3 Trader Problems Management Problems that digital asset traders must deal The Traditional asset management industry has with are equally challenging. Launching a been plagued with multiple issues including personal fund requires technical knowledge, scams and corruptions since its inception. programming skills, legal paperwork as well as Unethical and illegal manipulations by asset marketing costs and other expenses. managers with a large sum of money at their 10

disposal, Ponzi schemes, and sweeping commission and drive up the fees to their techniques are some of the common allegations investors are just the beginning when it comes to faced by the industry. The industry has the level of dishonest activity when it comes to developed deep-rooted problems including investing other’s money. Every year, thousands mutual mistrust, unethical practices, scamming, of licensed traders are found guilty of insider and below-the-surface deals. trading, fraud, or scamming hard-working investors. Trusting even professional asset managers in traditional markets can sometimes lead to problematic results. Stories of asset managers making certain trades just to increase their 11

P2P Digital Asset Platform The COVESTING Platform is the ultimate venue • BitTorrent – a popular anonymous file-sharing where successful digital asset traders meet new platform where uploaders and downloaders investors, in a transparent, safe and efficient meet to swap media and software files. peer-2-peer investment environment. • Air BnB – allows property owners to lease all or part of their property to short-term renters. • Uber – a platform for car owners to offer Investors from around the world can compare transportation services to others the performance of hundreds of successful • eBay – a marketplace for private sellers of goods cryptocurrency traders and mirror their trades to find interested buyers. automatically to their account. While traders • Etsy – enables producers of crafts and other benefit from success fees generated by profitable homemade goods to sell their items directly to trading – investors enjoy peace of mind knowing the public that their funds are following a model of an industry professional in the comfort of their own 3.2 For Investors account. The COVESTING platform allows everyday By pairing the peer-2-peer business model investors to search and compare the performance and the cryptocurrency investment industry, of hundreds of proven cryptocurrency traders COVESTING offers a fantastic opportunity to and replicate their trading activity automatically. utilize the wisdom of experienced traders in order to achieve positive trading results securely. After an investor decides to follow to the most suitable strategy - the system will automatically 3.1 Peer-2-Peer Definition synchronize all trading activity from the chosen investing Model into their segregated account at A Peer-to-Peer, or P2P, Service itself is a decentralized COVESTING, providing the convenience of peer- platform whereby two individuals interact directly 2-peer asset trading along with the safety of with each other, without intermediation by a third- funds. party, or without the use of a business selling a product or service. The buyer and the seller transact Each investor can diversify their investments directly with each other via the P2P service. by following up to 20 different Models (traders) Some popular examples of P2P services are: at the same time. Such diversification allows investors to be uniquely positioned to record • Open-source Software – anybody can view and/ gains across multiple crypto trading strategies or modify code for the software and protect themselves against massive losses 12

in any single cryptocurrency. More importantly, investors. All participants can choose to publish investors are in total control - they can start or their real names or remain anonymous by using finish the following whenever they want. a screen-name alias. 3.3 For Traders 3.4 Profit Distribution The COVESTING platform helps investing talents Model Traders are rewarded with 18% success bring their trading results in front of the public fees from all profits generated by their followers, and compete with other traders in an unbiased the platform commission is 10%, while investors environment. With the COVESTING platform, receive the remaining 72% of income, which every trader can act as a digital asset trader and is available for immediate withdrawal or grow their revenue by earning success fees. The reinvesting. more successful they are, the more followers Platform commissions of 10% will later be used they will acquire and the more money they’ll for systematic buyback and burn programs. make from profitable trading. 3.5 Synergy Trading Models can be easily created by linking an existing trading account at an external With the features described above, the COVESTING cryptocurrency exchange through an API. From Platform creates a synergized marketplace that this moment, all trading activity will be recorded brings investors, and professional cryptocurrency in the Model and the trader doesn’t need to traders together. do anything else – just continue trading in the All parties benefit from the COVESTING platform: comfort of his personal account. cryptocurrency traders get visibility to new audiences and sources of additional income, Later, the trader will be able to decide whether while investors get a broad range of trading he wants to “list” his Model at the COVESTING strategies they may follow with the ability to platform and make it visible for investors instantly analyze historical performance in order to make or keep it private for a while to build a solid track the right decision. Our goal is to create an easy- record first. to-use platform with a win-win solution for both investors and professional traders The COVESTING Platform will provide such opportunities to cryptocurrency traders: 3.6 COVESTING in Four Simple Steps • Setup a trading Model and start performance 1. Join. Register at COVESTING by filling a simple tracking from day one form. • Describe the trading strategy, expected volatility 2. Find top traders. Compare the performance and returns of hundreds of successful Model Traders and find • Enable investors to follow your trading Model the one or many matching your goals. through your performance 3. Follow. Once you found the strategy or • Earn success fees on all profits made by Model- following accounts strategies you wish to follow, simply click • Build a solid track record to acquire more “Follow”. You will be asked to specify the followers percentage of the funds you want to allocate to • Earn reputation and get reviews from previous the Model. The amounts for the replicated trades and existing investors will be calculated proportionally. • Interact in a safe environment, make new 4. Monitor and control. You can now sit back contacts, and grow professionally as a trader and watch professional traders do the job for • Keep a blog, post news, trading ideas and market you. All trades from now on will be replicated analysis automatically. Most importantly – you are in control. You can manage your portfolio by For security reasons, Model Traders will never following new strategies or stop copying a trader know the amount of capital which is currently at any time. following their strategy, only the number of 13

3.7 Platform specifications account with a proportional amount of funds, predefined by the investor. At COVESTING we aim to develop an easy to use, secure and efficient solution for both investors Segregated Accounts and traders. COVESTING will deliver the most To provide security and peace of mind to all user-friendly, yet advanced peer-2-peer digital investors – we offer secure personal accounts for asset platform. Below, we provide concept each user within the COVESTING Platform. None specifications of the platform as well as a brief of the funds go directly to Model Trader, which explanation of the core features. avoids trust and security issues. Registration Unfollowing the Model All users must be registered on the platform to carry out At the point when an Investor unfollows a trading any activities. Registration is a standard process through Model – funds are immediately returned to their email, or through Facebook, Google, and Twitter. wallet minus success fees and commission in case of any profit they earned. COVESTING Account and Wallet All users of the platform will have their own unique Each user can stop following to a trading Model wallet created automatically. After registration whenever they like. The only occasion when with COVESTING platform, each user shall have following stops automatically is when a Model BTC, ETH and other addresses in their Wallet. By Trader decides to terminate it. Funds would depositing any of these coins, it is possible to then be returned to all of the followers of the make internal exchanges from one currency to terminated Model. another. However, only COV token can be used for following a trading strategy. Profit Sharing In case a trading Model resulted in profits for the Entry fee investor-follower, income distribution will look There is a 2% entry fee that applies every like this: time user deposits funds to his account. This commission accrues to the COV Asset Contract Success Fee - 18% of all profits will be transferred increasing the value backing COV tokens. to the Model Trader’s wallet Platform Commission - 10% of all profits and will Model Traders be automatically credited to COV Asset Contract A Model Trader is a user who created a trading The remaining 72% shall be credited to the Model (strategy) in COVESTING platform. From investors wallet along with the initial investment. that moment, tracking of all trading activity starts and the Model becomes available for following. Anonymous Mode All users of COVESTING platform can choose to Investors publish their real names or remain anonymous by The investor is a user who is following a chosen using a screen-name alias. However, we believe Model in order to benefit from the profitable that providing real names can be beneficial, trading of a Model Trader. Each investor can especially for successful Model Traders. follow up to 20 different trading strategies. Users Privacy Marketplace No personal user data is available to other users The platform allows users to search, rank, filter or moderators working on the platform. This list and compare all of the available trading Models. includes but is not limited to: emails, wallet IDs, or funds available to users, as well as direct links Following to a Model to accounts in social networks, even if they are When an investor finds a suitable strategy and specified in the user’s form. All users can remain starts following – all trading actions of a Model completely anonymous. will be replicated in their personal COVESTING 14

Speed of Execution • The Marketplace of trading Models, where each At the initial launch, we will offer only manually- investor can search and compare all the strategies traded Models. As soon as our API becomes provided by Model Traders. From here, investors “bullet-proof” tested – we shall launch algorithm- select the most suitable trading Models and can start following. trading strategies as well. • Traders Dashboard, which allows traders to create a Trading Model (strategy) available for following. By implementing smart contracts and technology, It includes a trading strategy description as well we will automate the digital asset trading as detailed information about TOP holdings. It processes, bypass trust and insecurity issues also tracks performance by day, month and year, while making investments transparent, simple and features a snapshot of trading statistics. The and secure as they are supposed to be. dashboard represents detailed trading history and allows you to export various reports. 3.8 Architecture • The COVESTING trading accounts section is used The COVESTING digital asset platform for replicating trading activity from the Models. COVESTING will use API connections, smart infrastructure includes four main elements: contracts, and aggregated liquidity to execute and mirror trades, distribute requested funds and • The Investors account section, which provides provide detailed performance data to users. multi-currency wallets, portfolio overview and statistics. The Marketplace of trading Models 15

Traders Dashboard 16

Investor Asset Trader 10:30 AM 100% Account at Covesting Barren Waffet fund Account at Covesting 4.6 /5 Our fund is one of the best in the industry. we provide amazing returns as well as capital growth - Strategy builder Wallet - Model setup BTC Wallet Barren Waffet fund - Listing on Marketplace -Portfolio ETH BTC -Statistics Our fund is one of the best in the industry. we provide amazing returns as well as COV 4.2 /5 capital growth ETH -Control panel COV and other Barren Waffet fund TradingModel: Existing 4.6 /5 Our fund is one of the best in the industry. we provide amazing returns as well as capital growth Altcoin growth (COV) strategy Purchase with ETH or Covesting BTC Token 2% Entry Following started with predifined amount COV Asset contract Replicating all -accrues all fees trading activity -backs COV Token value -rewards token holders Investors personal account in Covesting 10% from Profits Platform commission Following stopped Initial 72% from Success investment + Profits Profit fee 18% Investor Trader Architecture of COVESTING Peer-2-Peer asset platform 17

Crypto Intelligence At COVESTING, we aim to produce a one-stop to the Crypto Intelligence hub, giving COVESTING solution for cryptocurrency traders and investors. a unique ever-growing knowledge base, suitable Since the infrastructure of COVESTING is being for both beginners as well as professional traders. built by investment industry professionals - The Crypto Intelligence Portal will essentially importance of timely market data has not been include: overlooked. • An integrated news feed from multiple Apart from a one of a kind peer-2-peer digital resources asset platform, we aim to introduce the largest • Blog posts and articles from reputable resource for education, news, trade ideas and cryptocurrency traders and analysts • Trade ideas with technical analysis and strategies market analysis about the cryptocurrency from professional traders market. We call it – Crypto Intelligence. • A crypto academy, which offers education, 101 and video tutorials explaining the A to Z about COVESTING strongly believes in the importance cryptocurrency and trading of education when it comes to cryptocurrency. • The most complete glossary for crypto There is a lot to learn when it comes to the terminology technology, and it changes at a pace that many • A link library, the most comprehensive collection cannot keep up with. We believe it is partly our of important cryptocurrency links and resources responsibility to educate our users, as we are • Community, where investors and traders offering them a vehicle to invest their hard- can interact and discuss the latest market earned money. While investing in cryptocurrency developments and trading ideas is always a risky endeavour, there are certainly plenty of rewards to be gained as well, and Ultimately, the Crypto Intelligence Portal will that’s why we believe offering a large portal for become a “Bloomberg” for crypto with education our users to grow their knowledge of the crypto- and a community-built knowledge base. The industry is very important. one-stop venue for everything that crypto- traders need in order to build their knowledge We seek to share the knowledge and best and stay informed. practices with our community. Leading crypto- experts, researchers and traders will contribute 18

Liquidity Aggregation Liquidity is defined as the ability to execute a • Quotes from multiple exchanges provide the trade quickly and at a desirable price. ability to develop algorithmic trading strategies such as cross-exchange arbitrage, and HFT For such markets as FX or equity – liquidity trading, allowing investors to follow to such algorithmic strategies. is not a problem anymore. However, for the newly established cryptocurrency market it still remains a major issue. By aggregating liquidity from the leading exchanges – COVESTING creates a huge Liquidity aggregation provides unique benefits opportunity for market making, hedging such as: and offering an aggregated order book from combined quotes of multiple exchanges. • Having ALL cryptocurrencies available on one There is currently no centralized exchange and platform (No longer a need to open a Bitfinex + cryptocurrency market development is still in Binance + Bittrex account because there are some its infancy– there are huge inefficiencies which crypto-assets trading on one of these exchanges provide ample opportunities for arbitrage and but not listed on the other). HFT. Such liquidity provides great opportunities • Always the best prices for execution – since the to establish new products such as Vanilla options aggregator will pick the best asset price from or Binary options as well as other derivatives in multiple exchanges and execute accordingly. the future. • Combined liquidity offers less slippage, thinner spreads and ability to execute larger trades at once. • Improved latency and reduced execution costs 19

Covesting Trading Terminal The Trading Terminal is a natural addition to • Benefit from quick and responsive execution, the complete COVESTING infrastructure. Having tight spreads and a deep order book aggregated liquidity and a strong educated community, it becomes a necessity to introduce • Access to all necessary information about crypto a trading terminal adapted for both experienced • Access to the most advanced charting software crypto-traders and beginners. • Access to market sentiment, data and analysis – Currently, there is no fully-functional platform similar to COT on futures offering aggregated liquidity for retail investors, allowing them to execute trades based on • Earn success fees apart from trading profits by quotes from multiple exchanges. Also, there are allowing investors to copy trades, through the very little advanced trading tools offered, such p2p asset platform. as algorithmic bots, VWAP, ICEBERG and direct Level2 trading. • Build a full-scale trading career within one single platform With the COVESTING Trading Terminal each • Generate detailed financial reports which will be trader can: aligned with regulations • Trade the widest selection of cryptocurrencies • Access quotes from top exchanges through a single account (combined market depth) 20

Covesting Trading Token The COVESTING token is an ERC20 token and a 7.1 COV Emission smart contract system built on the Ethereum blockchain, and designed to be used by members A maximum of 20.000.000 COVESTING tokens will within the COVESTING platform. Following be generated, including 1.500.000 to conduct this standard, COVESTING tokens are easily a PreICO, and 15.000.000 to conduct a full ICO. transferable between users and platforms using Another 2.500.000 will be shared between the ERC20-compatible wallets and can be smoothly founders of the COVESTING platform and locked integrated into exchanges. in a smart contract for 3 months, while the rest will be generated for advisory, bounty and PR pools. 13% Public Contributors Covesting Team 7% 75% pre-Contributors 5% PR, Bounty Advisors 21

7.2 COV Token Growth dozens of professional traders, so even early users of the platform would have the ability to choose Members buy COV tokens as a utility in order to between many suitable trading strategies. As follow one or several trading Models, provided by the platform grows, new traders will register the cryptocurrency traders on the platform. In the their Models and a variety of strategies will drive case when model following resulted in a profit diversification, and create healthy competition – investor will get an initial amount allocated among all Model Traders. plus all profit converted into COV, so value of his holdings in COV will increase. Demand for COV Successful mirror-trading in the platform will correlates with the copy-trading volume at the achieve many positive outcomes: investors will COVESTING platform. The more investors and make a profit, Model Traders will be rewarded with traders on the platform, the higher the value of success fees as well as reputation points, positive COV Token rises. reviews, and higher rankings. Successful trading will attract more investors to the ecosystem The acquisition of a large number of participants and positively influence the reputation of the on the COVESTING platform (Investors and COVESTING platform and the price of the COV Model Traders) is the basis for the growth of the Token. COVESTING token. At the initial launch of the COVESTING platform, we will aim to onboard 22

Financials Besides natural demand for COV, there are two support the consistent growth in value of COV types of commission in the COVESTING p2p tokens. As soon as the COVESTING platform starts platform used to back COV value and reward COV performing – we aim to distribute part of the token holders: accrued commissions in the COV Asset Contract towards Buy-back and Burn mechanism. • Entry commission 2% - charged every time an investor deposits funds to their account, which 8.4 Rewarding Token Holders allows them start following to trading Models. • 10% platform commission - on all profits We aim to allocate at least 50% of all platform realized by copy trading. earnings to systematic Buyback and Burn programs. This form of repayment program sets best practices These fees will automatically accrue in the COV for the COV token economy, and simultaneously Asset contract and will be used for systematic serves in the best interest of COVESING token buyback and burn programs in the future. holders. Technically speaking, we will systematically buy COV tokens on exchanges and “Burn” them. COVESTING intends to add additional recurring “Burning” means that purchased tokens will be revenue streams within the next 8-12 months, taken off the market, with the consequence that including liquidity distribution to institutional the total supply of COV tokens will decrease. This clients, commissions occurring from the should effectively improve the value of COV over COVESTING Trading Terminal, Binary options time. We will continuously monitor the regulatory sale, and market making. environment closely and possibly introduce alternative methods of value distribution according 8.1 Asset Contract to market guidelines. The COV Asset Contract is an essential part of how the value will be created for COV token holders. With all commissions from the combined infrastructure of COVESTING accrued in the Asset Contract, it creates a sufficient pool of funds to 23

ICO 9.1 ICO Details contract will stop accepting commitments when the 25,000 hard cap has been reached. The public ICO will be held on the Covesting.io website starting on November 24th. Below is a table representing each COV price increase depending on total amount of COV COVESTING aims to accept up to 25,000 ETH from tokens sold during ICO. our initial token contributors. The COV smart TOTAL COV SOLD COV PER 1 ETH RATE / discount [stage1]0 - 1M COV 1 ETH = 800 COV / -35% [stage 2]1M - 1.9M COV 1 ETH = 720 COV / -28% [stage 3]1.9M - 3.6M COV 1 ETH = 680 COV / -23% [stage 4]3.6M - 6.8M COV 1 ETH = 640 COV / -19% [stage 5]6.8M - 9.8M COV 1 ETH = 600 COV / -13% [stage 6]9.8M - 15M COV 1 ETH = 520 COV Total: 15,000,000 COV 9.2 Use of funds roadshows. Digital currency trading exhibitions participations etc. There are natural network All proceeds from the token sale will fund effects built into the product around the P2P the product launch, continued platform asset trading model, which will lower the average customer acquisition cost (CAC) substantially. development, and user acquisition: • 30% Initial Capex. Substantial costs largely associated with b2b API integration from • 40% R&D. Development team with approximately multiple partners-exchanges. Costs of necessary 15-20 engineers. Platform development, new Licensing. Latency optimization. Operational features, data-testing for HFT operations, mobile spends, employees (excl. developers), office etc. app development etc. • 5% Legal, compliance fees • 25% – Marketing expenses, PR and Customer Acquisition, presentations and region-specific 24

9.1 Exchange Listing in development of architecture of the COVESTING platform. COVESTING is actively working to list COV tokens ☑ 2017 July – Held a meet-up with 60+ private at the leading crypto exchanges. COV will become crypto currency traders and investors. Clearly traded on crypto exchanges shortly after the ICO. visible demand for a p2p asset platform with mirror-trading functionality. 9.2 Legal ☑ 2017 September – Landing page and white paper disclosed. In July, the Securities and Exchange Commission ☑ 2017 October 20th – Pre-ICO begins for a issued a ruling that some of the “coins” offered limited number of contributors. during recent ICOs are actually securities, and The proceeds used for adding new thereby are subject to the agency’s regulations. development team members. CEO and COO By offering dividends and profit-sharing such travel to Gibraltar to setup a COVESTING companies failed the Howey Test, created by company and acquire necessary licensing the US Supreme Court for determining whether ☑ 2017 November 24th – Prototype version certain transactions qualify as “investment of the platform released. Crypto Intelligence contracts.” portal is open for community ☑ 2017 November 24th -- Public ICO begins The Howey test consists of the following: ☑ 2017 December – further front-end and back- end development. API testing. Test mirror- • Is it an investment of money or assets? trades executed. Latency test. Liquidity • Is the investment of money or assets in a common aggregator setup. New features integration. enterprise? ☑ 2018 January - Exchange listing of COV Token. • Is there an expectation of profits from the ☑ 2018 March – Beta version launch. investment? ☑ 2018 May – Platform improvements. Mobile • Does any profit come from the efforts of a promoter or third party? App development. ☑ 2018 July – Final (Production) Beta version Unlike other tokens, COV COV is a utility token of COVESTING Cryptocurrency Trading and its purpose is to facilitate services (copy- Platform. trading) on the COVESTING platform. COV is not ☑ 2018 July – DLT license backed by real assets (such as real estate) and ☑ 2018 September – Official platform release doesn’t grant their holders any dividends. ☑ 2019 and beyond – COVESTING platform As Tim Draper mentioned in his open letter: “If the has over 5,000 active users and $50M USD+ purpose of a token is for societal transformation, of combined AUM. Algorithmic trading and and all proceeds go to the support and arbitrage bots are now available on the development of the token, it need not register.” platform. New features continuously added. User acquisition globally. 9.3 Road Map By continuously adding features, building a strong community and aggregating data, COVESTING is about to become a leading blockchain based peer-2-peer asset trading platform for cryptocurrencies. ☑ 2017 Q1 – Concept design & research ☑ 2017 April – Analysis of traditional copy- trading platforms for stocks and foreign exchange. Features testing. Demand research. Growth projections. ☑ 2017 May – Team formation. First steps 25

Team My name is Dmitrij Pruglo and I’m a founder I have assembled a team with a solid financial and ideologist of the COVESTING project. I have markets background, which is motivated to make been working in the financial sector for 11 years the world of digital currency investments better. and held trading-related positions in SEB Bank Together, we will create a magnificent platform, and Saxo Bank. I have been involved in stocks, which will help many investors and traders find derivatives and FX trading since 2001. During each other and mutually benefit from everything this time, I executed trades using various web- that the COVESTING platform has to offer. platforms, trading software and algorithms. Being an expert in the online trading industry, I can surely state that digital asset trading services will shortly become a “must-have” option for any diversified investor. Conclusion • We are already in development mode, and in a mutually beneficial investment environment. November 2017 we will release a MVP version • We provide simple logic behind the value creation of the platform where anyone can familiarize for the COV token. It’s easy to understand and themselves with the interface and features. evaluate its future growth. • We are in active communication with • Unlike many ICO campaigns, we are not just cryptocurrency funds and private traders in order creating another useless cryptocurrency in an to form an initial pool of professional Model already crowded market. We provide the ability Traders. to become a member of the successful platform • We have a solid marketing strategy which will and benefit from the token price growth. ensure a successful launch of the platform in Q1 • We have an excellent, competitive team creating 2018. a revolutionary product and will cope with any • We know exactly what is needed for both difficulties down the road. investors and traders. We will create synergy and 26

Disclaimer This document is for information purposes only and is not an offer or a call to sell stocks or securities. COV tokens are not securities User acknowledges, understands, and agrees that COV tokens are not securities and are not registered with any government entity as a security, and shall not be considered as such. Absence of guarantees of income or profit There is no guarantee that COV tokens will grow in value. There are no guarantees that the price of COV coins will not decrease, including significantly, due to some unforeseen events, or events over which the developers have no control, or because of force majeure circumstances. Risks associated with Ethereum COV tokens will be issued on the Ethereum blockchain. Therefore, any failure or malfunctioning of the Ethereum protocol may lead to the trading network of COV tokens not working as expected. Regulatory uncertainty Blockchain technologies are subject to supervision and control by various regulatory bodies around the world. COV tokens may fall under one or more requests or actions on their part, including but not limited to restrictions imposed on the use or possession of digital tokens such as COV coins, which may slow or limit the functionality or repurchase of COV tokens in the future. Risks of using new technologies COV tokens are a new and relatively untested technology. In addition to the risks mentioned in this document, there are certain additional risks that the team of the COVESTING cannot foresee. These risks may manifest themselves in other forms of risk than those specified herein. 27

LEGAL CONSIDERATIONS, RISKS AND DISCLAIMER IMPORTANT NOTICE: PLEASE READ THE ENTIRETY OF THIS “Legal Considerations, Risks and Disclaimer” SECTION CAREFULLY. WE RECOMMEND YOU CONSULT A LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) OR EXPERTS FOR FURTHER GUIDANCE PRIOR TO PARTICIPATING IN THE COVESTING LIMITED TOKEN SALE OUTLINED IN THIS WHITE PAPER. You must read the following “Legal “Available Information”) is accurate and up Considerations, Risks and Disclaimer” section to date, such material in no way constitutes before: (i) making use of this White Paper and any professional advice. The Company neither and all information available on the website(s) of guarantees nor accepts responsibility for the COVESTING LIMITED (the “Company”) located accuracy, reliability, current state (as of this at www.covesting.io/ (the “Website”); and/or White Paper) or completeness of the Available (ii) participating in the Company’s token sale Information. Individuals intending to participate outlined in this White Paper (the “Token Sale”). in the Token Sale should seek independent This “Legal Considerations, Risks and Disclaimer” professional advice prior to acting on any of the section applies to this White Paper and any and Available Information. all information available on the Website. The contents of this “Legal Considerations, Risks LEGAL CONSIDERTIONS and Disclaimer” section outlines the terms and conditions applicable to you in connection with The Company has approached the Token Sale (i) your use of this White Paper and of any and all in a responsible and sensible manner. Given information available on the Website; and/or (ii) the uncertain and largely unregulated status your participation in the Token Sale, in each case of distributed ledger technologies, businesses in addition to any other terms and conditions and activities as well as cryptocurrencies and that we may publish from time to time relating cryptocurrency-related businesses and activities, to this White Paper, the Website and the Token the Company has spent a significant amount Sale (such terms hereinafter referred to as the of time and resources to consider its business “Terms”). This “Legal Considerations, Risks and approach and where it proposes to operate now Disclaimer” section may be updated from time and in the future. The Company has worked to time and will be published as part of the with Hassans International Law Firm, Gibraltar’s latest version of the White Paper which shall be leading law firm. The Gibraltar Financial Services available on the Website. You shall be obliged to Commission has on 12th October 2017 published check the latest available version of the White a draft of the principled-based regulations which Paper prior to participating in the Token Sale. relate to the use of distributed ledger technology for storing and transmitting value belonging to The information set forth in this “Legal others, and which regulations come into effect Considerations, Risks and Disclaimer” section on 1st January 2018. The Company will look may not be exhaustive and does not imply any to comply with all Gibraltar regulations and elements of a contractual relationship. While regulations of other jurisdictions that it is required we make every reasonable effort to ensure that to. However, due to the current uncertain state of all information: (i) in this White Paper; and (ii) regulation across the world, the Company cannot available on the Website (all the information in guarantee the legality of the Company’s business the White Paper and all information available platform and/or its ability to develop, structure on the Website hereinafter referred to as the and licence any future Token functionality in 28

every jurisdiction but the Company will strive to laws of a Restricted Jurisdiction (including in be responsive and compliant in the face of any the case of United States of America, under the regulatory inquiry. federal laws of the United States of America or under the laws of any of its States). The Tokens are functional utility tokens designed for the Company’s business platform. The The Company’s COV tokens described in this Tokens are not securities. In the event that you White Paper (the “Tokens”) are not intended to purchase Tokens, your purchase cannot be constitute, and shall not constitute, securities refunded or exchanged. The Company does not in any jurisdiction. This White Paper does not recommend purchasing Tokens for speculative constitute a prospectus or offer document of any investment purposes. Tokens do not entitle you sort and the Available Information is not intended to any equity, governance, voting or similar right to constitute an offer of securities or a solicitation or entitlement in the Company or in any of its for investment in securities in any jurisdiction. affiliated companies. Tokens are sold as digital The Company does not provide any opinion or assets, similar to downloadable software, digital any advice to purchase, sell, or otherwise transact music and the like. The Company does not with Tokens and the presentation, publication or recommend that you purchase Tokens unless you communication of all or any part of the Available have prior experience with cryptographic tokens, Information shall not form the basis of, or be blockchain-based software and distributed relied upon in connection with, any contract or ledger technology and unless you have taken investment decision. independent professional advice. NO ADVICE For the convenience of our customers and those of our affiliated companies already using the No part of the Available Information should be Company’s business platform, the Available considered to be business, legal, financial or tax Information will be available in a number of advice regarding the Company, the Tokens, the languages. In the event of any conflict between Token Sale or any of the matters to which all or the English version of the Available Information any part of the Available Information relates. and any foreign language version, the English You should consult your own legal, financial, language version will prevail. tax or other professional advisor regarding the Available Information. You should be aware that REGIONAL RESTRICTIONS you may be required to bear the financial risk of any purchase of Tokens for an indefinite period Citizens, nationals, residents (tax or otherwise) of time. and/or green card holders of each of: (i) the United States of America; (ii) Singapore; (iii) South Korea; LIMITATION OF LIABILITY (iv) the People’s Republic of China; or (v) any other jurisdiction which prohibits the possession, In no event shall the Company or any current or dissemination or communication of the Available former employees, officers, directors, partners, Information and/or prohibits participation in the trustees, representative, agents, advisors, Token Sale or the purchase of Tokens or any contractors, or volunteers of the Company such similar activity (collectively the “Restricted (hereinafter the “Company Representatives”) be Jurisdictions”) or any other Restricted Persons liable for: are not permitted to participate in the Token Sale. The term “Restricted Persons” refers to any firm, 1. any loss of profits, lost savings or incidental, company, partnership, trust, corporation, entity, indirect, special or consequential damages, government, state or agency of a state or any arising out of your use or inability to use the other incorporated or unincorporated body or services or products or Tokens offered by the association, association or partnership (whether Company or the breach of any of these Terms or not having separate legal personality) that is by you or by any third party; established and/or lawfully existing under the 2. any security risk such as hacker attacks, loss 29

of password, loss of private key, or similar; to be released and discharged pursuant to this 3. mistakes or errors in code, text, or images paragraph or these Terms, or otherwise attempt involved in the Token Sale or in any of the to pursue any such claim against the Company Available Information; or or any Company Representative then you hereby 4. any information contained in the Available irrevocably and unconditionally undertake to Information or any expectation promise indemnify, and keep indemnified the Company representation or warranty arising (or and all Company Representatives fully on purportedly arising) therefrom; demand from and against: 5. any losses resulting from the volatility in (a) all liabilities or losses suffered by the pricing of Tokens in any countries and on any Company or any Company Representative; and exchange or market (regulated, unregulated, (b) all reasonable costs, charges and primary, secondary or otherwise); reasonable expenses (including without 6. any losses or damages arising out of or in limitation reasonable legal costs and expenses) connection with the purchase, use, sale or reasonably and properly incurred by the otherwise of the Tokens; or Company or any Company Representative, 7. arising out of or in any way connected to your in each case by reason of or in connection with failure to properly secure any private key to a the bringing or commencement of such action or wallet containing Tokens, pursuit of such claim by you. (collectively, the “Excluded Liability If any provision or part-provision of this “Legal Matters”). Considerations, Risks and Disclaimer” section is or becomes invalid, illegal or unenforceable, The Available Information (including the Website it shall be deemed modified to the minimum and the White Paper) and the Tokens are provided extent necessary to make it valid, legal and on an “as is” basis and without any warranties enforceable. If such modification is not possible, of any kind, either expressed or implied. You the relevant provision or part-provision shall be assume all responsibility and risk with respect deemed deleted. Any modification to or deletion to your use of the Available Information and of a provision or part-provision under this “Legal purchasing of any amount of Tokens and their Considerations, Risks and Disclaimer” section use. If applicable law does not allow all or any shall not affect the validity and enforceability of part of the above limitation of liability to apply to the rest of this “Legal Considerations, Risks and you, the limitations will apply to you only to the Disclaimer” section. maximum extent permitted by applicable law. NO REPRESENTATION & WARRANTIES To the maximum extent permitted by applicable law, you hereby irrevocably and unconditionally The Company does not make or purport to waive: (i) all and any claims (whether actual or make, and hereby disclaims, any representation, contingent and whether as an employee, office warranty or undertaking in any form whatsoever holder, trustee or in any other capacity whatsoever to any entity or person, including any or howsoever arising) including, without representation, warranty or undertaking in limitation, claims for or relating to the Excluded relation to the truth, accuracy and completeness Liability Matters, any payment or repayment of of any of the information set out in the Available monies, indemnity or otherwise that you may Information. have against the Company or against any of the Company Representatives; and (ii) release and REPRESENTATION & WARRANTIES BY YOU discharge the Company and all of the Company Representatives from any and all liability (of By howsoever accessing and/or accepting whatsoever nature or howsoever arising) it possession or communication of all or any part or they may have to you. If for any reason you of the Available Information, you represent and hereafter bring or commence any action or legal warrant (and shall be deemed to represent and proceeding in respect of any claim purported warrant) to the Company on the date of such 30

access or on the latest date on which you retain classified or treated as: possession of all or any part of the Available • any kind of currency or commodity; Information as follows: • debentures, stocks or shares issued by any 1. you are over 18 (eighteen) years of age; person or entity (whether the Company or 2. you agree and acknowledge that the Tokens otherwise); do not constitute securities in any form in • rights, options or derivatives in respect of any jurisdiction; such debentures, stocks or shares; 3. you agree and acknowledge that the • rights under a contract for differences or Available Information (including the White under any other contract the purpose or Paper and the Website) does not constitute pretended purpose of which is to secure a a prospectus or offer document of any sort profit or avoid a loss; and is not intended to constitute an offer of • units in a collective investment scheme; securities in any jurisdiction or a solicitation • units in a business trust; for investment in securities and you are not • derivatives of units in a business trust; bound to enter into any contract or binding • any other security or class of securities; or legal commitment and no cryptocurrency or • any type of investment (as such term is defined other form of payment is to be accepted on by the Financial Services (Investments and the basis of the Available Information; Fiduciary Services) Act 1989-47 of Gibraltar 4. you agree and acknowledge that no regulatory (as amended or re-enacted from time to authority has examined or approved of the time) or as such term might be construed Available Information, no action has been under similar legislation in any other part of or will be taken under the laws, regulatory the world); requirements or rules of any jurisdiction and • you are fully aware of and understand that the publication, distribution or dissemination you are not eligible to purchase any Tokens of all or any part of the Available Information or access the Available Information if you are to you does not imply that the applicable a citizen, national, resident (tax or otherwise) laws, regulatory requirements or rules have and/or green card holder of a Restricted been complied with; Jurisdiction or if you are a Restricted Person; 5. you agree and acknowledge that the • you have a basic degree of understanding Available Information, the undertaking and/ of the operation, functionality, usage, or the completion of the Token Sale, or future storage, transmission mechanisms and other trading of the Tokens on any exchange or material characteristics of cryptocurrencies, market (regulated, unregulated, primary, blockchain-based software systems, secondary or otherwise), shall not be cryptocurrency wallets or other related token construed, interpreted or deemed by you as storage mechanisms, blockchain technology an indication of the merits of the Company, and smart contract technology; the Tokens, the Token Sale or the Available • you are fully aware and understand that in Information; the case where you wish to purchase any 6. the distribution or dissemination of the Tokens, there are risks associated with: (A) the Available Information any part thereof or Company and its business and operations; any copy thereof, or acceptance of the same (B) the Tokens; (C) the Token Sale; and (D) by you, is not prohibited or restricted by the relying or acting on all or any part of the applicable laws, regulations or rules in your Available Information; jurisdiction, and where any restrictions in • you agree and acknowledge that the relation to possession are applicable, you Company is not liable for any indirect, special, have observed and complied with all such incidental, consequential or other losses restrictions at your own expense and without of any kind, in tort, contract or otherwise liability to the Company; (including but not limited to loss of revenue, 7. you agree and acknowledge that in the case income or profits, or loss of use or data, or where you wish to purchase any Tokens, the loss of reputation, or loss of any economic Tokens are not to be construed, interpreted, or other opportunity of whatsoever nature 31

or howsoever arising), arising out of or different from any future results, performance or in connection with any acceptance of or achievements expected, expressed or implied by reliance on the Available Information or any such forward-looking statements. These factors part thereof by you; and include, amongst others: • all of the above representations and 1. changes in political, social, economic and warranties are true, complete, accurate and stock or cryptocurrency market conditions, not misleading from the time of your last and the regulatory environment in the access to and/or possession of (as the case countries in which the Company conducts its may be) the Available Information. business and operations; 2. the risk that the Company may be unable or CAUTIONARY NOTE ON FORWARD-LOOKING execute or implement its business strategies STATEMENTS and future plans; 3. changes in interest rates and exchange rates All statements contained in the Available of fiat currencies and cryptocurrencies; Information, statements made in any press 4. changes in the anticipated growth strategies releases or in any place accessible by the public and expected internal growth of the and oral statements that may be made by the Company; Company or the Company Representatives 5. changes in the availability and fees payable to (as the case may be), that are not statements the Company in connection with its business of historical fact, constitute “forward looking and operations; statements”. Some of these statements can be 6. changes in the availability and salaries of identified by forward-looking terms such as “aim”, employees who are required by the Company “target”, “anticipate”, “believe”, “could”, “estimate”, to operate its business and operations; “expect”, “if”, “intend”, “may”, “plan”, “possible”, 7. changes in preferences of customers of the “probable”, “project”, “should”, “would”, “will” or Company; other similar terms. However, these terms are 8. changes in competitive conditions under not the exclusive means of identifying forward- which the Company operates, and the ability looking statements. All statements regarding of the Company to compete under such the Company’s financial position, business conditions; strategies, plans and prospects and the future 9. changes in the future capital needs of the prospects of the industry which the Company is in Company and the availability of financing are forward-looking statements. These forward- and capital to fund such needs; looking statements, including but not limited 10. war or acts of international or domestic to statements as to the Company’s revenue terrorism; profitability and growth, expected revenue 11. occurrences of catastrophic events, natural profitability and growth, prospects, future plans, disasters and acts of God that affect the other expected industry trends and other matters businesses and/or operations of the discussed in the Available Information regarding Company; the Company are matters that are not historic 12. other factors beyond the exclusive control of facts, but only estimations and predictions. The the Company; and Company makes no representation or warranty 13. any risk and uncertainties associated with the on having made any predictions or estimates Company and its business and operations, or expectations on the basis of any formula, the Tokens, the Token Sale and reliance on any mathematical or scientific modelling or all or any part of the Available Information. forecast, or having made any due and proper enquiries or having undertaken any independent All forward-looking statements made by or research or studies or otherwise. These forward- attributable to the Company or Company looking statements involve known and unknown Representatives are expressly qualified in their risks, uncertainties and other factors that may entirety by such factors. Given that risks and cause the actual future results, performance or uncertainties that may cause the actual future achievements of the Company to be materially results, performance or achievements of the 32

Company to be materially different from that uncertainties or material risks, and you may lose expected, expressed or implied by the forward- all or part of your Tokens or the economic value looking statements in the Available Information, thereof. undue reliance must not be placed on these statements. RISKS RELATING TO PARTICIPATION IN THE TOKEN SALE These forward-looking statements are applicable only as of the later of the date of publication There is no prior market for Tokens and the Token of the White Paper and the latest date that the Sale may not result in an active or liquid market Website has been updated. Neither the Company for the Tokens. nor the Company Representatives nor any other person represents, warrants and/or undertakes Prior to the Token Sale, there has been no public that the actual future results, performance market for the Tokens. Although the Company or achievements of the Company will be as may use reasonable endeavours to seek the discussed in those forward-looking statements. approval for availability of the Tokens for trading The actual results, performance or achievements on a cryptocurrency exchange or market, there of the Company may differ materially from those is no assurance that such approval will be anticipated in these forward-looking statements. obtained. Furthermore, even if such approval is granted by a cryptocurrency exchange, there is no Nothing contained in the Available Information assurance that an active or liquid trading market is or may be relied upon as a promise, for the Tokens will develop, or if developed, will representation or undertaking as to the future be sustained after the Tokens have been made performance or policies of the Company. Further, available for trading on such market. There is the Company disclaims any responsibility to also no assurance that the market price of the update any of those forward-looking statements Tokens will not decline below the original or or publicly announce any revisions to those issue purchase price (the “Purchase Price”). forward-looking statements to reflect future The Purchase Price may not be indicative of the developments, events or circumstances, even market price of the Tokens after they have been if new information becomes available or other made available for trading on a market. events occur in the future. A Token is not a currency issued by any RISK FACTORS central bank or national, supra-national or quasi-national organisation, nor is it backed You should carefully consider and evaluate by any hard assets or other credit nor is it a each of the following risk factors and all other commodity in the traditional sense of that information contained in these Terms before word. The Company is not responsible for, nor deciding to participate in the Token Sale. To the does it pursue, the circulation and trading of best of the Company’s knowledge and belief, all Tokens on any market. Trading of Tokens will risk factors which are material to you in making merely depend on the consensus on its value an informed judgment to participate in the between the relevant market participants. No Token Sale have been set out below. If any of one is obliged to purchase any Token from any the following considerations, uncertainties or holder of the Token, including the purchasers, material risks develops into actual events, the nor does anyone guarantee the liquidity or business, financial position and/or results of market price of Tokens to any extent at any operations of the Company and the maintenance time. Furthermore, Tokens may not be resold to and level of usage of the Tokens could be purchasers who are citizens, nationals, residents materially and adversely affected. In such cases, (tax or otherwise) and/or green card holders of the trading price of Tokens (in the case where they Restricted Jurisdictions or to Restricted Persons are listed on an exchange or market (regulated, or to purchasers in any other jurisdiction where unregulated, primary, secondary or otherwise)) the purchase of Tokens may be in violation of could decline due to any of these considerations, applicable laws. Accordingly, the Company 33

cannot ensure that there will be any demand or This is because the ability of the Company to market for Tokens, or that the Purchase Price is pay any reward to you will depend on the future indicative of the market price of Tokens after they results of operations and the future business and have been made available for trading on any financial condition of the Company, and there is cryptocurrency exchange or market. no assurance of the future results of operations and the future business and financial condition Future sales or issuance of the Tokens could of the Company. materially and adversely affect the market price of Tokens. There is no assurance of any success of the Company’s business platform or any future Any future sale or issuance of the Tokens would Token functionality. increase the supply of Tokens in the market and this may result in a downward price pressure on The value of, and demand for, the Tokens hinges the Token. The sale or distribution of a significant heavily on the performance of the Company’s number of Tokens outside of the Token Sale business platform and the continuous active (including but not limited to the sales of Tokens engagement of its users and success of its undertaken after the completion of the initial contemplated business lines. There is no crowdsale, issuance of Tokens to persons other assurance that the Company’s business than purchasers for purposes of community platform will gain or continue to gain traction. initiatives, business development, academic Furthermore, there is no assurance that any research, education and market expansion and future Token functionality will be realised. While issuance of Tokens as a reward to users of the the Company has made every effort to provide Company’s business platform or otherwise), or a realistic estimate, there is also no assurance the perception that such further sales or issuance that the cryptocurrencies raised in the Token may occur, could adversely affect the trading Sale will be sufficient for the development of price of the Tokens. the Company’s business platform and/or for the proper development, structuring and licensing of Negative publicity may materially and the anticipated future Token functionality. For the adversely affect the price of the Tokens. foregoing or any other reason, the development of the Company’s business platform and launch Negative publicity involving the Company, the of the anticipated Token functionality may not be Company’s business platform, the Tokens or completed and there is no assurance that it will any of the key personnel of the Company and/ be launched at all. As such, distributed Tokens or regulation of distributed ledger technologies, may hold little worth or value and this would cryptocurrencies and/or crowdsales of tokens in impact its trading price. any jurisdiction, may materially and adversely affect the market perception or market price of The trading price of the Tokens may fluctuate the Tokens, whether or not it is justified. following the Token Sale. The Company may not be able to pay any The prices of cryptographic tokens in general anticipated rewards in the future. tend to be relatively volatile, and can fluctuate significantly over short periods of time. The There is no assurance that there will be sufficient demand for, and the corresponding market engagement in the Company’s business price of, the Tokens may fluctuate significantly platform such that you will receive any rewards and rapidly in response to, among others, the anticipated to be distributed to active users of following factors, some of which are beyond the the Company’s business platform. Further, even control of the Company: in the event there is substantial engagement and 1. new technical innovations; interactions among the users of the Company’s 2. analysts’ speculations, recommendations, business platform, there is no assurance you perceptions or estimates of the Token’s personally will receive any part of the rewards. market price or the Company’s financial and 34

business performance; Company’s business platform and the structuring 3. changes in market valuations and token and licensing of any future Token functionality prices of entities with businesses similar might be temporarily or permanently curtailed. to that of the Company that may be listed As such, distributed Tokens may hold little worth on the same cryptocurrency exchanges or or value and this would impact their trading markets as the Tokens; price. 4. announcements by the Company of significant events, for example partnerships, RISKS RELATING TO THE COMPANY sponsorships or new product developments; 5. fluctuations in market prices and The Company’s business platform. trading volume of cryptocurrencies on cryptocurrency exchanges or markets; Any events or circumstances which adversely 6. additions or departures of key personnel of affect the Company or any of its successor the Company; or affiliated operating entities may have a 7. success or failure of the Company’s corresponding adverse effect on the Company’s management in implementing business and business platform and/or on any future Token growth strategies; and/or functionality, including but not limited to the 8. changes in conditions affecting the development, structuring and launch of the blockchain or financial technology industry, Company’s business platform and of any future the general economic conditions or market Token functionality. Such adverse effects would sentiments, or other events or factors. correspondingly have an impact on the utility, liquidity, and the trading price of the Tokens. The funds raised in the Token Sale are exposed to risks of theft. The Company may be materially and adversely affected if it fails to effectively The Company will make every effort to ensure manage its operations as its business that the funds received from the Token Sale develops and evolves, which would have a will be securely held in a wallet, with access direct impact on its ability to maintain or thereto by private keys held by reputable and operate the Company’s business platform trusted parties. Further, the Company may and/or develop, structure and/or licence any make every effort to ensure that the funds future Token functionality. received by it from Token Sale will be securely held through the implementation of security The financial technology and cryptocurrency measures. Notwithstanding such security industries in which the Company competes measures, there is no assurance that there will have grown rapidly over the past few years be no theft of the cryptocurrencies as a result of and continue to evolve in response to new hacks, sophisticated cyber-attacks, distributed technological advances, changing business denials of service or errors, vulnerabilities or models, shifting regulations and other factors. As defects on the Token Sale website, in the smart a result of this constantly changing environment, contract(s) on which the wallet and the Token the Company may face operational difficulties in Sale relies, on the Ethereum blockchain or any adjusting to the changes, and the sustainability of other blockchain, or otherwise. Such events the Company will depend on its ability to manage may include, for example, flaws in programming its operations, ensure that it hires qualified and or source code leading to exploitation or abuse competent employees, and provides proper thereof. In such event, even if the Token Sale training for its personnel. As its business evolves, is completed, the Company may not be able the Company must also expand and adapt to receive the cryptocurrencies raised and the its operational infrastructure. The Company’s Company may not be able to use such funds business will in part rely on its blockchain-based for the development of the Company’s business software systems, cryptocurrency wallets or other platform and/or for launching any future Token related token storage mechanisms, blockchain functionality. In such case, the launch of the technology and smart contract technology. All 35

of these systems, tools, and skillsets represent which the Company or the Company’s business complex, costly, and rapidly changing technical platform relies, or on the Ethereum or any infrastructure. In order to demonstrate continued other blockchain. Such events may include, for ability to effectively manage technical support example, flaws in programming or source code infrastructure for the Company’s business leading to exploitation or abuse thereof. The platform, the Company will need to continue Company may not be able to detect such hacks, to upgrade and improve its data systems and cyber-attacks, distributed denials of service errors other operational systems, procedures, and vulnerabilities or defects in a timely manner, and controls. These upgrades and improvements may not have sufficient resources to efficiently will require a dedication of resources and are cope with multiple service incidents happening likely to be complex and increasingly rely on simultaneously or in rapid succession. hosted computer services from third parties that the Company does not or will not control. The Company’s network or services, which would If the Company is unable to adapt its systems include the Company’s business platform and, if and organisation in a timely, efficient, and cost- successfully structured, developed, licensed and effective manner to accommodate changing launched, the future Token functionality, could circumstances, its business, financial condition be disrupted by numerous events, including and/or results of operations may be adversely natural disasters, equipment breakdown, affected. If the third parties whom the Company network connectivity downtime, power losses, relies on are subject to a security breach or or even intentional disruptions of its services, otherwise suffer disruptions that impact the such as disruptions caused by software viruses or services the Company uses, the integrity and attacks by unauthorized users, some of which are availability of its internal information could beyond the Company’s control. There can be no be compromised, which may consequently assurance that cyber-attacks, such as distributed cause the loss of confidential or proprietary denials of service, will not be attempted in the information and/or economic loss. The loss of future or that the Company’s security measures financial, labour or other resources, and any will be effective. The Company may be prone other adverse effect on the Company’s business, to attacks on its infrastructure intended to steal financial condition and/or operations, would information about its technology, financial have a direct adverse effect on the Company’s data or user information or take other actions ability to maintain or operate the Company’s that would be damaging to the Company and/ business platform and/or to develop, structure or holders of the Tokens. Any significant breach and/or license the anticipated future Token of the Company’s security measures or other functionality. Any adverse effects affecting the disruptions resulting in a compromise of the Company business or technology are likely to usability, stability, and security of the Company’s also adversely impact the utility, liquidity, and business platform may adversely affect the utility, trading price of the Tokens. liquidity and/or trading price of the Tokens. The Company may experience system The Company may in the future be failures, unplanned interruptions in its dependent in part on the location and data network or services, hardware or software centre facilities of third parties. defects, security breaches or other causes that could adversely affect the Company’s The Company’s future infrastructure network infrastructure network, and/or the may be established in whole or in part through Company’s business platform. servers which it owns and/or houses at the location facilities of third parties, and/or servers The Company is not able to anticipate when that it rents at data centre facilities of third there would be occurrences of hacks, cyber- parties. If the Company is unable to renew its attacks, distributed denials of service or errors, data facility leases on commercially reasonable vulnerabilities or defects in: the Company’s terms or at all, the Company may be required to business platform, in the smart contracts on transfer its servers to a new data centre facility, 36

and may incur significant costs and possible condition and results of operations, and hence, service interruption in connection with the the Company’s business platform and/or the relocation. These facilities are also vulnerable ability to develop, structure, license and/or to damage or interruption from, among others, launch any future Token functionality. Any such natural disasters, arson, terrorist attacks, power circumstances would then correspondingly losses, and telecommunication failures. negatively impact the utility, liquidity, and/or trading price of the Tokens. Additionally, the third-party providers of such facilities may suffer a breach of security as a The Company or the Tokens may be affected result of third-party action, employee error, by newly implemented regulations. malfeasance or otherwise, and a third party may obtain unauthorised access to the data in Distributed ledger technologies, businesses such servers. The Company and the providers of and activities as well as cryptocurrencies such facilities may be unable to anticipate these and cryptocurrency-related businesses and techniques or to implement adequate preventive activities are generally unregulated worldwide, measures. but numerous regulatory authorities across jurisdictions have been outspoken about General global market and economic considering the implementation of regulatory conditions may have an adverse impact regimes which govern distributed ledger on the Company’s operating performance, technologies, businesses and activities as well results of operations and/or cash flows. as cryptocurrencies and cryptocurrency-related businesses and activities. The Company or the The Company could continue to be affected by Tokens may be affected by newly implemented general global economic and market conditions. regulations relating to distributed ledger Challenging economic conditions worldwide technologies, businesses and activities as well have from time to time, contributed, and may as cryptocurrencies and cryptocurrency-related continue to contribute, to slowdowns in the businesses and activities, including having to information technology industry at large. take measures to comply with such regulations, Weakness in the economy could have a negative or having to deal with queries, notices, requests effect on the Company’s business, operations or enforcement actions by regulatory authorities, and financial condition, including decreases in which may come at a substantial cost and revenue and operating cash flows, and inability may also require substantial modifications to to attract future equity and/or debt financing on the Company’s business platform and/or the commercially reasonable terms. Additionally, anticipated Token functionality. This may impact in a down-cycle economic environment, the the appeal or practicality or functionality of Company may experience the negative effects of a the Company’s business platform and/or the slowdown in trading and usage of the Company’s anticipated Token functionality for users and business platform and may delay or cancel the result in decreased usage of and demand for the development, structuring, licensing and/or Company’s business platform and the Tokens. launch of the anticipated Token functionality. Further, should the costs (financial or otherwise) of complying with such newly implemented Suppliers on which the Company relies for regulations exceed a certain threshold, servers, bandwidth, location and other services maintaining the Company’s business platform could also be negatively impacted by economic and/or developing, structuring, licensing and/ conditions that, in turn, could have a negative or launching the future Token functionality impact on the Company’s operations or may no longer be commercially viable, and expenses. There can be no assurance, therefore, the Company may opt to discontinue the that current economic conditions or worsening Company’s business platform, the anticipated economic conditions or a prolonged or recurring future Token functionality, and/or the Tokens. recession will not have a significant, adverse Further, it is difficult to predict how or whether impact on the Company’s business, financial governments or regulatory authorities may 37

implement any changes to laws and regulations Information does not comprise any advice by the affecting distributed ledger technology and Company or by the Company Representatives, its applications, including the Company’s or any recommendation to any recipient of business platform, the anticipated future Token the Available Information, by the virtue of any functionality, and/or the Tokens. participation in the Token Sale or otherwise. The Available Information does not necessarily The Company may also have to cease operations identify, or claim to identify, all the risk factors in a jurisdiction that makes it illegal to operate connected with the Company, the Company’s in such jurisdiction, or make it commercially business platform, the Tokens, the Token Sale, unviable or undesirable to obtain the necessary any future Token functionality or the Available regulatory approval(s) to operate in such Information. All the participants must make their jurisdiction. In scenarios such as the foregoing, own independent evaluation, after making such the utility, liquidity, and/or trading price of investigations as they consider essential, of the Tokens will be adversely affected and/or Tokens merits of participating in the Token Sale and may cease to be traded. after taking their own independent professional advice. Any participant in the Token Sale should There may be unanticipated risks arising check with and rely upon their own investment, from the Tokens. accounting, legal and tax representatives and consultants in respect of such matters concerning Cryptographic tokens such as the Tokens are the Company, the Company’s business platform, a relatively new and dynamic technology. In the Tokens, the Token Sale, any future Token addition to the risks included in the above functionality and the Available Information discussion of risk factors, there are other risks and to assess separately the financial risks, associated with your purchase, holding, and use consequences and appropriateness of the of the Tokens, including those that the Company purchase of Tokens, or if in any doubt about cannot anticipate. Such risks may further appear the facts set out in the Available Information. as unanticipated variations or combinations of A purchase of Tokens comprises considerable the risks discussed above. risk and might involve extraordinary risks that may lead to a loss of all or a significant portion PRIVACY POLICY of monies or monetary value utilised to acquire Tokens. Participants in the Token Sale are urged By purchasing Tokens, you agree to your to completely understand, be aware of and personal data, (i.e., your e-mail address, name, accept the characteristics of the Company, the address and other details personal to you) being Company’s business platform, the Tokens, the processed by the Company for its business Token Sale, any future Token functionality and purposes or the purposes of building, promoting, the Available Information. If you are not prepared and communicating (about) the Company’s to accept any or all of these Terms or the risks business platform and the Tokens. The Company set out in these Terms then you are urged not agrees to keep your email address and other to participate in the Token Sale. No guarantee personal data private and not share it with the or assurance is given by the Company or by the public (e.g., by including it on any external lists or Company Representatives that the Company’s selling to any third parties). proposals, objectives and/or outcomes set out in the Available Information will be achieved DISCLAIMER in whole or in part. You are urged to consider whether participation in the Token Sale is The presentation of the Available Information suitable for you having regard to your personal is solely for informational purposes. Anyone and financial circumstances and your financial interested in purchasing Tokens and participating resources. in the Token Sale should consider the various risks prior to making any kind of decision in respect of the Token Sale. The Available 38

RESTRICTIONS ON DISTRIBUTION AND any jurisdiction. No person is bound to enter DISSEMINATION OF THE AVAILABLE into any contract or binding legal commitment INFORMATION and no cryptocurrency or other form of payment is to be accepted on the basis of all or any part The distribution or dissemination howsoever of of the Available Information. Any agreement in all or any part of the Available Information may relation to any sale and purchase of Tokens is to be prohibited or restricted by the laws, regulatory be governed by the terms and conditions of such requirements and rules of certain jurisdictions. In agreement and no other document. In the event the case where any such restriction applies, you of any inconsistencies between the terms and are responsible for informing yourself in respect of conditions of that agreement and the Available the same and for observing any such restrictions Information, those terms and conditions shall which are applicable to your possession and/or prevail. dissemination of all or any part of the Available Information at your own expense and without You are not eligible to purchase any Tokens liability to the Company. in the Token Sale if you are a citizen, resident (tax or otherwise) or green card holder of a Persons to whom a copy of all or any part of Restricted Jurisdiction or you are a Restricted the Available Information has been distributed Person. No regulatory authority has examined or disseminated, provided access to or who or approved of any of the Available Information. otherwise have all or any part of the Available No such action has been or will be taken under Information in their possession shall not circulate the laws, regulatory requirements or rules of it to any other persons, reproduce or otherwise any jurisdiction. The publication, distribution or distribute any information contained herein for dissemination of the Available Information does any purpose whatsoever nor permit or cause the not imply that the applicable laws, regulatory same to occur. requirements or rules have been complied with. NO OFFER OF SECURITIES OR REGISTRATION This White Paper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in 39

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