Libra Credit Whitepaper

Tuesday, July 31, 2018
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LIBRA CREDIT WHITEPAPER May 2018

The version of this whitepaper (“Whitepaper”) is released as a working draft - with the purpose of introducing the idea and receiving feedback from the blockchain community. If you wish to contribute by leaving your comment or review, please email [email protected] Disclaimer: The information and opinions contained in this Whitepaper does not purport to be comprehensive and have not been independently verified. While the Whitepaper has been prepared in good faith, no representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility, liability or duty of care is or will be accepted by the developer of the Libra Credit platform (“Libra Foundation”) or any of its investors or subsidiaries or by any of their respective affiliates, advisers in relation to the adequacy, accuracy, completeness, reliability or reasonableness of this Whitepaper. All and any such responsibility and liability is expressly disclaimed. In particular, but without prejudice to the generality of the foregoing, no representation, warranty, assurance or undertaking is given as to the achievement or reasonableness of any future projections, management estimates, prospects or returns contained in this whitepaper, or in such other information, notice or document. These projections are illustrative only and actual results may be materially affected by changes on economic or other circumstances which cannot be foreseen. The reader of this Whitepaper acknowledges that it should conduct its own independent investigation and assessment as to the validity of the information contained in this whitepaper and the economic, financial, regulatory, legal, taxation and accounting implications of that information and consult its own professional advisers. The information in this document is subject to change or update without notice and should not be construed as commitment by Libra Foundation. This document is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in Libra Foundation or any related or associated company.

1. EXECUTIVE SUMMARY 3 2. BACKGROUND 4 2.1 Challenges of Existing Markets 4 2.2 Market Opportunity 6 2.3 Why Libra Credit 7 3. LIBRA CREDIT 8 3.1 Our Business Model 8 3.2 Our Technology 18 3.3 Our Team 28 4. DEVELOPMENT ROADMAP 31 5. DEFINITIONS 32 6. APPENDIX 34

EXECUTIVE SUMMARY Access to credit should be hassle free, real-time and simple. However, traditional financing is channel, product and geographic specific with onerous processes and outdated systems resulting in long cycle times and increased cost of capital. Heavy reliance on traditional lenders (e.g. banks, country centric P2P platforms) does not address future customer needs (i.e. getting credit when and where they need it and leveraging emerging crypto asset classes as collaterals). Global lending is expected to grow at 14% over the next five years driven by a rise in digital ecosystems and technology disruption which makes lending to more than two billion under-banked population a closer reality. Given these significant tailwinds, a global and open digital platform is needed to shape the future of lending, making it accessible to anyone, anywhere. Libra Credit is a decentralized lending ecosystem that facilitates open access to credit anywhere and anytime based on the Ethereum blockchain to be developed by Libra Foundation. Libra Credit will be launched in July 2018 with crypto-to-crypto and crypto-to-fiat lending underpinned by its industry-leading credit management capability and four distinctive partnership networks forming a world-class lending ecosystem that encompasses: - In-house Proprietary AI-based Credit Model; - Customer Acquisition & E-Wallet Partnership Network to drive adoption; - Lenders & Stablecoin Partnership Network to drive liquidity; - Extensive Exchange Partnership Network to minimize default; - Identity Verification Partnership Network to expedite KYC & verification process. Libra Credit is a global initiative by Libra Foundation with a mission “Credit for the Real World”. The team has a track record in digital credit services across Asia. Powered by its proprietary big data, AI-based credit assessment technology and existing global partnership networks, Libra Credit has the expertise and capabilities to realize its mission. 3

PROJECT BACKGROUND 2.1 CHALLENGES OF EXISTING MARKETS Despite growing adoption of digital assets, something as simple as getting access to credit still remains a challenge for many borrowers. Not only are future customer needs not addressed, traditional lending institutions are also heavily reliant on outdated credit rating methods, directly dismissing the legitimacy of digital assets. Additionally, even with breakthrough technologies like blockchain, traditional financing is still channel, product and geographic specific with onerous processes that result in long cycle times and increased cost of capital. These issues not only limit efficient flow of assets, but also ignore a large segment of the market that is under-served by banks. Challenges of Traditional Credit Services: Borrowers Lenders • High barriers to credit services due to limited • Increased lending difficulty due to lack of or unrecognized personal credit data traditional records of the digital savvy generation • Unsatisfied borrowing experience due to complicated KYC procedures, long processing • Opportunity cost of uncaptured digital savvy times, low application transparency and high market segment borrowing costs ~10% globally (World Bank) • Difficulty in cross border, cross currency and cross time-zone lending 4

PROJECT BACKGROUND On the other hand, the rise of crypto-assets faces similar challenges – lack of “real-world” underlying application causes crypto holders to be tied down by their own digital assets. Challenges of the Crypto Market: Liquidity Issues Limited Applications • Lack of liquidity and integration into fiat • Lack of recognition and application as a financial service offerings general payment method / asset class • Difficult to convert between digital assets • High volatility and speculation with little to and traditional assets (i.e. gold, stocks, bonds, no asset backing real estate, etc.) There is a genuine need for a solution that provides safe and convenient credit services accessible for all. 5

PROJECT BACKGROUND 2.2 MARKET OPPORTUNITY The global credit market is expected to grow at a CAGR of 14%1 (2017 – 2021). Specifically, over 85%2 of the global credit market is dominated by the secured retail lending market. Favorable market conditions have attracted many new technologies and players to enter this market, popularizing credit alternatives such as peer-to-peer (P2P) lending and digital lending. Cryptocurrency Market Capitalization Global Digital Lending Volume (Unsecured) (Billion USD) (Billion USD) 1 ,8 0 6 CAGR 1 ,5 8 5 CAGR 31% 1 ,3 7 9 33% 1 ,1 9 3 1 ,0 5 4 898 805 676 615 509 2017 2018E 2019E 2020E 2021E 2017 2018E 2019E 2020E 2021E Moreover, a paradigm shift in digital adoption has also given rise to alternative asset classes like cryptocurrency. Although not traditionally accepted as collaterals for lending, cryptocurrencies have surpassed USD $600B in market capitalization at the end of 2017. As the market grows, crypto- investors demand more use-cases for their assets, which are largely unmet by traditional financial institutions. 1): Source: Business Wire 2): Source: HIS Database 6

PROJECT BACKGROUND Despite continuous growth in global secured retail lending and rise of digital lending, over two billion people3 remain under-banked with little to no access to credit or financial services. Once digital lending becomes mainstream among the under-banked, this largely untapped segment will be a significant addition to the credit lending addressable market. 2.3 WHY LIBRA CREDIT Libra Credit is launched with the mission to provide “Credit for the Real World”. Devoted to the provision of credit anywhere and anytime, Libra Foundation will build a secure, convenient and globally inclusive financial services ecosystem. In light of the opportunities presented in distinctive markets, a network solution will be key in unlocking the value of existing geographic and functional solutions. Our team of financial services veterans and blockchain technologists has a proven track record in building payments, retail lending and risk management solutions. In the past five years, the team has achieved the following remarkable milestones in Asia: Denotes technical milestone Adopted machine learning to provide full loan cycle monitoring Denotes business milestone Adopted graph computing for and feedback community grouping and anomaly detection Entered Indonesia cash Adopted big data technology, loan market and enabled real-time streaming accumulated 17K based on Apache Spark and consumers in 1 month Hadoop Incorporate Web Crawler for additional risk insights 2012 2015 2016 2017.11 2015.9 2017.1 2017.2 2017.3 2017.12 Launched the first in- game credit payment Payday loan book value of Established payday service “Play Now, Pay Accumulated 33M US $850M with only 3.5% paying users lending business in Later” in China default rate China 3): Source: Management estimate 7

LIBRA CREDIT 3.1 OUR BUSINESS MODEL 3.1.1 Libra Credit Key Highlights: • Extensive network partnerships completely covering the lending value chain • AI-based dual-credit risk assessment computation featuring a collateral-based assessment and an individual credit scoring • Multiple sources and use of funding facilitating fiat, hedging and liquidity needs E-wallet Crypto-lender Other Consumer Apps 1 Fiat lender 3 Borrower A Customer Professional Investors Lender & Acquisition & Stablecoin Borrower B E-Wallet Funds Partnership Partnership Travel Network Applications Network Banks E-commerce Access to potential Provides credit Applications borrowers & loan assessment data and Stablecoin A disbursement acts as guarantor Libra Credit Platform Diversified Borrower C Collateral Pool Borrower D Provide identity Facilitate liquidity and verification data safeguard collaterals 2 4 Telcoin Identity Exchange & Verification Reddcoin Custodian Partnership Partnership Network uPort Network 8

LIBRA CREDIT To address the limitations of both markets, we are launching Libra Credit – a decentralized lending ecosystem that facilitates open access to credit anywhere and anytime. In July 2018, Libra Credit aims to facilitate global crypto-to-crypto and crypto-to-fiat lending (subject to regulatory approval) for borrowers. To improve acceptance and drive adoption, initially we will act as the loan guarantor for financial institutions (i.e. banks, funds, etc.) and private investors (i.e. HNWI, crypto-community). Crypto assets will then be released directly from our Lender & Stablecoin Partnership Network to borrowers. Key highlights of our business model are as follows: EXTENSIVE PARTNERSHIP NETWORKS 1 • Collaborating with partners in both crypto and financial markets • Synergies with crypto exchanges, stablecoin providers (e.g. Maker DAO), 3rd party identity verification providers (e.g. uPort) and financial institutions (e.g. banks) • Reinforcing Libra Credit while delivering value for our partners PROPRIETARY AI-BASED CREDIT ASSESSMENT FRAMEWORK 2 • In-house risk management technology which has been deployed in China and the ASEAN market successfully • Pioneer in digital credit services, leveraging a dual-credit assessment framework that considers collateral viability and borrower credit score FLEXIBILITY FOR PARTICIPANTS 3 • Crypto-to-fiat loan allowing collateralization of cryptocurrencies to spend fiat without sacrificing their current crypto position • Crypto-to-stablecoin loans enabling borrowers to hedge price volatility without exiting • Crypto-to-crypto lending allowing borrowers to pledge other alternate tokens for more mainstream crypto currencies (i.e. BTC / ETH) with better liquidity 9

LIBRA CREDIT As Libra Credit scales, each of the following partner network components will be developed to assume the following roles: LIBRA CREDIT PLATFORM The Libra Credit Platform focuses on a dual-credit risk scoring mechanism that takes into account both the creditworthiness of the pledged collateral, as well as the individual credit information of the borrower. Borrowers may pledge any crypto-assets as collateral and receive loans in their desired asset. Through smart contracts and our own proprietary collateral valuation and liquidation system, Libra Credit will lock in agreed terms between borrowers, lenders, custodians, guarantors and liquidators. The platform pulls together an ecosystem of four different types of partnership networks, as outlined below: 1) CUSTOMER ACQUISITION AND E-WALLET PARTNERSHIP NETWORK The customer acquisition partnership network can help the Libra Credit drive adoption and scalability. Lending applications and e-wallets provide a multitude of acquisition channels for Libra Credit to obtain its customers. Our lending application partners can facilitate liquidity for its end users through the Libra Credit. Examples 2 would be travel applications (i.e. crypto-holders can obtain fiat lending for trip payment) and e-commerce applications (i.e. fiat lending for purchasing advance). On the other hand, the Libra Credit can drive trade volume for e-wallet networks through our loan disbursement needs. 2) IDENTITY VERIFICATION PARTNERSHIP NETWORK Libra Credit can manage the KYC identity verification process of new borrowers quickly and securely through our identity verification partnership network. Our mutually synergistic credit information network generates large amounts of credit data per day. Interested parties (i.e. vendors, regulators and financial institutions) may leverage our anonymized data to perform activities such as data analytics, credit scoring, customer behavioral monitoring and much more. At the same time, we will have access to the information systems of our partners, allowing us to constantly refine and enhance our verification process. Our partnership network can access the platform and data through open-APIs that will be available to Libra Community members for a fee. 10

LIBRA CREDIT 3) LENDER & STABLECOIN PARTNERSHIP NETWORK Lenders and stablecoin providers are essential to our network since they can supply liquidity, hedge risk and enable the reinvestment needs of our borrowers. Fiat lenders such as banks, funds and other financial institutions can satisfy cash turnover needs of crypto holders (i.e. payday loans). While stable coin providers enable crypto holders to hedge the volatility of their portfolio. Lastly, crypto-to-crypto lenders (i.e. crypto funds, private investors) can lend tokens or other crypto currencies to institutions and crypto users. For example, institutions with large holdings of proprietary tokens can borrow BTC or ETH to fund their operations. 4) EXCHANGE & CUSTODIAN PARTNERSHIP NETWORK Our exchange partnerships (e.g. Radar Relay and DDEX) serve the role of providing crypto market liquidity and flexibility for the network. Borrowers can go through Libra Credit to get the best rates offered to us exclusively for their crypto investments. At the same time, Libra Credit will have full access and support in the case that collaterals in our possession have to be immediately liquidated. 11

LIBRA CREDIT 3.1.2 Selected Use Cases Libra Credit offers a quick and seamless digital lending process that can be completed online or in a mobile application in five easy steps. Verification & Credit Notification & Collateral Application Disbursement Assessment Confirmation Deposit Here is an illustrative example of a crypto-to-fiat loan on Libra Credit. Assume that Bob, a Libra Credit community member and XYZ Token holder, wants to pledge XYZ Tokens for a 30-day loan in US Dollars (USD). Step 1: Application As a platform member, Bob fills in an online/mobile loan application form and submit digital documents (if required) to Libra Credit. Step 2: Verification & Credit Assessment credit score and collateral grade, Libra Credit will Libra Credit verifies the borrower’s identity after generate corresponding loan terms. the application is submitted. In particular, to obtain more authorized and verified data of Bob, Sample Loan Terms Sample Approved Terms Libra Credit may make selective disclosure request to verification partners (e.g. uPort). Collateral XYZ Token(s) are accepted Users with existing Identity Management Collateral-to-loan Accounts at supported platforms may be able to 125% (CTL) Ratio bypass the KYC process. Once verified, an automated real-time credit assessment is Interest rate 12% conducted by our proprietary big data and AI- Payment frequency Weekly based credit assessment engine. Based on Bob’s 12

LIBRA CREDIT Step 3: Notification & Confirmation Bob will be instantly notified via APP, SMS or email of the final loan terms in which he can immediately accept with simply one click. Step 4: Collateral Deposit Bob’s XYZ Token is deposited into Libra Credit’s e-wallet or exchange partners, depending on borrower’s preference. The collaterals will be securely stored for the entire loan period. Step 5: Disbursement USD will be instantly deposited from the lenders wallet to Bob’s4. If Bob chooses to receive the loan in his digital wallet (e.g. Alipay, WeChat Pay), the whole process will be completed within minutes5. If Bob prefers a bank account deposit, one working day will be required for loan disbursement6. This is significantly faster than most digital lenders that require day(s) and traditional lending institutions that require at least 2-4 weeks to process. During the loan period, Bob makes weekly payments (or any other frequency approved by Libra Credit). When the loan is repaid, Bob’s XYZ Token is returned. Risk Handling Mechanism Maintaining the Margin – Cryptocurrencies pledged as collateral may drop in value during the loan period, causing a decrease in the CTL ratio. If the CTL ratio falls past a threshold (minimum maintenance margin), a margin call will be triggered. In Bob’s case, if XYZ suddenly drops 10% in value, Bob’s CTL ratio will decrease to 112.5%. 4): We assume that the electronic wallet will be able to store both fiat and crypto currencies 5): Depending on regulatory approval, applicant’s profile and server speed 13 6): Subject to the regulatory approval and efficiency of banks

LIBRA CREDIT Since it is lower than the minimum maintenance margin of 125% required by Libra Credit, a margin call to Bob is triggered by the smart contract. This will inform him via APP notification, SMS or email to either deposit additional XYZ Tokens (or equivalent LBA Tokens) or make a loan payment to meet the maintenance margin at 125%. Bob will be given enough time to meet the maintenance margin subject to the velocity of the XYZ Token value. The quicker the price drops, the shorter the time Bob has to respond. Default – If Bob is unable or unwilling to meet the minimum maintenance margin during his allocated time, the Libra Credit will initiate an automated liquidation of Bob’s assets. All liquidated assets will be used for loan repayment and minimum margin maintenance. In this example, 44.4% of Bob’s XYZ will be sold and the CTL ratio will return to 125%. Incremental liquidation will occur if XYZ continues to depreciate in the future. Similarly, in a crypto-to-stablecoin lending, all steps remain the same except disbursement (step 5). Instead of fiat distribution, stablecoins (e.g. DAI from MakerDAO) will be deposited directly to borrowers’ e-wallet. During the loan period, borrowers need to repay stablecoins (e.g. DAI) in agreed frequency and when the value of collaterals drops, borrowers need to deposit more collateral or make stablecoin repayments. 14

LIBRA CREDIT 3.1.3 Competitive Advantage Compared to existing digital lending models, Libra Credit differentiates itself in: • Diversified sources of funding • Proprietary collateral-based assessment • In-house crypto-exchange Salt Coinloan Everex ETHlend Name (Ticker) Libra Credit (LBA) (SALT) (CLT) (EVX) (LEND) Decentralized lending Decentralized Decentralized Decentralized Decentralized Business Model ecosystem lending platform lending platform lending platform lending platform Secured crypto-to- Secured crypto- Secured asset fiat/crypto loan Secured crypto- Secured crypto- Type of Services to-fiat or crypto- transfer, borrow (ultimately for all to-fiat loan to-fiat loan to-crypto loan & remittance asset classes) Stablecoin partners (e.g. Maker DAO), P2P network of P2P network of P2P network of Source of Funding Self-funded financial institutions & lenders lenders lenders private investors Yes, with 33 Mn Experience in customers & loan book Yes No Yes No Lending Services value USD $850 Mn+ Collateral-based Yes No No No No Assessment7 3rd Party Data Yes No No No Yes Partnerships Liquidity Partnerships & Partnerships Partnerships Partnerships Partnerships Networks In-house 7): Incorporates both individual credit score and collateral grade in the assessment 15

LIBRA CREDIT 3.1.4 Key Benefits Stakeholders Key Benefits • Alternative channel for crypto-financial asset conversion Crypto Investors • Global access to all asset classes • Reinvestment opportunities through margin lending • Easy access to credit services Borrowers • 24/7 application and instantaneous approval • Crypto-market exposure with lower risks Lenders • Significant reduction in cost of loan monitoring • Reduced reporting efforts with single source of truth • Additional product/service use cases which will improve customer satisfaction and thus customer loyalty E-wallet Partners • Customer base expansion and potential income enhancement with expanded fund flows • Increased trading volume and trading fee income Exchange Partners • Enhanced liquidity depth on top of the existing order book, which drives additional customer acquisition • Additional use cases (e.g. crypto lending) and real-life application of its product and service offerings Stablecoin Partners • Help to drive adoption (e.g. increased stablecoin supply with more underlying assets) and circulation of the stablecoin • Additional data subscription fee income • Access to on-chain credit and transaction data from the emerging digital / Verification Data Provider crypto world (if platform users authorize data sharing) Partners • Synergies created through Joint Modelling (e.g. enhanced credit modelling and data sourcing capability) 16

LIBRA CREDIT 3.1.5 The LBA Token LBA “Tokens” will be issued pursuant to a token sale to serve the following purposes on the Libra Credit platform: Membership Tokens are used to pay to access the Libra Credit platform, which allows borrowers to submit loan application. Transactions Tokens are the medium of exchange on the Libra Credit platform. For example, a service fee in Tokens will be charged for every successful transaction. Incentives Token incentives are granted to stakeholders in the case of the following: Service – Developers that contribute to development for their services; and Referral – Successful introductions of other lenders to the Libra Credit. Governance Token holders constitute the Libra Community which governs the network by: Platform Development Planning – participating in surveys to provide feedback on specific projects / proposals to facilitate platform technology development. 17

OUR TECHNOLOGY 3.2 OUR TECHNOLOGY B1 Exchange Stable Coin C Network Providers (e.g. Radar (e.g. AI-based Credit Assessment Relay and MakerDAO) DDEX ) Framework Credit Model & Collateral Grade Assessed Integration Gateway Streaming & MapReduce Computation D1 Ethereum Blockchain Behavioural Interaction, Applicant Profile, A Credit Portal & Web Crawler input 1 2 Retail Lending Joint Open Access Libra Lending Platform B3 3rd Party Identification Data Providers Smart Contract Modelling (i.e. uPort) D2 Open API Additional data Plug-in B2 stored on off-chain Open-API E-wallet & • Credit market data, analysis & rating Exchange • Data analytics, credit scoring & LBA Token lending behavioural monitoring Holders 3rd Party • Other services and products… The technical infrastructure of Libra Credit comprises of four major components including: A) Libra Lending Platform B) Partnership Network Access Integration C) AI Credit Assessment Engine D) Smart Contract Suites built on Ethereum blockchain 18

OUR TECHNOLOGY LIBRA LENDING PLATFORM A The Libra Lending Platform is a front end user interface allowing token holders to access the network through their mobile application. A developed mobile application is already in testing to facilitate crypto-to-crypto loans. (From Left to Right: Credit application, pledge crypto collateral, stable coin deposit receipt) To facilitate efficient asset exchange and bring in crypto providers, a separate integration gateway is built to connect the Libra Lending Platform with exchange network (e.g. Radar Relay and DDEX) and stable coin providers (e.g. MakerDAO). For exchange networks and stablecoin providers integration details, please refer to B1. 19

OUR TECHNOLOGY PARTNERSHIP NETWORK ACCESS INTEGRATION B In order for Libra Credit to operate as a full ecosystem, our partnership networks have to be properly integrated. To ensure quality and contribution of our various partnership networks, the information flow in and out of Libra Credit will be governed by our Joint Modelling and Open Data smart contract detailed in D. Smart Contract Suites. B1: Exchange Networks and Stablecoin Providers Our exchange partnership networks (e.g. Radar Relay and DDEX) and stablecoin providers (i.e. MakerDAO) are connected through an integration gateway identified as B1. In particular, stable coin providers can be programmed using Web3.js and Infura. Below is a demonstration of an integration call sequence with MakerDAO. 1 2 Libra 4 3 Lending Platform Borrowers 5 6 Libra Credit and MakerDAO Operation Flow: 1. Borrower pledges crypto to borrow MakerDAO stablecoin ‘DAI’ 2. Libra lending platform opens an account with MakerDAO and pledges ETH as collateral (MakerDAO only accepts ETH) 3. MakerDAO transfers DAI to Libra lending platform 4. DAI is disbursed from Libra lending platform to borrower 5. DAI is repaid from borrower to Libra lending platform 6. Libra lending platform returns the required DAI and closes the account with MakerDAO 20

OUR TECHNOLOGY In addition, Libra Credit can integrate with 0x-protocol-based decentralized exchanges (DEX) to approve access to standard ERC-20 collateral token. A demonstration of an integration call sequence with 0x-based DEX (e.g. Radar Relay and DDEX) is shown below. Ethereum Blockchain 3 4 1 Stable DEX Taker 2 Token Libra 5 Credit 6 Network 0x-based DEX Collateral Borrowers 8 7 (e.g. Radar Relay Token and DDEX ) 6 Libra Credit and 0x-based DEX (e.g. Radar Relay and DDEX) Operation Flow: 1. LBA borrower creates a loan request with ERC20 collateral token for stable token at agreed terms 2. LBA borrower sends loan request to Libra Credit and makes ERC20 collateral deposit 3. Once the loan request is approved, Libra Credit will forward this request in the form of a 0x exchange order to DEX Taker 4. DEX Taker approves the request and accesses its balance of stable token 5. DEX Taker then submits the Libra-signed order to DEX partners such as Radar Relay and DDEX 6. DEX partners will authenticates Libra signature, verifies that the order has not expired, verified that the order has not already been filled, and then transfers the collateral token into stable token 7. DEX partners (e.g. Radar Relay and DDEX) send stable token to Libra Credit 8. Libra Credit disburses the stable token to borrower 21

OUR TECHNOLOGY B2. Open APIs for E-wallet Partnership Network E-wallet partners can be used natively by borrowers to store and transfer their cryptocurrencies and fiat (depending on compatibility) with the best possible rate the Libra Credit can offer. E-Wallet partners are connected to the Libra Credit Platform through open APIs governed by one of the smart contract suites detailed in D. Smart Contract Suites. B3. API Plug-in with 3rd Party Identification Data Providers To create a faster identity verification process, third party providers actively support our Credit Assessment Framework. As shown below, the LBA-uPort Selective Disclosure Agreement authorizes uPortMobile’s data request, which is then consolidated with other raw data points collected by Libra Credit for a holistic credit score. LBA App uPort Mobile Owner Selective Disclosure Request Authorize Request? Allow / Disallow Sign Selective Disclosure Response Selective Disclosure Response LBA App uPort Mobile Owner 22

OUR TECHNOLOGY AI-BASED CREDIT ASSESSMENT FRAMEWORK C The AI-based Credit Assessment Framework leverages raw data from a variety of sources to compute an optimized result for each individual borrower using a proven mathematical algorithm. The result is purely computed mainly based on two variables – credit score and collateral grade – as follows: Credit Score: A comprehensive persona is created by collecting data from the borrower’s mobile application behavior, application profile, social network, banking history and matching entries from credit rating providers. These raw data points are then consolidated and computed using machine learning algorithms consisting of Logistic Regression Modelling, with features extracted from the Deep Neural Network and Ensemble Learning build using a Gradient Boosting Decision Tree (GBDT) architecture. This proven and efficient credit scoring algorithm has enabled Libra Credit to be able to achieve historical loan default rate average of 3.5%. The credit score is computed mathematically as follows: 23

OUR TECHNOLOGY Collateral Grade: Libra Credit has developed an in-house machine learning algorithm that generates a collateral grade score. The system adopts WebCrawler – a technology that automatically analyses trading history, Github repositories, blockchain explorers, media reports, social network data, speculative information and cryptocurrency forum discussions to form a comprehensive collateral report. By combining our grading system with traditional volatility measures, a collateralization rate (between 0 and 1) is calculated to represent a volatility estimate of the crypto asset(s) pledged by a specific borrower. If the collateralization rate is less than 1, it indicates that the collateral will be valued at a discount. Our Deep Learning valuation capabilities are tested against historical Bitcoin data sets with a proven statistical significance. The AI-based credit assessment framework directly feeds HASH data to the Ethereum main-net through the Libra Credit DApp. ETHEREUM BLOCKCHAIN INTERACTION AND SMART CONTRACT SUITES D Libra Credit leverages the Ethereum blockchain to facilitate two major types of smart contracts – Retail Lending and Joint Open Access Modelling. To optimize storage efficiency, cost and speed, other information such as customer profile and loan detailed data is stored with encryption off- chain on D2 with InterPlanetary File System (IPFS) protocol. 24

OUR TECHNOLOGY Libra Credit’s smart contract suite on Ethereum features the following: 1. Retail Lending Smart Contract Suite The retail lending smart contract is coded in a manner that simultaneously combats market volatility while stabilizing the pledged collateral. The retail lending smart contract adopts the features of Alert Watermark Guard (“AWL”) – a layered mechanism that stabilizes the asset liquidity and collection effectiveness in the case that a borrower defaults on his / her loan. Paired with Smart Automated Reaction (“SAR”), the retail lending smart contract can be automatically triggered to perform hedging against systematic risks. AWL and SAR works together as follows: Define: r-loan: Initial collateral-to-loan (“CTL”) ratio (~150% - 130% depending on specific collateral and borrower credit score); r-min: Minimum CTL ratio when a margin call is triggered (~110% to reduce loan risk); r-alert: CTL ratio between r-loan and r-min where automated reactions to market movement will intervene if enabled by borrowers (larger r-alert means more responsive reactions); Collateral value increase: current CTL would increase and borrower can withdraw some collateral (withdrawal is limited during the entire loan span), must maintain r-loan; Collateral value decrease: responses dependent on pre-defined strategy and current CTL, (e.g. borrower can choose to enable or disable SAR with respect to his/her own risk preference.) 25

OUR TECHNOLOGY Alert Watermark Guard Algorithm: Repeat this routine at a pre-defined interval (~10 minutes) for each outstanding loan { { r=current CTL; if (r<=r-min) then Emergency margin call to add collateral or collateral auction to keep r=r-loan; else if (r>=r-loan) then Borrower could partially withdraw collateral and maintain r=r-loan; else if (r-min<r<=r-alert & SAR enabled) then Transform partial collateral to stable coin to maintain r>r-alert; } [Note1] SAR only takes effect within pre-defined N days before repayment due day, e.g., N = 7. Larger N usually means more responsive SAR. [Note2] If the borrower defaults, an add-on fee will be added to final amount due and additional collateral may be automatically deducted. 2. Joint Open Access Modelling Smart Contract Suite Open Data Smart Contract – Third parties (i.e. financial institutions, regulators, etc.) may access through open-API plug-ins governed by the Open Data Smart Contract. The smart contract is open-source and built with a standard Application Blockchain Interface (ABCI) that enables connected parties to share and query data on-chain. All data on the system is processed and verified to ensure regulatory compliance. Data query volumes are strictly limited dependent on previously contributed data. An experimental code snippet for the Open Data Smart Contract is attached to the appendix for reference. 26

OUR TECHNOLOGY Joint Modelling – To effectively manage risk regarding third party access, Libra Credit will adopt a holistic solution involving Joint Modelling with other data providers, data labelers and modelling hackers. A Smart Scoring Contract will be developed covering all aspects of the risk evaluation lifecycle. Additional risk is managed using validation tests, whereby A/B Tests (split testing) and champion challenges will be conducted before any third- party can participate in joint modelling on the main-chain. In addition to synergies generated for both parties using Joint Modelling, outstanding contributors will be rewarded Token(s) for their contributions. 27

OUR TEAM 3.3 OUR TEAM Lu Hua – Co-Founder & CEO Payments, Financing & Risk Management Expert CEO of moKredit; China’s top digital credit servicing company. Successfully funded by Sequoia Capital, Bertelsmann Asia Investments & Ventech China Paypal China head of core payments; led and managed card association and banking infrastructure and partnerships Paypal US head of global banking platform; led global card association and banking infrastructure and partnerships. Dan Schatt – Co-Founder & President Fintech and Payments Expert Chief Commercial Officer at Stockpile Inc.; a leading fintech company invested by Sequoia Capital, Fidelity Investments' Eight Roads Ventures, Arbor and Mayfield Funds & Ashton Kutcher General Manager of Financial Innovations at PayPal Howard Wu – Chief Scientist Blockchain and Cryptography Expert Managing partner of Dekrypt Capital; a blockchain investment firm with an emphasis on privacy- preserving protocols and early-stage ventures Advisor of Blockchain at Berkeley; a university-based eco-system for blockchain and specializes in educating the community and helping companies benefit from blockchain technology Software engineer of Google Master in Electrical Engineering and Computer Sciences in UC Berkeley Bachelor’s Degree in Computer Science and Applied Mathematics in UC Berkeley 28

OUR TEAM Francesco Matteini- Chief Compliance Officer Founder and CEO of InnReg Chief Compliance Officer of Zecco Chief Compliance Officer of TradeKing Shuoji Zhou – Advisor Experienced Crypto Hedge Fund Manager in Asia Founding partner of FBG Capital; a leading digital asset management firm in blockchain-based capital market Early investor of a broad spectrum of blockchain companies; accumulated extensive experience in digital assets trading and investment Kenneth Oh – Advisor Legal and Regulatory Expert Senior partner with Dentons Rodyk & Davidson’s Corporate Practice 20 years of legal advisory experience in venture capital, private equity, IPOs/Token Sales and post-IPO/Token Sale funding, as well as M&A Liam Robertson - Advisor Founder and CEO of Alphabit Digital Currency Fund CFA, CAIA Liam is one of the largest individual and corporate traders of Cryptocurrencies in Europe and the Middle East. A certified investment manager in the UK, he established one of the world's first regulated cryptocurrency hedge funds in 2016. 29

OUR TEAM Scott Thompson – Advisor Financing, Internet and Payments Expert CEO at Tuition.io; a leading student loan management platform in the U.S., which has helped tens of thousands of borrowers organize more than $2 billion in outstanding loans CEO at Yahoo President at PayPal Brett King – Advisor Founder and CEO of Moven.com A world-renowned futurist and speaker, an International Bestselling Author. King hosts the world's first and #1 ranked radio show on FinTech called "Breaking Banks“. Greg Kidd – Advisor CEO of Global ID Co-Founder of Hard Yaka Chief Risk Officer of Ripple Labs 30

DEVELOPMENT ROADMAP 2017 Q4 Libra Credit Idea Generation 2018 Q2 Token Sale & Token Activation 2018 Q3 Libra Credit Platform (Desktop version) Launched for crypto-to-crypto/fiat lending 2018 Q4 Libra Credit mobile App Launched 2019 Other digital asset-to-crypto/fiat lending enabled with extended partnership networks 2020 Digital/financial/physical asset-to crypto/fiat lending enabled with global partnership networks Achieved milestone Key milestones to be achieved 31

DEFINITIONS Term Definition A form of statistical hypothesis testing or "two-sample hypothesis testing" AB-test for validation purposes Artificial Intelligence developed by machines when "cognitive" functions AI of humans are mimicked Application Programming A set of clearly defined methods of communication between various Interface (API) software components Application-blockchain- Application interfaces that allows the sharing of blockchain data interface (ABCI) Bonus Extra LBA issued for early-bird Token purchasers Decentralized Application A protocol that allows a private program to be built on top of the (DApp) Ethereum Blockchain Accumulation of collaterals with different asset classes (i.e. Diversified Collateral Pool cryptocurrencies, gold, etc.), forming a diversified pool of collaterals Ethereum token standard as published at ERC – 20 https://github.com/ethereum/EIPs/issues/20 E-wallet Electronic wallet that is able to store cryptocurrencies GitHub A web-based hosting service for revision control Person or firm that endorses a third-party agreement to guarantee the Guarantor promises made by the borrower to the lender will be fulfilled, and assumes liability if the borrower fails to fulfill them A service that allows connection with different back ends (e.g. Libra Integration gateway Lending Platform and stable coin providers) to ensure asset exchange 32

DEFINITIONS Term Definition A protocol and eponymous network designed to create a content- IPFS addressable, peer-to-peer method of storing and sharing hypermedia in a distributed file system KYC Know Your Customer process Libra Community Token holders automatically form the community The first holistic, blockchain-based ecosystem that facilitates open access Libra Credit to credit in any form, including cryptocurrency A predetermined amount of time following an initial coin offering where Lock-up Period investors representing considerable ownerships are restricted from selling their shares In the case of a sharp LBA coins depreciation, LBA informs the lender Margin call either to deposit more LBA coins or repay the loan so that the account is brought up to the minimum maintenance level (to maintain the CLT ratio) Over-the-counter trading, where a transaction occurs directly between OTC two parties without involving an exchange Smart Contract Self-executing contracts with terms of agreement embedded Stablecoin Cryptocurrencies with stable value Programming computational model that involves possessing one item at a Streaming Computation & time and generating big data sets with a parallel, distributed algorithm on MapReduce Computation a cluster Token Sale LBA Token private sale and public sale Whitepaper This Whitepaper issued by LBA Foundation 33

APPENDIX Libra Credit Open Data Smart Contract – Github Snippet 34

APPENDIX IMPORTANT NOTICE This Whitepaper in current form is being circulated for general information and to invite investor feedback only on the Libra Credit as presently conceived, and is subject to review and revision by the directors of Libra Foundation and its advisers and/or legal advisers. Please do not replicate or distribute any part of this Whitepaper without this note in accompaniment. No part of this Whitepaper is intended to create legal relations between a recipient of this Whitepaper or to be legally binding or enforceable by such recipient against Libra Foundation. An updated version of this Whitepaper may be published on a date to be determined and announced by Libra Foundation in due course. PLEASE READ THIS SECTION AND THE FOLLOWING SECTIONS ENTITLED “DISCLAIMER OF LIABILITY”, “NO REPRESENTATIONS AND WARRANTIES”, “REPRESENTATIONS AND WARRANTIES BY YOU”, “CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS”, “THIRD PARTY INFORMATION AND NO CONSENT OF OTHER PERSONS”, “TERMS USED”, “NO ADVICE”, “NO FURTHER INFORMATION OR UPDATE”, “RESTRICTIONS ON DISTRIBUTION AND DISSEMINATION”, “NO OFFER OF INVESTMENT OR REGISTRATION”, “PREVAILING LANGUAGE” AND “RISKS AND UNCERTAINTIES” CAREFULLY. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S). The Tokens are not intended to constitute securities of any form, units in a business trust, units in a collective investment scheme or any other form of investment in any jurisdiction. This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities of any form, units in a business trust, units in a collective investment scheme or any other form of investment, or a solicitation for any form of investment in any jurisdiction. This Whitepaper does not constitute or form part of any opinion or any advice to acquire, sell, or any solicitation of any offer by Libra Foundation to buy any Tokens nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision. 35

APPENDIX The proceeds from the sale of the Tokens will be deployed to support ongoing development and growth of Libra Credit, business development, marketing and compliance activities. No person is bound to enter into any contract or binding legal commitment in relation to the acquisition of Tokens and no cryptocurrency or other form of payment is to be accepted on the basis of this Whitepaper. Any agreement as between Libra Foundation or its affiliate(s) and you in relation to any purchase of Tokens, is to be governed by only a separate document setting out the terms and conditions (the “Token Sale Terms”) of such agreement. In the event of any inconsistencies between the Token Sale Terms and this Whitepaper, the former shall prevail. No regulatory authority has examined or approved of any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with. There are risks and uncertainties associated with Libra Foundation and its business and operations, the Tokens and Libra Credit. Please refer to the section entitled “Risks and Disclosures” set out at the end of this Whitepaper. This Whitepaper, any part thereof and any copy thereof must not be taken or transmitted to any country where distribution or dissemination of this Whitepaper is prohibited or restricted. No part of this Whitepaper is to be reproduced, distributed or disseminated without including this section and the following sections entitled “Disclaimer of Liability”, “No Representations and Warranties”, “Representations and Warranties By You”, “Cautionary Note On Forward-Looking Statements”, “Third Party Information and No Consent of Other Persons”, “Terms Used”, “No Advice”, “No Further Information or Update”, “Restrictions On Distribution and Dissemination”, “No Offer of Investment Or Registration”, “Prevailing Language” and “Risks and Uncertainties”. 36

APPENDIX DISCLAIMER OF LIABILITY To the maximum extent permitted by the applicable laws, regulations and rules, Libra Foundation shall not be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this Whitepaper or any part thereof by you. NO REPRESENTATIONS AND WARRANTIES Libra Foundation 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 this Whitepaper. REPRESENTATIONS AND WARRANTIES BY YOU By accessing and/or accepting possession of any information in this Whitepaper or such part thereof (as the case may be), you represent and warrant to Libra Foundation as follows: a) you agree and acknowledge that the Tokens do not constitute securities of any form, units in a business trust, units in a collective investment scheme or any other form of investment in any jurisdiction; b) you agree and acknowledge that this Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities of any form, units in a business trust, units in a collective investment scheme or any other form of investment in any jurisdiction, or a solicitation for any form of investment, and you are not bound to enter into any contract or binding legal commitment and no cryptocurrency or other form of payment is to be accepted on the basis of this Whitepaper; c) you acknowledge and understand that no Token should be construed, interpreted, classified or treated as enabling, or according any opportunity to, tokenholders to participate in or receive profits, income, or other payments or returns arising from or in connection with the Tokens or the proceeds from the sale of Tokens, or to receive sums paid out of such profits, income, or other payments or returns; 37

APPENDIX d) you agree and acknowledge that no regulatory authority has examined or approved of the information set out in this Whitepaper, no action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction and the publication, distribution or dissemination of this Whitepaper to you does not imply that the applicable laws, regulatory requirements or rules have been complied with; e) you agree and acknowledge that this Whitepaper, the undertaking and/or the completion of the sale of Tokens, or future trading of Tokens on any cryptocurrency exchange, shall not be construed, interpreted or deemed by you as an indication of the merits of Libra Foundation, the Tokens and the Libra Credit; f) the distribution or dissemination of this Whitepaper, any part thereof or any copy thereof, or acceptance of the same by you, is not prohibited or restricted by the applicable laws, regulations or rules in your jurisdiction, and where any restrictions in relation to possession are applicable, you have observed and complied with all such restrictions at your own expense and without liability to Libra Foundation; g) you agree and acknowledge that in the case where you wish to acquire any Tokens, Tokens are not to be construed, interpreted, classified or treated as: i. any kind of currency other than cryptocurrency; ii. debentures, stocks or shares issued by any person or entity; iii. rights, options or derivatives in respect of such debentures, stocks or shares; iv. rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; v. units in a collective investment scheme; vi. units in a business trust; vii. derivatives of units in a business trust; or viii. any form of investment; h) you are not obtaining or using Tokens for any illegal purpose; 38

APPENDIX i) you have a basic degree of understanding of the operation, functionality, usage, storage, transmission mechanisms and other material characteristics of cryptocurrencies, blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology, and smart contract technology; j) you are fully aware and understand that in the case where you wish to purchase any Tokens, there are risks associated with Libra Foundation and its business and operations, Tokens and the Libra Credit; k) you bear the sole responsibility to determine what tax implications a purchase of Tokens may have for you and agree not to hold Libra Foundation and/or any other person involved in the sale of Tokens liable for any tax liability associated with or arising therefrom; l) you agree and acknowledge that Libra Foundation is not liable for any direct, indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this Whitepaper or any part thereof by you; m) you waive the right to participate in a class action lawsuit or a class wide arbitration against Libra Foundation and/or any person involved in the creation and distribution of Tokens; and n) all of the above representations and warranties are true, complete, accurate and non-misleading from the time of your access to and/or acceptance of possession of this Whitepaper or such part thereof (as the case may be). CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS All statements contained in this Whitepaper, statements made in press releases or in any place accessible by the public and oral statements that may be made by Libra Foundation or its directors, executive officers or employees acting on behalf of Libra Foundation, that are not statements of historical fact, constitute “forward- looking statements”. 39

APPENDIX Some of these statements can be identified by forward-looking terms such as “aim”, “target”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “if”, “intend”, “may”, “plan”, “possible”, “probable”, “project”, “should”, “would”, “will” or other similar terms. However, these terms are not the exclusive means of identifying forward- looking statements. All statements regarding Libra Foundation’s business strategies, plans and prospects and the future prospects of the industry which Libra Foundation is in are forward- looking statements. These forward- looking statements, including but not limited to statements as to Libra Foundation’s prospects, future plans, other expected industry trends and other matters discussed in this Whitepaper regarding Libra Foundation are matters that are not historic facts, but only predictions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual future results, performance or achievements of Libra Foundation to be materially different from any future results, performance or achievements expected, expressed or implied by such forward-looking statements. These factors include, amongst others: (a) changes in political, social, economic and stock or cryptocurrency market conditions, and the regulatory environment in the countries in which Libra Foundation conducts its business and operations; (b) the risk that Libra Foundation may be unable to execute or implement its business strategies and future plans; (c) changes in interest rates and exchange rates of fiat currencies and cryptocurrencies; (d) changes in the anticipated growth strategies and expected internal growth of Libra Foundation and Libra Credit; (e) changes in the availability and fees payable to Libra Foundation in connection with its business and operations or in Libra Credit; (f) changes in the availability and salaries of employees who are required by Libra Foundation to operate its business and operations; (g) changes in preferences of users of Libra Credit; (h) changes in competitive conditions under which Libra Foundation operates, and the ability of Libra Foundation to compete under such conditions; (i) changes in the future capital needs of Libra Foundation and the availability of financing and capital to fund such needs; 40

APPENDIX (j) war or acts of international or domestic terrorism; (k) occurrences of catastrophic events, natural disasters and acts of God that affect the business and/or operations of Libra Foundation; (l) other factors beyond the control of Libra Foundation; and (m) any risk and uncertainties associated with Libra Foundation and its business and operations, the Tokens and the Libra Credit. All forward-looking statements made by or attributable to Libra Foundation and/or persons acting on behalf of Libra Foundation are expressly qualified in their entirety by such factors. Given that risks and uncertainties that may cause the actual future results, performance or achievements of Libra Foundation to be materially different from that expected, expressed or implied by the forward-looking statements in this Whitepaper, undue reliance must not be placed on these statements. These forward-looking statements are applicable only as of the date of this Whitepaper. None of Libra Foundation or any other person represents, warrants, and/or undertakes that the actual future results, performance or achievements of Libra Foundation will be as discussed in those forward-looking statements. The actual results, performance or achievements of Libra Foundation may differ materially from those anticipated in these forward-looking statements. Nothing contained in this Whitepaper is or may be relied upon as a promise, representation or undertaking as to the future performance or policies of Libra Foundation. Further, Libra Foundation disclaims any responsibility to update any of those forward-looking statements or publicly announce any revisions to those forward-looking statements to reflect future developments, events or circumstances, even if new information becomes available or other events occur in the future. 41

APPENDIX THIRD PARTY INFORMATION AND NO CONSENT OF OTHER PERSONS This Whitepaper includes information obtained from various third party sources (“Third Party Information”). None of the publishers of Third Party Information has consented to the inclusion of Third Party Information in this Whitepaper and is therefore not liable for Third Party Information. While reasonable action has been taken to ensure that Third Party Information has been included in their proper form and context, none of Libra Foundation or its directors, executive officers, and employees acting on its behalf, has independently verified the accuracy, reliability, completeness of the contents, or ascertained any applicable underlying assumption, of the relevant Third Party Information. Consequently, none of Libra Foundation or its directors, executive officers and employees acting on their behalf makes any representation or warranty as to the accuracy, reliability or completeness of such information and shall not be obliged to provide any updates on the same. TERMS USED To facilitate a better understanding of the Tokens, Libra Credit and the business and operations of Libra Foundation, certain technical terms and abbreviations, as well as, in certain instances, their descriptions, have been used in this Whitepaper. These descriptions and assigned meanings should not be treated as being definitive of their meanings and may not correspond to standard industry meanings or usage. Words importing the singular shall, where applicable, include the plural and vice versa and words importin g the masculine gender shall, where applicable, include the feminine and neuter genders and vice versa. References to persons shall include corporations. NO ADVICE No information in this Whitepaper should be considered to be business, legal, financial or tax advice regarding Libra Foundation, the Tokens or the Libra Credit. You should consult your own legal, financial, tax or other professional adviser regarding Libra Foundation and its business and operations, the Tokens and the Libra Credit. You should be aware that you may be required to bear the financial risk of any purchase of Tokens for an indefinite period of time. 42

APPENDIX NO FURTHER INFORMATION OR UPDATE No person has been or is authorised to give any information or representation not contained in this Whitepaper in connection with Libra Foundation and its business and operations, the Tokens or the Libra Credit, if given, such information or representation must not be relied upon as having been authorised by or on behalf of Libra Foundation. The publication of this Whitepaper shall not, under any circumstances, constitute a continuing representation or create any suggestion or implication that there has been no change, or development reasonably likely to involve a material change in the affairs, conditions and prospects of Libra Foundation or in any statement of fact or information contained in this Whitepaper since the date hereof. RESTRICTIONS ON DISTRIBUTION AND DISSEMINATION The distribution or dissemination of this Whitepaper or any part thereof may be prohibited or restricted by the laws, regulatory requirements, and rules of any jurisdiction. In the case where any restriction applies, you are to inform yourself about, and to observe, any restrictions which are applicable to your possession of this Whitepaper or such part thereof (as the case may be) at your own expense and without liability to Libra Foundation. Persons to whom a copy of this Whitepaper has been distributed or disseminated, provided access to or who otherwise have the Whitepaper in their possession shall not circulate it to any other persons, reproduce or otherwise distribute this Whitepaper or any information contained herein for any purpose whatsoever nor permit or cause the same to occur. NO OFFER OF INVESTMENT OR REGISTRATION This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities of any form, units in a business trust, units in a collective investment scheme or any other form of investment, or a solicitation for any form of investment in any jurisdiction. No person is bound to enter into any contract or binding legal commitment and no cryptocurrency or other form of payment is to be accepted on the basis of this Whitepaper. 43

APPENDIX No regulatory authority has examined or approved of any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with. PREVAILING LANGUAGE The English language version of this Whitepaper is the only official version in force. If there is any inconsistency between this Whitepaper and other translations of this Whitepaper, the English version of this Whitepaper shall prevail. You acknowledge and agree that any translation you may have reviewed or which may have been made available to you is for your reference only and are not certified by Libra Foundation. Names of any laws and regulations, governmental authorities, institutions, natural persons or other entities which have been translated into English and included in this Whitepaper and for which no official English translation exists are unofficial translations for your reference only. RISKS AND UNCERTAINTIES Prospective purchasers of Tokens should carefully consider and evaluate all risks and uncertainties associated with Libra Foundation and its businesses and operations, the Tokens and the Libra Credit, all information set out in this Whitepaper and the Token Sale Terms prior to any purchase of the Tokens. If any of such risks and uncertainties develops into actual events, the business, financial condition, results of operations and prospects of Libra Foundation could be materially and adversely affected. In such cases, you may lose all or part of the value of the Tokens. 44