Chiliz Whitepaper

Saturday, February 8, 2020
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A DIGITAL CURRENCY FOR SPORTS & ESPORTS, ENTERTAINMENT PLATFORMS, ADOPTABLE UNIVERSALLY ACROSS OTHER INDUSTRIES. White Paper V2.3

2 PLEASE READ THIS DISCLAIMER SECTION CAREFULLY. YOU SHOULD CONSULT YOUR OWN ADVISORS CONCERNING THE LEGAL, TAX, ECONOMIC, FINANCIAL AND OTHER ASPECTS ASSOCIATED WITH THE Chiliz TOKEN AND SOCIOS.COM PLATFORM The Chiliz token is classified as a ‘Virtual Financial Asset’ in terms of the applicable The Chiliz tokens are not available to (i) a natural person being a citizen, national, Disclaimer Maltese ‘Virtual Financial Assets Act’ (Chapter 590 of the Laws of Malta) (the ‘VFA resident or having a similar connecting factor to; or (ii) a juridical person being Act’) The Chiliz token does not possess any necessary characteristic required to incorporated, registered or effectively managed and controlled from or within a country, be considered a transferable security, money market instrument, unit in collective jurisdiction or territory where the private placement or the holding and use of the investment schemes, a digital currency, commodity, security or any other form of Chiliz token and/or virtual currency or other tokens at any other moment in time is investment in any jurisdiction. prohibited by laws, regulations or other practices and policies in the said country, jurisdiction or territory, which is taken to include, but is not limited to the United This white paper is compiled in accordance with the requirements and provisions of States of America, or any other jurisdiction where the aforementioned are prohibited. the VFA Act and is in the process of being registered with the relevant competent authority, the Malta Financial Services Authority. As at the date of this white paper, This white paper, the Chiliz tokens and/or the holding, use and trading of the Chiliz no other registrations, approvals or licensing requirements apply for the Chiliz token token carries no rights, whether express or implied, other than for their use on the in terms of applicable Maltese law. Socios.com platform and trading on cryptocurrency exchanges, Chiliz tokens do not represent or confer any ownership right or stake, share or security or equivalent This white paper does not constitute a prospectus or offering document and is not a rights, intellectual property rights or any other form of participation relating to the solicitation for investment and does not constitute an offer of financial instruments, Issuer. Chiliz tokens do not give you any entitlement to acquire any such interest or securities to the public or a collective investment scheme. Any decision to purchase entitlement in respect of the Issuer. Chiliz tokens shall be based on consideration of this white paper as a whole. The administrator of the Issuer, as identified in the Considerations section of this The Issuer reserves the right to (i) make changes to this white paper and any documents white paper, are the persons responsible for the information contained in this white linked to the Chiliz token and/or holding and use of Chiliz token to ensure compliance paper. To the best of the knowledge and belief of the administrators of the Issuer (who with the applicable regulatory requirements and (ii) , do all that is necessary to have all taken reasonable care to ensure such is the case), the information contained be in compliance with any regulatory requirements, including but not limited to, in this white paper is in accordance with the facts and does not omit anything likely interrupting, suspending or ceasing the operations or trading of the Chiliz token if to affect the import of such information. The administrators of the Issuer accept deemed necessary at the Issuer’s sole discretion. responsibility accordingly. It is solely up to you to ensure that no prior or subsequent approval, notification, registration or licence is needed or if such is needed, it is solely up to you to obtain such prior or subsequent approval, notification, registration or licence or require any form in the country where you are a citizen, national, resident or having a similar connecting factor, or incorporated, registered or effectively managed, and the Issuer shall not in any way be liable for any non-conformity of the above by you.

3 Chiliz Top Level Snapshot VISION TEAM LEGITIMACY • Give billions of sports & • 40+ Sports, esports and • Developed in the E.U. (Malta) esports fans a currency to buy gaming industry experts direct voting power in their • Executed with the support of favorite organizations • Experienced in regulated the Maltese Government gaming, gaming tech & sports- • Create a crowd management centric business development • Member of the EEA platform for teams, leagues, (Enterprise Ethereum Alliance) events and games across multiple verticals Advisory board: • Take inspiration from Socios Current and former leaders team control models (used by teams like Real Madrid & FC from Facebook, Google, Barcelona) Playtech, Sina Sports, Fnatic, Team Vitality, PokerStars, InFront Sports & esports influencers.

4 Chiliz Top Level Snapshot MARKET SHAREHOLDERS PRIVATE PLACEMENT • Esports & videogames: • Top Chinese Venture Capital • Completed in 2nd half of firms: 2018 Larger than Film + Music industries combined, with 2017 Ceyuan Ventures (Feng Bo) • Currently utilizing the market size of $108.9B and H&S Financial Group ERC20 token standard projected to be $128.5B by 2020 • Business Leaders • $CHZ • Traditional sports: Dr. Stanley Choi, Investor and • $66 million raised in private IPO Specialist (Hong Kong) token sale The largest entertainment industry globally, with a market Xavier Niel, French size topping $620B as early as Telecommunications Tycoon 2011 & net revenues topping (France) $90B in 2017 Donald Tang, Hedge Fund Manager (Hong Kong)

5 VIABLE Gaming and esports consumers consumers, both demographics are young, well-educated, have readily adopted digital voting/ Chiliz CONSUMER relatively affluent and digitally polling and other crowd-solutions as Top Level Snapshot DEMOGRAPHICS savvy. Their profile matches that means of engagement with teams of early cryptocurrency adopters. and leagues. Furthermore together with sports A GAP IN CURRENT Sports and esports investment exists. Chiliz fueled platofrms mostly comes from media - specifically a Chiliz-powered, ENGAGEMENT SERVICES corporations, corporate sponsors tokenized fan voting platform and independent, wealthy financiers. such as Socios.com - fills this gap. As such, the average fan has no This affords fans some degree of ability to participate in decision- decision making influence, while making events for the organizations offering a new direct revenue stream they follow, though this demand for sports and esports organizations. CHILIZ PIONEERS Owning Chiliz tokens and leagues, game titles and events. exchanging them on Chiliz- It’s a solution scalable and flexible “FANS AS INFLUENCERS” powered platforms like Socios. enough to work across sports and SOLUTIONS com, fans can acquire voting rights esports ecosystems. and the ability to participate in decisions and guidance for teams,

6 Contents Pg 7 Pg 16 Pg 19 Pg 22 01 CONSIDERATIONS 02 THE CHILIZ ECOSYSTEM 03 PROBLEM & SOLUTION 04 PLATFORM INTRODUCTION 1.1 Disclaimer, Risks & Definitions 2.1 What is the Chiliz/Socios.com 3.1 The Opportunity 4.1 An overview 1.2 Issuer Information platform? 3.2 The Innovation 4.2 Fan decisions 13 KYC & AML 2.2 Why develop the Chiliz & the 4.3 Partner Flexibility 1.2 IP Rights & MIsc Socios.com platform 4.4 Third parties Pg 28 Pg 32 Pg 36 Pg 42 05 THE CHILIZ/SOCIOS.COM VISION 06 SOCIOS.COM PLATFORM: 07 TECHNOLOGY & VALUES 08 FAN ENGAGEMENT THROUGH 2020 FEATURES 7.1 Our values TRANSACTIONAL MODEL 5.1 First application 6.1 Voting 7.2 Auditability 8.1 Monetization 5.2 Milestones 6.2 Fan Token Offerings 7.3 ETH Protocol & ERC20 Standard 8.2 Revenue for teams, 5.3 Expansion Phases 6.3 Buying & Selling Fan Tokens 7.4 Why Ethereum? leagues & events 7.5 The platform at a glance Pg 45 Pg 52 Pg 63 Pg 67 09 AT-LAUNCH UTILITIES FOR THE 10 TEAM, ADVISORY 11 CHILIZ CROWD SALE 12 CONTACT $CHZ TOKEN & SHAREHOLDERS 11.1 Distribution 12.1 Points of Contact 9.1 Socios.com 10.1 Team 11.2 Funding allocation 9.2 Chiliz Blockchain Campus 10.2 Cornerstones 11.3 Token project Token Generation 10.3 Advisory Event 10.4 Shareholders

1 CONSIDERATIONS 1.1 Disclaimer, Risks & Definitions 1.2 Issuer Information 1.3 KYC & AML 1.4 IP Rights & MIsc. Service Providers

01 Considerations 8 Express Disclaimer: such an acquisition, or other persons who have been professionally advised with regard to token acquisition and who have sufficient financial resources to be able to bear any losses that may arise therefrom (which may be equal to the whole The Socios.com Platform as well as the Fan Tokens fall outside the scope of this amount spent in connection with the token acquisition). Such an acquisition White Paper – they are mentioned in this White Paper by way of reference only should not be seen as an investment or a financial asset. and are strictly not regulated by the contents hereof. 1.1 Risk of losing access to Chiliz due to loss of Private key/s, Custodial Error or Risk Factors : Participant Error The following is a non-exhaustive disclosure of principal risk factors which are considered to be material by the Company in connection with the Private A Wallet is necessary to acquire, hold and dispose of Chiliz. The Participant Disclaimer Placement Event, and the acquisition, holding and/or use of Chiliz as well, to the extent rendered application, the use of the Socios.com Platform at any moment hereby understands that he is responsible for setting up the Wallet with a third- party provider to hold Chiliz and he is responsible for implementing reasonable & Risks in time. Participants should consider these risk factors alongside all other information provided in the White Paper and are advised to consult with their own measures for securing the Wallet. Accordingly, loss of requisite private key/s associated with the Wallet holding Chiliz will result in loss of such Chiliz and professional advisers (including their financial, accounting, legal, tax, technical any other cryptocurrencies and/or tokens held within. Moreover, any third party or other advisers and experts) before deciding to obtain Chiliz. In addition, that gains access to such private key/s, including by gaining access to login Participants should be aware that the risks described herein may combine and credentials of the Wallet that the Participant uses, may be able to misappropriate thus intensify one another. the Participant’s Chiliz. Any errors or malfunctions caused by or otherwise related to the Wallet that the Participant chooses to receive and hold Chiliz The Company believes that the following risk factors may even affect its own including the Participant’s own failure to properly maintain or use such wallet or business, as well as the external valuation of Chiliz (which external valuation is caused as a result of the choice of third party provider for the Wallet, may also beyond the scope and purpose of the reason behind the Socios.com Platform and result in the loss of Chiliz Additionally, the Participant’s failure to follow precisely the Company’s Business). Most of these risk factors are contingencies which may the procedures set forth in the Terms for acquiring and receiving Chiliz including or may not occur and the Company is not in a position to predict the likelihood of but not limited to, the provision of the wrong Wallet address for receiving Chiliz such contingency occurring. may also result in the loss of his Chiliz. By acquiring, holding and using Chiliz, the Participant expressly acknowledges and assumes the following risks: Risk of Mining Attacks As with other decentralized cryptographic tokens based on the Ethereum General Suitability of token acquisition protocol, (ERC20 tokens) Chiliz are susceptible to attacks by miners in the course of validating Chiliz transactions on the Ethereum blockchain, including, The acquisition of Chiliz from the Company is only suitable for financially but not limited, to double-spend attacks, majority mining power attacks, and sophisticated persons who are capable of evaluating the merits and risks of selfish-mining attacks. Any successful attacks present a risk to the Socios. com Platform and/or Chiliz, including but not limited to, accurate execution and recording of transactions involving Chiliz.

01 Considerations 9 Risk of Hacking and Security weakness It shall be explicitly cautioned that such exchange, if any, might be subject to poorly-understood regulatory oversight, and the Company does not give any Hackers or other groups or organisations may attempt to interfere with Chiliz warranties in regard to any exchange services providers. Users including the in a number of ways, including, but not limited to denial of service attacks, Participant, if applicable, might be exposed to fraud and failure affecting those Sybil attacks, spoofing, smurfing, malware attacks, or consensus-based exchanges. In any case, it is not the Company’s aim to enable exchange of attacks, and any such similar events which could have an impact on Chiliz, the Chiliz for other cryptographic tokens or for fiat currency and it shall therefore 1.1 Socios.com Platform and the Services the Company may offer from time to not commit to any endeavours to list Chiliz on such exchanges or any time. secondary markets. Risk of Security weakness in the Smart Contract, Website and Chiliz Source Risks of an eventual unfavourable fluctuation of ETH or Chiliz’ value Risks Code or any associates software and/or Infrastructure The Socios.com Platform is intended to be financially self-sufficient and self- financing after the Private Placement Event and the Company commits to There is a risk that the Smart Contract, Website, the Socios.com Platform have no specific interest in the market value of Chiliz. Nevertheless, if the and Chiliz may unintentionally include weaknesses or bugs in the source code value of BTC, ETH and/or Chiliz fluctuates, the Company may not be able to interfering with the use of or causing the loss of Chiliz; the source code of the fund development to the extent necessary, or may not be able to develop or Website is open and could be updated, amended, altered or modified from maintain the Socios.com Platform in the manner that it intended. In addition time to time. to the usual market forces, there are several potential events which could exacerbate the risk of unfavourable fluctuation in the value of ETH or Chiliz The Company is unable to foresee or guarantee the precise result of an including another DAO-like attack on the Ethereum network, or significant update, amendment, alteration or modification. As a result, any update, security incidents or market irregularities at one or more of the major amendment, alteration or modification could lead to an unexpected or cryptocurrency exchanges. unintended outcome that adversely affects Chiliz and/or the Website. As a result, Chiliz may be lost. Risk of Malfunction in the Ethereum Network or any other Blockchain and of Competing Platforms Risk of no Listing or low/no Liquidity It is possible that Chiliz are interacting with malfunctions in an unfavourable Chiliz are intended to be used solely for the Socios.com Platform and the way, including but not limited to one that results in the loss of Chiliz or prevent Company will not support or otherwise facilitate any secondary trading on an their use on the Socios.com Platform. It is possible that alternative platforms exchange or the secondary market or the external valuation of Chiliz, which are could be established that utilise the same open source code and protocol all beyond the scope and purpose of the Socios.com Platform. This restricts underlying the Socios.com Platform and attempt to facilitate services that are the contemplated intended use of Chiliz only to the Socios.com Platform and materially similar to the Socios.com Platform. The Socios.com Platform may could therefore create illiquidity risk with respect to Chiliz that the Participant compete with these alternatives, which could negatively impact and Socios. owns. Even though there are currently online services available which enable com Platform, including the utility of Chiliz for use of the Socios.com Platform exchange of cryptographic tokens with other such tokens or even enable the exchange of cryptographic tokens for fiat money, there are no warranties and/or guarantees that Chiliz will be made available for exchange with other cryptographic tokens and/or fiat money, and no guarantees are given whatsoever with regard to the capacity and/or volume of such exchange/s.

01 Considerations 10 Risk of Uninsured Losses Risk of insufficient interest in Chiliz and the Socios.com Platform Unlike bank accounts or accounts at some other financial institutions, Chiliz It is possible that Chiliz and the Socios.com Platform will no longer be used by are uninsured unless the Participant specifically obtains private insurance to a large number of individuals, companies and other entities or that there will insure them. Thus, in the event of loss of Chiliz or loss of Chiliz’s value, there be limited interest in the use of Chiliz and the Socios.com Platform. Such a is no public insurer, such as the Investor Compensation Scheme or private lack of use or interest could negatively impact the development of the Socios. 1.1 insurance arranged by the Company to offer recourse to the Participant. com Platform and therefore the potential utility of Chiliz. Risk associated with uncertain Regulations and enforcement actions Internet Transmission Risks Risks The regulatory status of tokens in general, Initial Token or Coin Offerings, Private Placement Event and distributed ledger technology is unclear or There are risks associated with using Chiliz including, but not limited to, the failure of hardware, software, and Internet connections, or other technologies unsettled in many jurisdictions. It is difficult to predict how or whether on which the Socios.com Platform or the use of Chiliz relies. Such failures regulatory authorities may apply existing regulation with respect to such may result in disruptions in communication, errors, distortions or delays when technology and its applications, including the Socios.com Platform and using Chiliz and the Socios.com Platform or the Website. the Chiliz. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement regulatory actions or changes to law and regulation affecting distributed ledger technology and its applications, Risk of Dissolution of the Company including the Socios.com Platform and the tokens. It is possible that, due to any number of reasons, including, but not limited Regulatory actions or changes to law and regulation could negatively impact to, a decrease in Chiliz’s utility, the failure of commercial relationships, or Chiliz and the Socios.com Platform in various ways, including, but not limited intellectual property ownership challenges, unfavourable market conditions to, a determination that the acquisition, holding and use or disposal and and added compliance and regulatory obligations, the use of the Socios.com transfer of Chiliz constitutes a regulated instrument that require registration Platform may no longer be viable to be offered or the Company may need to or licensing of those instruments or some or all of the parties involved in the cease trading and be dissolved and liquidated. acquisition, contribution, sale and delivery thereof. The Company may cease operations or interrupt the Private Placement Event in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to Risk arising from Lack of Governance Rights operate in such jurisdiction, or commercially undesirable or no longer viable to obtain the necessary regulatory approval/s to operate in such jurisdiction or to Since Chiliz do not represent or confer any ownership right or stake, share or provide the Socios.com Platform. security or equivalent rights, intellectual property rights or any other form of participation relating to the Company, all decisions involving the Company will be made by Company at their sole discretion, including, but not limited Risk arising from Taxation to, decisions to transfer more Chiliz for use, to sell or liquidate the Company. These decisions could adversely affect the utility of that the Participant holds. The tax characterization of Chiliz is uncertain. The Participant must seek his own tax advice in connection with purchasing Chiliz, which may result in adverse tax consequences to him, including withholding taxes, income taxes and tax reporting requirements.

01 Considerations 11 Regulatory Risks and Market Risks Unanticipated Risks The Company and by operation of the Socios.com Platform, are subject Cryptographic tokens such as Chiliz as well as blockchain are a new and to a variety of domestic and/or EU and international laws, regulation and untested technology. In addition to the risks included in the Chiliz Documents directives, including those with respect to privacy and data protection, there are other risks associated with the Participant’s acquisition, holding consumer protection, data security, and others. These laws, regulations and and use of Chiliz , including some that the Company cannot or may not 1.1 directives, and the interpretation or application of these laws, regulations anticipate. Such risks may further materialise as unanticipated variations or and directives, could change. In addition, new laws, regulations or directives combinations of the risks discussed in the Chiliz Documents. affecting the Company, the Socios.com Platform and Chiliz could be enacted, which could impact the utility of Chiliz and their use on the Socios.com The Participant hereby represents and warrants that he will take sole Platform. Additionally, the Participants are subject to industry specific laws responsibility for any restrictions and risks associated with the holding or use Risks and regulations or licensing requirements. of Chiliz. If any of the risks, mentioned in the Terms are unacceptable or the Participant is not in the position to understand, the Participant should not acquire, If any of the Parties fails to comply with any of these licensing requirements hold or use Chiliz. or other applicable laws or regulations, or if such laws and regulations or licensing requirements become more stringent or are otherwise expanded, it could adversely impact Chiliz and the Socios.com Platform, including the Chiliz’ utility on the Socios.com Platform The Participant hereby accepts the risk that in some countries Chiliz might be considered, now or in the future, a Security Token. In this case the Company gives no representations, warranties or guarantees that the Utility Tokens are not considered to be Security Tokens in all countries. The Participant hereby accepts to be solely responsible of the legal, financial and any other risks connected to Chiliz as a security in his country and to be the only responsible to check if the holding, using and the disposal of Chiliz is legal in your country. Also, changes in laws, regulations and directives governing the Company’s operations may adversely affect their business and consequently the Socios. com Platform. Any change in the Company’s tax status, or in taxation legislation in Malta or elsewhere, could affect the value of its financial holdings, its business and the Company’s ability to achieve its business objective and continual commitment to the development of the Socios.com Platform. Other Inherent Risks The Participant understands and accepts the inherent risks associated with Chiliz, to the extent not covered elsewhere in the Terms, including, but not limited to, risks associated with (a) money laundering; (b) fraud; (c) exploitation for illegal purposes; and (d) any other unanticipated risks.

01 Considerations 12 Issuer or Company Definitions, as applied within this document: HX Entertainment Limited, a company registered under the Laws of Malta with company registration number C 77290 and having Chiliz Token(s) its registered address at 14 East, Level 7, Triq Tas-Sliema, Gzira, GZR1639, Malta. 1.2 A utility cryptographic decentralised token issued by the Company based on the Ethereum protocol (ERC20 token) being the Mediarex or Group token which can be used by sports fans to acquire Fan Tokens Mediarex Enterprises Limited, a company registered under the Definitions Fan Token(s) Laws of Malta with company registration number C 73768 and having its registered address office at 14 East, Level 7, Triq Tas- A utility cryptographic branded token bearing the marks/name of Sliema, Gzira, GZR1639, Malta (as ultimate parent company) and the partnering sports team or organization to which they relate. its direct and indirect subsidiaries. Such Fan Tokens are created by a separate entity within the Group and are designed for direct utility within the Socios.com Platform. White Paper Fan Token(s) grant holders voting rights to particularly participate in the decision-making processes, feedback polls and surveys in This document in its entirety regards to the sports teams or organizations to which they relate. Fan Tokens can be exclusively traded using Chiliz Tokens. Socios.com or Socios Platform, or Platform Participant The socios.com platform, a platform developed by another entity within the Group, operating on the basis of blockchain technology Any person (natural or juridical), who has contributed and is bound and smart contracts for the purpose of offering a tokenized voting by the terms of the private placement and this White Paper and/ platform where fans can buy, sell and execute voting or “crowd or who intends to hold and/or use Chiliz Token(s) at any moment managers” rights in their sports teams and benefit from extra VIP in time and shall include any person who intends to become a benefits Participant. VFA Act The ‘Virtual Financial Assets Act’ (Cap. 590 of the Laws of Malta) and any subsidiary legislation enacted thereunder

01 Considerations 13 1.2 Information on the Issuer: The issuer of the Chiliz token is HX Entertainment Limited, Information a company registered under the laws of Malta with company on the registration number C 77290 and having its registered address at Level 7, 14 East, Sliema Road, Gzira, GZR1639, Issuer Malta (the “Issuer”). The Issuer was established on October 24th, 2016 as a wholly-owned subsidiary of Mediarex Enterprises Limited, saving one share which is personally held by Mr Alexandre Dreyfus, an administrator of the Issuer. The Issuer is lawfully existing and registered as a private limited liability company in terms of the ‘Companies Act’, Chapter 386 of the Laws of Malta As at the date of this whitepaper, the Board of Administrators of the Issuer is constituted by the following persons: Alexandre Dreyfus (Reachable at Level 7, 14 East, Sliema Road, Gzira, GZR1639, Malta)

01 Considerations 14 Know Your Customer (KYC) and Anti-Money Laundering (AML) & Counter Financing of Terrorism Procedures: The issuer has adopted rigorous KYC procedures to verify the The policies and procedures implemented by the Issuer in this 1.3 identity of every applicant, and the beneficial owner (where respect are based on contributor’s identification and contributor’s applicable) that has expressed interest in acquiring Chiliz and only identity verification on the basis of the following sources: those contributors which have successfully identified themselves in the KYC procedure, to the Issuer's satisfaction, have been Documentation provided by the contributors. KYC & AML successful in participating in the Chiliz Private Placement. Information about the contributors obtained from reliable and independent sources. Strict compliance with KYC procedures protects the contributors and the Issuer from criminal elements such as money laundering In particular, the Issuer has and shall not conduct business with the activities and terrorism financing. The KYC procedures adopted following risky persons: were based on current market practices and in accordance with all applicable Maltese and EU legislation Those refusing to provide the Issuer with required information or documentation. The Issuer recognizes the importance of preventing money laundering and terrorism financing therefore AML and counter- Entities whose shareholder/control structure cannot be determined. financing of terrorism procedures have been implemented in Those individuals that are included on any official sanction lists. accordance with applicable legislation, notably the Prevention of Money Laundering Act (Chapter 373 of the Laws of Malta) Individuals indicating possible involvement in criminal activities including any rules and regulations enacted thereunder. The Issuer based on available information. particularly requested the identification of any politically exposed Those individuals with business where activity, source of funds or persons (“PEPs”), an individual who is or who has, been entrusted source of wealth cannot be reasonably verified. with prominent public functions, and immediate family members, or persons known to close associates of such persons. An appropriate record of received documentation and information, copies or recommendations are retained by the Issuer for the legally established time period as per applicable laws, including AML legislation and data protection laws including General Data Protection Regulation.

01 Considerations 15 1.4 Intellectual property rights associated with the offering, External Service Providers: projects arising from it, and protection thereof: Legal Advisors: IP Rights & Service The ChilizR and Socios.comTM marks, all content on the Chiliz Providers website (www.Chiliz.com) and this white paper in relation to the Chiliz offering and the Socios.com platform, unless mentioned E&S Consultancy Ltd. otherwise, remain the intellectual property rights of the Issuer’s Palace Court, Church Street, St. Julian’s STJ 3049, Malta. parent company, Mediarex Enterprises Limited, a company registered under the laws of Malta with company registration Auditors: number C 73768 and having its registered address at Level 7, 14 East, Sliema Road, Gzira, GZR 1639, Malta. Nexia BT This means that readers are not allowed to use the content contained in web pages, electronic or written publications or any The Penthouse, Suite 2, Capital Business Centre, Entrance C, other media and/or words, phrases, names, designs or logo that are Triq Taz-Zwejt, San Gwann SGN3000. our trademarks without our express written permission. All information provided on website, whitepaper, business model and any other public document, is subject to change without any notice to any person including any stakeholders or token holders.

2 THE CHILIZ 2.1 What is the Chiliz & the Socios.com platform? 2.2 Why develop the Chiliz & the Socios.com platform?

02 The Chiliz ecosystem 17 2.1 Chiliz, powering Socios.com, gives sports and esports Socios.com, fans the ability to crowd-manage their favorite teams, the platform games, leagues and events. By 2020, we anticipate a sports & esports landscape that is not only shaped Chiliz powers by what games, teams and leagues draw the highest audiences, but by those who can most effectively activate and monetise that audience by putting their fan-base in the driving seat. It’s called radical fan engagement: A universal sports and esports ‘crowd-control’ engine capable of giving fans voting rights to guide their some of their favourite teams’ management and strategy decisions. Any league, any team and any game, realised with blockchain technology. With Chiliz powering the Socios.com platform, fans can become influencers of any competitive entity. In turn, teams, leagues & events, from any corner of the sports & esports world can then monetise the fan demand for these voting rights.

02 The Chiliz ecosystem 18 2.2 Our motivation: To turn the world’s billions of sports, esports Why develop and gaming fans from spectators into influencers. Chiliz & the With Chiliz tokens powering the Socios.com platform our vision Socios.com is to turn 2.2+ billion gamers and 380+ million esports fans, as well as the billions-strong community of football fans, from platform? spectators into team-connected influencers and decision makers. The global sports market continues to grow year over year, and the esports market in specific is expected to experience 32% annual growth over the next 2-3 years. Exploration to try to improve fan engagement in both sports and esports is ongoing, as with both verticals, monetising fans via direct team connection - outside of game broadcasts and live events - continues to represent challenges. Our vision embraces both cryptocurrency and blockchain backed fan platforms as the most effective tools to empower sports’ and esports’ active fans and transform them from passive spectators into active influencers, who help guide the teams and organizations they love to follow.

3 PROBLEM & SOLUTION 3.1 The Opportunity 3.2 The Innovation

03 Problem & Solution 20 3.1 Fans can only watch. They can’t make decisions or influence the The Opportunity organizations they love The current sports and esports environment offers - for the most part - only transactional ‘contact’ for fans. They pay for licensed products & watch their favourite line-ups compete in their favourite games. However, this is a passive endeavour as the fans have no influence over their favourite teams or players. While the appetite to ‘activate’ fans as influencers exists, current exploration into direct fan engagement, for example the ‘Fan Voice’ element of F1 or the digital FanBoost engagement of Formula E, has not left the realm of novelty. Historically this has meant that unless you create your own team, there are almost no systems in place for influencing team decisions and there is no way to transition from fan to active participant. Gaining this voice through direct investment in a specific team is not an option for the vast majority of sports organisations. And even if it were, the barriers to entry for an average sports fan - time, funding, talent acquisition ability – are immense to the point of being insurmountable.

03 Problem & Solution 21 3.2 A platform where fans get a direct Vote in their favorite sports organizations, connect and help fund new sports and esports entities The Innovation The Socios.com platform, powered by the Chiliz token – a team crowd-management system that empowers fans to take a meaningful, active hand in guiding various decision making and influencer events for their favourite professional sports and esports teams. This is made possible via the novel application of a scalable, blockchain-based Fan Token purchasing and utility infrastructure; brought to life through the secure, trustless deployment of tokenized voting rights and executed via smart contracts on the Socios.com platform. This Chiliz-fueled blockchain solution turns team management into an entertainment proposition in its own right, gamifying voting rights into a trading & re-trading experience. Every fan’s voting decision will directly affect real-world sports and esports teams, as well as any other partnered organizations. Socios.com's fan- controlled teams can operate in both existing sports & esports infrastructures – competing independently in conventional events such as The Premiere League, La Liga, and etc. for football or Dreamhack, ESL and etc. for esports (as conceptual examples only) – or in new emerging sports entertainment environments.

4 PLATFORM INTRODUCTION 4.1 An overview 4.2 Fan decisions 4.3 Partner Flexibility 4.4 Third parties 4.5 Fan-owned teams

The Dream 04 Platform Introduction 23 Sports & esports entities from individual players (or streamers) and teams to entire competitive leagues, globally, guided by a braintrust of fans acting as What this tokenized voting platform can power: each organization’s hive-mind - 4.1 who make the decisions those organizations agree to offload to Sports teams across any game or league Sports and esports leagues them. Independent esports teams Ecosystem relevant brands Sports and Esports events The Socios.com Sports and esports influencers The Engine Platform: The Socios.com platform’s An overview blockchain backed, tokenized voting system; capable of driving transparent and democratic crowd decision making processes for teams & entities from any game type or sporting vertical. The Fuel The Chiliz ($CHZ) token, used by fans to acquire branded Fan Tokens from any team or organization partnered with the Socios.com platform and enact their voting rights as their fan influencers.

04 Platform Introduction 24 Here are some general examples: 4.2 When fans enter the Socios. What com platform, acquire Chiliz Team-wide League-wide decisions can tokens and then use them to exercise their voting rights, decisions* decisions* they become part of the crowd- fans make? managed decision engine for For Football teams - choosing team’s 3rd Format decisions regarding leagues Jersey designs, influencing line-ups in (length of season, competitive match- whichever organisation they’ve friendly matches, choosing between fan making formats for season, and the like). chosen to support. But, what offerings. kinds of decisions can fans make to guide & engage with The new game modes in which teams the Teams & Leagues they For esports teams - (where applicable) - should compete. have a Vote in? match-ups for teams to compete against at events, exhibition games and practice For multi-game capable leagues – which The more fully a team matches. new titles should be included for league immerses themselves in expansions. Socios.com partnership - the For teams built from the ground up to run more powerful their fan on Socios.com - which players are drafted engagement proposition League matchmaking decisions – how onto the team (chosen from an eligible becomes. teams should be seeded and how draft pool). matchmaking will occur during the * Please note, these are conceptual examples. regular season (where applicable). Real-world decision making / voting topics for teams & leagues will vary depending on the specific title in which they are competing.

04 Platform Introduction 25 Other Sports verticals Tokenized voting rights in teams to be announced in additional game areas 4.3 (Cricket, Baseball, F1 and etc.) The Socios.com platform: vv Esports teams Influencers Fan-led decision making Fan-led influence & & management influence guidance directly between for esports organizations. fans and streamers/ personalities Football teams Brands & Events Fan-led decision making Crowd influence/ & club influence for engagement solutions teams including PSG & via Fan Tokenization for Juventus. forward thinking brands & sporting events

04 Platform Introduction 26 4.4 Mobile-first & easily connectable to existing platforms: Third Party An example: The Socios.com platform can be Mobile app development for the connected to Twitch via overlay options, creating Socios.com platform will allow fans to real-time influence opportunities and giving fans the access the voting and rewards portals ability to utilize Fan Token-empowered voting and they have a say in from anywhere - other Socios.com platform features while watching on-site at events, out with friends or the very teams/ events they are influencing. anywhere else.

04 Platform Introduction 27 4.5 Historic Precedents: Fan-Owned Teams European Football The NFL Some of the most valuable sports franchises such as FC Barcelona, Real Madrid, The Green Bay Packers are the only FC Porto & SL Benfica are owned & partly managed by ‘Socios’ – groups of tens community-owned team in the NFL – with of thousands of club supporters who actively vote to elect their teams’ board 360,584 current stockholders, none of members and leaders. No single ‘Socio’ can have monopolistic voting power and whom are allowed to own more than 4% of as a result, everyone has a hand in guiding top level management decisions. the team's 5m+ shares at any one time.

5 CHILIZ & SOCIOS.COM: VISION THROUGH 2020 5.1 First application 5.2 Milestones 5.3 Expansion Phases

05 Chiliz/Socios.com vision through 2020 29 5.1 OFFICIAL First Application: PARTNERS Activating the Football Vertical Top tier football clubs including Paris Saint-Germain & Juventus will officially become the first teams to be ‘tokenized’ on Socios.com As it’s first practical user-ready application, the Socios.com platform will create a crowd-voting economy for the Football sports vertical. To kick-start this, the platform has finalized and announced multi-year partnerships with Paris Saint-Germain and Juventus as its first 2 cornerstone clubs. Additional top tier clubs are due to be on-boarded in the near term as well. As the official home of the Paris Saint-Germain & Juventus Official Fan Tokens, both clubs have followed a format which will serve as Socios.com’s blueprint for on-boarding moving forward. Clubs will off-load a predetermined level of influence power to their fans - to be decided by the clubs themselves - with the Socios.com platform generating a set supply of Fan Tokens in exchange. Fans purchase these Fan Tokens and use the platform to interact with on-demand surveys opened by clubs. Anyone who has at least 1 Fan Token is eligible to vote, and every incremental 'voice' attached to each Fan Token counts equally. The fans speak, the clubs listen.

05 Chiliz/Socios.com vision through 2020 30 Q2 2018 Q3 2018 Q4 2018 1st functional demo First 2 football clubs 5.2 of smart contract on-boarded - PSG Private Placement voting mechanisms & Juventus | Moved finished - $66 Million & $CHZ to Fan into new offices to raised With foundations set, Token transactions - accommodate now 30+ Past and Future: Chiliz and the Socios. Gamescom 2018 person team Milestones com platform it powers will look to use Football as achieved & a benchmark to expand our Tokenized Fan Voting Q4 2019 Q2 2019 Q1 2019 future progress model to other sports in First football season Soft launch Scaling up team across order to cater to a global with Socios.com- executed with initial all departments & marketplace where engaged teams kicks crop of Fan Tokens finalizing platform in different competitive off. Teams from other going live for public preparation for soft verticals are dominant sports verticals begin sale. Opening fan launch - prime examples of active on-boarding voting begins. diversification are Cricket in the Indian market, Baseball for Japan, and the like. Q1 2020 Q2 2020 Q3 2020 Achievement of on- The Socios.com fan Adoption push for the boarding goal for at least token economy now Chiliz ($CHZ) token as a 5 sports verticals - top features teams across transactional mechanism organizations across the various sports which to 3rd party platforms competitive spectrum are rank from multiple becomes a larger key live on Socios.com tiers of popularity and business focus. competition.

05 Chiliz/Socios.com vision through 2020 31 PRE-LAUNCH LAUNCH DIVERSIFICATION Q1, 2019 Q1 - Q3, 2019 Q1, 2020+ 5.3 Chiliz tokens are generated The Chiliz token becomes With Chiliz now in organic and distributed; the Socios. readily available for public circulation as a currency, com platform moves past purchase on exchanges. The Socios.com moves to expand 3 Phases: development milestones to Socios.com platform opens its Fan Token economy and enable Chiliz to Fan Token for a soft launch to the public, rewards based offerings into $CHZ & transactions & smart contract with the platform’s initial crop new sports verticals - actively voting mechanisms. First of cornerstone partner teams on-boarding team organizations Socios.com major team partners sign on offering their Fan Tokens and from other globally followed launch, buildout, to participate in the platform enabling crowd guided voting sports including Cricket. The including PSG and Juventus. on first decisions. The first platform’s esports vertical and market European Football season with moves to aggregate diverse Socios.com-engaged teams partner types outside teams, adoption begins. including streamers & gaming brands.

6 SOCIOS.COM PLATFORM: FEATURES 6.1 Voting 6.2 Fan Token Offerings 6.3 Buying and Selling Fan Tokens

06 Socios.com Platform: Features 33 The team-specific engines that run every decision in the Socios.com platform 6.1 All sports and esports teams – independent or league-tied - operating in the Socios.com platform will debut with a specified, finite number of Fan Tokens tied to concrete voting rights. Fans who obtain voting rights by trading Chiliz tokens for Fan Tokens, gain a decision-making right for that team. Each vote is executed as a group of smart contracts, wherein fans leverage their ownership of Fan Voting Tokens to ‘send’ them to various answers in a given pole. Once a certain engagement threshold is met, all voting results become valid, Voting rights with all votes and vote results stored in Socios.com’s side blockchain for transparency. for fans via Fan Maintaining Team Management Integrity Token-enabled Every team operating on the Socios.com platform will run their own semi-autonomous organizations - implementing democratic rules to smart contract poll FanToken holders about every team-related decision. These semi-autonomous organizations consist of smart contracts executed on the Socios.com side blockchain, guaranteeing integrity by ensuring that only Fan Token holders can participate and therefore influence executions it proportionally to the number of Fan Tokens they own. Blockchain-managed votes are publicly auditable, ensuring that neither the Socios.com platform nor the organisations fuelled by it, can manipulate voting results or ignore fan crowd-guidance.

06 Socios.com Platform: Features 34 6.2 Fan Token A democratic solution for fans to purchase first-offer Fan Tokens from newly introduced organizations on Socios.com Offerings* When a new organization goes live on Socios.com, their supply Buying accessibility for these first-run Fan Tokens functions as a of Fan Tokens is offered for purchase by fans on a first come, first virtual line. Fans pre-order a set amount of tokens before release, served basis as a fixed price point. Only after Fan Tokens are in with orders fulfilled in the order in which they’re placed. the hands of fans, can they be listed or re-listed on Socios.com’s shared marketplace. This fixed-price ‘order line’ is in place to Fan Token Offerings run under volume consideration as well. ensure that the first chance to purchase any given Fan Tokens is a This means that single user has a capped amount of Fan Tokens transparent and fair experience for users. which they can pre-order for any team. This may fluctuate on an organization-by-organization basis, but the end goal of capping How Fan Token Offerings Work remains the same - to ensure that no single user is able to buy up a monopoly of Fan Tokens. These user by user caps for ownership Together with Socios.com, each new team on-boarded to the are maintained even after a new organization’s Fan Token Offering platform decides on an initial Chiliz-pegged value for their Fan period expires and their Fan Tokens go live on the Socios.com *Fan Token Offerings, as well Tokens. This is a fixed, base price (in $CHZ) at which all fans can marketplace. as Fan Tokens fall outside publicly purchase specific Fan Tokens on first release. the scope of this White Paper – they are mentioned in this White Paper by way of reference only and are strictly not regulated by the contents hereof.

06 Socios.com Platform: Features 35 6.3 Buying & A gamified marketplace where fans acquire, sell & grow their ‘Fan Token Portfolio’ Selling Fans who are in control of 1 or more Fan Tokens on Socios.com With regard to selling, fans who auction off their Fan Tokens can Fan Tokens gain access to the Socios.com marketplace. Here fans can use their accrued Chiliz to diversify the Fan Tokens they hold auction off the voting rights (Fan Tokens) they hold. This dynamic, across teams or other entities, or to keep building their voting gamified system allows users to leverage their ownership positions stewardship in a single team. to exchange Fan Tokens for Chiliz at dynamic rates. What this means: A Gamified Economy & Business Model: The Socios.com marketplace ensures that Chiliz tokens have real utility. Traded in a Users are free to list their Fan Tokens at any price they wish - sub environment, the acquisition of voting rights in a fan’s favourite for example 20 Chiliz for a specific Fan Token - but that doesn’t teams becomes a meta-game in itself. Trading micro-fees taken by guarantee they’ll be sold. For any given team’s marketplace, only the platform also represent a sustainable business model to fuel the cheapest Fan Token price is visible to buyers. Once that token the Socios.com platform as a whole. is purchased, the next cheapest price becomes visible and acts as that Fan Token’s current public value. Each Fan Token price point in the Socios.com shared marketplace is updated in real-time, so where and when users decide to buy or sell Fan Tokens becomes a strategic consideration - similarly to a normal market or exchange.

TECHNOLOGY & VALUES 7.1 Our values 7.2 Auditability 7.3 ETH Protocol & ERC Standard 7.4 Why Ethereum? 7.5 The platform at a glance

07 Technology & Values 37 7.1 Transparency and auditability: Core ethos for Chiliz & Socios.com Our values and how Our commitments both to future users of the Socios.com To ensure integrity, we run our own permissioned instance of the platform and the organisations fueled by the Chiliz token are Ethereum blockchain. This permissioned sidechain is the core blockchain clear: of Socios.com. It hosts every team, league, game title or other organisation who connects with the platform, together with serves them For our users: To be the currency and platform which together each organisation’s crowd voting mechanisms run as a Semi- autonomous organization on this blockchain. act as a decision-making engine of the fans, giving them a way to meaningfully influence their favourite teams with complete Running our own permissioned sidechain will drastically reduce integrity. transaction costs by allowing the use of a Proof of Authority (PoA) consensus algorithm to confirm each new block of the For our partner organisations: To create and share revenue permissioned chain - with each block storing polling/ decision generated via the Socios.com platform in a fair & transparent way. results - instead of necessitating the use of Proof of Work (PoW) consensus. Other than being a scalability solution, this system also Trust in our currency and the platforms and products its made ensure transparency as Socios.com’s PoA sidechain will be publicly to power is important – both for our users and our partners - but auditable. we understand that trust alone is not enough when it comes to ensuring that voting rights will be exercised fairly and that revenue will be accounted for accurately. As a technological foundation, blockchain is the de-facto choice to do so in an eloquent manner.

07 Technology & Values 38 7.2 On the permissioned sidechain: The Socios.com platform will serve as an oracle connecting our permissioned sidechain to the main Ethereum blockchain: Everything occurring on the Socios.com platform in terms of voting Auditability & trading is stored in an auditable, permanent manner via public Chiliz ($CHZ) Tokens will be emitted on the main Ethereum ledger on our permissioned blockchain. blockchain, while partner-specific Fan Tokens will be emitted on our permissioned sidechain. This means that on a functional level the Socios.com platform itself serves as the only bridge which On the main Ethereum blockchain: enables the exchange of Chiliz tokens and Fan Tokens (and vice versa). Everything that occurs on the Socios.com platform in terms of chilliZ ERC20 transactions - new accruement of Fan Tokens The Socios.com platform’s public ledgers, which together chronicle converted from Chiliz ($CHZ) tokens and Socios.com account a full history of platform-wide transactions, can be audited by balance exchanges as part of the platforms other service features - anyone, namely the fans who entrust us to give them a legitimate will be stored in an auditable, permanent manner via public ledger set of voting rights. on the main Ethereum blockchain.

07 Technology & Values 39 7.3 What is Ethereum? What is the ERC 20 Token Standard? In the words of the founders: Utilizing the ERC20 is one of many different protocol standards on "Ethereum is a decentralized platform that runs smart contracts: the Ethereum network for issuing tokens. "ERC20" itself Ethereum applications that run exactly as programmed without any simply means 'Ethereum Request for Comment 20", possibility of downtime, censorship, fraud or third-party with the number 20 serving as a unique identifier of this Protocol & the interference. specific standard. ERC20 Token These apps run on a custom built blockchain, an enormously For a token to be considered ERC20 compliant, it needs Standard powerful shared global infrastructure that can move value around to feature this standard's necessary smart contract 'rule' and represent the ownership of property. - or function - inclusions. There's 6 mandatory functions and an additional 3 optional functions which dicate if a This enables developers to create markets, store registries of debts token is ERC20 compliant or not. You can learn more or promises, move funds in accordance with instructions given about what these are in specific terms here. long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middleman or In terms of top-line scope, the central benefits of counterparty risk. compliancy with ERC20 standards for Chiliz lies in the popularity of the standard type itself, wherein its integrity The project was bootstrapped via an ether presale in August 2014 as a tech and protocal standard are well documented. by fans all around the world. It is developed by the Ethereum The proliferation of ERC20 standard has also streamlined Foundation, a Swiss non-profit, with contributions from great exchangability and liquidity for these token types . minds across the globe." - www.ethereum.org

07 Technology & Values 40 Ten reasons the Socios.com permissioned sidechain is based on Ethereum 7.4 1. We believe in the spirit of open source development, having 7. Ethereum’s vast choice of consensus algorithms (including found inspiration from innovations created by open source Proof of Authority) allows any chain topology, including communities for the last 15 years. permissioned chains. Why Ethereum? 2. Ethereum provides a complete toolkit for developers to build 8. Ethereum has much higher performance when deployed on Apps, Smart Contract and other blockchain based solutions. permissioned chains. 3. Ethereum and Solidity - its smart contract scripting language is 9. Ethereum is ‘future proof’ when considering its roadmap supported by a very well-established and active community. (Metropolis and Serenity phases), which paves the way for things like Proof of Stake, Sharding or Plasma chains. 4. Compared to other blockchains that have not delivered on use- case promises, Ethereum is a proven technology running live 10. With communities - including the Enterprise Ethereum Alliance applications by the thousands. - rallying around the environment, Ethereum benefits from the consensus-confidence of it’s diversely focused active adopters. 5. Ethereum comes with a Turing complete smart contract scripting language. 6. Ethereum is a mature ecosystem where tools like Parity, Truffle or Open Zeppelin continue to push quality and security upwards.

07 Technology & Values 41 7.5 The platform at a glance: On an architectural The level, the Socios.com Socios.com platform combines Platform its core components across the public Ethereum blockchain and our permissioned blockchain. The platform acts as a bridge between these two chains. Chiliz ERC20 tokens are part of the main Ethereum chain and The Socios.com permissioned sidechain is where Fan Tokens are associated with transactions from fans funding & withdrawing dispensed and allocated to fans through Fan Token Offerings, or from the platform, and aggregation of service and exchange fees acquired via exchange in the Socios.com marketplace. (monetisation for partner organisations). The $CHZ Vault is also located on the Main Ethereum chain.

FAN ENGAGEMENT TRANSACTIONAL MODEL 8.1 Monetization 8.2 Revenue for teams, leagues & events

08 Fan Engagement Transactional Model 43 8.1 Platform Low service fees, high Socios.com marketplace transactional volumes Trading Fees monetization All P2P transaction conducted The Socios.com platform will on the Socios.com platform’s monetize its user base of sports Socios.com marketplace – and esports fans by charging for fans buying and selling Fees for buying a micro-fee for all transactions completed on it. However, the ownership of Fan Tokens for specific teams, leagues and & selling, and act of voting & making decisions as a fan once they’ve purchased events will be subject to a micro-fee. for platform Fan Tokens for their desired team, league and/ or event, will Sub-feature Service Fees services power always be free. All socially and competitively minded sub-features on the the Socios.com Fees will be gathered from all of Socios.com platform - including the following major transaction/ possible entertainment features business model trade points on the Socios. like Leaderboard Leagues, P2P com platform as either a very Daily Challenges and Digital small percentage amount Asset Trading - will be subject of transactions, or as a set to set provider fees for users. percentage fee, depending on the service type:

08 Fan Engagement Transactional Model 44 8.2 Revenue Profit share with platform partners streams for partners All team, league & event entities who connect with the Socios.com on the $CHZ- platform and have themselves ‘listed’ on its shared Socios. com marketplace will collect a percentage of micro-fee revenue powered Socios.com generated as our users buy and sell those partner’s Fan Tokens. platform Furthermore, at listing, as Fan Tokens are released onto the Socios. com platform and bought by fans, a majority of this initial monetary influx goes directly through to the partners they are associated with. The Socios.com platform doesn’t hinge on simply paying teams, leagues or event organisers for leveraging their individual fan Whenever fans bases and bringing them into our platform environment; it places trade Votes: Teams, them within a sustainable Fan Engagement Transactional Model – where spurring fan engagement isn’t pursued as a marketing leagues, events and tactic, but as part of a direct business model. games make revenue

09 At-Launch utilities for the $CHZ token 45 9.1 Socios.com Socios.com is a tokenized fan voting platform for sports & esports Socios.com Fan related img Socios.com is a turnkey solution for any sports or esports organization to monetize their fan base via a custom Fan Token marketplace Offering (FTO), giving fans access to team branded Fan Tokens that come with voting rights and access to VIP level club rewards & fan-led team and engagement opportunities. influence hub In addition to this upfront upside, Socios.com offers a sustainable source of passive revenue as a team’s fans use the platform to exercise their decision making power, engage with ‘ownable' VIP features and buy and sell various branded Fan Tokens back and forth amongst themselves.

09 At-Launch utilities for the $CHZ token 46 9.1 Teams listen, Fans choose - Our proposition: Socios.com Branded Fan Tokens on the Socios.com platform are fans’ license to vote on team matters. Teams choose what fans decide, and fans are who they'll hear when they ask. An ambition to create a cross-sports, shared Fan Token economy: Socios.com plans to on-board 50+ teams from football and other verticals including esports and other conventional games such as cricket and the like. One of the central end- goals for doing so is in order for this platform to develop an open, gamified Fan Token economy. Our vision is a platform which caters to both hardcore “single team” fans and casual global fans alike. Whether fans want to leverage their token driven influence rights to help guide a single team, or want to interact with multiple teams across different sports, Socios.com is your gateway to do it.

09 At-Launch utilities for the $CHZ token 47 9.1 At-launch Partners Socios.com + Paris Saint-Germain Juventus Additional Parterships Most competitively The most popular Socios.com - though successful football club football club in Italy, beginning with football in French history. Has having the support as its first area of the support of more of roughly 34% of all partnership - will domestic fans than any Italian football fans feature other tier one other football club, & domestically. Juventus football teams, as well enjoys one of the largest also counts more than as tier one teams from global fan bases of any 300 million supporters other verticals such as team - regardless of globally, 41 million of esports, Cricket and the sport - as well. which reside in Europe. like at launch too.

09 At-Launch utilities for the $CHZ token 48 A blockchain business hub in Malta - 9.2 connecting Europe & Asia Chiliz Chiliz Blockchain Campus: On-site connection at the forefront of regulation Blockchain Campus The Chiliz Blockchain Campus is an accelerator and industry hub connecting some of the industry’s largest stakeholders across Asia and Europe, together with other emerging blockchain entrepreneurs. The Chiliz Blockchain Campus is located on-site in Malta, with over 2000 sqm of space dedicated to servicing and supporting our members. The Chiliz ($CHZ) token will be usable as a payment method for membership. Known as “The Blockchain Island”, Malta - home of the Chiliz blockchain campus - is a leader in the adoption of government- level framework to regulate blockchain enterprises, and the financial dynamics which underpin them within Europe.

09 At-Launch utilities for the $CHZ token 49 9.2 Blockchain Campus Amenities: Tools to support in-residency businesses Chiliz Blockchain Campus Hot Desks Mentorship Programs Funding Accelerators Networking Access Floating workspaces with Established blockchain Leading blockchain Networking events with reciprocity among other businesses & pillars of investment funds will leading Asian and EU based blockchain business hubs the crypto community are regularly gather on campus cryptocurrency funds. around the world, with initial partnering with the campus to review members’ projects Engagement opportunities partnerships already secured to provide emerging teams informally as well as with leading cryptocurrency in Singapore & Paris. Hot entrepreneurs & engineers gathering in more formal exchanges. B2B events desk clients will also have with structured mentorship pitch-style settings to review for emerging blockchain access to the blockchain opportunities to help them prospective highlights being companies to meet, share campus suite of Small and their projects flourish. incubated on-site. ideas and collaborate. Business tools including HR, PR & Legal services.

09 At-Launch utilities for the $CHZ token 50 9.2 Blockchain Campus Amenities: Tools to support in-residency businesses (continued) Chiliz Blockchain Campus Protocol-specific Training Venue Spaces for Client Video Production Solutions 2000 sqm of Flexible Events Workspace Numerous organizations Turnkey - Studio, Crew and behind today’s major Chiliz blockchain campus Editing/ Graphics solutions Chiliz blockchain campus' protocols are partnering members will have access which campus members sheer size ensures that it can directly with the campus to premium open spaces can use to realize videos for accommodate aggressive to train engineers and for events they may need ICO pitches and marketing, growth, welcoming entrepreneurs alike in to hold on behalf of their advertising, educational or blockchain companies from best practices & optimal projects/ businesses. business-centric content. around the world to find project development and their home in Europe. implementation routes for their technologies.

10 TEAM, ADVISORY & SHAREHOLDERS 10.1 Team 10.2 Cornerstones 10.3 Advisory 10.4 Shareholders

10 Team, Advisory & Shareholders 52 10.1 Alexandre Dreyfus Thibaut Pelletier Max Rabinovitch Chief Executive Officer Chief Technology Officer Chief Strategy Officer Leadership 22 years of experience as a 13 years of experience in 10 years of experience in serial entrepreneur in the digital app & platform development creative direction & strategic space building & maturing tech for gaming & digital media. consulting in the digital space. businesses. Pioneered web- Developed state-of-the-art Helped bring enterprise clients based interactive tourism guides iGaming platform regulated in USPCC (Bicycle Brand) & in the late 1990’s with Webcity, France (sports, betting & poker) Morton Salt into the mobile co-founder of Winamax (the to manage real-money gambling arena as CD at ComboApp; largest French online poker operators online, featuring directed content & platform room) & Chilipoker. Successful hundreds of games & dozens strategy for start-up clients at business exits include buyout of B2C payment solutions for New Coast Ventures. Produced of Webcity via Carrefour – later 240k+ global users as CTO of commercial concepts from merging with a competitor Chiligaming. Used this platform pitch to production for clients service & sold to Yelp & to power major gambling including Famous Footwear, sale of technology platform operators in the US (Mohegan, McDonald’s (NA), Nestle & Sony underpinning Chilipoker to Bally Stratosphere), in regulated US (PlayStation) as a freelance Technologies (now Scientific markets (NJ) & on Carnival Cruise consultant with MadHat Games). Founded Mediarex ships while at Bally Technologies. Creative & partners. Headed Entertainment & acquired Lead B2C platform dev. solutions league/ gameplay organization the Global Poker Index & The for a leading regulated Lottery & for the 1st season of the GPL. Hendon Mob in 2013. Casino Operator in Denmark as Director of App Development at Scientific Games.

10 Team, Advisory & Shareholders 53 10.1 Emma Diskin Magnus Linder Jade Cruickshank Chief Marketing & Head of Partnerships & Chief People Officer The Chiliz team & its affiliates Communications Officer Business Development Team leveraged it’s full multi- national team of creatives, developers and gaming industry professionals to bring the Chiliz project & the Socios. com platform from concept and Private Placement on to functional build-out. Our Fiobian Manicolo Dorianne Spiteri Beatrice Collet current team has years of Chief Financial Officer Head of Legal & Compliance Managing Director , experience working together Chiliz Blockchain Campus and the company forecasts 20+ talent additions to its team in 2018 to ensure specialist coverage for every area in its new blockchain based environment.

10 Team, Advisory & Shareholders 54 10.2 OK Blockchain Capital Blockchain consultation and technology support arm of OKex, one of the world’s leading cryptocurrency exchanges. OK Blockchain Capital focuses on helping Cornerstones promising initiatives in their space raise need capital, while providing operational & marketing guidance as well as access to their exchange platform. Ceyuan Ventures A top-tier venture capital firm focused on exploring emerging technologies. Ceyuan Ventures was an early investor in OKex & continues to actively work to help finance and propel established blockchain projects forward. The company was founded by Bo Feng. Binance Binance is an international cryptocurrency exchange platform and the largest of its kind by trading volume in the world. Acting as more than an exchange enabler, Binance actively works to promote regulated cryptocurrency exchange and adoption across global markets and supports emerging projects.

10 Team, Advisory & Shareholders 55 10.2 Sam Li Mickey Kim Gil Rotem Our Advisory Board Head, Strategic Partnerships, Director, Google Former Gaming COO, Bet365 Advisory supports the company Sina Sports in two significant areas: Director at Google & active Former board member & part of Token utility adoption and Former Associate VP of the Angel Investor with MBA from leadership team for the world’s Business platform growth. This NBA & current lead for domestic Berkeley. largest online sportsbook. brain-trust of sports and & international sports content gaming space expertise, acquisition for China's largest industry networks and online media portal. marketing power helps with partnership development for Socios.com & Chiliz Token adoption as a neutral-use currency. Tarquin Henderson Dr. Christian Mueller Morten Pedersen Tonnesen Former Head, EMEA Gaming Director, Business Dev., Infront CEO, Ve Global Sales, Facebook Sports Marketing solutions innovator iGaming industry veteran & expert Business development head for & former Head of Group in social game marketing; former one of Europe’s leading sports Marketing, PokerStars. executive at 888 Holdings & CMO marketing agencies. of BetClic Everest Group.

10 Team, Advisory & Shareholders 56 10.3 Thomas Winter Ludovic Bodin Matthieu Pigasse VP, Golden Nugget Interactive Co-Founder, French Tech Global Head of M&A, Lazard Advisory (Beijing) Bank Veteran executive in the iGaming space & former CEO Serial entrepreneur in gaming CEO of Lazard France, Business of BetClic. and tech, and creator of prominent investment banker & multiple FPS games. media owner.

10 Team, Advisory & Shareholders 57 10.3 Dr DisRespect Wouter Sleijffers Nicolas Maurer Twitch Icon CEO, Fnatic Owner & CEO, Team Vitality Advisory FPS legend w/ 2+ Million Leader of one the world's Esports entrepreneur, founder Twitch followers & two-time most popular & competitively of the most popular team in consecutive Blockbuster successful esports teams, France; spot inductee into the Videogame Champion (1993 & Formers VP, Marketing EU LCS. 1994) Esports Services, Skrill. ElkY Anomaly Guillaume Patry Poker Icon, Esports Star YouTube Influencer StarCraft World Champion World famous Poker pro with Esports streamer with 2+ Iconic former StarCraft Pro over $13.5M in lifetime earnings million YouTube & 900k+ under the alias "Grrrr...", World & former StarCraft phenom. Twitch followers. Co-Owner of Champion in 1999 & one of the Also known as Bertrand a popular CS:GO skin trading top players in Korea in the early Grospellier. site. 2000's.

10 Team, Advisory & Shareholders 58 10.3 Hong "YellOw" Jin-Ho Korean TV Personality, Advisory StarCraft Icon Popular StarCraft pro in Asia in the mid to late 2000s; became a national TV personality & LoL Esports coach in Korea following his retirement.

10 Team, Advisory & Shareholders 59 10.4 Ceyuan Ventures Dr Stanley Choi Xavier Niel Our shareholders represent Telecommunications Tycoon Shareholders a diverse cross- section of Venture Capital Firm Venture Capitalist business and investment Top tier Beijing Based Venture Dr Choi, together with H&S French telecom mogul, majority leaders, with top level Asian Capital firm & early investor Financial Group are a leading shareholder of Free, Monaco venture capitalists, and into the OKEx exchange. financial vehicle focused on Telecom, Eir Telecom & owner media and sports analytics Founded by Bo Feng (pictured, IPOs & gaming transactions. of Le Monde. leaders adding world-class top). business strategy value to the company in addition to financial support and security. John Gleasure Founder, Board Member, Perform Group Current Chief Commercial Officer of DAZN, a.k.a the 'Netflix' of Sports.

11 CHILIZ CROWD SALE ($CHZ) 11.1 Distribution 11.2 Funding allocation 11.3 Project Token Generation Event

11 Chiliz Crowd Sale ($CHZ) 61 Total Chiliz to be minted ($CHZ) 8,888,888,888 Chiliz Allocation by Group Private Pre-sale & Private Placement Hard Cap 11.1 (NOW CLOSED) Advisory ($CHZ) 3,066,666,666 Board 3% Team Strategic 5% Chiliz issued to Team + Seed Investors Acquisitions Seed Chiliz Token 15% Investors ($CHZ) 1,111,111,110 Distribution 7.5% Chiliz issued to Advisory Board ($CHZ) 266,666,666 Marketing Operations Userbase Reserve 15% ($CHZ) 1,777,777,780* Marketing Operations ($CHZ) 1,333,333,333 Strategic Acquisitions ($CHZ) 1,333,333,333 Userbase Private Reserve Placement 20% 34.5% *3 token addition to Userbase Reserve factored in to off-set fractional allocations to other users/ parties.

11 Chiliz Crowd Sale ($CHZ) 62 11.2 Pre-Sale & Sale Funding Allocation* Operational Expenses User Acquisition Corporate Structuring Security & Legal Ecosystem Support 58% 20% 10% 5% 7% A majority of funds will be Funds will be used to acquire Funds will be used to ensure Funds will ensure timely audits The Issuer will invest in passed on from the Issuer new users for the Socios.com that the Socios.com platform for Chiliz, for Socios.com Malta’s emergent blockchain to an affiliate to develop the platform and grow engagement maintains fully independent platform security and to ensure ecosystem, developing valuable Socios.com platform, secure in its voting utilities, P2P user operations and has the the legality of the platform’s partnerships to help the partnerships & realize the experiences and marketplace. strategic freedom to grow on its operation in the EU and in all company and its stakeholders platform’s digital infrastructure. own terms. other relevant global markets. as we grow. *Denotes allocation of net proceeds of contribution only.

11 Chiliz Crowd Sale ($CHZ) 63 11.3 Chiliz Chiliz' Token Generation Event was executed via Private Placement only & completed in 2018 project with our hard cap reached. We are no longer pursuing fundraising measures, instead focusing Token our efforts on leveraging accrued resources to Generation realize the Chiliz/ Socios.com vision. Event If you are interested in engaging with Chiliz or our Socios.com initiative in a business development or partnership scope - or if you simply have questions for us - please reach out to: [email protected]

12 CONTACT 12.1 Points of Contact

12 Contact 65 12.1 Offices Malta China Mediarex Beijing Sports and HX Entertainment Ltd Culture Ltd East 14, Level 7 D2 #50901, Tas-Sliema Street Galaxy SOHO Gzira, GZR 1639 Chaoyangmennei Street Malta Beijing Telegram channel: t.me/Chiliz_io CEO: [email protected] Whatsapp: +356 99 99 78 78 WeChat: alexdreyfus KakaoTalk: adreyfus Find Chiliz medium.com/Chiliz twitter.com/Chiliz Find Mediarex via GPL discord.me/gpl facebook.com/gplgaming twitter.com/gpl

White Paper editing history V1.00 January 8th, 2018 V1.01 February 7th, 2018 V1.22 March 12th, 2018 V1.02 February 9th, 2018 V1.23 March 15th, 2018 V1.03 February 13th, 2018 V1.24 March 16th, 2018 V1.04 February 16th, 2018 V1.25 March 26th, 2018 V1.05 February 20th, 2018 V1.26 April 6th, 2018 V1.06 February 22th, 2018 V1.27 April 17th, 2018 V1.07 February 23rd, 2018 V1.28 April 23rd, 2018 V1.08 February 27th, 2018 V1.29 May 4th, 2018 V1.09 March 2nd, 2018 V1.30 May 29th, 2018 V1.1 March 6th, 2018 V1.31 June 8th, 2018 - Post Token Sale V1.2 March 7th, 2018 V1.32 June 8th, 2018 V1.21 March 7th, 2018 V1.33 June 26th, 2018 V1.34 August 7th, 2018 V2.0 October 11th, 2018 V2.1 October 15th, 2018 V2.2 November 6th, 2018 V2.3 November 13th, 2018