CoTrader Whitepaper

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CoTrader Whitepaper Financial Freedom: Decentralizing the $85 trillion global investment funds industry with blockchain. First live platform to enable investors in non-custodial smart funds can maintain complete control over their assets, with transparent proof of fund performance onchain. Satoshi about.cotrader.com Email us at team at site First Major Revision: October 2017. Latest significant updates from March 2020, October 2019, August 2019. CoTrader COT Token Address: 0x5c872500c00565505f3624ab435c222e558e9ff8 Executive Summary WHY, WHAT, HOW: CoTrader’s goal is to provide users with financial freedom by optimizing investments in minimal time for everyone, with the world’s first live social investment fund marketplace on the blockchain. To offer on-chain fund managers the best investment options, CoTrader pulls together collaborative Decentralized Finance (DeFi) dapp such as Decentralized Exchanges (DEXs like Kybre, Bancor, and Uniswap), DEX aggregators like Totle, on-chain lending and borrowing DAI (eg Compound, MakerDAO), tokenized assets (synthetix) and more. We have already integrated Kyber and will be integrating Compound and others Q3 2019. OVERVIEW: CoTrader solves the complexity problem of investment management. It aims to become the world’s open protocol for investment funds marketplaces by democratizing the $85 trillion global funds industry. For the first time in history, investors, now powered by CoTrader’s blockchain platform, can have their investments managed with complete transparency, control of assets, and proof of a fund’s past returns-on-investments (ROI). CoTrader’s MVP already supports cryptos, and is live on the Ethereum mainnet at mainnet.cotrader.com. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 1 of 27

PROBLEM: Investing in cryptos and DeFi can be very complicated and time consuming. Most people lack the time and resources to do it properly, and instead may even lose money in bull markets on bad projects with emotional or hasty trading. Investors are overwhelmed by the 1000s of cryptos and new growing projects. Even spending 24 hours per day wouldn’t be enough time for seasoned investors with deep technical, investing and other skills to properly assess the entire crypto market. SOLUTION: SMART FUNDS: CoTrader solves the complexity problems of investing by finding the best performing fund managers to follow, with “Smart Funds”. These are blockchain smart contracts powered investment funds that provides proof of past ROI performance, and assurance that investors can always withdraw assets from any fund at any time. Anyone can join or create Smart Funds with the click of a button, and are geared for supporting the long tail of investment funds. INCENTIVES: Smart Funds fund managers trade fund assets on the blockchain. Successful fund managers receive a percentage of the profits they have made for their investors. Investors remain in control of their money and are able to deposit and withdraw from any fund at any time. Since investments and trades are done on-chain, smart contracts ensure each user that only they can pull out their funds and that fund managers can only take an agreed upon performance fee from the earnings. NETWORK EFFECTS: Both influencers and high performance fund managers are incentivized to do their best for their CoTraders (platform users who invest in fund managers), because top fund managers can multiply their gains enormously. For example, a top fund manager managing 1000 times her own money, and charging a 10% performance fee from what she earns her cotrader, would multiply her own gains by 100x (10% of 1000x). If the same fund manager would earn 2x in a good month on their own, with CoTrader, she would earn 200x (100x times the 2x she would have made). CoTraders will likely only use the best fund managers per sector. Fund managers will be able to trade using CoTrader’s Super-DEX hybrid infrastructure, which pools together both centralized exchanges and multiple DEXs including Bancor, Kyber, 0x, CoTrader’s own DEX, and other future DEXs for maximum liquidity and power. Other platforms can utilize and extend CoTrader’s infrastructure. Contests are an additional engaging way to onboard users, with token prizes. An MVP to check user engagement is at contests.cotrader.com. We are now working with partners to turn such crowd wisdom into investable funds, even via FIAT. The main focus however, is to move contests on-chain at our smart funds here mainnet.cotrader.com which will automatically award tokens to winners. This functions as a user onboarding and growth strategy. TOKEN ECONOMICS: Tokens can be staked on smart contract for guaranteed COT bonuses, depending on locking period. To keep this available, the platform revenues are automatically CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 2 of 27

used to buy back COT tokens to place back into the staking contract reserves. Tokens may be used to automatically stake 5-10% of each fund’s value to redirect and earn platform fees. ROADMAP FEATURES All Assets The CoTrader protocol can support all tradable assets, starting with cryptos, in major centralized exchanges, from Binance to Ameritrade, with a safe decentralized access point, i.e., a smart escrow exchange point. The smart escrow would only release funds to a broker on centralized exchanges after the broker sends the cryptos to the buyer. This smart escrow can also be used to support any tradable non-tokenized asset such as stocks, options, and other derivatives. In effect, CoTrader can tokenize entire exchanges in this way. In the future as more assets are tokenized by other crypto projects, these tokenized assets could be tradable on CoTrader. This includes tokenized stocks, financial instruments, real-estate and more. Some projects are already tokenizing other cryptos like Bitcoin on, for example, Ethereum. Unlike off-chain assets such as dollars in Tether, it’s easier to prove that the correct number of Bitcoins are bought and sold each and every Ethereum trade. Meanwhile, cross-blockchain atomic swaps technology, developed by other projects, is another avenue for broad asset support. IDOs CoTrader is set to be the world’s first “IDO futures” marketplace, that doesn’t require trust in IOUs, driven by smart-contracts. Fund managers will be empowered to enter IDOs as part of their portfolios to take advantage of early group-buy discounts that many IDOs offer. This is possible because CoTrader Smart Funds that are, by smart-contract, to receive future unlocked IDO tokens are themselves tradable. CoTrader’s own DEX supports trading these Smart Fund shares since each fund has its own tradable tokens. This means that if a fund manager takes investors into an IDO position and some investors want to liquidate their shares that include the future IDO tokens, they can trade away their token shares within the fund. Privacy CoTrader’s patent-pending privacy preserving smart funds algorithms can hide trades and fund managers’ trading strategies while still publicly proving the returns of their anonymous funds on the blockchain. CoTrader’s protocol is agnostic about the underlying mechanism used such as various zero-knowledge-proofs (ZKP) as long as these support privacy-preserving smart-contracts. OPPORTUNITY: CoTrader can become the world’s largest investment funds and trading marketplace. CoTrader token voters can set and adjust platform fees to gain e.g. 20% from fund managers earnings, and small fees such as 0.1% per trade for some services. To get some idea CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 3 of 27

of the market size for relevant industries, consider that global fund management is an $85 trillion industry, and, by some estimates, total global asset trading amount to more than a quadrillion dollars per year. Crypto trading alone amounts to over $10 billion dollars per day. These industries are growing rapidly. MISSION: Through the CoTrader platform we are democratizing funds and reinventing how they can be used for a digital world. Our goal is to help people maximize returns in minimal time and realize greater financial freedom together. We do this through connecting investors from both sides of the expertise spectrum and providing them tools to quickly and easily make powerful financial decisions to better their lives. Disclaimer - This project is a work in progress, and is subject to significant change. With that said, any changes are meant to improve the project and/or prices for buyers. All figures are brought as examples and are used for for explanation purposes only. While we make every effort to ensure that all information in this whitepaper is correct, the information herein may be out of date, incomplete, inconsistent, and/or inaccurate, and in no way implies a contractual relationship. The material is not professional, financial or investment advice. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 4 of 27

Table of Contents Executive Summary 1 Contests 6 Smart Funds 6 Token Usage 6 Fund Creation 7 Performance Fees 7 Investing 7 Fund Managers 8 CoTrader SuperDEX Infrastructure 8 Tokenized Assets 9 Calculating Fund Values 9 Protecting Smart Fund Investors 9 IDO Funds 10 Smart Shares DEX 11 Cryptographic Trader Privacy 11 Privacy Preserving Smart Contracts Protocol 11 CoTrader Smart Escrow Exchanges 11 Tokenize All Assets on Any Exchange 12 Trading Tools Marketplace 12 Product is Live in Beta 12 Competition 13 Roadmap 16 Team 17 Token Distribution 29 Projected Use of Token Sales 30 Product Summary 31 CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 5 of 27

Contests Before delving into the core of the CoTrader blockchain platform, which center around our Smart Funds, we make a brief mention of our new contests. CoTrader Contests are a gamified way to onboard new users, with token prizes at contests.cotrader.com. CoTrader is working with potential partners (TBD) to turns this crowd wisdom into investable funds, even coming from FIAT. The main focus however, is to move contests on-chain to use our Smart Funds, live on Ethereum at mainnet.cotrader.com. Smart Funds Smart funds are live on mainnet.cotrader.com, and make up the core of the CoTrader platform. A smart fund is an Ethereum smart contract that has a fund manager, investors, and shares that can be traded. Each investor that invests in the fund is awarded a certain number of shares representing his total ownership of the fund. The fund manager is able to trade the assets invested into the fund with the aim of making himself and his investors a profit. The fund manager receives a performance fee for any profits he makes his investors. Investors remain in control of their investments and have the ability to deposit and withdraw their money at will. Smart funds implement the ERC20 token interface which means smart fund shares can be traded on exchanges in the same way as any other ERC20 token. One can invest in a smart fund by depositing CoTrader (COT) token into the fund. Token Usage Tokens can be staked on smart contract for guaranteed COT bonuses, depending on locking period. To keep this available, the platform revenues are automatically used to buy back COT tokens to place back into the staking contract reserves. Tokens may be used to automatically stake 5-10% of each fund’s value to redirect and earn platform fees. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 6 of 27

Fund Creation Anyone can create a smart fund on the CoTrader platform and deposit tokens into the fund. The creator can choose a name for the fund as well as set his performance fee which is the percentage of profits he will earn, typically around 20%. Performance Fees Instead of paying performance fees from CoTraders, performance fees will be paid from the protocol’s emission revenue in the selling of new tokens in the DAIDO3 model explained below. Investing Each smart fund consists of shares representing the percentage ownership of each member of the fund. When an investor invests in a smart fund, new shares are minted to represent his holding of the fund based on the total amount he invested and the current value of the fund’s holdings. When an investor withdraws from the fund, shares are burnt accordingly decreasing the total number of shares. Mathematically, upon joining a fund with a total of shares and a value of COT (CoTrader Token), a user that deposits COT into the fund will be awarded shares: For example, if an investor deposits 100 COT into a fund that has a value of 900 COT and a total of 1800 shares. The new investor will receive the following number of shares: The new fund value is now and the fund now has a total of shares. So the new investor owns of the fund and the old investors own of the fund. The value of the new investor’s shares is and the value of the original investors’ shares is , as expected. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 7 of 27

When an investor withdraws from a fund, he receives his portion of the fund minus the performance fee for any profit the fund manager has made for him. His shares are destroyed, decreasing the total number of shares in the fund. For example, if an investor that owns 200 shares of a total of 2000 shares in the fund, and the fund has a value of 1000 COT, then worth of tokens will be withdrawn from the fund and sent to the investor’s address (minus the fund manager performance fee which will be discussed further below). The investors shares will be burnt so the new fund will have a new total of 1800 shares. Since Smart Funds are also ERC20 tokens they can be transferred between accounts like any other cryptos. When shares are transferred in this way, no new shares are issued, nor are any burnt. Fund Managers Anyone is able to become a fund manager using the CoTrader registry smart contract. The only fee to do so is a minimal one time gas fee for the transaction (paid to the Ethereum miners). For example, if a fund makes a profit of 2000 COT for his investors and has set a 20% performance fee, the performance fee will be 2000 * 20% = 400 COT. Of this 20% fee, 16% will go to the fund manager and 4% to the CoTrader platform. So the fund manager will earn 320 COT and CoTrader will receive 80 COT. A fund manager typically starts trading with his own funds to build up ROI history. It may also please investors to see that he has even more skin in the game, beyond any valuable reputation and ROI history his fund may have built up over a long period of time. CoTrader SuperDEX Infrastructure Fund managers can trade assets on decentralized exchanges (DEXs). CoTrader provides a SuperDEX infrastructure that pools other DEXs together for maximum the liquidity and power. The initial integrations into the CoTrader platform will use Bancor1, Kyber2 and 0x3 exchanges. Further DEXs will be added over time as well as a native CoTrader DEX. This will be done on the fund manager dashboard which will also provide tooling and charts to make the best decisions for the fund. 1 Bancor: https://about.bancor.network/static/bancor_protocol_whitepaper_en.pdf 2 Kyber: https://kr.kyber.network/assets/KyberNetworkWhitepaper.pdf 3 0x protocol: https://0xproject.com/pdfs/0x_white_paper.pdf CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 8 of 27

Tokenized Assets Initially fund managers will only be able to trade Ethereum and ERC20 tokens on the platform. In the future as more assets are tokenized, fund managers will also be able to include these assets in their portfolios. This will include other cryptocurrencies such as Bitcoin as well as other assets such as the US dollar, gold, oil, S&P 500 stocks and even tokenized real-estate and novel asset classes. Many of these items will rely on other projects successfully tokenizing real world assets, creating trusted and liquid tokens for these assets on the blockchain. Calculating Fund Values Investors will deposit into funds using the CoTrader token (COT). To calculate the number of shares the new investor will receive we need to know the value of the Smart Fund at the time of the investment. This is trivial when the fund only contains COT in it, but becomes more complex when the fund is holding multiple different tokens which will usually be the case. Our initial integrations with decentralized exchanges are with Bancor and Kyber and both offer the ability to request the price of a token on chain. Connecting to the Bancor and Kyber smart contracts, the Smart Fund can automatically calculate its value at the time of deposit. Protecting Smart Fund Investors One of the fundamental selling points of blockchain technology is its decentralized, peer-to-peer doesn’t require trust. Users are able to transfer crypto assets to a friend without a middleman or having to trust anyone along the way. Using decentralized exchanges provides a significant security advantage in that users aren’t required to entrust their funds with a third party exchange that may be dishonest or susceptible to hacking. CoTrader Smart Funds offer the same advantages as cryptocurrencies and decentralized exchanges, putting users in full control of their assets. Users have the ability to withdraw their portions of a smart fund at any time with no one else having the ability to do so. CoTrader fund managers can only trade on decentralized exchanges where the same prices are available to everyone and is unable to make a direct trade with a personal address. The decentralized exchanges currently integrated into the CoTrader platform are Bancor and Kyber that fulfil the above criteria and the CoTrader team will carefully integrate decentralized exchanges in the future to ensure full security for our users. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 9 of 27

Fund managers are also financially incentivized to perform well for their investors. A fund with a positive ROI will attract many investors to invest and earn the fund manager a big profit if he continues to trade profitably. It is in the fund manager’s best interest for the fund to continue performing well. A fund manager will also have the option to verify their account thereby also putting their reputation on the line. As we integrate new decentralized exchanges into the platform, care will be taken to make sure that only trusted exchanges will be added as trading options. CoTrader may also make use of oracles that hold a list of token prices to make sure no dishonest trades are happening. As we add more exchanges to the platform, an investor will always be given a 30 day period to withdraw his money from smart funds before the fund manager can make any trades with this newly added exchange. The investor may choose to do this if unhappy with a newly added exchange. The 30 day grace period will be built into the smart fund contract code so an investor is able to see the exact terms of any investment he makes. IDO Funds IDOs are Initial DEX Offerings, similar to IEOs, but offered on DEXs. An IDO fund is a special type of fund that may only contain IDO tokens. Investors that pool their funds together can receive group discounts for IDOs and the purpose of an IDO fund is to do exactly that. IDOs offer tremendous upside with investors sometimes seeing 100x+ returns in a short period of time, but come with commensurate risk. Receiving a large discount as a pool investor heavily increases your potential for a large profit. IDO funds have a single period to buy in to the fund after which no new shares will be issued. Only once the fund has received its tokens and from the IDO and these tokens have been unlocked, can investors withdraw from the fund. The added benefit of IDO funds is that since a fund is also an ERC20 token, fund share tokens can be traded even before the IDO has finished, or before the tokens have been unlocked. This creates liquidity for unavailable or locked tokens. We call this IDO and presale futures trading. Since CoTrader smart funds mint their own shares tokens, even IDO tokens that have not yet been sent from the IDO to the smart fund (or have been sent, but are still locked) can be effectively traded via the shares’ tokens. This may be the world’s first platform to enable trading future IDO tokens via smart contracts. Investors can pre-whitelist their accounts so they need not be KYC’d for each new IDO investment the fund manager makes. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 10 of 27

Smart Shares DEX As more features are added to Smart Funds and this financial tool becomes more complex and capable of a wider range of use cases, some funds may be more difficult to invest in than others. This can be due to the nature of IDO funds, minimum deposits, deposit cap, etc. When these types of features are introduced it may not be possible for some investors to directly deposit into specific funds. To solve this problem we will be introducing a smart shares DEX. Any smart share can be traded on this DEX against COT. This DEX will be built into CoTrader’s Smart Fund platform, giving users insights into all available data for the funds they are interested in purchasing shares in. Cryptographic Trader Privacy Last but not least, the CoTrader platform will provide trade secrecy for fund managers. Fund managers can hide their strategies, at least in the short term, and choose to display them later. If their strategies were public at all times, they may have trouble commanding significant success-fees for public information. Any top traders on other platforms not offering hidden trade strategies would be incentivized to move to CoTrader where they can multiply their ROI. Privacy Preserving Smart Contracts Protocol CoTrader is agnostic about the underlying privacy-preserving smart contract mechanisms such as zero-knowledge-proofs (ZKP). The public ROI calculation can be done and proven to be correct without exposing the private inputs to the calculation function - namely, the secret trades. More about this sensitive IP will be released in various yellow-paper addendums and code releases at a later stage. CoTrader Smart Escrow Exchanges This provides the liquidity and variety of any centralized exchange with the safety and transparency of decentralized exchanges. Traders will deposit funds for trading into a smart-escrow. While the money is held by this smart contract, traders will be able to make instant trades on any supported centralized exchange, from Binance to Ameritrade. When the smart-escrow’s oracle detects that the purchased assets have been sent to the user, it releases the escrow funds to the party doing the buy for them, which we might call the asset owner. To prevent abuse or “race conditions” where for example the trader withdraws while the owner is sending the assets from the exchange, there would be a series of locks. The owner would lock the smart escrow funds from being withdrawn while sending pulling them off of the exchange, to the smart escrow, where it’d then get forwarded to the trader. An oracle would read an open CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 11 of 27

exchange read API and/or the blockchain and detect that this transfer is in progress, and would disallow the trader from withdrawing the funds. The trader can request to further trade to other assets on the exchange, before requesting to withdraw any assets. In the case that both the trader and owner submit to the same block, the default can be that trader’s operation is acted upon. Tokenize All Assets on Any Exchange As mentioned, when assets such as real estate, cars, stocks, etc, become tokenized, of course any DEX can treat the tokens like any crypto. CoTrader, however, can even support non tokenized assets. By using the smart-escrow exchange method in the section above, CoTrader can support non crypto assets just the same. That is, a master account can hold stocks, options, or any representation of tradable items, while an onchain smart escrow smart contract can record investors operations and owed assets. In this way, CoTrader can offer a large measure of security and proof of performance in this space. Tokenization typically involves a broken buying and selling an individual underlying asset. CoTrader’s Master Account and Smart Escrow mechanism does this for all tradable assets available on any trading platform, and therefore achieves automatic tokenization for entire exchanges - entire classes of assets - such as the stock and derivatives market enbulk. Trading Tools Marketplace Traders often search for convenient technical tools to research and be alerted of changes across many exchanges and markets. CoTrader will provide a platform and marketplace to develop, buy and sell such tools. Paying for these tools in COT will reduce platform fees. At first the CoTrader team will provide basic tools. In the future, an open marketplace will be developed to support 3rd party trading tool plugins and APIs that can interface with the CoTrader platform. Some planned tools include trade triggers from simple price points to alerts for combinations of more sophisticated indicators such as MACD divergence, Fibonacci retracement, candlestick patterns, Bollinger Bands, advanced signal tools, and beyond. Product is Live in Beta The CoTrader beta is live on mainnet at https://mainnet.cotrader.com and an older version is on the Ropsten testnet at testnet.cotrader.com. The platform allows users to create smart funds and invest in them using Ropsten test ether. The CoTrader team continues to make improvements on the product for its production launch planned for August 2018. The smart contracts will undergo heavy auditing before then as well as fixing any known bugs. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 12 of 27

Competition There are existing platforms that offer copy trading and fund management in a centralized manner. CoTrader’s decentralized version isn’t a competitor, but, rather, addresses a different set of users, markets, assets, and regulatory environments. Centralized systems can have upsides, but here are some of the limitations: 1. Regulations dictate who is allowed to use the system (must be rich and licensed) 2. DeFi dapp integration isn’t possible without oracles 3. Users are not in direct control of their money 4. There’s no proof of performance or total actual fees eToro is a great and profitable company with millions users that pioneered copy trading. It was originally a place to copy trade stock investors and has done very well expanding to include cryptocurrencies. In March 2018, eToro closed a funding round of $100 million which shows the vast opportunities available in the social copy trading and fund management space at large. Covesting and other typical centralized copy trading platforms would require users to keep all of their copy trading funds, and API keys, with them or with multiple centralized exchanges, and keep (all) these funds there forever, as long as users wish to continue copy trading4. This is dangerous because centralized exchanges themselves aren’t safe, especially for the long term. All these centralized platforms also do not offer proof on the public verifiable blockchain, nor the fund managers’ ROI performance. MelonPort is a decentralized project that aims to offer smart fund management on the blockchain. Development for this project has stalled and there has only been integration with one low volume decentralized exchange to date5 and was not live on the mainnet when CoTrader went live. Iconomi offers index funds for crypto assets. These funds are not actively managed and the platform has a high degree of centralization6. Coinbase is also announcing its own index fund that will only contain the four currencies that can be currently traded on their platform: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. 4 https://covesting.io/Covesting_White_Paper.pdf 5 https://bravenewcoin.com/assets/Whitepapers/melonprotocol.pdf 6 https://coss.io/documents/white-papers/iconomi.pdf CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 13 of 27

Prism is based on Shapeshift and the community discussion laments its centralized nature7. Blockport would need to prove to be fully decentralized and still capable of making trades8. Other shortcomings and questions are represented in the table below. CoTrader stands out from the competition as being the only fully decentralized fund management platform, putting investors in complete control of their funds. The below table summarizes some of these distinguishing factors: 7 https://decentralize.today/where-the-hell-is-my-decentralized-exchange-adafd87dc439 8 https://www.blockport.nl/wp-content/uploads/2017/11/Blockport-Whitepaper-V1.0.3.pdf CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 14 of 27

CoTrader Iconomi Covesting Melonport Prism Blockport Has Working Product Y Y N N N N Supports Multiple Y N Y N N N Exchanges Copy-Trading / Y Y Y Y Y Y Fund-Mgmt Co-Trading Y N N Y N N (simultaneous) Users control assets Y N N Y N Y Only user has keys Y N N Y N N Proof of ROI Y N N Y N Y Fully Decentralized Y N N Y N N Option Can work without Y N N/A N/A N/A N/A Oracles Privacy Y N N N N N Crypto Index Funds Y Y N N Y N IDOs Y N N N N N Low Fees Y Y N N/A N/A N/A Another major advantage of CoTrader smart funds is that they enable investors to co-trade rather than copy trade. The fundamental difference is that when copy trading the copiers always lag behind the lead trader, always receiving a worse price than the copied trader. When co-trading, all tokens are traded by a single entity giving the same price to all shareholders of the smart fund. CoTrader smart funds also enable IDO funds trading without requiring trust. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 15 of 27

Roadmap The platform is live on mainnet (cotrader.com) We keep updating the roadmap in a Medium article found via this tweet: https://twitter.com/cotrader_com/status/1114781062356279297?s=20 Team Satoshi See the cotrader.com website for detailed information. CoTrader Holding LLC is a Nevis Corporation. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 16 of 27

CoTrader Business Model & Charts CoTrader aims to become the world’s largest investment funds and trading marketplace without custodianship, neither on the part of the CoTrader platform, nor traders (fund managers). CoTrader typically earns 4% of investment gains, or 20% from every 20% of traders’ typical performance fee (20%), and small fees such as 0.1% per trades on the CoTrader DEX and Smart Escrow Exchange for all assets. Tokens are bought back with profits. Tokens are needed to hide trading strategies. The current MVP deals only with this first category of Crypto Fund Management. CoTrader plans to enter the other markets (global funds management, and equity and derivatives trading) as seen further below. The total revenue that we are projecting for the coming four years are represented cumulatively on the following graph: Each of the five different investment offerings are explained in further detail below. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 17 of 27

In order to reach these revenue numbers, we are also planning to spend significant resources on marketing and acquiring cotraders and traders. Our acquisition projections are based on an average spend of $75 per cotrader and $500 per trader. Potential trader talent could be lured to try their skill at trading for special rewards such as contests and specials. We expect to have large user growth. Our primary focus is on targeting good traders, who will help encourage more people to become cotraders. Each trader is intrinsically encouraged to add cotraders to their fund because the more money that is in their fund means more money for the traders to make through successful trades. The growth of traders and cotraders can be seen in the following graph where cotrader growth is in red and trader growth underneath in blue: CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 18 of 27

This will lead to steep growth in revenues and net income, which can be seen in the following graph showing our financial projections: The Total revenue is a combination of our five investment options: Crypto Fund Management, Crypto Trading, Global Fund Management, Global Equity Trading, and Global Derivatives Trading. These investment options use CoTrader’s unique Smart Funds and Smart Escrow offerings. Smart Funds allow traders to trade cotraders’ funds on a decentralized exchange. Smart Escrow gives traders the advantages that come with a centralized exchange such as liquidity and variety with the safety and transparency of a decentralized exchange. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 19 of 27

The breakdown in revenues from all of CoTrader’s investment products are as follows: Crypto Fund Management (support through CoTrader Smart Funds): $100 billion market CoTrader may keep 1% management fees. Every $100M managed means $1M/year in revenue, which would be used to buy COT tokens as a holding strategy. CoTrader may also keep 4% performance fee for managing altcoin funds. Every 1% market capture yields $419M/year revenue. . The above projections assume the crypto market will grow 40%/year to $4.2T (16x) by 2025 (7 years) CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 20 of 27

Crypto Trading (via CoTrader Smart Escrow): $10 billion/day, 3.65T/year CoTrader keeps 0.1% per trade. Every 0.1% market capture yields $612M/year revenue. The above projections assumes the crypto market will grow 40%/year to $4.2T (16x) by 2025 (7 years), with trading increasing proportionately. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 21 of 27

Global Fund Management (via CoTrader Smart Escrow Exchange): $85 trillion market: CoTrader may keep 4% performance fee, or 0.2% for every 5% of growth. Every 0.1% market capture is $425M/year. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 22 of 27

Global Equity Trading (via CoTrader Smart Escrow): $100T/year market: CoTrader keeps 0.05% per trade. Every 0.1% market capture yields $500M/year revenue. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 23 of 27

Global Derivatives Trading (via CoTrader Smart Escrow): ~$14.6 quadrillion/year market: CoTrader keeps 0.003% per trade. Every 0.001% market capture yields $1.46B/year revenue. Disclaimer - This project is a work in progress, and is subject to significant change. With that said, any changes are meant to improve the project and/or prices for buyers. All figures are brought as examples and are used for for explanation purposes only. While we make every effort to ensure that all information in this whitepaper is correct, the information herein may be out of date, incomplete, inconsistent, and/or inaccurate, and in no way implies a contractual relationship. The material is not professional, financial or investment advice. CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 24 of 27

Token Distribution 20B (decreased from 100B) Distribute 70% tokens circulating supply 0.000001 ETH per COT Restricted: USA, N Korea, Iran CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 25 of 27

Projected Use of Token Sales CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 26 of 27

Product Summary There have been many 100x returns in cryptos, IDOs and other investments. CoTrader is like the Uber of crypto hedge funds, enabling anyone to create or join an investment fund onchain. Top investors are enjoying phenomenal gains. Whether the market is going up or down, they outperform most people, who don’t have the time and resources to achieve these results with ease. There are 1000s of complicated cryptos and IDOs, and most people don’t know what to invest in, and when. CoTrader solves these common and critical problems to disrupt the $85 trillion global investment funds industry; CoTrader supports not just cryptos, but also IDOs, stocks, shorts, derivatives and more, as it tokenizes entire exchanges. CoTrader provides proof of investment fund performance and gives CoTraders control to pull out their assets from any fund, while still enabling fund managers to cryptographically hide their valuable trading strategies. All users automatically build up a performance history by simply trading through the platform. Top performing fund managers have tremendous incentive to use the platform and compete to earn their CoTraders the most money, because this multiplies their own earnings enormously. Influencers have a chance to do particularly well since they have many followers who they can turn into CoTraders. The best fund managers will survive and thrive in this new and transparent free market. CoTrader is the investments platform of the future, live now on the mainnet. Early adopters have a chance to top the charts. Start building up your performance history today. Whitelist now at cotrader.com Test the platform at testnet.cotrader.com Use the platform at mainnet.cotrader.com Email us at team at sitename CoTrader © White paper Version 1.111.0.0 Copyright CoTrader © 2017-2018 - All Rights Reserved - page 27 of 27