Prakash Pandey

W H I T E PA P E R v. 2 0 REVOLUTIONIZE THE DIGITAL ECONOMY CONTENTS EXECUTIVE SUMMARY...........................................................................4 The Liquid8 P2P Multi-Functional Platform........................................................ 4 THE LIQUID8 P2P MARKETPLACE FOR TOKENIZED ASSETS.................. 6 How much is the world worth?............................................................................... 6 The Challenges - Global Assets & Their Limitations........................................ 7 The Solutions – The Liquid8 Tokenization Protocol.......................................... 8 Liquid8 Tokenization Protocol.................................................................................. 8 The Benefits of Tokenization.................................................................................... 9 Flowchart for Pre-Tokenized Real-world Assets.............................................10 Flowchart for Post-Tokenized Real-world Assets...........................................11 Terms of Use...............................................................................................................11 THE LIQUID8 HYBRID EXCHANGE........................................................ 13 The Challenges...........................................................................................................13 The Solutions and Benefits.....................................................................................13 THE LIQUID8 P2P GLOBALIZED LENDING MARKETPLACE.................... 16 Global Peer-to-Peer Lending Market Revenue Share....................................16 The Challenges...........................................................................................................17 The Solutions..............................................................................................................18 The Benefits.................................................................................................................18 The Concept.................................................................................................................20 Borrower Procedure Steps....................................................................................21 Lender Procedure Steps.........................................................................................21 Terms of Use...............................................................................................................21 Lender Protection Mechanisms............................................................................22 The LQ8 Compensation Pool..................................................................................22 THE LIQUID8 MULTI-ASSET WALLET AND DEBIT CARD....................... 24 The Liquid8 Multi-Asset Wallet..............................................................................24 The Liquid8 Debit Card............................................................................................25 LIQUID8 COMMUNITY RELATIONS....................................................... 26 Liquid8 Reviewer Program.....................................................................................26 Liquid8 Community’s Reputation Rating Profile..............................................26 Liquid8 Repurchase Programs..............................................................................27 LIQUID8 PROJECT ECONOMICS AND TOKENOMICS............................. 28 Liquid8 Token Sale Details & Platform Development Milestone................29 Fund Allocation..........................................................................................................29 Token Allocation.........................................................................................................30 Liquid8 Token..............................................................................................................30 Liquid8 Membership Tiers......................................................................................31 STRATEGIC PARTNERS AND COMPETITORS........................................ 33 Strategic Partnerships.............................................................................................33 Competitors.................................................................................................................34 ROADMAP............................................................................................ 35 SUMMARY............................................................................................ 37 LIQUID8 TEAM MEMBERS.................................................................... 38 Liquid8 Management & Development Team.....................................................38 Advisors........................................................................................................................41 REFERENCES........................................................................................ 43 LEGAL DISCLAIMER............................................................................. 44 PAGE 4 EXECUTIVE SUMMARY Blockchain technology has the potential to change the current financial landscape by presenting an ecosystem which is more efficient, secure, transparent and fair, eliminating the overwhelming influence of large, centralized financial institutions. The impact of blockchain on the overall financial sector cannot be overstated, it is potentially the single greatest change that has occurred in the 21st century. Instead of keeping separate records based on either party’s transaction receipts, blockchain technology enables the direct recording of transactions into a public ledger which can be viewed by all parties. Every transaction is updated in real-time, creating a reliable system of enduring accounting records. Meanwhile, the emergence of the Ethereum blockchain has established an additional technological innovation: by combining an immutable public ledger with the enforceability of Ethereum-based smart contracts, which ensure that funds or assets held in the smart contract can be accurately and definitively distributed according to fixed contractual rules, creating a genuine peer-to-peer environment for financial services which obviates the need for intermediaries. However, mainstream adoption of blockchain technology within the financial industry has yet to be achieved because of blockchain’s complexity. Particularly, there is a need for a simple, efficient, secure and transparent solution for the three primary services of the financial industry: Asset Management, Exchange and Lending. All of these are still burdened with excessive and inconvenient procedures within the traditional banking infrastructure, and the lack of an efficient and user-friendly infrastructure to connect real-world economy with its emerging digital counterpart. The Liquid8 P2P Multi-Functional Platform Liquid8 is a blockchain-based peer-to-peer multi-functional platform that aims to revolutionize the digital economy, by bridging the gap between real-world assets and the emerging digital economy. Liquid8 will introduce a peer-to-peer digital services platform, where owners of real-world assets: traditional assets and alternative assets, are able to “tokenize” their asset, allowing the asset to be represented by digital tokens within the blockchain ecosystem. Tokenized assets can then be exchanged and loaned between platform users within Liquid8’s Multi-Asset Wallet, making obtaining financial services and managing tokenized assets and crypto assets simple and convinient. The Liquid8 platform will revolve around the use of smart contracts. This ensures that assets transacted within the platform can be accurately accounted for, without the need of intermediaries. PAGE 5 Liquid8’s Multi-Functional Platform will offers 3 main features: Tokenization - The platform presents a tokenization protocol that allows ownership rights of real-world assets to be digitized, so that they can be traded digitally, creating a vast array of opportunities for peer-to-peer financial services. Traditional illiquid assets will gain better liquidity, while start-ups will have the opportunity to connect with potential funders without geographical restrictions. Exchange - The platform offers a marketplace where tokenized assets and crypto assets can be exchanged between platform users in a peer-topeer environment. The peer-to-peer nature of exchanges guarantees costeffectiveness and flexibility, when compared with transactions through traditional exchanges. Lending - The platform offers a lending marketplace that directly matches borrowers to lenders. The peer-to-peer nature of Liquid8’s lending platform, underpinned by reputation rating based on AI and machine learning, will present borrowers with the chance to obtain the most advantageous rates, while at the same time providing lenders access to wide range of loan opportunities to diversify their portfolios. Liquid8’s ultimate intent is to create a peer-to-peer digital ecosystem that is accessible and afforable to all individuals globally, by creating a real sharing economy through leveraging the benefit of Tokenization, Exchange and Lending. “Liquid8’s digital services platform will create an ecosystem with realworld utility. We will not be selling dreams – we will be leveraging proven technologies that are readily available, such as Ethereum, Kyber Network, 0x Protocol, and similar technological protocols. At the same time, we will continue to focus our research on the challenges of application, to improve the platform and its underlying technologies, with the sole purpose of making life easier and better for our community. Liquid8 looks forward to becoming a gateway to unite quality start-ups, consumers and financial service providers within a secure, transparent and fair ecosystem.” — May Sukumpeeranont, Co-Founder and CEO of Liquid8 PAGE 6 1 THE LIQUID8 P2P MARKETPLACE FOR TOKENIZED ASSETS The potential impact of asset tokenization on the global economy cannot be overstated. The world’s total stock of financial assets, real estate and physical assets is currently worth more than $400 trillion; in the meantime the market for asset management services is also growing robustly. According to PwC, the global asset and wealth management sector will almost double in size by 2025, from $84.9 trillion in 2016 to $145.4 trillion. How much is the world worth? US $168.5tn Residential real estate 28,000,000,0 US 2 00 US $228tn Global real estate ,00 0 US $32.3tn Commercial real estate US $6.5tn Gold US $27.2tn Agricultural land and forestry US $70.1tn Equities US $100.2tn Outstanding securitised debt Source: http://www.mcguire.com/blog/2017/04/savills-world-worth/ PAGE 7 Liquid8 is currently developing the ultimate blockchain-based tokenization platform to take full advantage of this trillion dollar opportunity. The Challenges - Global Assets & Their Limitations Real-world assets have many inefficiencies and disadvantages. Among them: » Illiquidity: Real-world assets lack liquidity and fungibility, especially physical assets such as real estate, gold bars/bullions, and collectables. The global real estate market, for instance, holds a net value of over $217 trillion, locked away in illiquid assets. Considering an average transaction cost of roughly 10% for property inclusive of all the fees and closing costs, it would cost close to $21.7 trillion to liquidate the entire global real estate assets. » High minimum investment requirements: The average down-payment for a property is around 20% depending on jurisdiction, while for other alternative assets such as collectables and managed funds, it often requires investments in the millions if not hundreds of millions of dollars - indicating the need for high initial capital to invest in realworld assets. » Costly transaction fees: The purchase or sale of a real-world asset incurs steep transaction fees, as highlighted in the case of a real estate transaction being typically 10% or higher, while trading stocks, precious gems and artwork will also involves paying intermediary fees which often amount to double-digit percentages. » Lengthy transaction process: Another critical issue with real-world assets is the time they require in completing a transaction. Research indicates that it can take anywhere between 6 weeks to 6 months to close a real estate purchase. Even in the case of other asset classes, the involvement of third-parties such as financial institutions lengthen the transaction time considerably. » Overly-strict personal credit assessment: Credit assessment is among the most critical aspects of investing in a real-world asset. Any financial institution will run a thorough background checks on an investor before granting a loan or access to capital, which makes it difficult for an investor with a less-than-ideal credit profile to get started. For instance, banks do not consider the crypto assets of an investor in their credit check, rendering these assets worthless in landing a traditional loan. » Storage: For some assets such as precious metals and gems, ownership requires the costs of securely storing the item in question. Insured transportation costs will also have to be factored in if the asset needs to be moved between jurisdictions. However, real-world assets continue to attract interest from crypto investors because of their low volatility and their advantage in the diversification of investment portfolios. Therefore creating a simpler and more efficient way to digitize real-world assets is one of the most pressing challenges in the crypto landscape today. PAGE 8 The Solutions – The Liquid8 Tokenization Protocol Liquid8 will develop a tokenization protocol to simplify the process of digitizing real-world assets, with a combination of off-chain and on-chain proof-of-assets protocols, to ensure all assets submitted for tokenization or listing on Liquid8’s P2P marketplace are validated for their compliance, existence, ownership and value. The off-chain protocol consists of two elements: » Online Off-chain module - Data feeds extracted by oracle or IoT devices, and due diligence that can completed online via smart contract digital signatures. » Offline Off-chain module - Data collected via relevant agencies/ institutions, and due diligence which can only be processed by signing of traditional paper-based agreements. The on-chain protocol involves the development of tokenization smart contracts and smart asset tokens: blockchain-based digital tokens that are pegged to real-world assets. Liquid8 Tokenization Protocol Offline Data Physical Contract Relevant Agencies Real-world Assets Tokenization Smart Contract Data Verification + Tokenization Smart Contract Development Oracle + IoT Devices Online Data Smart Asset Token (Token pegged to real-world asset) Electronic Contract (Smart Contracts) Off-Chain POA module On-Chain POA module PAGE 9 Liquid8 will leverage the logic behind the proof-of-asset protocol to develop a tokenization platform that is built with blockchain technology to benefit from blockchain’s infrastructural advantages. All the data collected will also be recorded on blockchain, by utilizing Inter Planetary File System (IPFS): IPFS is a decentralized peer-to-peer filesharing system that provides high throughput, low latency data distribution. It can be used to deliver content to websites, globally store files with automatic versioning and backups, facilitate secure filesharing and encrypted communication. This will enable the creation of a real-world assetbacked token which has the combined qualities of both real-world assets - stability and reduced volatility - and blockchain-based digital assets - efficiency, transparency and security. We will be working closely with regulatory authorities from different regions, making sure all the listed tokenized assets are legally compliant with local and international AML (AntiMoney Laundering) and KYC (Know Your Customer) procedures, to prevent opportunists from taking advantage of Liquid8’s platform for money laundering activities. We also believe that emergent regulations will be playing a major role within the blockchain ecosystem in the near future, therefore we will be building our platform based on legal and compliance. The Benefits of Tokenization The tokenization of real-world assets has a range of clear advantages: » It allows the ownership rights of real-world assets to be transferred and traded on a digital platform. This enables cross-border asset purchases with minimal fees and time delays. The tokenized ownership of assets, underpinned and validated by smart contracts, directly bypasses the long and costly audit and legal processes present in traditional transactions of real-world assets. It also provides new opportunities for traditional investors to purchase real-world assets that are presented in a decentralized environment without geographical restrictions. » As tokenized assets can be sub-divided, the threshold for investing is reduced significantly. Assets with significant valuations, inaccessible by traditional investment means, become accessible to small scale investors when tokenized. Investors may buy and sell fractions of a property, collectable or any other traditionally indivisible asset. » It allows existing crypto investors to directly purchase tokenized real-world assets with their crypto holdings, bypassing the need to convert their crypto assets into fiat currency when they want to diversify their investment portfolio to include real-world assets which are less volatile. » It provides security, reliability and proof of ownership, thanks to blockchain’s distributed ledger technology. All ownership and transactional records are indelibly registered on the blockchain, making it tamper-proof and immune to legal disputes or registry errors. Investors will get to avoid all counterparty and custody risks associated with traditional financial institutions. PAGE 10 » It significantly increases the liquidity of traditionally illiquid assets, such as real estate, collectibles etc. As a wider range of investors are able to purchase tokenized assets, with the inclusion of traditional investors along with crypto investors, this additional capital will boosts trading volumes, resulting in a more liquid and efficiently-priced market for tokenized assets. » It gives investors the benefit of lower deposit and withdrawal fees due to the elimination of intermediaries, because of the efficiency of the smart contracts used. Funding and withdrawal processes likewise become faster. Flowchart for Pre-Tokenized Real-world Assets Step Two Step Four Off-chain protocols are implemented, to determine the legal compliance, existence, ownership and value of the asset. If the token issuer agrees to the terms and conditions, on-chain proof-of-asset protocols will be implemented: tokenization smart contract will be created. Step One Step Three Step Five The asset owner or Liquid8 users places request for a realworld asset to be tokenized. If the asset has been approved for tokenization, an electronic agreement will be delivered to the token issuer. The token issuer will need to review and agree to the terms and conditions to proceed with the tokenization process. If any documents are needed to be signed offline, it is the responsibility of the token issuer to fulfil this requirement. Contributors will then be able to purchase the tokenized asset by transferring their crypto holdings into a tokenization smart contract in exchange for smart asset tokens. PAGE 11 Flowchart for Post-Tokenized Real-world Assets Step Two Step Four Off-chain protocols are implemented, to determine the legal compliance, existence, ownership and value of the asset. If the token issuer agrees on the terms of the listing, Liquid8 will proceed to list the tokenized asset. Step One Step Three Step Five The asset owner or Liquid8 user places a request for a tokenized asset to be listed in the Liquid8 P2P Marketplace for Tokenized Assets. If the tokenized asset has been approved for listing, Liquid8 will contact the token issuer to work out an exclusive deal. Contributors will then be able to purchase the tokenized asset by logging into Liquid8 P2P Marketplace for Tokenized Assets. Terms of Use » For all tokenized real-world assets, a corresponding, unique blockchain-based smart asset token (SAT) will be issued. SATs are not tradable on exchanges; the purpose of the SAT is to represent the existence, ownership and value of the tokenized real-world asset. » Performance history, earning potential and specification of all tokenized real-world assets will be made available for viewing on a daily, monthly, weekly or yearly basis, depending on the terms and conditions pre-defined in the smart contract between token issuers and contributors. » All data will be stored on the blockchain to promote transparency, ensuring that none of the stored data can be changed or tampered with. All the stored data will also be audited on a regular basis. PAGE 12 » When participants decide to liquidate their sub-tokens, they will have the option to transfer the sub-token back to the token issuer or any interested party, according to the terms and conditions agreed upon before purchase of the tokenized asset. » Any party wishing to become token issuer is required to purchase LQ8 tokens and join as Liquid8 community member before they can be approved as a token issuer. » To prevent disputes and ensure transparency and reliability, all transactions, profit distribution and performance fees will be executed through smart contracts. » All listed tokenized assets are offered by third-party token issuers: financial institutions, money managers, real estate owners, custodians etc. Liquid8 does not collect deposits on behalf of token issuers or own any of the assets submitted for tokenization. All funding will be deposited directly to the token issuer’s official wallet. » Liquid8 community members will be able to purchase the tokenized assets with crypto assets which the token issuer accepts. Community members are advised to do their own due diligence before purchasing any tokenized assets: Liquid8 does not provide and is not in the position to provide any financial or investment advice. PAGE 13 2 THE LIQUID8 HYBRID EXCHANGE The Challenges One of the main obstacles that slows down the mass adoption of blockchain technology includes the difficulties and inefficiencies in buying and selling of crypto assets for fiat currency. This has put the crypto community, especially newcomers and first-time investors, at a significant disadvantage. Besides that, most of the existing exchanges are more suitable for experienced users, as the user interfaces are complicated and non-intuitive. There are many sources of arbitrage and inefficiency with infrastructure that is not transparent, thus finding opportunities for optimal deals requires a great deal of experience and research that is often not feasible for a newcomer. Furthermore, some of the present cryptocurrency exchanges charge a hefty commission on top of their regular transaction charges, making it harder to book profits through trading. Additionally, lack of trust is another major problem faced by crypto traders. When two strangers want to exchange their crypto assets, both parties face difficulties deciding on who should make the first move to either transfer the payment or to release the asset. Therefore, the development of a truly user-friendly interface for crypto and fiat conversion will be a big leap towards the mainstream adoption of cryptocurrencies and blockchain technologies. The Solutions and Benefits Liquid8 P2P Social Exchange The Liquid8 P2P Social Exchange is a peer-to-peer social exchange marketplace that utilizes a smart price-optimizing engine to connect two parties locally or globally within our exchange marketplace, enabling both parties to exchange their crypto assets with fiat currencies or exchange from one crypto asset to another based on mutually-agreed exchange terms – eliminating the need for intermediaries, along with all the costs associated with them. Both parties will enjoy not only lower transaction fees, but also better exchange rates compared to those offered through intermediaries. Liquid8 simplifies and streamlines the process of purchasing, selling or exchanging crypto assets securely anywhere, anytime, and with any payment method agreed by both parties, through a peer-to-peer social exchange platform that enables both parties to interact with each other using a fully encrypted internal messaging system, to work out exchange conditions that would suit the parties. PAGE 14 Smart Contract Escrow Internal Messaging System Seller Buyer Bank Transfer or Online Payment (Paypal, Alipay, Applepay, etc) or Cash Payment To ensure a secure and safe transfer of assets between the different parties, all P2P Social Exchange transactions will be conducted through a smart contract escrow system. This will solve the inherent trust issue of online peer-to-peer transactions, and furthermore preempt present and future disputes. Liquid8 P2P Instant Exchange Centralized Exchange Smart Price-optimizing Aggregator Decentralized Exchange Token Holder Liquid8 Liquidity Pool Liquid8 does not currently plan to develop a full-scale crypto exchange platform. However, we will be developing a smart price-optimizing aggregator, to connect Liquid8’s P2P Instant Exchange to major centralized and decentralized crypto exchanges, along with our very own Liquid8 Liquidity Pool. This will enable Liquid8’s community members to make instant PAGE 15 conversions between different crypto assets via the Liquid8 Multi-Asset Wallet, making the exchange of crypto assets fast and straightforward. Considering the number of start-ups who have been able to develop proven and successful instant exchange protocols, we will not be building an instant exchange from scratch. Rather, we will be building on the existing technologies they have created through partnerships, while continuing to improve our own system. Any further developments on the essential partnerships will be announced in the coming months. Stay tuned! Personalized Escrow Service Liquid8 will provide a personalized escrow service to govern the exchange of assets between individuals who have marked each other as ‘Favorites’ in the P2P Social Exchange Platform. To establish a safe transfer between their assets and to avoid any disputes, they can use the personalized escrow service to govern the exchange of their assets, while enjoying cheaper fees compared with other platforms. This concept will cover all use-cases in which two parties were already trading with each other prior to joining Liquid8’s community but wish to use a safer and more convenient mechanism to exchange their crypto assets with fiat currencies without having to pay high transaction fees. Dispute Resolution If a dispute over a transaction occurs, Liquid8 will act as an arbitrator. The arbitrator will conduct a review of the dispute by requesting specific sets of data from both parties to determined which party was at fault. When an outcome has been determined, the crypto assets that are locked in the smart contract during the investigation will be returned or released to the rightful party. In many cases the settlement of disputes will be facilitated by the involvement of Liquid8 as a neutral third party. However, if one party is found to be deliberately defrauding or deceiving the other, they will be banned from further participation in any of Liquid8 services. In the event of criminal activities being suspected by the Liquid8 arbitration service, cases may be escalated to local regulators or law enforcement as appropriate. PAGE 16 3 THE LIQUID8 P2P GLOBALIZED LENDING MARKETPLACE A research report published by Transparency Market Research states that the opportunity in the global P2P lending market was worth US$26.16 billion in 2015. Analysts predict that the market valuation will reach US$897.85 billion by 2024, as it expands at a significant CAGR of 48.2% from 2016 to 2024. Global Peer-to-Peer Lending Market Revenue Share by Geography 2015 (US$ Bn) XX.XX 11.38 Europe North America XX.XX Asia Pacific XX.XX Rest of the World 2016 - 24 at a Source from TMR analysis, April 2016 GAGR of 48.2% PAGE 17 Peer-to-peer (P2P) lending is a significant trend in online money lending which involves the facilitation of loan agreements outside of the traditional consumer banking system, by connecting borrowers directly with lenders or investors, through a digital platform. P2P lending’s use of digital platform reduces costs by eliminating many operational expenses associated with traditional banking system, such as the cost of intermediaries and cost of maintaining and staffing physical branches. Much of this saving can then be passed along to borrowers through lower interest rates than those offered by traditional financial institutions. P2P lending also enables individual loans to be divided into smaller units that are issued to multiple lenders, enabling risk to be diversified and shared amongst all the lenders. The Challenges Traditional lending platforms are typically inefficient because of: » High processing fees: A personal loan from any of the major financial institutions comes with a slew of processing fees, including application fees, origination fees, document preparation fees, processing fees, underwriting fees, electronic payment processing fees, prepayment fees, closing fees, and at least a dozen similar charges. A borrower may end up paying up to 8% for the loan origination itself and a flat fee or percentage charges for all or any of the fees mentioned above. » Slow centralized processes: The traditional lending industry follows an antiquated pathway with multiple layers of management and processing, which extends the overall loan disbursement timeline further. Anecdotal surveys and research reports indicate that it could easily take a week or longer to process a personal loan. Real estate mortgages and business loans can take many months to get processed. The centralized approach followed by the traditional financial institutions is riddled with processing delays and often leads to an unpleasant borrowing experience, as well as opportunity costs in respect of time-sensitive transactions. » Inflexible terms of lending: Recent research by LendEDU, indicates that nearly 76% of their target group members had their loan applications denied for one reason or another. In fact, out of the approved loan applicants, only 34.86% proceeded to complete the funding process. While it is difficult to comprehend the reasons behind this low loan process completion ratio, it can be deduced that unfavorable lending terms could be one of the reasons behind it. » Overly-strict credit scoring requirements: The reliance of the traditional lending businesses on credit score is another major problem for loan applicants. Financial institutions and banks consider the current credit rating as the basis for granting a loan, leaving applicants with imperfect credit histories powerless and underserved. The same holds for new businesses, startups, and entrepreneurs, compelling them to choose alternative and sometimes expensive of highly unfavorable funding options. PAGE 18 The Solutions “Sorry guys, servicing existing members is higher priority at this point. Full team working around the clock. Both tech and support. Just too much demand. Added 250,000 new users in the last 24 hours,” said Zhao, CEO of Binance, referencing the official statement released by Binance, the global market’s largest cryptocurrency exchange with a staggering $9.5 BLN daily trading volume. Source: https://cointelegraph.com/news/exponential-growth-cryptocurrency-exchanges-are-adding-100000-users-per-day With P2P lending market predicted to rise from US$26.16 bn in 2015 to US$897.85bn by 2024 according to a report published by Transparency Market Research, combined with the exponential growth of the cryptocurrency user-base as reported by major exchanges, this indicates a massive opportunity for P2P lending platforms within the crypto markets. Despite this huge potential, there aren’t many P2P lending platforms which accept cryptocurrencies as collateral. Liquid8 will capitalize on this massive opportunity by introducing a revolutionary P2P Globalized Lending Marketplace, to connect fiat-based lending with crypto-based lending via the utilization of smart contracts as escrow. This will provide crypto asset holders a chance to use their crypto assets or tokenized assets as collateral to borrow Ethereum or *fiat currencies, and at the end of the loan term, they will be able to get their crypto asset or tokenized asset returned to them. The Benefits By implementing blockchain technology and smart contracts in the lending protocol, it will significantly speed up the loan process while decreasing the processing fees, whilst also guaranteeing the safety of funds, thus creating a safe, trustless and efficient environment which opens up the potential for borrowers to source loans from previously inaccessible sources at better interest rates. Lenders will also benefit, through the ability to find high-yield opportunities from across the globe, allowing them to diversify their risk and manage their lending profile more effectively. PAGE 19 The Liquid8 lending protocol will further improve the current lending ecosystem by creating a globally applicable and inclusive reputation rating profile, reducing the need for traditional banking infrastructure and rigid, proprietary credit scoring systems. Other benefits will include: Benefits for borrowers » No “middlemen” means more flexibility and lower fees. Borrowers will be able to negotiate with prospective lenders and agree on individual terms of the loan. Instead of being forced to accept certain conditions, they will get to choose with whom to transact, and on which terms. » Additionally, Liquid8’s risk profiling does not rely on an overly-strict credit score from an external bureau, and standardized categories when it comes to a borrower’s eligibility for a loan - so borrowers will have much higher chances of getting a loan with reasonable interest rates, based on a dynamic credit risk profile. » Borrowers will be able to borrow Ethereum or *fiat currency against the crypto asset they hold during a market downturn, to pay for their daily expenses or to gain margin for investing in more crypto assets. » Once an interest rate is agreed between a borrower and a lender, it will be fixed for the term of the loan – enabling borrowers to plan and manage their cash flows and optimize compliance. Benefits for lenders » In contrast to banks, Liquid8 will not decide for lenders how much interest they are going to earn, or to whom they should lend their money. Interest rates and amounts are agreed upon directly between borrowers and lenders. » A steady source of passive income, in the form of the loan interest paid, creates the possibility for lenders to generate a stable income on a regular basis without ongoing work, which the lender may choose to re-invest, save, or take as profit. » Lenders will be able to hedge the crypto assets they hold against market volatility and earn interest in the process. » Some of the borrowers will be people who have run out of options or cannot access traditional credit sources - but they have real needs to address. In addition to income generation, lenders will be contributing to improvements in the real lives and communities of disadvantaged borrowers, while being protected by the LQ8 Compensation Pool. PAGE 20 The Concept The following types of loans will be available on the Liquid8 P2P Globalized Lending Marketplace: Collateral Loans (loans of up to 70% of asset value) » KYC and AML verifications are required for both borrower and lender. All KYC/AML data will be store in a secure distributed data storage in encrypted form. Borrowers and lenders can remain anonymous while using the lending platform, to maintain their privacy. » Credit scoring is optional. The borrower will have the choice of activating the credit scoring function, or they can choose not to use it, but once activated, they will not be able to switch it off. » A borrower without credit scoring will typically only be able to borrow up to 60% of the value of their asset. However, a borrower with good reputation rating will be able to borrow up to 70% of the value of their asset. Collateral Loans with Credit Line (loans of up to 300% of asset value) » KYC and AML verifications are required for both borrower and lender. All KYC/AML data will be store in a secure distributed data storage in encrypted form. Borrowers and lenders can remain anonymous while using the lending platform, to maintain their privacy. » Credit scoring is required. » Only available to Premium and Exclusive members. » The maximum loan amount is $50,000 for Premium Members, and $100,000 for Exclusive Members. The maximum loan amount will increase according to the platform’s development progress. The following assets are accepted as loan collateral » First Phase – Ethereum and selected ERC-20 Tokens, » Second Phase - Bitcoin, NEO and selected NEP-5 Tokens, » Third Phase - Tokenized Assets » Borrowers will have the option to either receive Ethereum (ETH) in their Multi-Asset Wallet or *fiat currency deposited into their personal bank account or pre-paid debit card. (Additional categories of crypto assets and tokenized assets will be added as the platform develops) PAGE 21 Borrower Procedure Steps The borrower sends a loan request, with their required terms: » Loan amount » Preferred interest rates » Time period of loan » Loan denomination – crypto asset or *fiat currency » Repayment preference – crypto asset or *fiat currency The borrower sends their crypto or tokenized assets to the smart contract as collateral. This collateral is locked in a multi-signature escrow account until the loan term has ended, or if any other of the relevant conditions in the smart contract are met (such as early repayment or loan cancellation). At the end of the loan term the assets used as collateral are sent back to the borrower’s original wallet address automatically. Lender Procedure Steps Lenders can pre-define an automated search on the platform to find loan inquiries that match their preferences, according to: » Preferred interest rates » Preferred lending amount » Preferred crypto asset or tokenized asset as collateral » Range of acceptable reputation rating of the borrowers The platform will automatically notify the lender once there is a loan inquiry matching these terms. Lenders can also manually search through the lending platform to find loan requests matching their preferences. Terms of Use The platform will provide borrowers and lenders with suggestions regarding the terms of the loan, to facilitate the matching process. (*): The availability of fiat currency lending and borrowing will depend upon regulatory requirements of the respective countries of both the lender as well as the borrower, as Liquid8 is committed to upholding a high level of compliance with all applicable rules and regulations. PAGE 22 Lender Protection Mechanisms Various mechanisms are in place to protect lenders in the event of a fall in the loan collateral’s value: » A fall in price of 20% will trigger a notification to the borrower. The borrower can then decide to add additional funds/assets to restore the collateral to its original value, or ignore the notice. » A fall in price of 30% will trigger a second notification to the borrower, to add additional funds/assets to restore the collateral to its original value. » If the value of the asset drops by 40% and the borrower has not added to the collateral, the smart contract will cancel the loan automatically. The lender will then have the option to receive the collateral asset, or to liquidate it immediately: The lender will have the option to let the smart contract liquidate the crypto asset automatically should the value of asset fell below 60% of initial value, or they can have the crypto asset deposited into their MultiAsset Wallet if they wish to retain it. » If the asset increases 100% from its initial value, the borrower will have the option of withdrawing the profit differential or applying for additional lending using the excess collateral. Alternatively, the borrower may do nothing and maintain the existing loan contract. If the borrower chooses to apply for a second loan, a second smart contract will be set up. The LQ8 Compensation Pool To protect lenders from losses in the event of a borrower defaulting on a loan, Liquid8 will create a LQ8 Compensation Pool. The compensation pool will gather 10% of Liquid8’s corporate net profits and 10% of the profits generated from the Solidary Wealth Pool on a monthly basis. In case of a payment default, Liquid8 will first investigate the issue within a given time frame of not more than 2 weeks. After the investigation is concluded, lenders will have two options: » Option 1: Lenders may put in a request to receive compensation from the LQ8 Compensation Pool immediately. Liquid8 will take over the debt, and all lenders will be compensated through monthly instalments calculated in accordance with the compensation terms and conditions. The instalment amount and payment schedule may vary, depending on the company’s monthly profit. PAGE 23 » Option 2: Lenders will be given access to Liquid8’s debt collector network. With this option, lenders find a debt collector that is tasked with collecting the outstanding unpaid debt from the borrower. The lender and the debt collector will agree on a payment arrangement, that may be a fixed success fee or a percentage of the money retrieved. In the event that the debt is irretrievable, lenders can proceed to lodge a claim with the LQ8 Compensation Pool; the debt collector’s service fees will be deducted automatically from the compensation lenders received. PAGE 24 4 THE LIQUID8 MULTIASSET WALLET AND DEBIT CARD The Liquid8 Multi-Asset Wallet Liquid8 will develop a user-friendly and state-of-the-art Multi-Asset Wallet for the storage of crypto assets from multiple blockchains, which will include Ethereum, selected ERC-20 tokens, NEO, selected NEP-5 tokens, Bitcoin and tokenized assets issued via Liquid8’s tokenization platform. We will proceed to add further varieties of crypto assets into the Multi-Asset Wallet as we progress. The Multi-Asset Wallet will adhere to the highest level of cybersecurity standards. Private keys will be encrypted and will only be made available to the account owner. Recovery functions (with seed wording) will be available to enable users to restore their wallet on a new computer or mobile device. Apart from that, the Liquid8 Multi-Asset Wallet will also implement two crucial security functions for both desktop and mobile version of the Multi-Asset Wallet: » Two Factor Authentication Function (2FA): To log in to the wallet or make a transfer request, users will need to verify themselves with an authentication app. » Multi-Sync Authentication Function: Wallet users will be able to sync their wallet with a wallet of someone they trust (family or close friend). When a transfer request is made the synced wallet owner will be notified, and he/she will have to confirm the transaction for the transaction to go through. Meanwhile, so as to simplify the mobile login functions of the Multi-Asset Wallet while maintaining maximum security, Liquid8 will enable the use of Biometric Identification: TouchID and FaceID for iOS devices; and Security PINs for Android devices. The advantage of having a Liquid8 Multi-Asset Wallet will not be limited to the storage of different types of crypto and tokenized assets in a user-friendly manner – the Liquid8 MultiAsset Wallet will also be able to interact directly with the Liquid8 P2P Multi-Functional Platform, which will make storing and managing (spending, lending, transferring and exchanging), of crypto assets and tokenized assets much easier. PAGE 25 The Liquid8 Debit Card Liquid8 will be launching a crypto debit card for the convenience of all community members after the token sale. The debit card will enable Liquid8 members to spend their crypto assets stored in their Liquid8 Multi-Asset Wallets with any merchant who accepts card payments. They will also be able to convert their crypto holdings into fiat currencies and make withdrawals at ATMs around the globe. We are currently seeking to launch this service in collaboration with a reputable payment card provider, under the guidance of our legal compliance advisor - ensuring that the payment card solution that we offer is compliant with all applicable rules and regulations. PAGE 26 5 LIQUID8 COMMUNITY RELATIONS Liquid8 Reviewer Program Over the years we have witnessed a multitude of scam projects that disguised themselves as legitimate crypto projects. Many, like Bitconnect, promised enormous returns on investment but turned out to be pyramid schemes. Along with the rise of ICOs as a channel to raise capital and the presently unregulated nature of the ICO scene, phishing and ICO scams have become a threat. Investors, especially newcomers to the crypto world, are particularly vulnerable. To counter this threat, Liquid8 will invite reputable crypto writers and influencers to share their reviews of blockchain-related services and projects in the Liquid8 Reviewer Program. This program is designed to spread knowledge and understanding of blockchain technologies to our community members, to provide them with better awareness regarding blockchainrelated services and projects, and create realistic appreciation of the risks involved. If Liquid8 community members find a review to be informative and useful, they can use their LQ8 Tokens to upvote it. Tokens collected will then be disbursed to the reviewer as an expression of appreciation. In return, reviewers will have more incentive to post considered and valuable reviews, and the Liquid8 community will be able to discover more information regarding blockchain-related services and projects. Liquid8 will only invite reputable reviewers to participate in the Reviewer Program. Prospective reviewers may also send an application to Liquid8 if they are interested in participating in the Liquid8 Reviewer Program. Liquid8 Community’s Reputation Rating Profile The Liquid8 P2P Multi-Functional Platform will use a double-rating system, with external and internal elements. The objective is to give potential lenders or trade counterparties a realistic, reliable and actionable assessment of another users’ creditworthiness. The External Reputation Rating Solution The Liquid8 P2P Globalized Lending Platform will be connected to a credit scoring algorithm from a reputable credit scoring provider. Liquid8 aims to deploy a new-generation credit scoring solution that analyses social and online data to assess borrowers’ risk and default probability - eliminating the need for PAGE 27 traditional credit scoring solutions. Liquid8 is already in negotiations with providers of alternative credit scoring solutions. Liquid8 is committed to providing a second chance to individuals who fail to meet the requirements of the traditional credit scoring processes. It will help lenders increase approval and conversion rates, while offering borrowers better access to financial services. The Internal Reputation Rating Solution Liquid8 will also be developing an internal reputation rating profile, powered by machine learning algorithms to rate platform users, to mitigate counterparty risks and reduce the risk of fraud within our platform. Factors influencing the internal reputation rating algorithm include the rating platform users have received previously from their counterparty after completion of a deal/trade, profile verification (KYC – Know Your Customer), the amount of LQ8 and crypto assets they hold in their Multi-Asset Wallet, and their transaction data. Personal Details Verification Community members will be encouraged to get their personal details verified as a precondition to participating in Liquid8’s Internal Reputation Rating mechanism. Additionally, each verified member will be given priority to participate as a beta tester for all our upcoming products and applications, as well as priority access to upcoming events and announcements. Liquid8 Repurchase Programs Token Repurchase Pool Liquid8 will be allocating 30% of the company’s net profits and 30% of profits generated by the Solidary Wealth Pool to repurchase tokens from the open market on a quarterly basis, as a pre-emptive measure to ensure the long-term stability of the LQ8 Token. Half of the repurchased tokens will then be burned, while the other half will be distributed as Airdrops to qualified Liquid8 community members. PAGE 28 6 LIQUID8 PROJECT ECONOMICS AND TOKENOMICS Liquid8’s founding team includes hedge fund managers and traders with well-established track records. For this reason, Liquid8 will be allocating a cumulative 20% of funds raised during the token sale to an investment and liquidity pool, aimed at maximizing potential returns to help stabilize the platform’s development progress: Liquid8 Liquidity Pool - Liquid8 will allocate 5% of funds collected during the token sale to the Liquid8 Liquidity Pool. The purpose of the Liquid8 Liquidity Pool is to provide liquidity to Liquid8’s P2P Globalized Lending Marketplace, Liquid8’s Hybrid Exchange, and to fund quality start-ups that managed to qualify for tokenization process. Fonds AAA Fx1 Fund - is a combination of top-performing funds offered by Fonds AAA, a Luxembourg-registered licensed alternative hedge fund. The fund offers 100% capital preservation guaranteed created by Fonds AAA in association with MGI Capital SA, which means that the capital invested in Fonds AAA Fx1 Fund is guaranteed 100% against any losses incurred under different circumstances through an insurance and reinsurance system. 10% of the funds collected during the token sale will be allocated into Fonds AAA Fx1 Fund as a backup fund, to protect the interests of token holders. The fund will be locked for three years for compounding. In case Liquid8 fails to deliver what it has set out to achieve, 100% of profits from Fonds AAA Fx1 Fund will be released after the three years’ lockup period, to repurchase LQ8 tokens from the open market. Solidary Wealth Pool - is a combination of crypto and forex fund, managed by a team of professional traders. 5% of the funds collected during the token sale will be allocated to the Solidary Wealth Pool. 30% of the monthly profit generated by the fund will be allocated to the Token Repurchase Pool, which will be used to repurchase tokens from the open market every quarter; 10% of the generated profit will be allocated to the LQ8 Compensation Pool and another 10% will be reinvested, while the remaining 50% will be used for the company’s running cost. Note: Results of the managed accounts will be audited, and Liquid8’s community will be able to view the verified results of the managed fund from time to time. We acknowledge that past performance does not determine future results, but Liquid8’s community will be able to understand the risk exposure and the earning potential of the fund. PAGE 29 Liquid8 Token Sale Details & Platform Development Milestone Token Sale Details Targets/Prices Soft Cap $3 Million Target $30 Million Hard Cap $35 Million Total Token Supply 700 Million Tokens Tokens for Public Sale 350 Million Tokens (50%) Private/Pre-Sale Bonus Token and Airdrop Rewards 105 Million Tokens (15%) Token Price $0.10 Note: All unsold tokens will be burned. The functionalities of the Liquid8 P2P Platform will be launched depending on the outcome of the token sale: Development Feature Fundraising Milestone Liquid8 Multi-Asset Wallet Development in progress (Self-Funded by Liquid8) Liquid8 P2P Social Exchange Provided if token sale raises $3 million ≥ Liquid8 P2P Instant Exchange & Liquid8 Debit Card Provided if token sale raises $5 million ≥ Liquid8 P2P Marketplace for Tokenized Assets Provided if token sale raises $10 million ≥ Liquid8 P2P Lending (Collateral Lending) Provided if token sale raises $20 million ≥ Liquid8 P2P Lending (Collateral with Credit Line) Provided if token sale raises $30 million ≥ Fund Allocation The funds raised from the token sale will be allocated as follows: 35% Platform Research & Development 25% Marketing & Business Development 20% Investment & Liquidity Pool 5% LQ8 Compensation Pool 5% Operations 10% Legal & Licensing Expenses PAGE 30 Token Allocation Liquid8 tokens will be distributed as follows: 15% Private/Pre-Sale Bonus & Community Building Airdrop Rewards 50% Token for Public Sale 13% Founders & Management Team (token will be unlocked in stages over a period of 20 months) 15% 5% Advisors and Partners (token will be unlocked in stages over a period of 10 months) 2% Bounties Reserved for the future expansion of the Platform (50% of tokens vested for 24 months, 50% for 48 months) After the conclusion of the Token Sale, part of the raised funds will be kept in fiat currencies to minimize the project’s exposure to crypto volatility. We will set up new management and development hubs in Asian and European regions, to attract more blockchain, artificial intelligence and data science talent to join the Liquid8 team. Liquid8 will also proceed to apply for financial service licenses in relevant jurisdictions. Liquid8 Token The Liquid8 token (LQ8) is a utility token built on the Ethereum Blockchain (ERC-20). The token’s utilities are as follows: As payment for all services within Liquid8 ecosystem LQ8 token will be used as payment for platform service fees that occur within the Liquid8 P2P MultiFunctional Platform. As airdrop for rewards and affiliates program within the Liquid8 ecosystem Liquid8 will be rewarding community members who hold LQ8 tokens with airdrop rewards. Community members will have to transfer their LQ8 token into their Airdrop Rewards Smart Contract 60 days prior to the airdrop distribution date, if they wish to qualify for airdrop rewards. These airdrop rewards will be distributed quarterly. PAGE 31 Apart from that, to promote the growth of Liquid8’s user base, community members who refer new users to join Liquid8’s community and community members who are a frequent user of Liquid8 P2P Multi-Functional Platform will also be rewarded with LQ8 token airdrop. As proof of membership To gain full access or to participate in services offered by Liquid8 P2P Platform, users/token holders are required to join Liquid8’s membership program. Liquid8 Membership Tiers Non-Member (Guest User) »» Access to the basic version of the Liquid8 Multi-Asset Wallet . »» Not qualified for airdrop rewards. »» No discount on the platform services fee. Basic Member »» Access to the advanced version of the Liquid8 Multi-Asset Wallet. »» Access to the Liquid8 P2P Exchange Platform. »» Access to the Liquid8 P2P Globalized Lending Marketplace: A member may borrow up to 55% of an asset’s value for crypto assets, and up to 60% of an asset’s value for tokenized assets. »» Discount of 50% on the platform services fee. »» Access to the Liquid8 Compensation Pool (Lender Protection Program). »» Eligible for airdrop rewards. »» A minimum balance of Liquid8 tokens must be held to maintain Basic Member status. Premium Member »» Access to the advanced version of the Liquid8 Multi-Asset Wallet. »» Access to the Liquid8 P2P Exchange Platform. »» Access to the Liquid8 P2P Globalized Lending Marketplace. A member may borrow up to 60% of an asset’s value for crypto assets, and up to 65% of an asset’s value for tokenized assets. PAGE 32 »» Eligible for a credit line loan of up to $50,000. »» Discount of 50% on the platform services fee. »» Access to the Liquid8 Compensation Pool (Lender Protection Program). »» Eligible for airdrop rewards. »» A minimum balance of Liquid8 tokens must be held to maintain Premium Member status, in addition to a positive reputation rating. Exclusive Member »» Access to the advanced version of the Liquid8 Multi-Asset Wallet. »» Access to the Liquid8 P2P Exchange Platform. »» Access to the Liquid8 P2P Globalized Lending Marketplace. A member may borrow up to 70% of an asset’s value for crypto assets, and up to 75% of an asset’s value for tokenized assets. »» Eligible for a credit line loan of up to $100,000. »» Discount of 50% on the platform services fee. »» Access to the Liquid8 Compensation Pool (Lender Protection Program). »» Eligible for airdrop rewards. »» A minimum balance of Liquid8 tokens must be held to maintain Exclusive Member status, in addition to a positive reputation rating. The Liquid8 Membership Application Process »» The following steps must be taken to become a Liquid8 member: »» Purchase LQ8 tokens from the open market »» Register for membership at the Liquid8 website »» Transfer the LQ8 tokens to the Liquid8 Multi-Asset Wallet, and verify the token for proof-ofownership to determine membership tier »» Gain access to all membership functions PAGE 33 7 STRATEGIC PARTNERS AND COMPETITORS Strategic Partnerships Liquid8 will form an alliance of strategic partners, to help accelerate the expansion of Liquid8 and assist in our long-term expansion plan to become one-stop tokenization and financial services hub. Our partners pool will include: Legal firms, Audit firms, KYC/AML Solution Providers, Real Estate Agencies and Developers, Bullion Dealers. Some of their key responsibilities will be to: » Perform due and diligence on real-world assets that are submitted for tokenization to verify their compliance, ownership, existence and value. Financial Services Providers (which include money lender, money exchanger, remittance company, venture capital firm, debt collector, forex broker, crowdfunding company, asset management firm, etc.): » Provide an array of services, including liquidity for lending, fiat currencies or crypto exchange, help to simplify cross-border transactions/remittances, and provision of better exchange rates for fiat currencies and crypto assets. Cyber Security firms and Ethical Hackers: » Maintaining the security of the platform: We will be collaborating with cybersecurity firms and ethical hackers to perform penetration/hacking tests on our platform to ensure effective security. Bounties will be provided to ethical hackers who manage to find security vulnerabilities within our platform. Incubators: » Incubate credible startups that are able to present feasible ideas, and assistance in financing high-potential start-up projects to prepare them for the tokenization process. All the platform features offered by Liquid8 which require licenses to operate will only be carried out if the necessary licenses are obtained in full compliance with the applicable law of the involved jurisdiction, therefore, we will leverage the licenses of our strategic partners PAGE 34 while we are in progress of obtaining required regulatory licenses of our own. Strategic partnerships will also be incentivized through the sharing of profits and bounty programs. Competitors The basis of Liquid8’s business is a concept that is increasingly recognized as one of the most revolutionary potentials of blockchain technology: tokenization. Analysts already consider tokenization as a technology that will make industries more accessible to individual buyers, investors or participants and will create a new ‘liquid’ economy with lower barriers to entry in any conceivable field of economic activity. This is reflected in the current startup landscape as well: many startups are offering industryspecific tokenization services, for example: » Financial industry: latoken.com, blackmoonplatform.com » Real estate industry: tokenestate.io, brickblock.io » Others, such as bankex.com and trusttoken.com, have a generalized approach to tokenization. We approach these and other startups with similar concepts with a mindset of collaboration, not competition. Together we are creating an entirely new ecosystem and digital economy for a global customer base, to create a convergent frictionless experience for all users. Liquid8 is open to partnership with any quality initiatives which, like us, seek to help promote the mass adoption of blockchain technology. PAGE 35 8 ROADMAP 2017 Q1 Idea inception, research and proof of concept 2017 Q2 Assembling of the team, advisors & strategic partners 2017 Q3 Preparing Whitepaper, Lite-paper and Technical Whitepaper 2017 Q4 Incorporation of Liquid8 in Singapore 2018 Q1 Start Development of Liquid8 P2P Multi-Functional Platform Launching of Liquid8 teaser site 2018 Q2 ICO Private Sale Pre – ICO Launching of Liquid8 token sale landing page 2018 Q3 ICO Public Sales Set-up a management and development hub in ASEAN Region Recruiting more blockchain specialists to the team 2018 Q4 Application of financial service licenses in ASEAN Region Launching desktop version of the Multi-Asset Wallet v1.0 Launching mobile version of Multi-Asset Wallet v1.0 2019 Q1 Launching Liquid8 P2P Social Exchange v1.0 Launching mobile version of Liquid8 P2P Social Exchange v1.0 2019 Q2 Launching Liquid8 Investment Marketplace v1.0 Launching mobile version of Liquid8 Investment Marketplace v1.0 2019 Q3 Launching of Liquid8 P2P Instant Exchange v1.0 Launching of mobile version of Liquid8 P2P Instant Exchange v1.0 Launching advanced version of Multi-Asset Wallet v2.0 Launching of mobile version of Multi-Asset Wallet v2.0 PAGE 36 2019 Q4 Application for financial service licenses in Asia Pacific and Australasia 2020 Q1 Launching of Liquid8 P2P Social Exchange v2.0 Launching of mobile version of Liquid8 P2P Social Exchange v2.0 Launching of Liquid8 P2P Instant Exchange v2.0 Launching of mobile version of Liquid8 P2P Instant Exchange v2.0 2020 Q2 Launching of Liquid8 Investment Marketplace v2.0 Launching of mobile version of Liquid8 Investment Marketplace v2.0 2020 Q3 Launching of Liquid8 P2P Lending (Collateral Lending) v1.0 Launching of mobile version of Liquid8 P2P Lending (Collateral Lending) v1.0 2020 Q4 Set up management and development hub in European Region Application for financial service licenses in European Region 2021 Q1 Launching of Liquid8 P2P Lending (Collateral Lending) v2.0 Launching of mobile version of Liquid8 P2P Lending (Collateral Lending) v2.0 2021 Q2 Launching of Liquid8 P2P Lending Platform (Collateral with Credit Line) v1.0 Launching of mobile version of Liquid8 P2P Lending (Collateral with Credit Line) v1.0 2021 Q3 Launching of Liquid8 P2P Lending Platform (Collateral with Credit Line) v2.0 Launching of mobile version of Liquid8 P2P Lending (Collateral with Credit Line) v2.0 PAGE 37 9 SUMMARY Liquid8 will develop a user-friendly P2P multi-functional platform powered by blockchain technology to provide unparalleled mobility between real-world assets and the emerging digital economy, making the platform a gateway for start-ups, community members and financial service providers to connect with each other without intermediaries, with full transparency and security. Liquid8’s aim is to help promote mainstream adoption of blockchain technologies – specifically, with the development of a peer-to-peer digital services platform that can be utilized by everyone - including newcomers and non-technical users. By eliminating the complexity of blockchain usage, we will remove a major barrier that discourages newcomers and non-technical users from being part of this latest era in the digital revolution. Liquid8 platform’s unique blockchain-based architecture will also provide advantages, such as openness, immutability, and censorship-resistance of all stored information; along with the use of smart contracts, which present an efficient, secure and transparent infrastructure for the 3 main features presented by Liquid8: tokenization, exchange and lending. The vision of Liquid8 is to: »» Provide a simplified tokenization solution for real-world assets to bridge the gap between real-world assets and the digital economy, which will be able to connect the Liquid8 community with exclusive opportunities that are typically made available only to institutional and selected investors. »» Provide guidance to the Liquid8 community, empowering them with the knowledge to differentiate between legitimate opportunities and scam or bogus schemes, through experience and information shared by carefully-selected industry experts via the Liquid8 Reviewers Program. »» Provide a digital services platform that will disrupt the traditional financial sector, with the implementation of blockchain technology to enable our community to obtain financial services through a platform that promotes simplicity, efficiency, security and transparency, while at the same time ensuring that the best benefits are passed down to our members. PAGE 38 10 LIQUID8 TEAM MEMBERS Liquid8 Management & Development Team May Sukumpeeranont Co-Founder - Chief Executive Officer Michael Lim Chief Operation Officer May holds a Degree in Engineering and Master in Business and Managerial Economics. She has demonstrated 10 years of working experience in software engineering, banking, and FinTech field. May got involved with blockchain in 2017 as she believes that blockchain technology’s unique architecture will be able to create a fair and transparent ecosystem within the financial industry. Her vision is to change the current financial la n dscape by playing her part to promote the mass adoption of Blockchain technology within the financial industry which would ultimately benefit the underserved. She has co-founded Liquid8 in 2017, which will become her first step to achieve her vision. Michael holds a Master Degree in Computer Science from Royal Melbourne Institute of Technology. He has been awarded with numerous recognitions throughout his 10 years of experience in real estate with an accumulated sales figure of over 1 billion RMB. With his wide-ranging experience with properties in the Asia Pacific region, he functioned as the previous CEO and Co-founder of GOWU in 2015 – a real estate portal that has gained popularity within 1 year after launching under his management. In 2017, the tech savvy Michael become passionate about Blockchain and decided to join Liquid8 as one of the main person within the organization, providing his insight about digitizing real estate and its potential growth in the coming future. Carl Kongka Co-Founder - Chief Technology Officer Graduated as Bachelor of Information Technology and Master of Business and Information Management and System, Carl is a goal oriented and enthusiastic IT professional who has a strong passion for Blockchain technology and the innovation it brings to improve the current financial and technology landscape. As a grad-uate of information technology, Carl had real hands-on experiences with Blockchain technology as he has been working with well known financial and technology firms for the past couple of years. He then co-founded Liquid8 early 2017, looking to help improve the current finan-cial services infrastructure with the implementation of blockchain technology. Jirawan Prempee Co-Founder - Chief Commercial Officer Jirawan is a business admin (operation management) grad with strong communication, presentation and negotiation skill. She has also been a consultant for various companies, responsible for B2C to reach business goals and initiatives. Her passion for blockchain and cryptocurrencies started since 2017, where she decided to join Liquid8 as part of the founding member. Having years of experience in business development for major property, advertising and tech firm has made her a valuable team member for Liquid8, where she will be leveraging her experiences to help the expansion of Liquid8’s platform. PAGE 39 Sudarat Suttaloon Co-Founder - Chief Research Officer Leong Hon Chan Co-Founder - Chief Investment Officer Sudarat holds a Degree in engineering, she is a professional Project Manager for a well known oil and gas company where she is in charge of project bud-geting and operations. She has strong problem-solv-ing skills with the ability to work independently and a passion for selfimprovement. With her extensive training coupled with excellent professional develop-ment, she has developed a strong interest in writing research articles. Having a strong interest in block-chain technology since 2016, she has started to get in-volved in researching for Blockchainrelated products and services prior to founding Liquid8 in early 2017. As an engineering graduate with more than 8 years of experience in consumer and commercial banking, Leong founded Finsource Sdn Bhd – a capital market advisory firm dealing with Pre-IPO, Private Equity, and Venture Capital. He is also the co-founder of an international as-set management and consulting firm named Star Wealth Management Inc. Previously, he was the Bank Manager for various banking commerce, including Public Bank, Maybank, and RHB Bank. Leong regularly appears in Malaysia Radio FM program to provide updates and comments on current economic and financial landscape. Prior to founding Liquid8 with his long-time business partners Tz and Tayri, he already had extensive experience within the financial industry that led him to become one of Fonds AAA’s Asian Regional Partner in 2017. Tayri Tay Co-Founder - Chief Marketing Officer Tayri is a finance grad from Macquarie University, Aus-tralia. He was the former Relationship Manager at HSBC and Financial Advisor at Allianz – where he managed to achieve MDRT (Million Dollar Round Table) status for 3 consecutive years from 2010 to 2012. As a finance grad-uate, he was actively involved in capital market trading and property investing since 2012 – achieving great results that led him to become Fonds AAA’s Asian Regional Partner. Tayri cofounded Liquid8 and Blockenized in 2017 due to his deep interest in cryptocurrencies and Blockchain, where he believes that there should be a balance between investing in the traditional asset class and the emerging asset class. Tionz Tay Co-Founder - Chief Strategy Officer Tz is a design grad turned capital market trader. He is a self-taught trader who has been an active capital market trader and an early stage investor for numerous start-ups and public offering companies around Asia and Aus-tralia since 2010. Brought his experiences from traditional capital market to crypto market in 2016, he is currently focusing on early stage investment in Blockchain-related start-ups. In 2017, Tz joined Fonds AAA as the Asian Regional Partner – assisting the expansion of the business within the Asian market. He also co-founded Liquid8 and Blockenized to assist in integrating quality start-up businesses with blockchain technology. PAGE 40 Anthony Georgiades Technical Development Lead Stanislav Sahniuk Blockchain Development Lead Anthony holds a Master Degree in Computer Science and Robotics from the University of Pennsylvania. He is currently the Partner at Innovating Capital – a leading technology fund based in New York where he focuses primarily on early stage investment in blockchain start-ups. In the past, he has worked with First Round Capital as a Venture Analyst – an earlystage Venture Capital firm and was a Product Manager for COSY Robotics. He was also an early investor and developer for Golem Net-work, a decentralized sharing economy for computing power built on an Ethereum based transaction system. Moreover, Anthony has always been fervent about re-searching new technologies which provided him with deep technical expertise and domain knowledge across Blockchain, Cybersecurity, Big Data, and Fintech. A self-motivated and detail oriented professional with 12 years of IT experiences, Stas holds a Master Degree in Computer Science and Robotics with expertise in web development and blockchain. He also possesses strong analytical skills and experiences to lead a project development from start to finish, drawing on his intellectual prowess and deft developmental vision to create complex applications powered by DApp architecture and blockchain technology, while ensuring the software products he developed are constantly running at maximum efficiency. Sergey Blazhko Senior Mobile Apps Developer Sergey holds a Master Degree in Computer Science and Networks. He has over 7 years of experiences in mobile application development, with a solid background in iOS SDK, Swift and Objective-C languages. He also has an extensive experiences and deep understanding of blockchain technology, which enable him to create top quality mobile applications with the integration of blockchain technology. Denys Yakovenko Front-end developer Denys holds a Master Degree in Computer Science and Networks. He is a reliable and highly motivated front-end developer with deep knowledge of block-chain technology. He has over 7 years of experience in software programming with professional skills and expertise in HTML5 / CSS3, and responsive UI, UX. Abdullah Salim Digital Marketing & Branding Lead Abdullah holds a Master of Business Administration. He is a 10-year seasoned brand and digital marketing consultant and has helped guide the marketing for cutting edge blockchain projects in the financial s e rvices industry. He connects brands with their target audiences online through strategies that are geared towards engaging their target audience, energizing them and inspiring them. Having marketed for Fortune 500 companies including Colgate Palmolive and driven several hundred businesses into digital prominence, Abdullah continues to help SMEs and brands of all sizes create a very significant digital foot print. An innovator, trendsetter and progressive thinker, Abdullah can successfully develop and evolve a brand and boost its digital visibility on all the right places on the internet. PAGE 41 Advisors Mykola Vdovychenko Legal Advisor Alexander Linenko Tokenization Advisor Mykola holds a Master of Law from Comenius Univer-sity. He is specialized in intellectual property, informa-tion technology, cyber and digital privacy (blockchain and cryptocurrencies) and personal data protection law (GDPR and local data protection acts in some of the most important jurisdictions). He also has experi-ence in providing legal advice for more than 10 block-chain-based startups during their token generation events. Alex currently holds the position of CEO at ICOyard. He is a blockchain enthusiast and entrepreneur with over 10 years experiences as an internet entrepreneur, where he founded and co-developed numerous digital marketing and blockchain products and services. He joined the blockchain industry by getting involved with crypto mining since 2015. In early 2017, he joined Cryptonomy Capital Fund to help launch its business and sub-projects, including ICObox.io and LedgerPay. Alex is also the founder and ex-CEO of SatangDee, co-founder and ex-CEO of Uptopromo and author of books and articles on internet marketing and block-chain technologies. Rumen Slavchov PR & Marketing Advisor Rumen is a crypto enthusiast who has been involved in the crypto space since 2017. He started off as an investment broker, which enable him to gain knowl-edge in term of investment opportunity and techno-logical advancement within the crypto industry. His expertise includes crypto trading, as well as providing advisory and marketing solution for blockchain-based startups during their token generation events. He has also been involved in different roles for more than 8 blockchain-based startups who has successfully con-cluded their token generation events. Andrey Korotkov ICO Business Analyst Andrey is a crypto enthusiast and an ICO marketing professional with years of experience in crypto trad-ing. He also possessed 1+ year of experience in prepa-ration and launching of ICOs. His current professional background and experience includes playing a major role in 7 ICOs that have concluded their token sale successfully. Prakash Pandey ICO advisor Harry Choong Startup Advisor Prakash Pandey is a Blockchain veteran having an in-depth understanding of the technology. He has helped more than 10 blockchain projects to launch their token sale events. His work has been featured at all the major publishing platforms including Marketwatch, Nasdaq, CNBC, USAToday, and similar venues. He holds a Bachelor of Technology Degree in Computer Science and has an extensive experience in the industry. Harry is a Business Administration graduate with strong investment background as he was a former Partner and Director of Capital Markets for Gladiolus Capital – a company who has successfully guided the underwriting of multiple public offering around Asia and Australia, Harry founded Blockcelerate in early 2017 – providing end to end services for running an ICO. He was also appoint-ed as the Engagement Lead for Electrify.asia and guided Electrify to a successful Token Sale. Harry is a serial investor in blockchainrelated start-ups, joining as one of the Advisory Board Member of Liquid8 in 2017, sharing his insight and experiences regarding the future of blockchain development. PAGE 42 Enrique Carlos Peribanez Villa Investment Strategy Advisor Benoit Thimister Investment Strategy Advisor Enrique completed engineering at Barcelona University and holds a Master Degree in Human Nutrition from Uni-versidad de Cadiz. He has extensive experience working with algorithmic trading strategies as a private trader and investor, prior to founding Desenvolupaments Algoritmics Avancats SLU in 2015, where he managed to develop numerous Expert Advisors (EA) that managed to show tremendous result. He then joined Fonds AAA, an Alternative Hedge Fund based in Luxembourg as Head of Trader. In early 2017, Enrique joined Liquid8 as part of the Advisory Board Member. He is presently providing valuable advice and expertise regarding fund manage-ment and EA development while extending his research to cryptocurrencies and Blockchain to develop a solution that could bridge the gap between the traditional managed fund and the emerging cryptocurrencies. Benoit is an engineering grad from Faculté Polytechnique de Mons and holds a Master in Business Man-agement from Ichec Brussels Management School. Since 2005, he has been actively involved in the fi-nancial industry. He is currently the General Partner of Fonds AAA, an innovative Alternative Hedge Fund based in Luxembourg and he also serves as the Senior Analyst for MGI Capital SA, which is listed as a securitization vehicle by the European Central Bank and Luxembourg. In 2017, he joined as part of Liquid8 Ad-visory Board member. Benoit’s extensive experience and proficiency in the financial industry will be invalu-able to help Liquid8 achieve its vision to become the global digital financial hub. PAGE 43 11 REFERENCES https://www.cnbc.com/2016/10/21/how-tech-will-transform-the-way-we-buy-borrow-and-sell.html https://internationalbanker.com/banking/blockchain-changing-banking-industry/ https://www.cbinsights.com/research/financial-services-corporate-blockchain-investments/ https://www.investopedia.com/terms/s/smart-contracts.asp https://www.investopedia.com/terms/p/peertopeer-p2p-service.asp https://www.nasdaq.com/article/how-tokenization-is-putting-real-world-assets-on-blockchains-cm767952 https://masterthecrypto.com/tokenization-tokens-create-liquid-world/ https://techcrunch.com/2017/08/20/yesterdays-plastics-are-todays-crypto-tokens/ https-why-tokenization-in-real-world-asset-management-aca52efedaaa https://medium.com/@apompliano/the-official-guide-to-tokenized-securities-44e8342bb24f https://www.cnbc.com/2018/01/29/stephen-mckeon-on-asset-based-tokenization.html https://medium.com/@mycoralhealth/learn-to-securely-share-files-on-the-blockchain-with-ipfs-219ee47df54c https://www.cnbc.com/2017/10/30/global-assets-under-management-to-double-by-2025-as-the-world-population-ages-study-says.html https://press.pwc.com/News-releases/global-assets-under-management-set-to-rise-to--145.4-trillion-by-2025/s/e236a-c-f15f http://www.mcguire.com/blog/2017/04/savills-world-worth/ http://dwellowner.com/u-s-real-estate-commissions-highest-in-developed-nations/ http://www.savills.com/_news/article/105347/-/1/2016/world-real-estate-accounts-for-60--of-all-mainstream-assets https://www.zillow.com/blog/cost-of-transaction-fees-143806/ http://homeguides.sfgate.com/average-down-payment-house-7372.html http://www.homebuyinginstitute.com/how-long-to-buy.php https://support.coinbase.com/customer/en/portal/articles/--how-long-does-a-sell-or-withdrawal-take-to-completehttps://lendedu.com/blog/state-of-personal-loans-in-2018/ https://cointelegraph.com/news/exponential-growth-cryptocurrency-exchanges-are-adding-100000-users-per-day https://hackernoon.com/bitconnect-anatomy-of-a-scam-61e9a395f9ed https://www.transparencymarketresearch.com/peer-to-peer-lending-market.html https://www. latoken.com https://www. blackmoonplatform.com https://www. trusttoken.com https://www. bankex.com https://www. tokenestate.io https://www. brickblock.io PAGE 44 12 LEGAL DISCLAIMER TPLEASE READ THIS DISCLAIMER SECTION CAREFULLY. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX, OR OTH-ER PROFESSIONAL ADVISOR(S). This document is issued by Liquid8. This notice applies to all persons who read this document. Please note this notice may be altered or updated at any time and such alterations shall apply immediately after publication of a new wording of this white paper on the Liquid8 website. The information set forth below may not be exhaustive and does not imply any elements of a contractual relationship. While we make every effort to ensure that any material in this document is accurate and up to date, such material in no way constitutes the provision of professional advice or call-to-action. Consult with your professional advisors before making any legally binding actions. No regulatory authority has examined or approved any of the information set out in this document. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this document does not imply that the applicable laws, regulatory requirements, or rules have been complied. To the maximum extent permitted by the applicable laws, regulations and rules, Liquid8 and its affiliates and their respective officers, employees or agents will, in relation to this document and Liquid8’s tokens, not be liable for any damages of any kind, including, but not limited to, direct, consequential, incidental, special or indirect dam-ages (including but not limited to lost profits, loss of revenue or third party loss whether foreseeable or otherwise, trading losses or damages that result from use or loss of use of our website and Liquid8’s Tokens). For the avoidance of doubt, Liquid8 expressly disclaims any and all responsibility for any direct or consequential loss or dam-age of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in this document, (ii) any error, omission or inaccuracy in any such information, (iii) any action resulting therefrom, or (iv) usage or acquisition of products, available through the website. You acknowledge and agree that you are not purchasing Liquid8’s tokens for purposes of investment, speculation, as some type of arbitrage strategy, for immediate resale or other financial purposes (including any kind of risk hedging). Liquid8’s tokens will not be intended to constitute securities of any types or forms in any jurisdiction. This white paper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. The tokens are not intended for speculation and hold no rights or claims to intellectual or other property or cash flows. PAGE 45 Liquid8 does not provide any opinion on any advice to purchase, sell, or otherwise transact with Liquid8’s tokens and the fact of presentation of this white paper shall not form the basis of, or be relied upon in connection with, any contract or investment decision. Indeed, none of the contents of this document serves as an invitation or inducement to engage in any sort of investment activity. Citizens, residents (tax, currency or otherwise), or green card holders, of the United States of America are ineligible to purchase any of Liquid8’s tokens in the Token Sale (as referred to in this document). The same pertains for residents (tax, currency or otherwise) or citizens of China and Singapore. The same also pertains for representatives and/or attorneys-in-fact that act representing natural persons and/or legal entities that are residents (tax, currency or otherwise) of the mentioned jurisdictions. This document, or any part thereof, as well as any copies, must not be taken or transmitted to any country where distribution or dissemination of it is prohibited or restricted. You are strongly advised to take independent legal advice in respect of the legality in your jurisdiction of your participation in this Token Sale. Prospective acquirers of Liquid8’s tokens should carefully consider and evaluate all risks and uncertainties associated with their purchase. In the event that you purchase tokens, your purchase cannot be refunded or exchanged. We cannot ensure that there will be any demand or market for its tokens, or that the purchase price is indicative of the market price after they have been made available for trading on any cryptocurrency exchange or market. There is no assurance of any success of the Token Sale or business platform and service that is yet to be developed as envisaged by the available information. The value of, and demand for, Liquid8’s tokens hinges heavily on the performance of the company’s platform to be developed and the continuous active engagement of its users and success of its contemplated business lines. There is no assurance that the Token Sale will be successful or that its business platform that is yet to be developed will gain or continue to gain traction. While Liquid8 has made every effort to provide a realistic estimate, there is also no assurance that the cryptocurrencies raised in the Token Sale will be sufficient for the development of the company’s business platform. For the foregoing or any other reason, the development of the company’s business plat-form and launch of the anticipated Token functionality may not be completed and there is no assurance that it will be launched at all. We recommend that you seek out independent financial, tax and legal (or other) advice before engaging in any sort of business endeavour.