The ERBB Service

1. The terms used in this Appendix shall be interpreted in accordance with the definitions given in the Appendix to the Bitbon System Public Contract Terms and Definitions in the Bitbon System Social Network.

1. The subject of this Appendix is the ERBB service terms of use.

1. This Appendix consists of the preamble, sections, chapters, which consist of articles that include parts and paragraphs. The structure of the Appendix includes references and links to the Provisions of the Bitbon System Public Contract as well as to other Appendices, which are an integral part of the Bitbon System Public Contract.

1. The ERBB service (Exchange Request for Bitbon — the ERBB service) is a base service of the Bitbon System[i], which allows transforming Bitbon units[i] into ERBB units (distributed ledger token[i] of the ERC20 standard in the Ethereum blockchain network) as well as transforming ERBB units into Bitbon units.

2. The ERBB service is a part of the Bitbon System infrastructure[i] as the initial asset[i] for Bitbon[i], which Bitbon System Users[i] (hereinafter — the “User”) have the right to use on the basis and to the extent provided in the Bitbon System Public Contract.

1. The main function of the ERBB service is popularization and development of the decentralized Bitbon System Social Network[i].

2. The ERBB service operation shall not provide for a financial benefit to the First Bitbon System Operator[i].

1. ERBB is a polyasset[i], еthe units of which circulate in information systems outside the Bitbon System[i] as standard units of the Ethereum blockchain network (distributed ledger token of the ERC20 standard) and provide their owners with the right to use the Bitbon System infrastructure.

2. The original asset[i] for the ERBB polyasset is the right to use the Bitbon System infrastructure.

3. The original asset for the ERBB polyasset is stored in the Bitbon System (outside the circulation environment of ERBB units).

4. The total number of ERBB units in the Ethereum blockchain network shall not exceed the number of Bitbon units in the Assetbox[i] of the ERBB service.

1. The ERBB service is available only to Bitbon System Users starting with the “Personal” ID Passport[i] category.

2. The ERBB service is available only to Bitbon System Users who have enabled two-factor authentication (2FA) in the security settings of their Bitbon System personal accounts[i] for at least 10 days prior to using the ERBB service functionality provided for in subparagraph 1.1 of paragraph 1 of Article 9 of this Appendix.

1. The main functionality of the ERBB service includes:

1.1. The direct transformation, which is the transformation of Bitbon units into ERBB units (distributed ledger token of the ERC20 standard in the Ethereum blockchain network).

1.2. The reverse transformation, which is the transformation of ERBB units into Bitbon units for their use in the Bitbon System Social Network.

1. The direct transformation is a process of reducing the information and applied nature of a digital asset[i] into a polyasset for a certain number of Bitbon units using the ERBB service for their circulation as an equivalent number of ERBB units in the Ethereum blockchain network.

2. The direct transformation in the ERBB service is available only to Bitbon System Users[i] who have enabled two-factor authentication (2FA) in the security settings of their Bitbon System personal accounts[i].

3. The direct transformation includes the following processes:

3.1. The Bitbon System Userlaunches the direct transformation of Bitbon units into ERBB units in the One Space[i] service.

3.2. Registration of a transaction in the Bitbon System to transfer Bitbon units to the Assetbox of the ERBB service.

3.3. Transfer of the required number of ETH units by the User to the ERBB service address in the Ethereum blockchain network to cover the transaction fee for issuing ERBB units by the ERBB service to the address in the Ethereum blockchain network specified by the User.

3.4. Waiting for the end of the guaranteed transaction completion period in the Ethereum blockchain network.

3.5. Completion of the transaction for transferring Bitbon units in the Bitbon System to the Assetbox of the ERBB service for storing and blocking such units until requested by the ERBB service as part of the reverse transformation initiated by the User.

3.6. Issue of ERBB units by the ERBB service to the address in the Ethereum blockchain network specified by the User.

4. The maximum time for the User to perform the necessary actions as part of the direct transformation is 60 minutes from the request registration.

5. If the maximum time for the User to perform the necessary actions as part of the direct transformation from the request registration is reached and for this request in the ERBB service there is no registered transaction for transferring ETN units to cover the transaction fee in the Ethereum blockchain network, the direct transformation shall be canceled and the Bitbon units involved shall become available in the User’s Assetbox.

6. If the maximum waiting time for execution of ERBB unit issue transaction to the User’s address in the Ethereum blockchain network as part of the direct transformation is reached and the transaction is not executed, the direct transformation shall be canceled.

5. If there is no transfer of ETH units to cover the transaction fee, the direct transformation will be canceled when its maximum execution time is reached, and the Bitbon units involved will become available in the User’s Assetbox.

7. In case of cancellation of the direct transformation, the service fee[i] for the transaction referred to in subparagraph 3.2 of paragraph 3 of Article 10 of this Appendix is not subject to refund or compensation.

8. After the direct transformation is complete, the User may freely dispose of the received ERBB units in the Ethereum blockchain network.

9. The requests for the direct transformation shall be processed in the order of their registration in the ERBB service.

10. If the maximum number of requests for the direct transformation specified in Article 6 of this Appendix is registered, the registration of new requests for the direct transformation shall be temporarily unavailable to Users in the ERBB service.

1. The reverse transformation is a process of changing the information and applied nature of a polyasset into a digital asset for a certain number of ERBB units using the ERBB service in order to provide access to the Bitbon System infrastructure[i] using an equivalent number of Bitbon units.

2. The reverse transformation includes the following processes:

2.1. In the One Space service, the Bitbon System User launches the transformation of ERBB units into Bitbon units, which he/she will be able to use to access the Bitbon System infrastructure.

2.2. Transfer of ERBB units to the address of the ERBB service smart contract in the Ethereum blockchain network for burning such units by the ERBB service as part of the reverse transformation initiated by the User.

2.3. Waiting for the end of the guaranteed transaction completion period in the Ethereum blockchain network.

2.4. Transfer of Bitbon units from the Assetbox of the ERBB service to the specified Assetbox of the Bitbon System User.

3. The maximum time for the User to perform the necessary actions as part of the reverse transformation is 60 minutes from the request registration.

4. If the maximum time for the User to perform the necessary actions as part of the reverse transformation from the request registration is reached and for this request in the ERBB service there is no registered transaction for transferring ERBB units to the address of the ERBB service smart contract in the Ethereum blockchain network, the reverse transformation shall be canceled.

5. If the maximum waiting time for execution of the transaction for transferring ERBB units to the address of the ERBB service smart contract in the Ethereum blockchain network as part of the reverse transformation is reached and the transaction is not executed, the reverse transformation shall be canceled.

6. If the transaction for transferring ERBB units to the address of the ERBB service smart contract in the Ethereum blockchain network is executed after the maximum waiting time for execution of this transaction by the ERBB service, the transaction shall be deemed executed outside of the reverse transformation.

7. After completion of the reverse transformation, the User may freely dispose of the received Bitbon units in the Bitbon System in particular for accessing the Bitbon System infrastructure.

1. No service fee is charged for using the ERBB service.

2. For transferring Bitbon units from the User’s Assetbox to the Assetbox of the ERBB service during the direct transformation, a service fee is charged in accordance with the Appendix to the Bitbon System Public Contract Service Fees in the Bitbon System: the Procedure for Their Deduction and Distribution.

3. For transferring Bitbon units from the Assetbox of the ERBB service to the User’s Assetbox during the reverse transformation, a service fee is charged in accordance with the Appendix to the Bitbon System Public Contract “Service Fees in the Bitbon System: the Procedure for Their Deduction and Distribution”.

1. As part of the direct transformation, the User transfers the number of ETH units set by the ERBB service from the address specified by the User to the ERBB service address in the Ethereum blockchain network to pay a transaction fee for issuing ERBB units by the ERBB service to the address specified by the User in the Ethereum blockchain network. A transaction fee in the Ethereum blockchain network is charged for transfering ETH units from the address specified by the User to the ERBB service address.

2. Due to the nature of the transaction fee formation in the Ethereum blockchain network, a transaction fee may vary from the number of ETH units transferred by the User to the ERBB service address to pay such a transaction fee at the time of issuing ERBB units by the ERBB service to the address specified by the User in the Ethereum blockchain network.

3. If a transaction fee in the Ethereum blockchain network is less than the number of ETH units transferred by the User to the ERBB service address to pay such a transaction fee at the time of issuing ERBB units by the ERBB service to the address specified by the User, then the remaining number of ETH units will be returned to the ERBB service address.

4. If the maximum waiting time for execution of the transaction for transferring ETH units to cover the transaction fee in the Ethereum blockchain network as part of the direct transformation is reached and this transaction is not executed, the direct transformation shall be canceled and the Bitbon units involved shall become available in the User’s Assetbox.

5. If the transaction for transferring ETH units to the ERBB service address to cover the transaction fee for issuing ERBB units as part of the direct transformation is executed after the maximum waiting time for execution of this transaction by the ERBB service, the transaction shall be deemed executed outside of the direct transformation.

6. If the transaction for transferring ETN units to the ERBB service address in the Ethereum blockchain network was executed outside of the direct transformation, the ETN units involved shall not be refunded or compensated.

7. The First Bitbon System Operator[i] decides to dispose of the accumulated number of ETH units at the ERBB service address.

8. If a transaction fee in the Ethereum blockchain network is higher than the number of ETH units transferred by the User to the ERBB service address to pay such a transaction fee at the time of issuing ERBB units by the ERBB units to the address specified by the User, then such transaction is registered in the transaction pool queue in the Ethereum blockchain network for processing until a transaction fee is decreased to the required value.

9. As part of the reverse transformation, the User shall cover a transaction fee of the Ethereum blockchain network for transferring ERBB units from the User’s address to the address of the ERBB service smart contract in the Etherium blockchain network as well as for their burning.

1. Amendments and/or additions to this Appendix may be made solely under the rules provided for the Appendix to the Bitbon System Public Contract Making Amendments and/or Additions to the Bitbon System Public Contract.

2. If there is any discrepancy between various versions (printed, electronic, etc.) of this Appendix, its electronic version published on the official information resources of the Bitbon System[i] shall be deemed the official one.

3. This Appendix is translated into other languages only for convenience of Users. In case of differences in understanding and/or interpretation of this Appendix, the Russian version shall prevail.

4. Only the Bitbon System Operators[i] are entitled to give an official explanation of this Appendix.

5. In accordance with Provision 2 of the Bitbon System Public Contract, this Appendix is an integral part of the Bitbon System Public Contract and comes into force after its publication on the official information resources of the Bitbon System.

6. In accordance with paragraph 3 of Provision 2 of the Bitbon System Public Contract, amendments and/or additions may be made to this Appendix only if such amendments and/or additions do not contradict the Provisions of the Bitbon System Public Contract and Appendices, which are an integral part of the Bitbon System Public Contract. Amendments and/or additions made to this Appendix shall be published on the official information resources of the Bitbon System and come into force in accordance with the Appendix to the Bitbon System Public Contract “Making Amendments and/or Additions to the Bitbon System Public Contract”.

1. The Bitbon System Operators strive to maintain uninterrupted operation of the ERBB service. By using the ERBB service, the User agrees that there is a possibility of disruptions in the operation of the Bitbon System infrastructure, which may lead to a temporary interruption of the operation and limitation of access to the functionality of the ERBB service in whole or in any part.

2. The User shall not use the ERBB service if he/she does not accept the terms and conditions established by the Bitbon System Public Contract in whole or in any part.

3. The use of the Bitbon System infrastructure shall mean agreement of the User with the terms and conditions established by the Bitbon System Public Contract.

4. At the time of launching the ERBB service, the environment for implementing the service functionality is the Ethereum blockchain network and the Bitbon System.

5. The Bitbon System Operators shall not be liable for events or activities occurring outside the Bitbon System.

6. If ERBB units have been transferred to the address of the ERBB service smart contract in the Ethereum blockchain network outside the reverse transformation, such ERBB units are burnt and are not subject to refund or compensation.

7. If ERBB units have been transferred to the address of the ERBB service smart contract in the Ethereum blockchain network outside the reverse transformation, an equivalent number of Bitbon units will be unblocked and transferred from the Assetbox of the ERBB service to the special Assetbox of the ERBB service.

8. If ERBB units have been transferred to the ERBB service address in the Ethereum blockchain network, such ERBB units are not subject to refund or compensation.

9. If Bitbon units have been transferred to the Assetbox of the ERBB service outside the direct transformation, such Bitbon units are not subject to refund or compensation and shall be transferred from the Assetbox of the ERBB service to the special Assetbox of the ERBB service.

10. If Bitbon units have been transferred to the special Assetbox of the ERBB service, such Bitbon units are not subject to refund or compensation.

11. The First Bitbon System Operator makes a decision about disposing of the accumulated number of Bitbon units in the special Assetbox of the ERBB service as well as the accumulated number of ERBB units and ETH units at the ERBB service address in the Ethereum blockchain network.

12. The First Bitbon System Operator may decide to change the environment for implementing the ERBB service functionality and/or terminate the service with a prior notice to Users on the official information resource of the Bitbon System at least 180 days prior to the entry into force of such decision.

13. The First Operator recommends not to use ERBB units as collateral in various decentralized applications (DeFi) as this is not consistent with the main function of the ERBB service, and in case the events specified in paragraph 12 of Article 15 of this Appendix occur, the User may not have sufficient time to perform the reverse transformation due to the ERBB service termination and/or change of the environment for implementing the ERBB service functionality.