Bitbon Legal Nature

One of the main distinguishing features of Bitbon[1] is its legal nature. Legislative regulation of Bitbon as an object of property rights occurs exclusively in a legal field, which ensures transparency of all processes and interaction of the Bitbon System[2] components.

The operation principle laid down in this system allows property owners (Asset owners) and the Bitbon System Users to establish and control their legal relations with the possibility of having in circulation only the right to acquire the property right to Assets. At the same time, the property itself remains in the ownership of its owner on the terms stipulated in the Projectbon Public Contract[3], solely as an object of ensuring obligations of the property owner (Asset owner) to Bitbon owners.

If we consider Bitbon as a commodity, differentiating the cost of the Bitbon identifier[4] (code) and the cost of right to acquire the right to a certain part of the property (Asset) not allocated in kind, then Bitbon as a commodity does not fall under any special status and like any other commodity Bitbon can be donated, exchanged, bought or sold.

The state can establish rules for commodity trading, as well as rules for transferring ownership of all types of property. Such rules are based on the moment of transferring the ownership of the property. This moment in the Bitbon System does not occur in relation to Assets until a certain event happens if such is stipulated by the parties in the Projectbon Public Contract of a specific project.

It should be separately emphasized that the property right to Assets may be transferred outside of the Bitbon System on the basis of contracts concluded by the property owner (Asset owner) with another person (guarantor, attorney) under the laws of the country in which jurisdiction these contractual relations are concluded, which guarantees the state protection and ensures their implementation.

1 Bitbon means a digital derivative financial instrument having an identifier and nominal value in the amount determined in accordance with the procedure stipulated by the Bitbon System Public Contract, which corresponds to a certain part of property rights to Assets designated in Bitbons or Projectbons. Any operations with Bitbon (Bitbon issuing, its transfer from one owner to another, splitting of nominal value and other operations) are recorded in the Blockchain as data that cannot be deleted or modified.

2 Bitbon System means an integral decentralized system based on the Blockchain technology, which is basically a platform for implementing Contributing under the terms and conditions of Projectbon Public Contracts of various projects and managing legal relations between the Bitbon System Users, the key component of which is Bitbon.

3 Projectbon Public Contract means a digital document of a certain class according to the classifier accepted in the Bitbon System, which defines and regulates: rights and obligations of the Contractat, Bitup-Agency and Contributors as well as the procedure, manner and conditions of their relations as three parties to the Projectbon Public Contract of a specific project; field of Projectbon use, as well as all products and operations that may be applied to Projectbon. The Projectbon Public Contract of a specific project can define the terms and procedures for Projectbon issuing, Bitbon and Projectbon transfer rules, procedure for repurchasing Projectbons from the Contributor as well as the reference to the procedure for evaluating Assets.

4 Bitbon Identifier means a unique sequence of alphanumeric characters.