Bitbon System Public Contract

Clause 1. Bitbon System Public Contract means a digital document, a basic foundation agreement between Simcord Company and all Bitbon System Participants[1], where Simcord also acts as the Bitbon System Operator[2]. This agreement identifies tasks and objectives of the Bitbon System[3], determines and establishes the basis for its development as well as stipulates a set of basic terms and conditions, fulfillment of which is mandatory for all Bitbon System Participants.

Clause 2. The Bitbon System Public Contract has been created based on the Simcord Company’s decision to issue Bitbons[4] and to launch the Bitbon System.

Clause 3. As the founder of the Bitbon System, Simcord Company shall issue 100,000,000 Bitbons in order to implement the method of management of property rights to Assets[5].

Clause 4. As the founder of the Bitbon System, Simcord Company shall transfer 70,000,000 Bitbons issued from the total number of Bitbons to the Assetbox[6] of the Bitbon Capitalization Fund[7], in accordance with Clause 3 hereof, for further distribution through affiliated partners in compliance with the terms and conditions set out in the Bitbon System White Paper.

Clause 5. The entire Bitbon amount that will not have been used by the Bitbon Capitalization Fund by October 10, 2018, in accordance with Clause 4[i], remains in the Assetbox of the Bitbon Capitalization Fund for automatic Contributing by the Bitbon Capitalization Fund in order for Bitbon to be backed by real Assets for the benefit of all Bitbon System Users[8].

Clause 6. As the founder of the Bitbon System, Simcord Company reserves 30,000,000 Bitbons in its Assetbox from the total number of Bitbons issued in accordance with Clause 3[i] hereof to use them as the Bitbon System User for the creation and implementation of innovative solutions as well as support, update and development of the intellectual, software and hardware infrastructure of the Bitbon System.

Clause 7. The Bitbon System launch is the moment when the Bitbon System Public Contract comes into force.

Clause 8. The Bitbon System Public Contract shall come into force on March 10, 2018.

Clause 9. The Bitbon System Public Contract consists of Clauses and separate Appendices. The structure of the Bitbon System Public Contract foresees footnotes and links to separate Appendices, which are an integral part hereof. No other Appendices adopted in the Bitbon System can contradict by their nature the Clauses of the Bitbon System Public Contract.

Clause 10. The Bitbon System Public Contract and all the Appendices, which are an integral part hereof, shall be subject to mandatory publication on the official information resources of the Bitbon System.

Clause 11. The Bitbon System Public Contract includes Clauses and mentioned below separate Appendices, which are an integral part hereof and come into force only after publication on the official information resources of the Bitbon System:

  • “Terms and Definitions in the Bitbon System” (published)
  • “Properties and Attributes of Bitbon and Projectbon[9](published)
  • Bitbon Capitalization Fund” (being prepared…)
  • “Rules of Contributing[10](being prepared...)
  • Bitbon System Operator” (being prepared...)
  • “Mining in the Bitbon System” (being prepared...)
  • “Digital Mutual Settlement Payments for Goods and Services in the Bitbon System” (being prepared…)
  • “Making Amendments and/or Additions to the Bitbon System Public Contract” (being prepared…)
  • “Resolving Disputes Between the Bitbon System Participants” (being prepared…)
  • “Resolving Bitbon and/or Projectbon Inheritance Issues in the Bitbon System” (being prepared...)
  • “Restoring Users’ Access to the Bitbon System” (being prepared...)
  • “Anti-Money Laundering Provisions” (being prepared…)
  • “Privacy Policy in the Bitbon System” (being prepared…)
  • “Policy of Rights and Freedoms of the Bitbon System Participants” (being prepared…)

Clause 12. The Bitbon System Public Contract has the highest legal force, direct effect and is applied within the Bitbon System. This document regulates interaction among all Bitbon System Participants as well as interaction of each Bitbon System Participant and Bitbon System Operators.

Clause 13. Amendments and/or additions may be made to the Bitbon System Public Contract only if such amendments and/or additions do not contradict Clauses and Appendices of the Bitbon System Public Contract, which are an integral part hereof, and solely in the manner described in the Appendix “Making Amendments and/or Additions to the Bitbon System Public Contract”.

Clause 14. The Bitbon System is an integral decentralized system based on the Blockchain[11] technology, which is basically a platform for implementing Contributing under the terms and conditions of Bitbon Public Contracts[12] of various projects and managing legal relations between the Bitbon System Users, the key component of which is Bitbon.

Clause 15. The Bitbon System is related to information technology intended to be used in the financial and law fields, for business management, management of rights to Assets, evaluation of property rights to Assets, transfer of property rights to Assets of various types, including movable and immovable property, machinery and production equipment, bank deposits, copyrights, financial instruments, securities, know-how, trademarks, shares in statutory funds and in other companies, shares in various projects with legal entities and individuals and other assets designated in Bitbons.

Clause 16. No other ideology can be established in the Bitbon System except for the one presented on the official information resources of the Bitbon System.

Clause 17. The Bitbon System belongs to all Bitbon System Users. No person shall claim superiority and establish any form of control in the Bitbon System since all Bitbon System Users have equal rights.

Clause 18. The status of a Bitbon System Participant can be obtained by anyone who directly performed an action, which entailed an event in the Bitbon System.

Clause 19. Simcord Company shall not claim any rights to Bitbons, which it does not own.

Clause 20. The Bitbon System User has the right to own, use and dispose of his/her Bitbons, at his/her sole discretion, within the requirements of country’s legislation of which he/she is a resident.

Clause 21. When the Bitbon System User transfers any part of his/her Bitbons to another Bitbon System User, such a User receives all the rights of the previous Bitbon owner in proportion of the transferred part, which are stipulated by the Bitbon System Public Contract.

Clause 22. Bitbon ownership does not oblige the Bitbon System User to participate in Contributing.

Clause 23. Contributing starts when a separate Appendix “Rules of Contributing”, which is an integral part hereof, is published on the official information resource of the Bitbon System.

Clause 24. The principle laid down in Contributing allows the Contractat[13] (Asset owner) and the Bitbon System Participants to establish and control their legal relations with the possibility of having in circulation only the right to acquire the property right to Assets designated in Bitbons or Projectbons. At the same time, the property itself remains in the ownership of its owner on the terms stipulated in the Bitbon Public Contract of a specific project solely as an object of ensuring obligations of the Contractat to Bitbon or Projectbon owners.

Clause 25. The Bitbon Capitalization Fund is an integral component of the Bitbon System and belongs to all Bitbon System Users in parts equal to the Bitbon amount in the Assetboxes of these Users.

Clause 26. The purpose of the Bitbon Capitalization Fund is to provide a mechanism that allows Bitbon System Users to directly manage the Bitbon System in the interests of all its Participants in order to increase the volume of the Bitbon Capitalization that is generated through automatic Contributing of the Bitbon Capitalization Fund.

Clause 27. The Bitbon backing is made from the aggregate rights of the Bitbon System Users to the Contractats’ Assets as well as from the assets of the Bitbon Capitalization Fund obtained in the process of automatic Contributing and in accordance with Clause 5[i] hereof.

Clause 28. The Bitbon liquidity is generated on the market based on supply and demand as a result of interaction among the Bitbon System Participants in the process of Contributing and mutual settlement payments between the Bitbon System Users, in particular, due to the nature of the Bitbon backing.

Clause 29. The Bitbon System allows Bitbon issue exceeding the amount specified in Clause 3[i] hereof in the following processes:

  • IBO (Initial Business Offering);
  • SFO (Supplementary Financing Offering);
  • APG (Automatic Project Grant).

Bitbons are issued exclusively in favor of the Bitbon Capitalization Fund for the purpose of its participation in automatic Contributing based on the certain classes of Bitbon Public Contracts of specific projects. The moment of Bitbon issuing comes when the Bitbon Capitalization Fund cannot serve its purpose in accordance with Clause 26[i] hereof. In case, when the Bitbon Capitalization Fund is able to serve the above-mentioned purpose, no need exists to issue Bitbons, since it means that the Fund has sufficient amount of Bitbons in its Assetboxes to participate in automatic Contributing.

Clause 30. The Bitbon System prohibits creating Bitbon Public Contracts of specific projects, the terms and conditions of which may be classified as loan interest (debt interest or credit interest), which is designated in Bitbons or in some other form of financial liabilities.

Clause 31. The Bitbon System Participants undertake to follow the principle of solidarity within the Contributing process, the main point of which is the joint interest of the parties when implementing the Bitbon Public Contract of a specific project.

Clause 32. Legal relations between property owners (Assets owners) and owners of the right to acquire the property right (Bitbon or Projectbon owners) are regulated on the basis of the “Rules of Contributing” as well as on the basis of the terms and conditions of Bitbon Public Contracts of specific projects, which, by their nature, are one of the types of digital documents (Offer[14]) permitted by all legal states.

Clause 33. The Bitbon System provides an opportunity for all Bitbon System Users to make mutual settlement payments for goods and services in accordance with the Appendix “Digital Mutual Settlement Payments for Goods and Services in the Bitbon System”, which is an integral part hereof.

Clause 34. The Bitbon System shall not regulate the relations among the Bitbon System Participants, which are not explicitly listed in the Bitbon System Public Contract or Bitbon Public Contracts of specific projects. Such relations are built outside the Bitbon System based on the laws of those countries whose residents participants of these relations are.

Clause 35. All disputes between the Bitbon System Participants shall be resolved in accordance with the procedure established in the Appendix “Resolving Disputes Between the Bitbon System Participants”, which is an integral part hereof.

Clause 36. The Bitbon System Participant in the status of a Bitbon System Operator shall conduct activity aimed at organizing and automating the technological interaction among all Bitbon System Participants by providing access to the single digital space for all Bitbon System Participants and all necessary tools for conducting activity within the Bitbon System, thus ensuring integrity and functionality of the Bitbon System.

Clause 37. The Bitbon System Operators shall interact with each other regularly in order to upgrade digital processes for supporting and developing the IT infrastructure of the Bitbon System.

Clause 38. The Bitbon System Operators shall monitor compliance with the rules of fair and free competition among the Bitbon System Participants in accordance with the terms and conditions stipulated in the Bitbon System Public Contract, and the Appendix “Bitbon System Operator”, which is an integral part hereof.

Clause 39. The Bitbon System Operators undertake obligations to inform all Bitbon System Participants about amendments and additions to the Bitbon System Public Contract stipulated in Clause 13[i] hereof on the official information resources.

Clause 40. The Bitbon System Operators, by fulfilling their obligations in accordance with Clause 36[i] hereof, strive to automate all processes in the Bitbon System, ensuring fulfillment of all Clauses of the Bitbon System Public Contract through software algorithms — blockchain-based Smart Contracts that are subject to mandatory open Audit[15] if such an Audit does not threaten the functional integrity of the Bitbon System.

Clause 41. The activity of the Bitbon System Participant may be suspended only in cases of improper or fraudulent use of the Bitbon System, which are expressly stipulated in the Bitbon System Public Contract or in the Appendices, which are an integral part hereof.

Clause 42. The Bitbon System does not impose any restrictions on selecting one or more types of activity by the Bitbon System Participant. Each Bitbon System Participant has the right to undertake one or more types of activity as well as to replace one activity with another, at his/her sole discretion, in the event that it does not contradict the Bitbon Public Contract of a specific project and the Bitbon System Public Contract as a whole.

Clause 43. The official information resources of the Bitbon System are not intended and cannot contain any advertising materials of companies and projects for the purpose of obtaining commercial benefits, except for statistical information related to the Blockchain functioning, Bitbon Capitalization and Contractats’ projects submitted in the general procedure.

Clause 44. As the founder of the Bitbon System, Simcord Company establishes in its own favor remuneration designated exclusively in Projectbons[i] in the amount of 10% of the Bitbon Capitalization Fund’s shares, i.e. the shares which have been received in Projectbons in the process of automatic Contributing, in accordance with the classes of Bitbon Public Contracts.

Clause 45. The Bitbon System Participant in the status of a Bitup-Agency[16], being one of the parties to the Bitbon Public Contract of a specific project, undertakes obligations to fully supervise implementation of the Contractat’s[i] project in the Bitbon System, representing and protecting the Contributors’[17] interests. As the founder of the Bitbon System, Simcord Company establishes remuneration designated exclusively in Projectbons in favor of the Bitbon System Participant having the status of a Bitup-Agency in the amount of 10% of the Bitbon Capitalization Fund's share, i.e. the share which has been received in Projectbons in the process of automatic Contributing, in accordance with the class of the Bitbon Public Contract of a specific project that the given Bitup-Agency supervises.

Clause 46. In the Bitbon System, in accordance with Clause 34[i] hereof, the Bitbon System Participant in the status of a Bitup-Agency has the right to independently determine the cost of services for performing the basic functions[i] of the Bitup-Agency while preparing for the IBO (Initial Business Offering) as well as for further servicing the Contractat’s activities provided that the Contractat fulfills his/her obligations under the terms and conditions of the Bitbon Public Contract of a specific project that the given Bitup-Agency supervises.

Clause 47. The Bitbon System Participant in the status of a Promoter of Bitbon Public Contracts[18] undertakes obligations to provide full range of mechanisms on the public internet resources he/she owns to implement the IBO (Initial Business Offering) and Contributing processes. As the founder of the Bitbon System, Simcord Company in favor of all Bitbon System Participants in the status of a Promoter of Bitbon Public Contracts establishes remuneration designated exclusively in Projectbons in the amount of 10% of the Bitbon Capitalization Fund's share, i.e. the share which has been received in Projectbons in the process of automatic Contributing, in accordance with the class of Bitbon Public Contracts of specific projects. The established remuneration is distributed among Promoters of Bitbon Public Contracts in proportion to the amount of Projectbons that Contributors have exchanged for Bitbons using the mechanisms for implementation of the IBO and Contributing provided separately by each Promoter of Bitbon Public Contracts.

Clause 48. Under the terms and conditions of the Bitbon Public Contract of his/her project, the Bitbon System Participant in the status of a Contractat may determine the amount of remuneration designated in Bitbons in favor of Promoters of Bitbon Public Contracts in the Contributing[i] process.

Clause 49. The Bitbon System Participant in the status of a Bitbon System Miner undertakes obligations to participate in supporting and developing the decentralized environment of the Bitbon System functioning, by allocating for these purposes his/her computing resources, amount of memory for long-term storage of information, which is under control of the Blockchain technology, thus, ensuring the reliable bandwidth of the Internet channel. As the founder of the Bitbon System, Simcord Company establishes remuneration in favor of all Bitbon System Participants in the status of a Bitbon System Miner in the amount of 10% of the Bitbon Capitalization Fund’s benefit obtained from Contributing over a certain time period and designated exclusively in Bitbons. The established remuneration designated in Bitbons is distributed among the Bitbon System Miners in proportion to the results received based on the number of resources used by each Bitbon System Miner separately, taking into account their technical properties and characteristics, including the quality and speed of the Internet channel, processing time and the amount of memory for long-term storage of information.

Clause 50. Clauses and Appendices of the Bitbon System Public Contract, including amendments and additions, which have not been published, are not applied to the Bitbon System. Any amendments and/or additions to the Bitbon System Public Contract cannot be accepted and cannot be applied unless they are published on the official information resources of the Bitbon System, which are publicly available to all Bitbon System Participants.

Clause 51. Amendments and/or additions to the Clauses of the Bitbon System Public Contract and to separate Appendices, which are an integral part hereof and have been brought to the attention of the Bitbon System Participants in any way not provided for by Clause 13[i] of this Contract, are void.

Clause 52. The activity of the Bitbon System Participants, whose purposes and actions are aimed at violating the Bitbon System integrity and/or making amendments and/or additions to the Bitbon System Public Contract in any way not provided for in Clause 13[i] hereof, is prohibited.

Clause 53. In accordance with Clause 17[i] of this Contract and the Appendix “Resolving Bitbon and/or Projectbon Inheritance Issues in the Bitbon System”, which is an integral part hereof, the Bitbon System applies the principle of awareness by the Bitbon System Users that their Assets designated in Bitbons and/or Projectbons are in fact the Assets of the Bitbon System they are part of.

Clause 54. After the present Contract comes into force, the Bitbon System shall develop under the terms of the transition period. Under these terms the Bitbon System Participants shall empower Simcord Company to take the following actions:

  • During the transition period, to perform duties of the Bitbon System Operator.
  • During the transition period, to make amendments and/or additions to the Bitbon System Public Contract stipulated in Clause 13[i] hereof.
  • During the transition period, prepare and publish all the Appendices of the Bitbon System Public Contract, in accordance with Clause 11[i] hereof, in the order of priority of their applying to the Bitbon System.
  • During the transition period, Simcord Company seeks to transfer part of its powers to the Bitbon System Participants in the status of a Bitbon System Operator.

Clause 55. In general, the activity of Simcord Company is based on the ideology laid down in the Bitbon System and in the core principle stated in the Company’s mission — to create and transfer a tool to the humankind that will entirely change the vector of its development as well as the sense and way of life, providing everyone with an opportunity to realize his/her potential. Based on the above, Simcord Company has determined, that if the total number of the Bitbon System Operators in the Bitbon System exceeds 1,345 (one thousand three hundred and forty-five), Simcord Company shall make a decision to terminate the terms of transition period, which means the transition of the Bitbon System to fully decentralized management by its Users only.

TERMS AND DEFINITIONS OF THE Bitbon SYSTEM PUBLIC CONTRACT

1 Bitbon System Participant means an individual, i.e., a person, a participant of civil and other legal relations (holder of rights and obligations), or a Company (legal entity registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer), or a Company consolidation (any company consolidation registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer) that have directly performed an action, which has entailed an event within the Bitbon System.

Bitbon System Participant means an individual, i.e., a person, a participant of civil and other legal relations (holder of rights and obligations), or a Company (legal entity registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer), or a Company consolidation (any company consolidation registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer) that have directly performed an action, which has entailed an event within the Bitbon System.

2 Bitbon System Operator means a Bitbon System Participant, who has the right to conduct activity in the Bitbon System aimed at organizing technological interaction between all Bitbon System Participants by providing them with access to the single digital space and making available all the tools necessary for conducting activity within the Bitbon System, thus ensuring integrity and functionality of the Bitbon System.

Bitbon System Operator means a Bitbon System Participant, who has the right to conduct activity in the Bitbon System aimed at organizing technological interaction between all Bitbon System Participants by providing them with access to the single digital space and making available all the tools necessary for conducting activity within the Bitbon System, thus ensuring integrity and functionality of the Bitbon System.

3 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 Bitbon Public Contracts of various projects and managing legal relations between the Bitbon System Users, the key component of which is Bitbon.

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 Bitbon Public Contracts of various projects and managing legal relations between the Bitbon System Users, the key component of which is Bitbon.

4 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 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.

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 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.

5 Assets mean property that is legally owned by the Bitbon System User, including real estate, bank deposits, machinery and production equipment, securities, patents, trademarks, know-how, shares in statutory funds and in other companies, shares in various projects with legal entities and individuals, Bitbons or Projectbons of another Bitbon System User and other assets.

Assets mean property that is legally owned by the Bitbon System User, including real estate, bank deposits, machinery and production equipment, securities, patents, trademarks, know-how, shares in statutory funds and in other companies, shares in various projects with legal entities and individuals, Bitbons or Projectbons of another Bitbon System User and other assets.

6 Assetbox means a record (cell) with a unique alphanumeric identifier created by the Bitbon System User in the Blockchain for storing his/her own Bitbons or Projectbons and transferring them to other Bitbon System Users as well as for receiving Bitbons and Projectbons from other Bitbon System Users.

Assetbox means a record (cell) with a unique alphanumeric identifier created by the Bitbon System User in the Blockchain for storing his/her own Bitbons or Projectbons and transferring them to other Bitbon System Users as well as for receiving Bitbons and Projectbons from other Bitbon System Users.

7 Bitbon Capitalization Fund means a component of the Bitbon System whose Assets are designated in Bitbons and Projectbons and which, like the Bitbon System as a whole, belongs to all Bitbon System Users in parts equal to the Bitbon amount in the Assetboxes of these Users. The purpose of the Bitbon Capitalization Fund is to provide a mechanism that allows the Bitbon System Users to directly manage the Bitbon System in the interests of all its participants in order to increase the volume of the Bitbon Capitalization that is generated through automatic Contributing of the Bitbon Capitalization Fund to Projectbons of specific projects on the basis of their admission to the IBO (Initial Business Offering) by Bitup-Agencies.

Bitbon Capitalization Fund means a component of the Bitbon System whose Assets are designated in Bitbons and Projectbons and which, like the Bitbon System as a whole, belongs to all Bitbon System Users in parts equal to the Bitbon amount in the Assetboxes of these Users. The purpose of the Bitbon Capitalization Fund is to provide a mechanism that allows the Bitbon System Users to directly manage the Bitbon System in the interests of all its participants in order to increase the volume of the Bitbon Capitalization that is generated through automatic Contributing of the Bitbon Capitalization Fund to Projectbons of specific projects on the basis of their admission to the IBO (Initial Business Offering) by Bitup-Agencies.
Clause 4. As the founder of the Bitbon System, Simcord Company shall transfer 70,000,000 Bitbons issued from the total number of Bitbons to the Assetbox of the Bitbon Capitalization Fund, in accordance with Clause 3 hereof, for further distribution through affiliated partners in compliance with the terms and conditions set out in the Bitbon System White Paper.

8 Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.

Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
Clause 3. As the founder of the Bitbon System, Simcord Company shall issue 100,000,000 Bitbons in order to implement the method of management of property rights to Assets.

9 Projectbon means a derivative instrument from a specific class of the Bitbon Public Contract intended for Contributing, which has unique attributes and properties with the ability to circulate only in the Bitbon System under the terms and conditions specified in the Bitbon Public Contract of a specific project. Projectbon represents obligations of the Contractat to the Bitbon System Users expressed in a legal form as well as an actual opportunity to monitor the fulfillment of obligations of the Bitbon System Users as a whole.

Projectbon means a derivative instrument from a specific class of the Bitbon Public Contract intended for Contributing, which has unique attributes and properties with the ability to circulate only in the Bitbon System under the terms and conditions specified in the Bitbon Public Contract of a specific project. Projectbon represents obligations of the Contractat to the Bitbon System Users expressed in a legal form as well as an actual opportunity to monitor the fulfillment of obligations of the Bitbon System Users as a whole.

10 Contributing means a type of activity of a Bitbon System User aimed at receiving additional income from participation in the implementation of the selected business project under the terms and conditions of the Bitbon Public Contract of this project. The Contributing process starts when the User exchanges available Bitbons for Projectbons. The value of the Contributor’s Benefit is directly proportional to his/her share in Projectbons. The benefits of Contributing are shown as the income received in accordance with the amount of Projectbons that the Contributor is entitled to dispose of, at his/her sole discretion, at any stage of the business project implementation.

Contributing means a type of activity of a Bitbon System User aimed at receiving additional income from participation in the implementation of the selected business project under the terms and conditions of the Bitbon Public Contract of this project. The Contributing process starts when the User exchanges available Bitbons for Projectbons. The value of the Contributor’s Benefit is directly proportional to his/her share in Projectbons. The benefits of Contributing are shown as the income received in accordance with the amount of Projectbons that the Contributor is entitled to dispose of, at his/her sole discretion, at any stage of the business project implementation.

11 Blockchain means a public distributed ledger, which constitutes a sequential chain of generated transaction blocks built according to certain rules. At the same time, each subsequent block of the structure contains information about the previous block, so on the whole, the chain stores the entire history of completed transactions.

Blockchain means a public distributed ledger, which constitutes a sequential chain of generated transaction blocks built according to certain rules. At the same time, each subsequent block of the structure contains information about the previous block, so on the whole, the chain stores the entire history of completed transactions.

12 Bitbon 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 Bitbon Public Contract of a specific project; field of Projectbon use as well as all products and operations that may be applied to Projectbon. The Bitbon 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.

Bitbon 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 Bitbon Public Contract of a specific project; field of Projectbon use as well as all products and operations that may be applied to Projectbon. The Bitbon 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.

13 Contractat means a company (legal entity registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer), or an individual, i.e. a person, participant of civil and other legal relations (holder of rights and obligations). The Contractat initiates creation of the Bitbon Public Contract of his/her own project, which is accepted into the Bitbon System on the basis of admission to the IBO (Initial Business Offering) by the Bitup-Agency.

Contractat means a company (legal entity registered and operating in accordance with the requirements of jurisdiction of which it is a taxpayer), or an individual, i.e. a person, participant of civil and other legal relations (holder of rights and obligations). The Contractat initiates creation of the Bitbon Public Contract of his/her own project, which is accepted into the Bitbon System on the basis of admission to the IBO (Initial Business Offering) by the Bitup-Agency.
Clause 5. The entire Bitbon amount that will not have been used by the Bitbon Capitalization Fund by October 10, 2018, in accordance with Clause 4, remains in the Assetbox of the Bitbon Capitalization Fund for automatic Contributing by the Bitbon Capitalization Fund in order for Bitbon to be backed by real Assets for the benefit of all Bitbon System Users.
Clause 26. The purpose of the Bitbon Capitalization Fund is to provide a mechanism that allows Bitbon System Users to directly manage the Bitbon System in the interests of all its Participants in order to increase the volume of the Bitbon Capitalization that is generated through automatic Contributing of the Bitbon Capitalization Fund.

14 Offer means a proposal to close a transaction, in which the core terms of the contract are stated; it is addressed to a certain person, a limited or unrestricted circle of persons. If the recipient (addressee) accepts the offer (agrees to it), it means the proposed contract between the parties has been concluded on the terms stipulated in the offer.

Offer means a proposal to close a transaction, in which the core terms of the contract are stated; it is addressed to a certain person, a limited or unrestricted circle of persons. If the recipient (addressee) accepts the offer (agrees to it), it means the proposed contract between the parties has been concluded on the terms stipulated in the offer.
Clause 13. Amendments and/or additions may be made to the Bitbon System Public Contract only if such amendments and/or additions do not contradict Clauses and Appendices of the Bitbon System Public Contract, which are an integral part hereof, and solely in the manner described in the Appendix “Making Amendments and/or Additions to the Bitbon System Public Contract”.
Clause 36. The Bitbon System Participant in the status of a Bitbon System Operator shall conduct activity aimed at organizing and automating the technological interaction among all Bitbon System Participants by providing access to the single digital space for all Bitbon System Participants and all necessary tools for conducting activity within the Bitbon System, thus ensuring integrity and functionality of the Bitbon System.

15 Audit means a procedure for independent verification and assessment of financial statements, accounting data and the organization’s activity as well as of the system, process, project or product.

Audit means a procedure for independent verification and assessment of financial statements, accounting data and the organization’s activity as well as of the system, process, project or product.

16 Bitup-Agency means a Bitbon System Participant, which has the right to make a decision on the admission of the Contractat’s project to the IBO (Initial Business Offering) and to supervise its implementation in the Bitbon System under the terms and conditions of the Bitbon Public Contract of a specific project by representing and protecting the Contributors’ interests.

Bitup-Agency means a Bitbon System Participant, which has the right to make a decision on the admission of the Contractat’s project to the IBO (Initial Business Offering) and to supervise its implementation in the Bitbon System under the terms and conditions of the Bitbon Public Contract of a specific project by representing and protecting the Contributors’ interests.

17 Contributor means a Bitbon System User who exchanges his/her Bitbons for Projectbons to receive a certain amount of benefit from Contributing and thereby participates in the implementation of the selected business project.

Contributor means a Bitbon System User who exchanges his/her Bitbons for Projectbons to receive a certain amount of benefit from Contributing and thereby participates in the implementation of the selected business project.
Clause 34. The Bitbon System shall not regulate the relations among the Bitbon System Participants, which are not explicitly listed in the Bitbon System Public Contract or Bitbon Public Contracts of specific projects. Such relations are built outside the Bitbon System based on the laws of those countries whose residents participants of these relations are.

Basic functions of the Bitup-Agency:

1. Provision of consulting services to the Bitbon System Participants regarding business projects at all stages of their implementation.

2. Evaluation of the Contractat’s business project to determine the validity of the proposed business model.

3. Preparation and supervision of the business plan in accordance with the basic international rules of conducting commercial activity.

4. Drawing up the terms and conditions of the Bitbon Public Contract of a specific project in accordance with the business plan approved by the Contractat.

5. Admission of the Contractat’s project to the IBO and supervision of its implementation in the Bitbon System.

6. Control of the Bitbon distribution at all stages of the business project implementation and fulfillment of all obligations by the Contractat under the terms and conditions of the Bitbon Public Contract of this project.

7. Legal support of the Contractat (consulting and supervision of the business-project in the jurisdiction where this business project is being implemented).

8. Provision of additional information during the IBO process at the request of the Contributor, which confirms the validity of the Contractat’s business plan.

9. Controlling the fulfillment of the Contractat’s obligations to the Contributors under the terms and conditions of the Bitbon Public Contract of a specific project.

18 Promoter of Bitbon Public Contracts means a Bitbon System Participant, who has the right in the Bitbon System to provide full range of mechanisms on his/her public internet resources to implement the iBO (Initial Business Offering) and Contributing processes.

Promoter of Bitbon Public Contracts means a Bitbon System Participant, who has the right in the Bitbon System to provide full range of mechanisms on his/her public internet resources to implement the iBO (Initial Business Offering) and Contributing processes.
Clause 17. The Bitbon System belongs to all Bitbon System Users. No person shall claim superiority and establish any form of control in the Bitbon System since all Bitbon System Users have equal rights.
Clause 11. The Bitbon System Public Contract includes Clauses and mentioned below separate Appendices, which are an integral part hereof and come into force only after publication on the official information resources of the Bitbon System:

  • “Terms and Definitions in the Bitbon System”
  • “Properties and Attributes of Bitbon and Projectbon”
  • Bitbon Capitalization Fund”
  • “Rules of Contributing”
  • Bitbon System Operator”
  • “Mining in the Bitbon System”
  • “Digital Mutual Settlement Payments for Goods and Services in the Bitbon System”
  • “Making Amendments and/or Additions to the Bitbon System Public Contract”
  • “Resolving Disputes Between the Bitbon System Participants”
  • “Resolving Bitbon and/or Projectbon Inheritance Issues in the Bitbon System”
  • “Restoring Users’ Access to the Bitbon System”
  • “Anti-Money Laundering Provisions”
  • “Privacy Policy in the Bitbon System”
  • “Policy of Rights and Freedoms of the Bitbon System Participants”