FAQs

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Here you will find answers to the most frequently asked questions received by our Customer Support. Our specialists have compiled exhaustive explanations that will help you to quickly understand processes that take place in the Bitbon System as well as peculiarities of using Bitbons in order to receive your own benefit at all stages of the Bitbon System development.
1.
What is the Bitbon System software?

During the first stage of its development, the Bitbon System[i] uses the Blockchain[i] architecture based on the modified Ethereum client with additional tools and utilities designed for vertical and horizontal scaling of the decentralized application network. This approach allowed achieving the Blockchain network performance of up to 1,000 transactions per second.

In addition, the Bitbon System software includes such a component as Bitbon Transfer as well as simple interfaces for Users[i] and APIs for integration of Partners.

Bitbon Transfer provides the ability to transfer Bitbons[i] to other Users by means of a protection code, which has an adjustable validity period; it also provides cold storage of Bitbons and additional protection of transfers between Assetboxes[i] by means of a four-digit PIN code — BTSC (Bitbon Transfer Security Code). When carrying out transactions, Bitbon Transfer uses several security systems built into the nodes of the Bitbon System Blockchain and implemented using the zero-knowledge proof algorithm (zk-SNARKs). The Bitbon Transfer component allows transferring Bitbons between Assetboxes without any commission charged.

Overall, the Bitbon System software provides ready-made and universal solutions for the activity of Users and Partners ensuring a high level of security and reliability due to the decentralized network infrastructure.

During the further stages of its development, the entire Bitbon System will be transferred to its own Simcord Blockchain, which will significantly increase the network scalability and, therefore, the performance and functionality of the Bitbon System as a whole.

You can get more information on the stages of the Bitbon System development in the Bitbon System White Paper.

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.
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.
Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
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.
2.
Who develops the Bitbon System software?

The Bitbon System[i] software is developed by Simcord Company, which specializes in developing and producing high-load software solutions based on the Blockchain[i] technology.

You can find all additional information on the strategy, area of expertise and much more on the Simcord official website by following the link www.simcord.com.

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.
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.
3.
Will the Bitbon System software be released under an open-source license?

During the second stage of the Bitbon System[i] development, in accordance with the information published in the Bitbon System White Paper, Simcord plans to release software under an open-source license in order to attract third-party developers and fully implement all Clauses of the Bitbon System Public Contract, which, in its turn, will mean the transition of the Bitbon System to the completely decentralized management by its Users[i] only, in accordance with Clause 55[i] of the Bitbon System Public Contract.

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 User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
4.
Why does Simcord use a separate version of the Ethereum Blockchain?

The decision to use a separate version of the Ethereum Blockchain[i] during the early development stages of the Bitbon System[i] offers the following advantages:

  1. Such an approach allowed the Company to significantly shorten the terms for implementing the first stages of the Bitbon System development. Taking the most reliable and stable version of the Ethereum Blockchain as a basis, the Company was able to concentrate its efforts on improving the safety, speed and reliability of the Blockchain operation.
  2. It gave the Company an opportunity to significantly increase the development speed of new Bitbon System services due to maturity of the Ethereum technology, availability of many ready-made solutions and products, tools for development, and adoption of such standards as Enterprise Ethereum Client Specification.
  3. The Bitbon System Users[i] receive all the benefits of the Blockchain, which has already eliminated a number of drawbacks inherent in the original Ethereum version and other blockchain-based platforms of the 1st and 2nd generations.
  4. Development of technical solutions based on a separate version of the Ethereum Blockchain allowed maintaining the uniqueness of the Bitbon System and ensured integration of the best software and algorithmic solutions in accordance with the the Bitbon System development plan.
  5. The high level of information security in the Bitbon System reduces threats, which are typical for the original platform and makes attempts of theft, hacker and DDoS attacks pointless. The multi-level information security in the Bitbon System has been achieved through the development of additional modules and algorithms based on a separate version of the Ethereum Blockchain.
  6. Such an approach to creating the Bitbon System software components will allow the Company to use the knowledge and experience received by the entire Ethereum community in order to implement the best solutions when developing Simcord own Blockchain according to the Bitbon System development plan.
  7. The current level of technical implementation of the Bitbon System allows storing alias, icon and public service information in the Blockchain for Bitbon[i] transfers and other services in the Bitbon System, which is impossible in the original version of the Ethereum Blockchain and other similar platforms.
  8. In accordance with Clause 1[i] of the Bitbon System Public Contract, Simcord as the Bitbon System Operator[i] can effectively control and improve the Bitbon System, which allows ensuring its smooth operation, increasing the Bitbon System efficiency and functionality, responding to the most current challenges of the industry in a timely manner.
  9. At the same time, the Bitbon System transparency fully supports the philosophy of decentralization and publicity.

Based on the above-mentioned information, the decision to use a separate version of the Ethereum Blockchain is the most appropriate approach to implementing the Bitbon System development plan during the first stages described in the Bitbon System White Paper.

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.
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 User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
Clause 1. Bitbon System Public Contract means a digital document, a basic foundation agreement between Simcord Company and all Bitbon System Participants, where Simcord also acts as the Bitbon System Operator. This agreement identifies tasks and objectives of the Bitbon System, 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.
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.
5.
As a Bitbon owner, can I download and keep the full version of the Bitbon System Blockchain?

Yes, you can. Taking into account the current trends and significance of the transparency policy in the decentralized Blockchain platforms, in accordance with Clause 36[i] of the Bitbon System Public Contract, we plan to launch a special Bitbon Blockchain Viewer application in August 2018 in order to increase the Users’[i] confidence in the Bitbon System[i] as a whole.

Features of the Bitbon Blockchain Viewer application:

  • downloading, storing and updating of the Bitbon System Blockchain[i] up to the latest version;
  • checking the integrity and accuracy of all records in the Blockchain;
  • counter of transactions and blocks;
  • viewing detailed information on blocks and transactions;
  • comparing two versions of the Blockchain by transactions and blocks;
  • building diagrams indicating the volume growth of downloaded Blockchain copies;
  • building diagrams indicating the amount of free space on the User’s disk;
  • tracking transactions between Assetboxes[i] provided that the recipient, sender and the number of transferred Bitbons[i] are known.

For the Users’ convenience, the Bitbon Blockchain Viewer will have an intuitive graphical interface.

The application is being developed for Windows, Linux and macOS operating systems under an open-source software license, which will be hosted on GitHub.

To find out the information on the launch of the Bitbon Blockchain Viewer as well as on other news about the Bitbon System, follow www.bitbon.space (official information resource) or use the Bitbon Space mobile app by downloading it for iOS or Android.

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.
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 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.
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.
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.
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.
6.
What is Bitbon? What features, application fields and attributes does Bitbon have?

Bitbon[i] is a digital derivative financial instrument with unique attributes and properties, which make it a universal tool for successful application in any field. Bitbon favorably differs from crypto assets[i] by absolute reliability since it is fully backed by a certain part of property rights to Assets[i]. Bitbon is based on a core principle of its value formation regarding the cost of various types of Assets included in Bitbon via Bitbon Public Contracts[i] of various projects designated in Projectbons[i] and the prospects for their development. Using Bitbon is understandable and predictable, as it is predetermined by the terms and conditions of each Bitbon Public Contract of a specific project, which is an important element of an integral part of its capitalization. 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[i] 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.
Crypto asset means a digital derivative financial instrument, which has all the properties of a crypto currency, issued by a company or a group of individuals in order to attract financial resources to implement promising projects or to acquire Assets for capitalization. The crypto asset serves as an instrument, which guarantees the identification of the crypto asset owner with the fulfillment of obligations of the issuer to the crypto asset holder.
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.
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.
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.
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.
7.
How is the value of Bitbon formed during the pre-sale and crowdsale stages until October 10, 2018?

Based on Clauses 3[i], 4[i] and 5[i] of the Bitbon System Public Contract, Simcord has chosen a strategy of the Bitbon System[i] development and Bitbon[i] distribution in order to organize and automate technological interaction between all Bitbon System Participants[i] 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, Simcord has determined the Bitbon pricing policy for the first stage of the Bit Trade Exchange of Digital Assets launch (www.bit.trade) within the crowdsale. This means that starting from the launch of the Bit Trade Exchange of Digital Assets in October 2018, the market pricing principle will be in effect.

Therefore, during the first stage of the Bit Trade Exchange of Digital Assets launch until October 10, 2018, it will be possible to purchase Bitbons at the price determined by a special formula and calculated online based on the number of purchased Bitbons:

where:
S1 — base number of Bitbons for the first level if 1 Bitbon = 1 USD,
N — level of Bitbon pricing,
SN — number of Bitbons of the N level,
S — current number of all purchased Bitbons,
P — current price of Bitbon,
PN — base price of the N level.

Such approach to determining the Bitbon price during the first stage of the Bitbon System launch is based on the desire to provide it with maximum stability and growth potential using market methods during the second stage of Bitbon pricing.

In fact, the Bitbon cost will be calculated at each price level depending on the total number of Bitbons purchased at all previous price levels.

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.
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.
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.
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 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 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.
8.
For what purpose was this method of Bitbon pricing selected during the pre-sale and crowdsale stages?

This pricing method was selected to provide Bitbon[i] with maximum stability and potential for more intensive growth using market methods during the second stage of Bitbon pricing. Another goal was to provide a sufficient period of time so that the people wishing to become the Bitbon System Users[i] could purchase Bitbons at the most optimal price. Later on, there may be a more intensive price increase due to the fact that the Bitbon System[i] prepares for the launch of Contributing[i] and, as a result, due to new Participants[i] joining the Bitbon System, who are interested in using the Bitbon System potential to finance their business projects in the real sector of economy.

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 System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
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.
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.
9.
Based on what principle is Bitbon backing made for all Bitbon System Users?

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

This means that the entire number of Bitbons and, therefore, Projectbons[i] available in Assetboxes[i] of the Bitbon System Users and the Bitbon Capitalization Fund is backed by Assets in the real sector of the economy.

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 hereof.
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 System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
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.
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.
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.
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.
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.
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.
10.
What methods of Bitbon purchase are available?

You can purchase Bitbons[i] using credit card (Visa/MasterCard), bank transfer, electronic payment systems, Bitcoin and Ethereum crypto currencies. You can learn about all available purchase methods on the website of the Bit Trade Exchange of Digital Assets (www.bit.trade) in your Bit Trade account in the “Buy Bitbon” section.

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.
11.
Why cannot US citizens, residents and organizations purchase Bitbon?

We have decided that the possibility of purchasing Bitbons[i] should be excluded for US citizens, residents and organizations due to some peculiarities of the US legislation. In this regard, US citizens, residents and organizations do not have the ability to purchase Bitbons on the Bit Trade Exchange of Digital Assets website (www.bit.trade).

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.
12.
Is there a minimum Bitbon amount to purchase?

The minimum amount for purchasing Bitbons[i], which can be accepted during the distribution period of Bitbon within the crowdsale period, is 1 USD. Smaller amounts will be rejected.

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.
13.
How many Bitbons are available for purchase by the Bitbon System Users?

In accordance with Clause 4[i] of the Bitbon System Public Contract, 70,000,000 Bitbons[i] have been transferred by Simcord to the Assetbox[i] of the Bitbon Capitalization Fund[i] for further distribution during the pre-sale and crowdsale periods until October 10, 2018, in compliance with the terms set out in the “Global Marketing Strategy” section of the Bitbon System White Paper.

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.
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.
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.
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.
14.
I bought Bitbons. When do I get Bitbons?

Bitbons[i] are credited to the User’s[i] Assetbox[i] specified at the time of purchase. Depending on the payment method, it can take from a few seconds to several hours to credit Bitbons to the specified Assetbox.

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 System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
15.
How can I sell Bitbons?

The possibility of selling Bitbons[i] will be available in October 2018.

At the moment, it is possible to transfer Bitbons between Assetboxes[i] of the Bitbon System Users[i].

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.
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.
Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
16.
How can I participate in distribution of Bitbons and earn on it?

According to the global marketing strategy described in the Bitbon System White Paper, you can participate in the distribution of Bitbons[i] and receive 10% of remuneration.

To do this, you should register on the website of the Bit Trade Exchange of Digital Assets (www.bit.trade) and use the tools available in the “Affiliate” section.

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.
17.
Is it possible during the crowdsale stage to transfer Bitbons between the Bitbon System Users?

Yes, it is. The transfer of Bitbons[i] between Users[i] is possible immediately after the successful completion of the verification procedure on the Bit Trade Exchange of Digital Assets website (www.bit.trade).

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 System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
18.
Are there any additional charges and/or fees when transferring Bitbons to Assetboxes of other Bitbon System Users?

There are no additional charges and/or fees when transferring Bitbons[i] between the Bitbon System Users[i], except for cases provided for by a special protection mechanism, whose purpose is to counter attempts to use the Bitbon Transfer Service inappropriately.

As part of this protection, for the most secure use of the Bitbon System[i], there are terms and conditions under which a fee may be charged in the amount of 3% when transferring Bitbons to Assetboxes[i] of other Users.

At the same time, it should be noted that the fee charged will be transferred to the Assetbox of the Bitbon Capitalization Fund[i] and constitutes its profit, which, in accordance with Clause 25[i] of the Bitbon System Public Contract, occurs in the interests of all Bitbon System Users.

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 System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
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.
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 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.
19.
Why will Bitbon liquidity keep growing?

According to the principles laid down in the Bitbon System[i], it is a global decentralized platform for providing all its Users[i] with liquid instruments for attracting financing and managing profit within the Contributing[i] framework.

Factors influencing formation of Bitbon demand:

  • You should buy Bitbons[i] and exchange them for Projectbons[i] of a specific project to participate in Contributing in the Bitbon System and to receive benefits;
  • The Contractat[i] should constantly purchase Bitbons to pay out income to Contributors[i];
  • You should buy Bitbons to become a Bitbon System User and get all the tools and benefits of the Bitbon System, including the Bitbon Transfer service, which ensures safe payment settlements among Users.

Factors influencing formation of Bitbon supply:

  • Contractats sell the Bitbons received from Contributors to fulfill obligations according to the implementation stages of their own business projects;
  • Contributors sell the Bitbons received during the Contributing process to record their income;
  • Within the Bitbon System, Users can pay for goods and services in the real sector of economy using Bitbons.

It should be also noted that most Bitbon Public Contracts[i] of specific projects will foresee Contributors’ share participation in the Contractat’s business, which means that Contributors will steadily receive their income. Such an approach will stimulate the long-term cyclical demand for Bitbons from Contractats in the process of fulfilling their obligations to Contributors under the Bitbon Public Contract of a specific project.

Thus, constant demand and supply for Bitbon is ensured, and optimal conditions for market-based pricing are created, which is a natural incentive for its value growth.

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 User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
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.
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.
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.
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.
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.
20.
What is the Bitbon System Public Contract?

The Bitbon System Public Contract is a document (an equivalent of articles of association), which consists of the Clauses based on which the development concept of the Bitbon System[i] is built, i.e. the principles of its functioning and interaction of all components.

In accordance with Clause 11[i], the Bitbon System Public Contract includes separate Appendices, which are an integral part of this Contract and regulate interaction of all Bitbon System Participants[i].

The Bitbon System Public Contract is available at the following link: www.bitbon.space/en/bitbon-system-public-contract.

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.
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”
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.
21.
What is the Bitbon Capitalization Fund?

Bitbon Capitalization Fund is a component of the Bitbon System[i], whose Assets[i] are designated in Bitbons[i] and Projectbons[i], and which, according to Clause 25[i] of the Bitbon System Public Contract, belongs to all Bitbon System Users[i] in parts equal to the Bitbon amount in the Assetboxes[i] 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[i] in order to increase the volume of the Bitbon Capitalization[i] that is generated through automatic Contributing[i] of the Bitbon Capitalization Fund.

According to the automatic Contributing of the Bitbon Capitalization Fund (hereinafter —the Fund) in Projectbons of various projects, the profit designated in Bitbons, which the Fund’s Assetbox receives, is used for the Fund’s participation in the implementation of other business projects by means of Projectbons.

Thus, the process of Bitbon Capitalization in Projectbons of specific projects is carried out based on their admission to the IBO[i] (Initial Business Offering) by Bitup-Agencies[i].

By means of automatic Contributing, the Bitbon Capitalization Fund must issue Bitbons for the difference of the amount corresponding to a certain share of declared Projectbons in order to start implementing the terms and conditions of the Bitbon Public Contract[i].

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.
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.
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.
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.
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.
Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
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 Capitalization means a self-regulatory process aimed at increasing the profit of the Bitbon Capitalization Fund designated in Bitbons and Projectbons of certain shares with the reference to the procedure for evaluating Assets in accordance with Bitbon Public Contracts of certain classes.
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.
IBO (Initial Business Offering) means a process in the Bitbon System, in which three parties take part: Contractat, Bitup-Agency and Contributors. The IBO process starts when the Bitup-Agency publishes the Bitbon Public Contract of a specific project to raise the required amount of Bitbons from Contributors in exchange for Projectbons in order to implement this business project. The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons. From this moment on, the terms and conditions of the Bitbon Public Contract of this business project automatically come into force. After that, the Contractat begins to fulfill his/her obligations aimed at successful implementation of the project.
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.
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.
22.
What is Contributing in the Bitbon System?

Contributing is a type of activity of a Bitbon System User[i] 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[i] of this project. Participation in the implementation implies financing of business projects by exchanging the Bitbon System User’s Bitbons[i] for Projectbons[i], which is essentially an expression of the User’s share participation and is directly proportional to the possible future profit.

Contributing as an activity is possible only in the Bitbon System[i] and implies interaction of all parties to the Bitbon Public Contract (Contractat[i], Bitup-Agency[i], Contributor[i]) and the Bitbon Capitalization Fund[i], which is the Contributor by definition and acts in the interests of all Bitbon System Users.

You can learn more about Contributing, its stages and the principle of interaction of all Bitbon System Participants[i] in the Contributing process by following the link.

Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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 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.
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.
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.
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.
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.
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.
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 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.
23.
What is IBO in the Bitbon System?

IBO[i] (Initial Business Offering) is a process in the Bitbon System[i], in which three parties take part: Contractat[i], Bitup-Agency[i] and Contributors[i].

During the IBO stage, the amount of Bitbons[i] necessary for implementation of the business project is raised from Contributors that in return receive Projectbons[i] (expression of the Contributor’s share participation in financing of a specific project).

The IBO process starts when the Bitup-Agency publishes the Bitbon Public Contract[i] of a specific project.

The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons of a specific project.

IBO (Initial Business Offering) means a process in the Bitbon System, in which three parties take part: Contractat, Bitup-Agency and Contributors. The IBO process starts when the Bitup-Agency publishes the Bitbon Public Contract of a specific project to raise the required amount of Bitbons from Contributors in exchange for Projectbons in order to implement this business project. The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons. From this moment on, the terms and conditions of the Bitbon Public Contract of this business project automatically come into force. After that, the Contractat begins to fulfill his/her obligations aimed at successful implementation of the project.
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.
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.
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.
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.
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.
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.
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.
24.
How does the Bitbon Capitalization Fund determine the amount of Bitbon issue during the IBO process?

The Bitbon Capitalization Fund[i] determines its share participation in Contractats’[i] business projects by means of automatic Contributing[i] based on a special procedure developed by Simcord for evaluating business projects by Bitup-Agencies[i].

This procedure allows the Bitbon System Participants[i] in the status of a Bitup-Agency to evaluate the level of the business project reliability and assign one of three categories of a certain class to this project based on backing of the Bitbon Public Contract[i] of the Contractat’s project by his/her Assets[i].

In other words, the level of backing of the Contractat’s business project by Assets influences the category and class of this project, and, accordingly, the amount of Bitbon[i] issue by the Bitbon Capitalization Fund in the IBO[i] process for each project separately:

High level of backing (category A):

  • (AAA) 3rd class
    The Bitbon Capitalization Fund’s share constitutes 50% of the total number of Projectbons[i] of the project.
  • (AA) 2nd class
    The Bitbon Capitalization Fund’s share constitutes 45% of the total number of Projectbons of the project.
  • (A) 1st class
    The Bitbon Capitalization Fund’s share constitutes 40% of the total number of Projectbons of the project.

Medium level of backing (category B):

  • (BBB) 3rd class
    The Bitbon Capitalization Fund’s share constitutes 30% of the total number of Projectbons of the project.
  • (BB) 2nd class
    The Bitbon Capitalization Fund’s share constitutes 25% of the total number of Projectbons of the project project.
  • (B) 1st class
    The Bitbon Capitalization Fund’s share constitutes 20% of the total number of Projectbons of the project.

Low level of backing or no backing (category C):

  • (CCC) 3rd class
    The Bitbon Capitalization Fund’s share constitutes 10% of the total number of Projectbons of the project
  • (CC) 2nd class
    The Bitbon Capitalization Fund’s share constitutes 5% of the total number of Projectbons of the project.
  • (C) 1st class
    The Bitbon Capitalization Fund’s share constitutes 1% of the total number of Projectbons of the project.

In accordance with a certain class of the Bitbon Public Contract of a specific project, the ratio of share participation of the Bitbon System[i] Users[i] (Contributors[i]) and the Bitbon Capitalization Fund is established.

This means that the Bitbon Capitalization Fund automatically issues Bitbons (equal to its share participation) in the Masterbox[i] of the Contractat’s project at the moment when Users determine their shares in the total amount indicated by the corresponding class of the Bitbon Public Contract of this project.

The procedure for evaluating business projects by Bitup-Agencies is scheduled to be published in 2019 in accordance with Clause 11[i] of the Bitbon System Public Contract in the Appendix “Rules of Contributing”.

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.
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.
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.
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.
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 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.
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.
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.
IBO (Initial Business Offering) means a process in the Bitbon System, in which three parties take part: Contractat, Bitup-Agency and Contributors. The IBO process starts when the Bitup-Agency publishes the Bitbon Public Contract of a specific project to raise the required amount of Bitbons from Contributors in exchange for Projectbons in order to implement this business project. The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons. From this moment on, the terms and conditions of the Bitbon Public Contract of this business project automatically come into force. After that, the Contractat begins to fulfill his/her obligations aimed at successful implementation of the project.
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.
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 User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
Masterbox means a record (cell) with a unique alphanumeric identifier created in the Blockchain based on admission of the Contractat’s project to the IBO by the Bitup-Agency. In order to implement this project, Bitbons are transferred from the Contributors to the Masterbox according to their shares in Projectbons and to the fulfillment by the Contractat of his/her obligations in compliance with the Bitbon Public Contract of a specific project.
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”
25.
Why were Bitbons reserved for Simcord Company?

In accordance with Clause 6[i] of the Bitbon System Public Contract, as the founder of the Bitbon System, Simcord Company reserves 30,000,000 Bitbons[i] in its Assetbox[i] to use them as the Bitbon System User[i] 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[i].

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 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.
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.
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.
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 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.
26.
How are the funds received from distributing Bitbons during the pre-sale and crowdsale stages spent?

The funds received from distributing Bitbons[i] are at the disposal of Simcord Company and are directed to implementing the Bitbon System[i] development stages, including 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.

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 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.
27.
Why are the funds received from distributing Bitbons during the pre-sale and crowdsale stages not transferred to other non-profit organizations?

The Blockchain[i]-based solutions that use the Bitbon System[i] software do not need to attract third-party non-profit organizations that could contribute to the growth or maintenance of the network, since such blockchain-based solutions will be financed by Simcord Company itself. It is assumed that any blockchain-based solution on the Bitbon System software will generate a natural profit of the Bitbon Capitalization Fund[i].

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.
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 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.
28.
What will happen if not all Bitbons are sold before the end of the crowdsale period?

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

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.
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 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.
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.
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.
Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
29.
How secure is the Bitbon System? Is it protected from hacking attempts?

The Bitbon System[i] has a multi-level system for protecting Users’[i] personal details. The Bitbon System Blockchain[i] excludes the possibility of modifying data by third-party nodes of the network, which completely prevents the possibility of data integrity violation.

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 User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.
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.
30.
What function do the Bitbon System Operators perform and how can I get this status?

According to the concept of digital system decentralization based on the Blockchain[i] technology, Simcord Company has set the task to create the opportunity for Users[i] to manage the Bitbon System[i] in order to ensure safe development and smooth functioning of the Bitbon System independently of Simcord Company.

Thus, in accordance with Clause 55[i] of the Bitbon System Public Contract, the Simcord activity is based on the ideology laid down in the Bitbon System and in the main goal stated in the Company’s mission.

In accordance with Clause 1[i], in order to implement Clause 55, Simcord Company undertook the role of the first Bitbon System Operator[i] to perform a number of functions described in Clauses 36[i], 37[i], 38[i], 39[i], 40[i] of the Bitbon System Public Contract.

Also, in accordance with Clause 55, when the minimum number of Bitbon System Operators is reached, Simcord will make a decision to terminate the terms of transition period described in Clause 54[i], which will mean the transition of the Bitbon System to fully decentralized management by its Users only.

In accordance with Clause 11[i] of the Bitbon System Public Contract, the rules of obtaining the Bitbon System Operator status will be published in the Appendix “Bitbon System Operator”.

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.
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 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.
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.
Clause 1. Bitbon System Public Contract means a digital document, a basic foundation agreement between Simcord Company and all Bitbon System Participants, where Simcord also acts as the Bitbon System Operator. This agreement identifies tasks and objectives of the Bitbon System, 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.
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.
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 hereof on the official information resources.
Clause 40. The Bitbon System Operators, by fulfilling their obligations in accordance with Clause 36 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 if such an Audit does not threaten the functional integrity of the Bitbon System.
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 hereof.
  • During the transition period, prepare and publish all the Appendices of the Bitbon System Public Contract, in accordance with Clause 11 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 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”
31.
How can I follow the latest news about the Bitbon System?

To receive up-to-date information on the development stages of the Bitbon System[i], we recommend you to download the Bitbon Space mobile app by following the links for iOS and Android.

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.
32.
Is mining possible in the Bitbon System? What kind of remuneration do Miners receive?

During the second stage of the Bitbon System[i] development, according to the Bitbon System White Paper, the possibility of obtaining the status of a Bitbon System Miner[i] will be available. The Bitbon System Miners will be given the right to take part in supporting and developing the decentralized environment of the Bitbon System functioning, by allocating for these purposes their computing resources, amount of memory for long-term storage of information, which is under control of the Blockchain[i] technology, thus, ensuring the reliable bandwidth of the Internet channel.

In accordance with Clause 49[i] of the Bitbon System Public Contract, the Bitbon System Miner will receive remuneration in the amount of 10% of the Bitbon Capitalization Fund’s[i] benefit obtained from Contributing[i] over a certain time period and designated exclusively in Bitbons[i]. 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.

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 Miner means a Bitbon System Participant who has the right 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.
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.
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 share designated exclusively in Bitbons for a certain time period. The established remuneration designated in Bitbons is distributed among 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.
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.
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.
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.
33.
What is the global marketing strategy of the Bitbon System?

The global marketing strategy is developed by Simcord Company taking into account its own many years’ experience in creating and promoting software solutions. It is a plan for development and popularization of the Bitbon System[i] worldwide, which consists of three main stages. As part of this plan, the prospects of the technological and social significance of the Bitbon System on a global scale are described.

You can learn more about the Bitbon System development stages and global prospects in the “Global Marketing Strategy” section of the Bitbon System White Paper.

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.
34.
For what purpose does the temporary commission in the amount of 10% exist for the sale of Bitbons, which the seller should pay in favor of Exchanges and their affiliate programs?

As part of the global marketing strategy set forth in the Bitbon System White Paper, to achieve the maximum popularity and distribution of Bitbons[i] in the world, Simcord has decided, before the launch of Contributing[i], to establish a 10% commission that the seller of Bitbons should pay in favor of the affiliate programs of the Exchanges, which are the Bitbon System Participants, at the level of the System[i] and relations with these Exchanges. The purpose of this commission is to provide remuneration for disseminating information on the Bitbon System advantages. In this case, the commission for purchasing Bitbons will be set by each Exchange independently.

We would like to once again focus your attention on the fact that, after Contributing starts, a temporary fixed commission of 10% on the Exchanges, which are the Bitbon System Participants, ceases to be effective and will be set by each Exchange separately in its minimum sizes conditioned by the demand and supply of the market.

This means that after Contributing starts, according to the Bitbon System White Paper, during the 3rd stage of the global marketing strategy and throughout the entire period of the Bitbon System development, the opportunity to receive a new type of remuneration based on Contributing will be available for Exchanges and/Promoters of Bitbon Public Contracts[i] and their affiliate programs separately. In accordance with Clause 48[i] of the Bitbon System Public Contract, this remuneration will be established by the Contractat[i] in favor of Exchanges and/or Promoters of Bitbon Public Contracts depending on the type of business for which the funds are raised in accordance with the class of the Bitbon Public Contract[i] of a specific project. The remuneration will constitute up to 30% of the amount of funds raised for implementing the business project by the Contractat.

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.
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.
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.
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 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 process.
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.
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.
35.
Will there be an additional issue of Bitbons in the future?

The Bitbon System[i] foresees processes, which ensure Bitbon[i] liquidity for the Contractats’[i] business projects. In accordance with Clause 29[i] of the Bitbon System Public Contract, the Bitbon issue is possible only in exchange for the backed Assets[i] of the Contractat in three cases:

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

This means that Bitbons are issued exclusively in favor of the Bitbon Capitalization Fund[i] for the purpose of its participation in automatic Contributing[i] based on the certain classes of Bitbon Public Contracts[i] of specific projects. The moment of Bitbon issuing comes when the Bitbon Capitalization Fund cannot serve its purpose in accordance with Clause 26[i] of the Bitbon System Public Contract. 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[i] to participate in automatic Contributing.

The Smart Contract[i] algorithm responsible for Bitbon issuing is performed automatically without the influence of the human factor in several stages:

  • The Bitbon Capitalization Fund within the framework of IBO, APG and SFO receives a request.
  • The Bitbon Capitalization Fund determines the number of available Bitbons in its Assetbox to issue them in favor of the Contractat based on the Bitbon Public Contract of a specific project.
  • If the Bitbon Capitalization Fund has insufficient Bitbon amount in its Assetbox, the Bitbon Capitalization Fund submits a request to the Smart Contract component to issue the required number of Bitbons.
  • Based on the request, Smart Contract issues Bitbons in the Assetbox of the Bitbon Capitalization Fund.
  • At the same moment, the Bitbon Capitalization Fund issues Bitbons in the Masterbox[i]. Further, the Bitup-Agency[i] is responsible for their distribution according to the implementation stages of the Contractat’s project in compliance with the Bitbon Public Contract of a specific project.

In accordance with Clause 26[i] of the Bitbon System Public Contract, the Bitbon Capitalization Fund may adjust the amount of Bitbon issue if, at the time of the request, the Bitbon Capitalization Fund has received profit in its Assetbox.

The issue of Bitbons is considered backed, as it is made in exchange for the Contractat’s Assets.

Thus, the process of Bitbon backing takes place in the Bitbon System as part of the concept that contributes to the growth of the Bitbon cost, even with an increase in total Bitbon amount, due to real demand and supply determined by the economic model, which is laid down in the Bitbon System.

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 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.
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 29. The Bitbon System allows Bitbon issue exceeding the amount specified in Clause 3 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 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.
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.
IBO (Initial Business Offering) means a process in the Bitbon System, in which three parties take part: Contractat, Bitup-Agency and Contributors. The IBO process starts when the Bitup-Agency publishes the Bitbon Public Contract of a specific project to raise the required amount of Bitbons from Contributors in exchange for Projectbons in order to implement this business project. The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons. From this moment on, the terms and conditions of the Bitbon Public Contract of this business project automatically come into force. After that, the Contractat begins to fulfill his/her obligations aimed at successful implementation of the project.
SFO (Supplementary Financing Offering) means a process in the Bitbon System, which the Contractat may initiate based on the circumstances arisen beyond his/her control after the IBO (Initial Business Offering) process is completed at any stage of his/her business project implementation under the terms and conditions of the Bitbon Public Contract in order to attract additional financing using a supplementary agreement to the Bitbon Public Contract of the given project with additional issuing of Projectbons in favor of Contributors. Three parties take part in the SFO: Contractat, Bitup-Agency and Contributors.
APG (Automatic Project Grant) means a process in the Bitbon System, which may take place after the IBO (Initial Business Offering) process is completed due to a decreased Bitbon exchange rate against the currency used at any stage of implementation of the Contractat’s business project.
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.
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.
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.
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.
Smart Contract means an electronic algorithm that describes a set of conditions, implementation of which entails some events in the real world or in digital systems. To implement the conditions specified in the Smart Contract, a decentralized environment completely excluding the human factor is needed.
Masterbox means a record (cell) with a unique alphanumeric identifier created in the Blockchain based on admission of the Contractat’s project to the IBO by the Bitup-Agency. In order to implement this project, Bitbons are transferred from the Contributors to the Masterbox according to their shares in Projectbons and to the fulfillment by the Contractat of his/her obligations in compliance with the Bitbon Public Contract of a specific project.
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.
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.
36.
Did the Company conduct pre-sale of Bitbons?

Taking into account the current trends and the pace of the digital economy development as well as enormous potential of the Bitbon System[i], we have developed a strategy for launching the Bitbon System in several stages.

This strategy has been developed taking into account various factors for its maximum efficiency and is conducted in three main stages:

  • Since March 13, 2017, within the pre-sale period, the sale of electronic Bitbon Certificates has begun, where Simcord Advanced Marketing Solutions LLP acts as the offeror.

The need to study the market and understand how interesting the innovative concept of the Bitbon System is for the business community was the purpose of the first stage. In addition, a special formula for Bitbon[i] pricing was determined, which will be used until the beginning of the period of the market price formation. Thus, the Company provided its Partners and Customers with the pre-emptive right to purchase electronic Bitbon Certificates of a certain nominal value.

  • On March 13, 2018, during the internal crowdsale stage, the Company implemented the possibility of registering electronic Bitbon Certificates in the Bitbon System Blockchain[i] on the Bit Trade Exchange of Digital Assets website (www.bit.trade). On April 14, 2018, Simcord provided the opportunity for Customers of the UBK Markets investment service to transfer their funds to Bitbons by taking advantage of its cost during the internal crowdsale stage.
  • Public crowdsale started on June 17, 2018. Since that moment, Bitbon is freely available for sale, and you can purchase it, according to the Bitbon System White Paper until October 10, 2018 by using popular and available services.

Thus, the Company’s strategy for selling Bitbons during pre-sale, internal crowdsale and public crowdsale stages contributes not only to the global popularization of the Bitbon System and the potential laid down in its economic model among the business-oriented community, but also to the planned, predictable growth of the Bitbon price.

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 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.
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.