How the Bitbon System Users Interact in the Contributing Process

Contributing[i] as a type of activity is possible only in the Bitbon System[i] and implies interaction of all its participants and the Bitbon System Capitalization Fund[i], which by definition is a Contributor[i] and acts in the interests of all Bitbon System Participants[i]. The Bitbon System User[i] in the status of a Bitup-Agency[i] makes a decision on the admission of the Contractat’s[i] project to the IBO[i] and supervises its implementation in the Bitbon System under the terms and conditions of the Projectbon Protocol[i] of this business project by representing and protecting the interests of Contributors of this business project.

Principle

THE STAGES OF CONTRIBUTING CAN BE DIVIDED INTO FOUR BASIC PROCESSES:

1

IBO Process

The Bitup-Agency launches this process in the Bitbon System in order to attract the amount of Bitbons[i] specified in the Projectbon Protocol from Contributors for implementing the Contractat’s business project. The IBO process starts when the Bitup-Agency adds the IBO Certificate[i] to the Business Projects Register. The IBO process is completed when Contributors determine their shares in the amount of 100% of the total number of Projectbons[i] of this business project.

2

Contributing Process by the Bitbon System Users

After Contributors exchange their Bitbons for Projectbons, these Bitbons are automatically transferred to the Masterbox[i] of a specific project to be further used for implementing the stages of the Contractat’s project.

3

Fulfilling the Terms and Conditions of the Projectbon Protocol by the Contractat

Full Implementation of the Business Plan

This process is characterized by the stage-by-stage implementation of the Contractat’s business project as well as the fulfillment of the Contractat’s obligations under the terms and conditions of the Projectbon Protocol of this project. The benefit received from the Contractat’s actions is further distributed between the Contractat and Contributors.

4

Bitbon Capitalization Process

The Bitbon System Capitalization Fund automatically takes part in Contributing in accordance with the classes of Projectbon Protocols of specific business projects in order to increase the amount of Bitbons and Projectbons in the Assetbox[i] of the Fund, thus encouraging the Bitbon Capitalization[i].

FLOW CHART OF HOW THE BITBON SYSTEM USERS INTERACT IN THE CONTRIBUTING PROCESS
Contrabusion
1

The Contractat initiates creation of the Projectbon Protocol of his/her own project.

2

The Bitup-Agency makes a decision on admission of the Contractat’s project to the IBO and supervises its implementation in the Bitbon System under the terms and conditions of the Projectbon Protocol of this project.

3

The Bitup-Agency adds the IBO Certificate to the Business Projects Register in order to attract funds for the business project implementation by means of Projectbons.

4

The Contributor purchases Bitbons.

4.1

The Contributor determines his/her share in the business project by exchanging Bitbons for Projectbons of this project.

5

By means of automatic Contributing, the Bitbon System Capitalization Fund must allocate a certain number of Bitbons for the difference corresponding to the number of declared Projectbons in order to start implementing the terms and conditions of the Projectbon Protocol.

6

Transfer of Bitbons received from Contributors and the Bitbon System Capitalization Fund to the Masterbox of a specific project in order to implement stages of the Contractat’s project in accordance with the terms and conditions of the Projectbon Protocol.

7

Stages of the business project implementation under the terms and conditions described in the Projectbon Protocol. All Bitbon transfers from the Masterbox to the Assetbox must be confirmed by digital access keys, which are generated by the Bitbon System when the Bitup-Agency adds the IBO Certificate to the Business Projects Register and are provided to the Contractat and the Bitup-Agency. These digital keys can only be used simultaneously under the terms and conditions specified in the Projectbon Protocol of a specific business project.

8

Financial result in the form of additional benefit received from the Contractat’s actions under the terms and conditions of the Projectbon Protocol.

9

According to the Projectbon Protocol of this business project, the benefit received from the Contractat’s activity is converted to Bitbons through the exchange in order to fulfill the Contractat’s obligations to the Contributors and to the Bitbon System Capitalization Fund.

9.1

Bitbons are transferred from the exchange to the Contractat’s Assetbox followed by their further transfer to the Masterbox of a specific project for the purpose of distributing Bitbons among the Contributors’ personal Assetboxes according to their shares in Projectbons.

9.2

Contributors receive their benefit (Obvents[i]) designated in Bitbons according to their shares in Projectbons.

9.3

Obvents are allocated to the Assetbox of the Bitbon System Capitalization Fund according to the Fund’s share in Projectbons. Bitbons received as Obvents are further sent for the implementation and development of other projects, the shares of which are designated in Projectbons. Thus, the Bitbon Capitalization takes place.

10

Part of the benefit received remains with the Contractat under the terms and conditions of the Projectbon Protocol.