How to Receive the Bitup-Agency Status in the Bitbon System

The Bitbon System provides you with a versatile model of cooperation by using Bitbon as well as by participating in the IBO[1] process in the status of Contractat, Contributor or Bitup-Agency[2]. When interacting with the Bitbon System in the process of Contributing, each Bitup-Agency constitutes its integral part and performs certain functions, the purpose of which is to make a decision on the admission of the Contractat’s project to the IBO as well as to supervise its implementation in the Bitbon System under the terms and conditions of the Projectbon Public Contract[3].

Basic functions of the Bitup-Agency:

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

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

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

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

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

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

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

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

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

In order to receive the status of a Bitup-Agency, the Bitbon System provides a licensing procedure. During this procedure, the completeness as well as reliability of information, provided by a registered legal entity (company or bank) that wishes to receive the status of a Bitup-Agency, is verified. The possibility of meeting all the necessary requirements for operation in the Bitbon System is also verified. Particularly, a number of criteria for key categories are considered: applicable law and place of the applicant’s residence/incorporation; probable conformity with regulatory requirements; company website; security of information storage and transmission, etc.

For this type of activity, the organizational structure of a Bitup-Agency should include the following specialists with at least five years of practical experience:

  • Specialist in International Law;
  • Audit Specialist;
  • Business and/or Financial Analyst.

If the above-mentioned specialists are not included in the Bitup-Agency staff, then such Bitup-Agency can enter into agreements with other companies that provide the above-mentioned services on a professional level and delegate some of its functions to third parties to fulfill the necessary obligations of the Bitup-Agency.

After successfully completing this procedure and receiving the appropriate status, a Bitup-Agency can create Projectbon Public Contracts based on conclusions obtained by qualified specialists in the fields of risk insurance, audit[4], evaluation of Assets, etc.

A Bitup-Agency can accept and admit to the IBO process the Projectbon Public Contract whose value does not exceed the volume of own collateral designated in Bitbons by more than 10 times.

A Bitup-Agency has a certain responsibility for confirming the validity of the Contractat’s business plan.

The Projectbon Public Contract defines the obligations of a Bitup-Agency with respect to the Projectbon[5] provision stipulated by the Projectbon Public Contract of a specific project.

1 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 Projectbon 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 Projectbon 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.

2 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 Projectbon Public Contract of a specific project by representing and protecting the Contributors’ interests.

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

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

5 Projectbon means a derivative instrument from a specific class of the Projectbon Public Contract intended for Contributing, which has unique attributes and properties with the ability to circulate only in the Bitbon System. Projectbon represents obligations of the Contractat to Contributors expressed in a legal form under the terms and conditions specified in the Projectbon Public Contract of a specific project.