Terms and Definitions

APG (Automatic Project Grant) means a process in the Bitbon System[i], which may take place after the IBO[i] (Initial Business Offering) process is completed due to a decreased Bitbon[i] exchange rate against the currency used at any stage of implementation of the Contractat’s[i] business project.

The APG process starts when the Bitup-Agency[i], which supervises implementation of the Contractat’s specific business project, confirms insufficient financing of one of its implementation stages due to difference in the Bitbon exchange rate in relation to the currency used for implementation of this business project.

The APG process is completed when the required Bitbon amount is transferred to the Masterbox[i]. This amount is issued by the Bitbon Capitalization Fund[i] based on the decision of the Bitup-Agency, which supervises implementation of this business 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.
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 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.
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.
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.
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.