Terms and Definitions

Asset Digitization Procedure

means a process in which the Bitbon System User[i] creates a Bon[i] or Projectbon[i] Digital Asset from the Asset[i].

The Asset Digitization Procedure includes 4 stages:

Stage 1 — creation of a unique digital copy of the Asset.

At this stage, a unique digital copy of the Asset is created, and the value of the Asset is determined in accordance with the evaluation methods of the country where such an Asset is located and/or registered, taking into account the limitations established by the legislation. Also, measures on the Asset safety are determined for the period of existence of its unique digital copy in the Bitbon System[i]. The unique digital copy of the Asset is registered in the Register of Unique Digital Copies of Assets[i] in the Bitbon System.

Stage 2 — creation of Divaunit.

At this stage, a digitized value unit (Divaunit[i]) is formed on the basis of the unique digital copy of the Asset. Divaunit is registered in the Register of Digitized Value Units[i] in the Bitbon System.

Stage 3 — creation of a Digital Asset Protocol.

At this stage, the type of the Digital Asset[i] (Bon or Projectbon) is determined.

When determining the Bon Digital Asset on the basis of Divaunit, the Bon Protocol[i] of a certain type is created and registered in the Register of Digital Asset Protocols[i].

When determining the Projectbon Digital Asset on the basis of Divaunit, the Bitup-Agency[i] creates the Projectbon Protocol[i] of a certain class and registers it in the Register of Digital Asset Protocols.

Stage 4 — creation of the Digital Asset.

At this stage, based on the Digital Asset Protocol[i], the Digital Asset is created, which is then registered in the Register of Digital Assets in the Bitbon System.