Bitbon means a digital derivative financial instrument[i] having an identifier and nominal value in the amount determined in accordance with the procedure stipulated by the Bitbon Public Contract[i], which corresponds to a certain part of property rights to Assets[i] designated in Bitbons or Projectbons[i]. 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 attributes are:
- Identifier — a unique sequence of alphanumeric characters;
- Nominal value — a positive real number corresponding to the part of the Bitbon System User’s[i] property rights to Assets;
- Records in the Blockchain, which register all operations with each Bitbon;
- Bitbon Public Contract.
Bitbon has the following properties:
- Ability to split the nominal value with unlimited accuracy is guaranteed. Each fractional part of the nominal value corresponds to a certain part of property rights to Assets;
- Bitbon is issued in accordance with the Bitbon Public Contract published by the Bitbon System User (owner of property rights to Assets) based on the decision to issue Bitbons;
- Bitbon can be used as an instrument for trading on the exchange;
- Bitbon can be used for calculating the index or any other financial derivatives, instruments;
- Bitbon of one Bitbon System User may serve as an Asset of another Bitbon System User;
- It is guaranteed that any part of the Bitbon nominal value in the form of a new Bitbon identifier is transferred from one Bitbon System User to another Bitbon System User;
- Ability to define rules of Bitbon processing before the occurrence of an event which the Bitbon System User (owner of property rights to Assets) specifies limiting the Bitbon application field.
Derivative financial instrument means an agreement (contract) under which the parties are entitled or undertake to perform certain actions with respect to the underlying asset.
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.
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.
Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.