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Trading Cryptocurrencies with

Artificial Intelligence

White Paper
BitAI was conceived after a group of cryptocurrency traders, computer scientists and
network marketeers came together to develop the first Artificial Intelligence Trading
Machine. BitAI Token Holders can tap into the power of automatic trading through Artificial
Intelligence, thus creating a lucrative passive income for themselves. This document
offers a comprehensive overview of BitAI technology and how participants may benefit.
Contributors are advised to read this document carefully in full, and perform due diligence.
In case of any questions please email: network@bitainetwork.com
BitAI
CONTENTS
1 - Introduction - Pg. 3
2 - Artificial Intelligence (AI) - Pg. 4
2.1 - Reinforcement Learning (RL) - Pg. 5
2.2 - Generative Models (GM) - Pg. 5
2.3 - Networks with Memory - Pg. 6
3 - How BitAI will utilize the power of AI - Pg. 7
3.1 - Introducing BitAI - Pg. 8
3.2 - Is BitAi a utility or security - Pg. 8
4 - Trade Liquidity Pool Returns Analysis - Pg. 9
4.1 - Liquidity Pool participation - Pg. 10
4.2 - Trading Profit Calculation - Pg. 10
5 - Token Valuation - Pg. 11
6 - Staking and Mining - Pg. 12
7 - Research and Development - Pg. 12
8 - Expectations - Pg. 14
9 - Our Vision - Pg. 15
10 - Our Core - Pg. 16
11 - Benefits - Pg. 17
12 - Technical - Pg. 18
13 - Road Map - Pg. 19
14 - Initial Coin Offering (ICO) and Token Distribution - Pg. 19
15 - Disclaimer - Pg. 22

BitAI
1 - INTRODUCTION
During these last few years, the cryptocurrency and token industry has exploded. Many early
adopters have created vast wealth for themselves, in an industry which has been more often than
not controversial.

The origins of the cryptocurrency can be traced back to 2009, when a person, or a group of
persons still unknown to this day, and acting under the pseudonym Satoshi Nakamoto first
created Bitcoin.

Anonymity was and remains a key component for the success of Bitcoin and several other
cryptocurrencies.

We live in a world where civil rights are consistently being trampled on, and where privacy is
being eroded. Couple that with the rapid erosion of middle class income and standards of living,
it is no wonder that cryptocurrencies such as Bitcoin and other anonymous coins are an attractive
proposition to the public.

Todays cryptocurrency millionaires, many of which made their fortunes in less than a year in
2017, are one of three kinds of people.

Old school geeks, who first started investing in Bitcoin in the early days.
New investors, who recognized and invested in upcoming projects in 2016 and 2017
Cryptocurrency Traders, who moved from the Forex and Stock markets because of the
vastly higher profit margins in this industry.

In this project, we seek to tackle the last two points by creating a dynamic platform where
participants are able to tap into this highly lucrative industry without the need of any technical
understanding. Further more, we go on to build an ecosystem around the project, powered by the
up and coming Artificial Intelligence, to create an opportunity for individuals to generate long term,
passive income.

BitAI
2 - Artificial Intelligence (AI)

Distilling a generally-accepted definition of what qualifies as Artificial Intelligence (AI) has become
a revived topic of debate in recent times. Some have re-branded AI as cognitive computing or
machine intelligence, while others incorrectly interchange AI with machine learning. This is in part
because AI is notonetechnology.

It is in fact a broad field constituted ofmanydisciplines, ranging from robotics to machine learning.
The ultimate goal of AI, most of us affirm, is to build machines capable of performing tasks and
cognitive functions that are otherwise only within the scope of human intelligence. In order to get
there, machines must be able to learn these capabilities automatically instead of having each of them
be explicitly programmed end-to-end.

BitAI Project aims to create a truly intelligent trading machine. Not to be confused with trading bots,
which are simply per-programed solutions which follow a fixed set of rules to execute trades. Our
machine uses a number of disciplines to make intelligent trading decisions.

Anything that could give rise to smarter-


than-human intelligencein the form of
Artificial Intelligence, brain-computer
interfaces, or neuroscience-based human
intelligence enhancement - wins hands
down beyond contest as doing the most to
change the world. Nothing else is even in
the same league.
Eliezer Yudkowsky
AI researcher and writer

BitAI
2.1 - Reinforcement Learning (RL)

RL is a paradigm for learning by trial-and-error inspired by the way humans learn new tasks. In a
typical RL setup, the machine is tasked with observing human traders in a digital trading environment
and taking actions that maximize accrual of a long-term reward it has been set. The machine receives
feedback from the environment as a result of each action taken by the human, such that it knows
whether the action promoted or hindered the trade. In RL, therefore, the machine must balance the
exploration of its environment to find optimal strategies of accruing reward with exploiting the best
strategy it has found to achieve the desired goal.

2.2 - Generative Models (GM)

GMs learn a probability distribution over training examples. By sampling from the high-dimensional
distribution, GMs output new examples that are similar to the training data.This means, for example,
that a GM trained on real trading chart patters can output and predict new chart movements for
evolving patters of similar charts. The model uses Generative Adversarial Networks (GANs). With
GANs, there are two neural networks: agenerator, which takes random noise as input and is tasked
with synthesizing content (e.g. an Elliot Wave chart), and adiscriminator, which has learned what a
valid Elliot Wave Chart looks like and is tasked with identifying whether the wave created by the chart
is valid or invalid.

BitAI
2.3 - Networks withmemory

In order for AI systems to generalize in diverse real-world environments just as we do, they must be
able to continually learn new tasks and remember how to perform all of them into the future. However,
traditional neural networks are typically incapable of such sequential task learning without forgetting.
This shortcoming is termedcatastrophic forgetting.It occurs because the weights in a network that
are important to solve for task A are changed when the network is subsequently trained to solve for
task B.

There are, however, several powerful architectures that can endow neural networks with varying
degrees of memory. These includelong-short term memorynetworks (a recurrent neural network
variant) that are capable of processing and predicting time series, DeepMindsdifferentiable neural
computerthat combines neural networks and memory systems in order to learn from and navigate
complex data structures on their own, theelastic weight consolidationalgorithm that slows down
learning on certain weights depending on how important they are to previously seen tasks, and
progressive neural networksthat learn lateral connections between task-specific models to extract
useful features from previously learned networks for a new task.

BitAI
3 - How BitAI will utilize the power
of AI
BitAI is a machine with built in AI. Unlike trading bots, BitAI learns and evolves to perform consistent
trading wins. BitAI, does not just use one or two indicators to create a trade, but uses several indica-
tors for its analysis of a market, just as a human trader would do. If the AI Machine makes an error, it
learns from the error and improves on the next trade.

BitAI also analysis market sentiment by listening to the news, social media and anything which may
have an impact on the market. It uses a special analytic algorithm to filter out noise which may give
false information.

Based on this holistic approach, the machine can determine whether a trade should be executed,
how profitable that trade may be and what the risk could be. Trades with a minimum Reward to Risk
ratio of 3 :1 are always given priority to maximize profit margins.

BitAI
3.1 - Introducing BitAI

BitAI is a utility token that enables frictionless transactions of


assets on the BitAI exchange whilst also acting as a medium
of exchange and a store of value. You can use BitAI Token
to:

Hold BitAI in your BitAI wallet (Stake) and receive


interest on your tokens.
Participate in the BitAI day trading liquidity pool and
receive daily payouts to your BitAI wallet whenever
there are profitable trades.
Participate in profit sharing of fees generated by
payment gateways and cashiers.
Receive voting rights.

3.2 - Is BitAI a Utility or a Security?

We have consulted with our solicitors specializing in different jurisdictions and we are fully confident
that BitAI falls under the classification of a utility token and NOT a security.

BitAI acts like a membership coupon that grants access to the BitAI features including the liquidity
pool, staking, access to the lending program and other future developments. Participants can
participate by sending Bitcoin and convert them to BitAI. Additionally, BitAI holders may receive
other coupon benefits such as preferred access or discounts on future products or new services. To
summarize, BitAIs act as:

a lower cost medium of exchange on BitAI


a store of value that can be used to purchase goods and services
a membership key in the BitAI platform to the liquidity pool
a coupon enabling wallet participants to receive higher levels of benefits
a coupon for preferred access to products or new listings on BitAI when used in the wallet
a coupon providing voting privileges if kept in wallet.

BitAI
4 - Trading Liquidity Pool Returns
Analysis
One of the principal benefits for holders of BitAI that participate within the BitAI ecosystem, and
probably the most ground breaking feature of our platform, is the opportunity theyll be given to
contribute an amount of the assets contained within their e-wallets to the shared, P2P trading liquidity
pool and make use of the Intelligent Machine to perform trades and aggregate their lending.

Daily profits (or losses) generated will be allocated (or debited) from the liquidity pool with those
subsequently allocated pro-rata to the participants and paid out on a daily basis. In other words,
the daily revenues (or losses) BitAI generates will be paid or debited to or from the liquidity pool.
Participants will receive their portion of the liquidity pool distribution on a daily basis and paid to their
vault in USD. .

Participants can expect a daily


payout of up to 1.53% when
in profit. Profits may increase
incrementally as BitAI AI Trading
Machine learns and perfects its
strategy over time. Profits may
be withdrawn at any time once
a threshold equivalent to USD
30 is available in your vault, by
requesting it be sent in Bitcoin, or
they may be reinvested into the
Trade Liquidity Pool through our
aggregated lending solution which
will provide an opportunity for
compounding wealth.

BitAI
4.1 - Liquidity pool participation.

In order to participate in the liquidity pool, members must commit a minimum equivalent to $100 paid
in BitAI to the pool. Assets placed will be locked for use by the liquidity pool until the lock in period is
expired (see table below).

4.2 - Trading Profit Calculation

Unlike trading in Forex or other markets, Cryptocurrency trading consists of a highly volatile market
with very large price swings. Swings of 20% or more are not uncommon. Our aim is to make an
minimum average win rate of around 10% per trade while using a maximum 10% of our trading
budget for each trade.

Ex: Your Trade Liquidity Pool Budget (TLPB) is $10,000.


We use 10% of your TLPB = $1,000 per trade
We win 10% on a trade = $1,000 + 10% = $100 profit.

$100 profit is 1% of your $10,000 contribution which is paid to you after trading fees and commissions
are taken out.

The above example is possible even if we make an average 1% per trade profit. This is because we
can make multiple trades a day.

Ex: Your Trade Liquidity Pool Budget (TLPB) is $10,000.


We use 10% of your TLPB = $1,000 per trade
We win 1% on a trade = $1,000 + 1% = $10 profit.
We open and close 10 profitable trades a day = 10 X $10 = $100 = 1% per day on your TLPB paid to
you after trading fees and commissions are taken out.

NOTE: Trading with a maximum 10% of the total budget available is done to reduce risk.

BitAI
5 - Token Valuation
Returns on the BitAI token itself are hard to quantify. Buying the token should be seen as a mid to
long term proposition as various dependencies exist and the point of entry of participants may will
also be a factor.

The value of BitAI may increase substantially if the token has an ecosystem to go along with it. Such
an ecosystem is already being created by the implementation and launch of the trading platform,
the creation of a strong network marketing system and thus a strong user base, as well as wallets,
online and offline payment gateways, and micro-remittance research and development for third world
nations.

Since participants are also part owners of the enterprise, a voting system will be launched where
everyone may share ideas for the growth of the business. Cryptocurrencies which follow similar
systems of creating ecosystems have thrived and increased in value by thousands of percentage
points over the years. We are confident we can achieve similar results.

Token Backers &


Holders

Real Life Value Perceived Value

Acceptance Project Application

BitAI
6 - Staking and Mining

Participants may choose to stake or mine BitAI. Both


Staking and Mining are ways to increase the number
of tokens a participant holds.

Participants staking their tokens will need to hold


tokens in a wallet for a minimum of 30 days to be
eligible to earn interest paid in BitAI.

Participants wishing to mine the token, will need to


acquire mining rights in the mining pool.

7 - Research and Development


Apart from the AI Trading machine, our ambition extends
much further than the world of cryptocurrency trading.
The Research and Development team, which is made up
of independent computer scientists, are also interested in
other fields such as intelligent payment systems over the
blockchain, and micro finance which would allow individuals
in third world countries send money to each other at a
fraction of the cost of todays institutions.

BitAI is committed to participate in this research forging


more partnerships with interested parties to bring value to
the BitAI community.

BitAI
There is no reason and no way that
a human mind can keep up with an
artificial intelligence machine by
2035. Gray Scott
FUTURIST, TECHNO-PHILOSOPHER and
one of the worlds leading experts in the
field of emerging technology.

BitAI
8 - Expectations
Of course, as a participant and member in the BitAI program, it is important to have realistic
expectations. 2017 has seen the crypto currency world go through explosive growth. This is generally
speaking because of mass adoption and acceptance, as well as government recognition in various
jurisdictions. However, there are always risks and the cryptocurrency industry is still a very volatile,
and thus high risk investment opportunity.

Having said that, we are very confident that Cryptocurrencies have a very bright future and that BitAI
specifically has a special place in this very crowded field. All projections in our road map are based on
past performance of cryptocurrency projects which offered similar added value to the industry. While
past performance is never a guarantee of future performance, we strongly beleive that our objectives
are achievable.

As a participant in the BitAI project, we would always advise you that the best approach is to look at it
as a mid to long term investment instead of gauging results on a day to day basis.

This is a great option for individuals who are interested in a passive income such as retirees, trusts,
working families or even high worth individuals. It gets even better because, as the BitAI Machine
learns, the profitability of each trade increases, and as that grows it helps grow the business and thus
helps increase the value of BitAI which in turn increases your own passive income. Participating in
the Liquidity Pool, while also Staking BitAI in your wallet may lead to very lucrative, long term passive
income.

All liquidity pool participant interests and BitAI token holders are aligned with the interests of the
business. As the business grows and prospers, so will you.

BitAI
9 - Our Vision
Pre-Set Targets

To be the leading platform for our members to trade cryptocurrencies without needing prior
knowledge.
To consistently strive towards generating larger trading profits for our lenders..
To be the biggest trading liquidity pool comprised of BitAI participants for the benefit of BitAI
Token holders.
To be the top 20 crypto-asset based on market capitalization.
To provide intelligent solutions in micro-finance and facilitate money movements at a macro
level.

BitAI PAY
BitAI Pay is a multi cryptocurrency
debit card which will be available
for usage at any ATM or retail outlet
accepting MasterCard.

The card runs on an AI anti fraud


detection algorithm. Holders of BitAI
token would be able to use this card
to change their BitAI token to cash or
for direct payment of goods.

BitAI
10 - Our Core

Role: Function of BitAI Token Role: Security

Purpose: Provide Research and Purpose: Be able to proceed with


Development resources for a new, ground- investments minimizing risks of getting
breaking way of trading through artificial trapped in manipulated markets.
intelligence.
Function: AI helps determine, and avoid
Function: Pioneering Blockchain technology market traps such as those created by
and AI provides unprecedented levels for whales while at the same time, takes
anyone without knowledge to participate in advantage of organic market movements by
the highly lucrative world of cryptocurrency analyzing both technical and fundamentals.
trading.

Role: Earnings Role: Assurance of BitAI

Purpose: Be able to make solid investments Purpose: Trade within the boundaries of a
independently of the market fluctuations on a fully anonymized and fair platform featuring
daily basis. its participants as owners - in other words -
YOU.
Function: The provision of our Liquidity
Pool makes for unprecedented gains no Function: The team behind BitAI is made
matter if you win or lose whilst you trade. Our up of participants which include scientists,
platform provides its participating members, traders, networkers as well as people from
the chance to share profits and compound all walks of life. Committed early adopters of
through aggregated lending. the BitAI platform include acclaimed players
within the Forex and Cryptocurrency industry.
BitAI is not owned by a single entity, but is
owned by its participants holding BitAI.

BitAI
11 - Benefits
Artificial Intelligence
Multi Discipline AI Machine built on
Reinforcement Learning (RL), Generative
Models (GM) and Network Memory.
Earn up to

46%
Liquidity Pool
Provides highly liquid revenue streams for
profit sharing.

Daily Distributions
Liquidity pool participants receive daily
distributions paid directly to their Vault.
monthly trading
BitAI Token
Anonymous utility token used on BitAI
profit
exchange, to participate in the liquidity tool
or for staking and voting rights. Built on X11
technology.

Decentralized Team
BitAI is made up of its participants which Aggregated
come from all walks of life. There is no one
owner. All BitAI holders are part owners and Lending
have voting rights. Compound from as
little as $1.00
Aggregated Lending
One of the most attractive features of the Earn interest
Trade Liquidity Pool is to allow contributers on Staking
to aggregate their lending. This means they
can reinvest from even back into the Liquidity
Pool to compound the growth of their portfolio. Easy
Withdrawals

BitAI
12 - Technical

Hashing Algorithm: X11 (PoW/PoS Hybrid)


Token Abbreviation: BITAI
Maximum Supply: 37,345,000
Premine: 16,045,000 (42.96%)
Halving: 1,240,000
PoW block reward: 10
Block Spacing: 2 minutes
Minimum Stake Age: 30 Days
Maximum Stake Age: 90 Days

NOTE: Above technical details are true and correct at time of publication, but are subject to change (except for
Supply and Premine) depending on requirements.

BitAI
13 - Road Map
2017
15th December to 15th January - ICO

2018
22nd January onwards - Token Distribution.
February - Launch on CoinExchange.io, an independent external exchange. Aggregated
Lending on TLP. 1 BitAI = $10.00
March - Launch of BitAI Internal Exchange. Windows Wallet. Release of Mac (OS X) Wallet,-
Paper Wallet, Android Wallet & Electrum Wallet. 100,000 Active BitAI holders. 1 BitAI = $15.00
May - Mining pool. LiveCoin Public Exchange. 1 BitAI = $50.00
August - BitAI Pay Debit Card. 350,000 active BitAI holders. 1 BitAI = $100.00
December - Mercatox public exchange. 1 BitAI = $150.00

2019
May - Online payment gateway - 1 BitAI = $250
November - Offline B to C gateway launch 500,000 stores - 1 BitAI = $500

2020
June - Intelligent Micro Remittance Application (IMRA). 1 BitAI = $1,000

BitAI
EXCHANGE

Note: Above dates are tentative and subject to change depending on technical or security issues.

BitAI
14 - Initial Coin Offering (ICO) &
Token Distribution
We would like to provide everyone the opportunity to participate in the BitAI platform. We beleive that
we will be able to strike a balance to avoid high net worth individuals from manipulating the market,
and at the same time, enable gains for all participating members. It is with great pride, that we
announce our ICO.

We are issuing 37,345,000 BitAI Tokens, of which up to approximately one-quarter will be available
for crowdsale.

Our ICO will run from December 15th 2017 to January 15th 2018. The selling price during ICO will
be tier based on 5 separate periods (see table below), starting with USD0.45c per BitAI Token.. The
original number of tokens allocated for ICO is 6.5 million with the number expandable to a maximum
of 8 million if over-allotment is necessary, thus bringing the total possible number of tokens available
for crowdsale to 8.5 million - approximately one quarter of the total 37,345,000 issued. Unsold tokens
will be returned to BitAI for research and development funding.

BitAI
Most of the BitAI Supply will be
generated through fair distribution via
Staking and Mining (57%).

The remainder is used for funding


long term research and development
in the field of AI and payment systems
with just 17% going into ICO.

BitAI
Artificial intelligence would be the ultimate
version of Google. The ultimate search
engine that would understand everything on
the web. It would understand exactly what
you wanted, and it would give you the right
thing.
Larry Page
Chief Executive Officer of Alphabet
& Co Founder Google

BitAI
15 - Disclaimer
Please keep in mind that this document is provided for your information only and that under no
circumstance should it be considered an effort by BitAI to either promote or sell stocks or securities
on its platform or on any other related or associated companys platform.

BitAI tokens are not securities.


You comprehend and fully accept the fact that BitAI are not securities under any circumstance,
neither are they registered with any government entity as a security. You comprehend and fully accept
the fact that ownership of BitAI does not grant you the right to expect or to receive proceeds, revenue,
or other payments or returns arising from the attainment, holding, administration or disposal of, the
exercise of, the redemption of, or the expiry of, any right, interest, title or benefit within the BitAI
platform or any other BitAI property, partially or entirely except where clearly indicated in the How You
Earn section of the BitAI website.

BitAI tokens are not to be considered an investment


Although the BitAI team will do its best to proceed with the project described within this white paper
and complete it at the best of its ability, unforeseen circumstances might not allow the completion
of the project in whole or partially. BitAI Tokens can never be considered an official or legally binding
investment of any kind and purchasing the token is done at own risk.

No form of warranty of proceed or revenue provided.


The purchase of BitAI tokens is done at the buyers own risk and under no circumstance should the
buyer hold BitAI accountable for any kind of losses as there are no warranties that the BitAI token will
in fact increase in value or hold its value. Unforeseen circumstances such as war, strike, riot, crime,
or any kind of natural disaster or even any other unforeseen events over and above the control of the
BitAI tokens developers could, at all times, badly affect, even irreversibly so, the tokens price.

Risks associated with trading


Cryptocurrency trading occurs in a highly volatile environment where rapid and large price
movements occur frequently. While all precautions are made and stop losses employed, there is a
high risk of loss in any trade. Under no circumstance can any figures given in this white paper or in
any other documentation, including but not limited to web, email and print, be taken as a guaranteed
profit. All trading is risky where there is potential for loss, and by participating in the trading pool and
lending you are doing so at own risk

BitAI
Risks associated with regulation
ICOs and blockchain-based cryptocurrencies are mostly unregulated at present. Efforts are being
made by various regulatory bodies around the world including central banks and governments to
supervise, regulate or even restrict the cryptocurrency market. Such actions could greatly affect the
functionality and value of the BitAI Token as well as that of other cryptocurrencies. The anonymous
nature of BitAI reduces these risks, but does not eliminate them.

Risks associated with new technology


BitAI tokens and cryptocurrency tokens in general are a relatively new and untested technology. Due
to this nature, technology-related unforeseen events may occur at any time. Traders comprehend and
fully accept all types of related risks involved.

X11 Algorithm and Blockchain related risks


BitAI tokens will be issued on the blockchain using X11 Hashing Algorithm, thus being dependent on
the integrity of both. The functionality of the BitAI Tokens or the BitAI platform will be severely affected
in the highly unlikely event that the blockchain or algorithm malfunction or fail.

Risks associated with quantum computers


Despite the efforts made by the blockchain community to safeguard the security of cryptocurrency
technology, the potential development and deployment of quantum computers or any other kind of
advanced types of computers in the future may put this security at risk. In such a case, the BitAI token
will be affected as well.

No fund insurance provided.


Any and all types of funds collected during PRE-ICO and ICO are in no way insured. Funds may lose
their value in whole or completely without warning. There is no legal entity or insurance company,
private or public, to turn to should something go wrong with the funds provided.

Fund refunds
In case our crowdfunding campaign and distribution of BitAI tokens is canceled, the funds collected
will be returned back to the wallets of their respective providers.

BitAI bears no responsibility to cover any claims made by its affiliates promoting BitAI token,
exchange, BitAI Pay, BitAI Liquidity Pool or BitAI Lending.

Integration
This white paper does not constitute an official agreement of any kind and the information provided
herein is for informational purposes only. Project parameters, dates, specifications provided as well as
other details technical or not are subject to change without prior notice.

BitAI
Email: network@bitainetwork.com
Web: www.bitainetwork.com

BitAI
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UPDATED 24TH NOVEMBER 2017 BitAI