K k WHITE PAPERTABLE OF CONTENTS 1. THE WORLD GOLD MARKET INVESTMENTS: OUTLOOK AND CHALLENGES. 2. WHAT PROBLEMS DOES KARATCOIN BANK SOLVE? 3. AN OVERVIEW OF KARATCOIN BANK AND THE KARATCOINBANK WORLD 4, OUR MISSION 5. OURVISION 6. OURGOALS 7. THE MARKET 7.4. The Market For THE KARATCOINBANK WORLD ECOSYSTEM. 7.4. The Global Market Of Gold Reserves 7.4. The Market Of The KARATCOINBANK COINS 8, FUTURE PROSPECTS AND TIMELINE 8.1 FUTURE PROSPECTS 8.2 ROADMAP 8.2.1. Phase012018 8.2.2. Phase 022019 8.2.3. Phase 03 2020 9. ABOUT PAYMENT SYSTEM AND PROPRIETARY BLOCKCHAIN 10. COMPANY STRUCTURE 11. KARATCOIN BANK TEAM 4.1. THEMANAGEMENT TEAM 11.2. THE KARATGOLD ADVISORY TEAM 12. DISCLAIMER Table of contents " 2 13 4 4 15 18 19 19 20 20 21 2 22 25 29 29 30 321. THE WORLD GOLD MARKET INVESTMENTS: OUTLOOK AND CHALLENGES Gold has always had emotional, cultural and financial value. But its key advantage is that gold is an investment metal. Gold is and has been globally accepted in more than 194 countries for centuries thus establishing itself as a form of currency. What makes gold a unique investment tool? High preservation capacity. Gold is one of the most long-life materials on Earth Liquidity. Gold has held a universally recognized value in all corners of the world for many thousand years. Divisibility, integrability and qualitative homogeneity. Gold is a plastic metal and can be cast as bars of acertain weight and fineness which will be standardized and homogeneous. Rarity. There is little gold on Earth and its total volume is limited What makes gold a promising investment tool? Medium-term and long-term positions of gold as an investment tool look very bright. Being the most predictable and reliable investment tool with a multi-thousand-year history, gold has always been a safe haven in times of instability and crisis ‘What in the short term will make gold the focus of the investment boom? Today witnesses a lot of unsettled clearly imminent risks which will continue to generate financial crises of an increasing scale. First of all, itis arecord amount of world debt, which became possible, among other things, because of the possibility to create fiat money without limitation. According to the Institute of Total Global Debt Stands at All-Time High International Finance (IIF), in 2017 the global debt reached 2 huge amount of 217 trillion dollars this is 327 percent of the world's gross domestic product (GDP). Before the era of financial crisis, the global debt was 149 trillion dollars and it has increased by 70 trillion in just ten years. This debt poses a huge risk by creating a global financial “bubble” the collapse of which will result in a crisis of truly biblical proportions. ‘The world gold market investments: outlook and challengesTotal Global Debt Stands at All \e High $60: 1952 1957 1962196 1977 1982-1987 «19921997 2002 2007-2012 Sourse: Bank of America Merrill ynch Global Investment Strategy, Federal Reserve, DataStream, US. Global Investors Fiat money is a dream for politicians, but itis a nightmare for investors and citizens. Now, this situation is evident for professional investors who are allocating an increasing share in their portfolios to gold. According to the World Gold Council, the annual volume of gold bought by investors has increased by no less than 235% over the past three decades. Why has the price of gold been relatively stable lately? To date, states artificially hold back the growth of gold, seeing gold as a competitor for fiat money which can easily be printed in unlimited quantities. A telling illustration of this is the “The Dodd-Frank Wall Street Reform and Consumer Protection Act" which directly restricted the right of individuals to trade in precious metals, including gold. The newrules affected not only big banks and companies, they also were tough on private investors who invested in gold. It is to be recalled that before these laws were enacted the price of gold set records almost every week. However, due to regulatory restrictions, the investment potential of gold has not disappeared, itis artificially held back by giving preferences to unsecured fiat money as it is fiat money that most countries of the world build their debt-dependent economies on. It is obvious that a financial bubble of unsecured fiat money cannot grow for long. What will be the consequences of its collapse? The answer is obvious - a dramatic depreciation of fiat money and the need for assets that have real value - primarily, for gold ‘The world gold market investments: outlook and challenges.It will be bought as a luxury asset as much as an investment tool. Gold performs four key functions in the investor's portfolio: * asource of long-term stable income; * adiversifier that helps to avoid losses during times of crisis; * aliquid asset without credit risk; * ameans to improve the overall efficiency of the investment portfolio. Today, investors view gold as a strategic tool since gold is a highly liquid asset without credit risk Everyone who plans his/her finances not only in the short term, but sets medium- and long-term goals, naturally includes gold in the portfolio. Though any tool is good when used by professionals and answers the call of the times. After Blockchain was introduced, it became clear that money can be transferredas freely as information, However, this technology has not solved the problem of money protection. And while the issue of howto transfer money via the Internet has been solved, an issue of how to ensure value and reliability of transferred money still remains open. Cryptocurrencies come and go, while their value grows and falls, which in actual fact prevents their rapid introduction into real economicrelations. Karatgold (KBC) came up with a solution that turned out to be quite obvious and reliable like the blockchain itself, It has issued a cryptocurrency covered by physical gold. And in 2018, Physical Gold in Digital Form appeared. The KaratGold Coop, the Karat Coin Bank in Miami and its owner Harald Seiz, introduced in 2018 the KaratGold Coin; a new crypto-currency based on ERC20 blockchain technology. This coin is linked to physically deposited gold in the form of the so-called CashGold, a true gold standard. A certain number of KaratGold Coins can be exchanged for the corresponding amount of CashGold at any time. The idea for the creation and establishment of the KaratGold Coin was to set a counterpoint to the unstable global payment system. The finding was that the current payment system, which is controlled by conventional banks, is inefficient, inhomogeneous, fragmented, expensive and time consuming. Furthermore, the tender currencies used as payment means are mainly based on the trust that governments of the respective countries are stable and provide an economy that satisfies the value of the tender currencies issued. However, they can simply increase the number of their and people losing their money. respective currencies, if there is a need for it. This leads to infla The question was whether there is a possibility to offer the world a better, more trustworthy payment means. Karatgold (KBC), together with the KaratGold Ecosystem, has developed a globally workable solution: A solution connected to gold. Gold has a stable and generally accepted value and is one of the oldest payment means. While, in former times, it was used as a payment means in the form of gold coins, the KaratGold Ecosystem has developed the CashGold and the KaratGold Coin. ‘The world gold market investments: outlook and challenges.What problems does karatcoin bank solve? With the KaratGold Coin and the KaratGold Ecosystem, everybody can pay for goods and services anywhere and anytime. In addition, the CashGold can be used as a gold bearingnote similar to banknotes. Now KaratGold Coin is the most relevant cryptocurrency backed by gold. To ensure a serious approach to cash management and payment system development, KaratCoin Bank, the World's first cryptocurrency bank, has been established in the United States. The banks deliberately set up in the country which has the most stringent financial regulations and huge financial opportunities, so that to guarantee all ICO participants full reliability and clear prospects of the project development. In fact, a “golden parachute" was created for investors. Participating in ICO, the backer acquires gold-backed tokens of a fast-growing financial conglomerate, and the value of such tokens will increase in proportion to capitalization (the estimated capitalization is $500 million by 2020), reducing risks to almost zero. WHAT PROBLEMS DOES KARATCOIN BANK SOLVE? The blockchain technology and cryptocurrencies based on it are leading the revolution in economy and finance today, becoming forerunners of global changes in monetary circulation. However, there remains a huge number of problems creating a gap between the potential of blockchain technologies and their real application in the modern economy, Karatbars Internation! GmbH, Stuttgart, headed by visionary Harald Seiz, has already offered solutions to key problems in this area. Problem No. 1: At the moment there is no strong connection between the circulation of cryptocurrencies and the conventional financial infrastructure. SOLUTION: KaratCoin Bank, the World's first cryptocurrency bank was established in the United States. The bank is deliberately set up in the country which has the most stringent financial regulation and huge financial opportunities. KaratCoin Bank created a bridge between the conventional finance and the blockchain-based economy, thus becoming a new center of the global cryptocurrency system,Problem No. 2: Crypto-currency projects are unconnected, lack real experience and a solid financial basis which often prevents them from developing successfully. SOLUTION: KaratCoin Bank was created by one of the most successful enterprises in its own sphere, Karatbars International GmbH, Stuttgart, which since 20111 has been providing physical gold assets toa customer base of over half million customers. Karatbars is actively building up a global conglomerate having successfully implemented several significant projects in blockchain: KaratGold Coin ICO was successfully completed in 2018. KaratGold Coin ICO raised over $100 million to become one of the largest ICO'sin the history. The acquisition of our Goldmine in Madagascar having gold reserves of $ 1.1 billion (€ 900 million) The KaratGold Coin Cryptocurrency Exchange has been completed ands now ready for its debut. Today, KaratCoin Bank is supported by the Karatbars International GmBh system operating in 120 countries, has over 500 thousand regular customers and 120 million euros of Karatbars International GmbH capital. KaratCoin Bank is changing the landscape regarding the overall scale of the blockchain industry. KaratCoin Bank plans to gain a capitalization of $500 million by 2020. Problem No. 3: In spite of their technological effectiveness, cryptocurrencies are still unstable and not backed in real assets. SOLUTION: KaratCoin Bank is building up the first blockchain-based payment system. While the KaratGold Ecosystem provides for the KaratGold Coin as a CashGold-linked payment system, the KARATCOINBANK WORLD with the KARATCOINBANK COIN perform three functions 1. circulation of cryptocurrency, backed by gold; 2. rendering the services of the first full blockchain-based and cryptocurrencies-related bank which shall become the core of the global crypto-world banking system; 3. execution of treasury functions for the KaratGold Ecosystem and the cryptocurrencies, in particular, safekeeping of the gold and CashGold (including holding the gold mine in Madagascar), on which the KaratGold Ecosystem is based, will be deposited with or held (directly or indirectly) by the KARATCOIN BANK. Thus, the world’s first cryptocurrency will be created, which will be as reliable as gold and which will be freely convertible to CashGold. What problems does karatcoin bank solve?Problem No. 4: Undeveloped cryptocurrency infrastructure. SOLUTION: Today, there is no comprehensible infrastructure available to provide quick and reliable access to cryptocurrency assets. This impedes the interaction between the conventional economy and crypto-economy, practically isolating them from each other and giving rise to additional problems. KaratCoin Bank is focused on involving broad masses of users by creating a familiar financial infrastructure on a cryptocurrency basis. KaratCoin Bank Eco System will include but not limited to: ATMs worldwide (target 10,000 pieces), Our own Crypto Exchange, Security Company, Bank accounts, Payment system (on our own blockchain) and our own payment cards. The current key task of KaratCoin Bank is to establish services that will excel the traditional payment infrastructure in terms of convenience and reliability and provide easy access to the use of cryptocurrencies and investing in gold to two hundred million conventional users. 3. AN OVERVIEW OF KARATCOIN BANK AND THE KARATCOINBANK WORLD The KARATCOINBANK WORLD ecosystem aims to build a stable ecosystem in which the market of FIAT currencies, financial products and other assets together with the new market of digital currencies is combined in a new financial system, ‘The KARATCOINBANK WORLD ecosystem will comprise the following functions, services and applications, each element of which will create the demand for tokens or create an infrastructure to maintain them, ‘The KARATCOINBANK WORLD consists of two interacting systems - the Hard-system, which will include the operating enterprises and which will provide physical circulation of gold, and the Soft-system, which will include blockchain-based structures which will serve the circulation of tokens. ‘An overview of karatcoin bank and the karatcoinbank worldThe chart of the gold flow in the “Hard Structure” of The KARATCOINBANK WORLD KARAT GOLDMINES. Reception of gold Contract on the supply of gold Blockchain contract on 8 the supply of gold 8 8 Gold THE KARATGOLD KARATCOIN SECURITY HOUSE BANK CashGold GOLD SPOT MARKET Gold is bought ‘on Spot market 50 Billion KCB Coins Info KARATBIT FOUNDATION The KARATCOINBANK WORLD “Hard Structure” will include the following enterprises: KARATCOIN BANK is the core of the future payment system. It will provide crypto bank accounts for the crypto industry, e.g. for cryptocurrency exchanges, for merchants and servicers and, in particular, the KARATCOINBANK COIN and the KaratGold Coin. These accounts are also provided for CashGold transactions. As the world's principal cryptobank, it will manage accounts in CashGold, KaratGold Coins, KARATCOINBANK COINS and in virtually all other cryptocurrencies and FIAT currencies. GOLD MINE - The GOLD MINE “Fort Dauphin” was acquired by KARAT COIN BANK. It is intended to invest at least USD 500 million in its development. The gold extracted from the GOLD MINE shall serve the consistent increase of the bank's gold reserves and will be used to provide for the gold coverage of the KaratGold Coin, and thereby to preserve its full capacity to act and its sovereignty for the purposes of maintaining the KaratGold Ecosystem. ‘An overview of karatcoin bank and the karatcoinbank worldKARATBIT FOUNDATION is the issuer of the KARATCOINBANK COINS. It oversees and manages the KARATCOINBANK WORLD ECOSYSTEM. KARATBIT FOUNDATION has created 50 billion KARATCOINBANK COINS and guarantees that these coins are based on the Ethereum blockchain and that the number of coins is limited by encryption. At the end of ICO, the unsold tokens will be burned forever, so the total supply of KCB will be equal to the total number of sold coins. The KARATGOLD SECURITY HOUSE is a future subsidiary of KARAT COIN BANK and will act asa security house for the storage of produced gold, the KARATCOINBANK COIN and the KaratGold Coin and other cryptocurrencies. The own security house shall serve the protection of the KARATCOINBANK WORLD ecosystem and protect it from manipulation and other negative lity to act with the best possible deposit security. The gold reserve will stabilize the payment system and the token value. external influences. The goal in this way is to ensure independence and own al The following enterprises will be included in the KARATCOINBANK WORLD “Soft Structure”: KARATGOLD EXCHANGE - The KARATGOLD EXCHANGE will be established as a subsidiary of KARATCOIN BANK. It will be the exchange of CashGold for FIAT currencies, KaratGold Coin and KARATCOINBANK COIN and other cryptocurrencies. in this way, the KARATCOINBANK WORLD ecosystem offers its participants a h assets. It creates an integrated secure platform where participants are provided with the required exchange services. ic solution to operate and manage over currencies and KaratPay is currently a subsidiary of Karatbars Singapore. It operates as an online platform which has been developed by Karatbars International GmbH. Currently, it facilitates the electronic registration of the CashGold. If someone wants to exchange the KaratGold Coins into CashGold, they need to transfer tokens to the KaratGold eWallet and register the 0.1g CashGold or the respective multiple; thereafter, the CashGold will be delivered In the future, it will be the electronic transfer of the KaratGold Coin, as well as the application for the exchange of KaratGold Coins into CashGold The APIs for the technical integration of merchants and servicer are already prepared. Therefore, shops and online shops as well as service providers can be connected and accept payments with CashGold. In case of a payment, the price will be displayed in tender currency as well as in CashGold. ‘The KARATPAY shall be acquired by KARATCOIN BANK and, thereafter, it shall be integrated in the ‘An overview of karatcoin bank and the karatcoinbank worldcrypto banking & finance services provided by the KARATCOIN BANK and, furthermore, it shall expand its range of services to a blockchain-based payment system. On a midterm basis, it shall become a global payment system processing FIAT and cryptocurrencies, but in particular KARATCOINBANK COIN and KaratGold Coins as well as CashGold. KARATGOLD E-WALLET. The KARATCOINBANK COIN will be transferred into and via the KaratGold eWallet for the use within the KARATCOINBANK WORLD ECOSYSTEM and the KaratGold Ecosystem. It will facilitate that the user can conveniently convert KaratGold Coin (KBC), Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dash, XEM or FIAT from one to another, and from and into the KARATCOIN BANK COIN by simply using his personal KaratGold eWallet. The KaratGold eWallet plays a central role in the KARATCOINBANK WORLD ecosystem. It serves as a secure wallet for its users, which allows for the deposit and exchange of cryptocurrencies and fiat money. The KARATCOIN BANK COIN will serve as the universal base currency, as well as all upcoming products within the KARATCOINBANK WORLD ecosystem. The KaratGold eWallet will be connected to the leading crypto-exchanges. KARATCOINBANK ATMs - The KARATCOINBANK ATM accepting CashGold, KaratGold Coin and KARATCOINBANK COIN and other cryptocurrencies as well as FIAT currencies shall be installed and operated by KARATCOIN BANK. The goal is a dense network of around 10,000 ATMs worldwide. This way, it shall give users the same convenience as conventional banks with its ATMs, but with the extension that transaction processing is not limited to FIAT currencies, but also includes new digital currencies. ‘The KARATCOIN BANK PROFITCARD is another service rendered by KARATCOIN BANK. It is a "cash-back” card, If used for payments with CashGold, KaratGold Coin and/or KARATCOINBANK COIN for the payment of fees, which will be charged by the KARATCOIN BANK or other entities of the KARATCOINBANK WORLD banking & finance system (eg. account opening fees, asset management fees, fees caused by the use of KARATCOINBANK ATMs, investment consultancy fees), the owner of this card earns bonus points which can be exchanged for CashGold, KaratGold Coins and KARATCOINBANK COINS. Further points of acceptances shall follow so that users shall generate a sustainable benefit. KARATCOINBANK COINS become a Gateway to the KARATCOINBANK WORLD ecosystem. The market capitalization of the KARATCOINBANK COIN will reflect the billion USD business of creating the first global cryptoworld banking system and the execution of treasury functions for the KARATCOINBANK WORLD ecosystem and the cryptocurrencies, in particular, safekeeping of the gold and CashGold (including holding the gold mine in Madagascar) on which the KaratGold ‘An overview of karatcoin bank and the karatcoinbank worldEcosystem is based. The limitations of the conventional banking system and the new opportunities created by cryptocurrencies and the blockchain-technology, which have the need for their own banking system, offer the business concept an incomparable growth potential. The global acceptance and recognition of cryptocurrencies, and the blackchain-technology gold as a safe and secure harbor will make the KARATCOINBANK COIN one of the leading payment means worldwide. Therefore, holders of KARATCOINBANK COIN will not only enjoy protection against inflation and vague governments and economies, but also have the opportunity to participate in the value increase which will be achieved in the future. Such value increase can be realized by everybody through the sale of the KARATCOINBANK COIN, or through the purchase of goods and services. The popularity of the KARATCOINBANK COIN and the KARATCOINBANK WORLD ecosystem will most likely grow very fast. 4. OUR MISSION The mission of KaratCoin Bank is to create and develop a global infrastructure that will become a bridge between conventional and cryptocurrency financial systems. This will make KaratCoin Bank the center of the future economy built on blockchain technologies. KaratCoin Bank is currently creating an international payment system that will serve the blockchain-based economy. Nowadays, the foundation of the future global structure that will evolve into the stabilizing center of the world economy is being actively laid. Itis currently based on the following projects: Karatbars Internation! GmbH, KaratGold Coin, KaratCoin Bank, KaratPay System and KaratGold Coin Exchange that state as links of a single gold chain. Adherence to its mission will empower KaratCoin Bank to achieve maximum capitalization for the benefit of its backers. Our mission 115. OUR VISION KaratCoin Bankis based on a clear vision of the future new economy and blockchain-based financial operations that will be much fairer than the existing ones. A full-fledged functioning of the global financial ecosystem based on KaratCoin Bank will be the core of the infrastructure being created. Eventually, this ecosystem will become the basis for the creation of a new financial world based on blockchain technologies where any intermediaries will be completely excluded, KaratCoin Bank will become the basis of an environment efficient and beneficial for introducing a new economy. The key point of KaratCoin Bank's vision is the consistent incorporation of real money which, unlike the fiat ones, will hold real value and will be backed in gold, thus making economic relations more productive. Any cryptocurrency, as well as fiat money, is underlain by the trust of those who use it. This trust is based on the ability to efficiently use the cryptocurrency and on understanding that itis supported by efficient structures. High volatility of the existing cryptocurrencies and the loan debt burden on fiat money make the existing financial system extremely unstable KaratCoin Bank supports and develops the cryptocurrency, which will be backed in gold, and will allow shoring up the economy. That's why KaratCoin Bank postures itself as a company engaged in world trade based on using physical gold as a method of payment, including in the form of CashGoll. It's a way to combine money with real gold of real value. Each day, cryptocurrencies are getting more and more spheres of application, they are continuously perfected technologically; they acquire a new functionality and, unlike fiat money, are evolving. The KBC coins supported by KaratCoin Bank will the apex of this evolution. In fact, today a cryptocurrency system is being built that will completely change the global economic picture of the world, first of all, the Bretton Woods currency system rooted in the dominance of several world currencies and the world financial system controlled by large financial corporations. KaratCoin Bank will manage blockchain-based digitized securities, commodities and other assets for the benefit of its customers. It will provide access to credit, debit and cash cards; it will manage the Karatgold Security House with a view to store gold and other assets. In the future, it will be Possible for the bank to manage blockchain-based assets and the portfolio of cryptoassets. KaratCoin Bank will make a cryptocurrency backed in gold the standard and will successfully make Our vision 12it mainstream currency. This will be achieved by building up a comprehensive environment that will meet alll and any needs of users. Due to these global changes and visionary activities, KaratCoin Bank will lead the process of conventional economy transformation and will become the financial leader of the new economy based on the blockchain, 6. OUR GOALS 1. The major aspiration of KaratCoin Bank is to create the first blockchain-based payment system based in real assets. KaratCoin Bank ensuring the efficient functioning of the global payment system and the circulation of the gold-backed token will be at the heart of this system. 2. The key goal of KaratCoin Bank is to develop functionality of the KBC token. A gold-backed token will provide participants with access to a set of efficient tools that allow it to be accepted as a means of payment, to be used as a store of value and an investment tool. 3. KaratCoin Bank aims to create and develop its own blockchain. This will enable it to quickly develop Karat Bank Business-based Blockchain Technology. 4, KaratCoin Bank aims to ensure that KBC is backed in gold. Each coin will be physically backed by gold at a rate outperforming its current quotes, which will lead to the tokens’ value increase. KARATCOIN BANK will use 20% of its proceeds at the stage of TOKEN SALE, and after the TOKEN SALE stage it will allocate 30% of its own profit to buy gold, which will be used to back the KBC coin by gold. The gold mine “Fort Dauphin’ located in Madagascar was also purchased to ensure gold backing of the cryptocurrency. KaratCoin Bank will arrange continuous gold mining, which will fuel the KaratGold ecosystem. Achieving this goal will facilitate creation of the global cryptocurrency backed in gold. 5. The goal of KaratCoin Bank is capitalization in the amount of $500 million by 2020, which will turn KBC into a coin with an indestructible financial background. 6. The goal of KaratCoin Bank is to establish a new financial paradigm, which will be based on real assets. The future payment instrument of the blockchain-based economy will be the cryptocurrency backed in gold and having real value. Our goals 137. THE MARKET 7.1 The Market For The Karatcoinbank World Ecosystem Digital currencies are already an integral part of international payments. However, users in this area have so far no functioning and, above all, secure banking and transaction system available. ‘Among other things, this is due to the fact that traditional finance systems and conventional banks have so far hesitated to deal with this new market and offer no holistic solution. However, looking at the growth of the digital currency market and its international demand, it is more than clear that it is precisely this market that needs an ecosystem like the KARATCOINBANK WORLD ecosystem with its advantages. The focus is always on the optimization of processes as well as the safety of the participants. The KARATCOINBANK WORLD ecosystem seeks to create framework conditions for such a new financial system while at the same time providing the same services as the conventional financial systems in addition to extensions. This new financial system based on the cryptocurrency and blockchain technology shall lead the global financial industry into anew era. The financial sector is in a state of upheaval. The roles are being redistributed. Digitization is changing business models and offering new opportunities. The new financial products are attacking the traditional global payment system and its financial services. And these new products bring along many advantages and a high degree of customer benefit. The traditional banking system suffers from over-regulation. Transactions are often slow and in international contexts often involve difficulties and high fees. Digital currency transactions are largely non-integrated. In addition, large parts of the global population, especially in developing and emerging countries, are for the most part excluded from traditional financial systems. Especially for these groups, access to international financial markets is difficult or impossible, Embedded in anew financial system, which of course complies with the strictest KYC requirements, digital currencies and blockchain can provide an efficient alternative to existing financial systems and, in addition, maximize benefits for all participants. Blockchain's ability to efficiently manage decentralized processes offers tremendous opportunities to promote innovation, enable direct exchange between people without the existing intermediaries, and facilitate state processes in the interests of citizens, Business and industry can benefit greatly from this technology. The Blockchain enables the application and traceability of electronic contracts directly between the parties without the participation of third parties thereby creating a completely new and efficient way of doing business and transactions. Regional or social exclusion is minimized through easy access. In this way, target groups can be reached and participate in the new financial system, The market “which have been previously denied access to financial systems, which increases the market potential immensely. KARATCOINBANK WORLD ecosystem's aspiration in this new financial system is to take the central role and offer it the full range of services of a bank as well as the execution of treasury functions for the KaratGold Ecosystem and the cryptocurrencies. In particular, this means the safekeeping of the gold and CashGold, including holding the gold mine in Madagascar, on which the KaratGold Ecosystem is based and will be deposited with or held (directly or indirectly) by the KARATCOIN BANK. 7.2 The Global Market Of Gold Reserves The global market of gold reserves is the key to understanding the important role of gold in today's economy. Traditionally, states are the most conservative and far-sighted investors when it comes to creating international reserves. The historical function of gold reserves has been to fully cover, and in practice at least substantially cover, a circulating currency. Today, gold reserves are part of the international reserves ofa country and serve primarily as a financial reserve, which can be quickly liquidated in case of financial emergency. The largest gold reserves are owned by the United States, Germany, China and Russia. However, the actual amount of gold holdings alone has only a limited significance. The gold possession of a central bank becomes interesting only if one sets this in relation to the currency reserves. In today's international monetary system of free exchange rates, gold reserves serve the states as a security and financial reserve, but have lost their currency-covering function. World Official Gold Holdings Tonnes % of reserves 1 United States 8,133.5 745% 2 Germany 3,369.9 69.6% 3 IME 28140 - 4 Italy 24518 66.6% 5 France 2,436.0 62.4% 6 Russia 1,944.0 17.2% 7 China 18426 23% 8 Switzerland 1,040.0 5.2% 9 Japan 7652 25% 10 Netherlands 6125 673% International Financial Statistics, August 2018 The marketStarting in 2010, central banks around the world have undergone transformation from net gold sellers into net gold buyers. In 2017, there was 36 percent increase in their activity and such activity resulted in 366 tons of net purchases, a significant increase as compared to 2016. The world’s major economies own the largest gold reserves, 5 of the 10 largest central banks have invested in gold more than 60% of the total amount of their international reserves. The United States rank first with more than 8,000 tons of gold. Not every central bankis a net buyer, however last year the gross sales in the formal sector declined by 55 percent, to the lowest level since 2014, which indicates that central banks anticipate a dramatic rise in the value of gold which is traditionally considered to be a safe haven. Such behavior became characteristic of central banks after the 2008 financial crisis. The fact that this strategy continues to this day shows that the near future of the world economy will not be undisturbed. Central Banks Continue Gobbling Up Gold Net Purchases Net Sales Sourse: BIS; IMF: GFMS, thomson Reuters The current 2018 year may be the year of the highest demand for gold from central banks. According to the World Gold Council, the demand in the first quarter increased by 42 percent as compared to the same period last year, while the net demand was 116.5 tons. Asthe global debt continues to grow, central banks and individual investors are actively investing in gold, as it has historically proved its worth in times of economic recession and geopolitical uncertainty. The market 16The chart of the gold flow in the “Hard Structure” of The KARATCOINBANK WORLD wo March 2000 co March 2018 sosimacnasesgae™ =o Ee Rnmmne se See pecmienn renamed ores . wi Despite active increasing of gold reserves, the majority of global currencies are not able to provide adequate gold coverage to their central banks, which can be a threat to banks and currency systems at any time. The KARATCOINBANK WORLD ecosystem prevents these risks. By owning its own GOLD MINE, it can already guarantee a higher level of gold coverage than most global central banks. To make this gold coverage transparent, the gold reserves of the GOLD MINE shall be mined and then stored with the KARATGOLD SECURITY HOUSE. Within the mining period of 10 years and the production of 22,000kg of gold, the ecosystem is in second place among the central banks with the largest gold reserves behind the USA and before Germany. This, paired with a transparent and conservative ‘own bank policy, aims to ensure 100% coverage of the cryptocurrencies issued by the KARATCOINBANK WORLD ecosystem and the KaratGold Ecosystem. With the creation of own gold-based digital world currencies, the KARATCOIN BANK will become the central cryptocurrency bank for the world on blockchain basis. In addition to the advantages mentioned under point 7.1 compared to the traditional financial systems, the KARATCOINBANK WORLD ecosystem has clear competitive advantages through its 100% gold coverage ratio compared to the existing central banks. The market Vv7.3 The Market Of The KARATCOINBANK COINS In August 2018, the overall capitalization of cryptocurrencies exceeded $230 billion. In fact, a totally new look was taken at the role of cryptocurrencies within a year and it became clear that the future belongs to payment instruments based on the blockchain technology. However, now we witness a desperate competition between the major cryptocurrencies for the right to become a payment instrument of the world economy. Which of the currently existing 2,000 payment coins will survive in the future is hard to predict; all depends on the acceptance of a cryptocurrency. Most of the current new cryptocurrencies have no specific use, ie. there are no points of acceptance; they only have a speculative character. At the heart of any cryptocurrency as well as fiat money is the trust of those who use them. This trustiis fostered by the ability to efficiently use the cryptocurrency and the understanding that such cryptocurrency is supported by efficient structures and coverage. Unfortunately, it is only the blockchain technology that backs up most of cryptocurrencies. The KARATCOINBANK COIN is a new blockchain-based coin. It is a utility coin. And the KARATCOINBANK COIN can be used for payments in the very beginning. Everybody who purchases the KARATCOINBANK COIN can use it for purchases within the existing KaratGold Ecosystem. However, as KARATCOINBANK WORLD ecosystem evolves, its scope and acceptance will multiply. As the coin of the first ecosystem, rendering the services of the first full blockchain-based and cryptocurrencies-related bank which shall become the core of the global cryptoworld banking system in addition to the execution of treasury functions, it is expected to become one of the world’s leading cryptocurrencies. The market8. FUTURE PROSPECTS AND TIMELINE 8.1 FUTURE PROSPECTS The KaratCoin Bank has already made decisive steps in the development of the blockchain-based payment system based on the cryptocurrency backed by gold: the Gold Mine in Madagascar having gold reserves of $ 1.1 billion (€ 900 million) was bought; the KaratGold Coin mobile app giving access to the gold-covered payment system was created; the KaratCoin Bank, the World's first cryptocurrency bank, was established in the United States; the 1st deposit of 135 kg pure gold was laid down; the KaratGold Coin Cryptocurrency Exchange is ready to be open. The next steps taken to promote the development will be the creation of the fundamentally important elements of the KaratGold Ecosystem, of the network of about 10,000 ATMs worldwide, the establishment of the KARATGOLD SECURITIY HOUSE, which is going to operate at the appropriate level of security and on the same principles as Fort Knox does. Once the elements of the circulation of assets backed by gold are created, the expansion of the KARATCOIN BANK into other countries will begin by establishing branches and subsidiaries. Future prospects and timeline 198.2 ROAD MAP The following deployment plan shall be followed in the future: 8.2.1 Phase 012018 June: * Creation of the KARATCOINBANK COIN, July: * Pre-TOKEN SALE (4 July - 4 September) * Application for the licensing of KARATCOIN BANK ‘© Acquisition of a majority share of the KARATGOLD EXCHANGE ‘© _ Integration of the KARATCOINBANK COIN in the KARATGOLD. eWallet August: ‘* Integration of the KARATCOINBANK COIN in the KARATGOLD APP * Finalization of aMemorandum of Understanding for the acquisition of a substantial share for the KBC FOUNDATION GOLD MINE “Fort Dauphin’ in Madagascar. September: «TOKEN SALE (4 September 2018 - 4 September 2019) ‘* Completion of development and testing of The KaratGold Coin Cryptocurrency Exchange November © Opening of The KaratGold Coin Cryptocurrency Exchange December: © Beginning of the development of KARATCOINBANK ATMs * Establishment of the KARATGOLD SECURITY House, which is going to operate at the appropriate level of security and on the same principles as Fort Knox does. lure prospects and timeline 208.2.2 Phase 02 2019 March: ‘* Beginning of the development of the cryptocurrency banking software for the KARATCOIN BANK ‘Issuing of Stable Coin (Karatpay) October: * Approval the KARATCOIN BANK as a fully licensed financial institution ‘* Listing of the KARATCOINBANK COIN on the KARATGOLD. EXCHANGE Investment in the KBC FOUNDATION GOLD MINE “Fort Dauphin" in Madagascar December: ‘© Beginning of the global roll out of the KARATCOINBANK ATMs * Creation of the KARATCOINBANK CREDITCARD, + Integration of the KARATGOLD PROFITCARD 8.2.3 Phase 03 2020 February: * Beginning of the operation of the KARATCOINBANK SECURITY HOUSE May: Beginning of the expansion of the KARATCOIN BANK activities into other countries by the establishment of branches and subsidiaries August * Full development of the KBC FOUNDATION GOLD MINE “Fort Dauphin’ in Madagascar and employment of up to 700 employees © Buying another gold mine * Preparation and beginning of the acquisition of further gold mines lure prospects and timeline9. ABOUT PAYMENT SYSTEM AND PROPRIETARY BLOCKCHAIN The blockchain-based payment system created by KaratCoin Bank is at the moment almost as convenient as a traditional system, which people are accustomed to use on a daily basis. Today, KaratCoin Bank not only provides banking services but issues payment cards, as well as works with ATMs, eWallets and the KaratPay system. Any transactions, payments or purchases, money savings and investment operations can nowadays be easily performed through KaratCoin Bank. Nevertheless, KaratCoin Bank continues developing its payment system in a quick manner being faced with a global aim. The bank is creating a global blockchain-based cryptocurrency system backed by gold. Bynow the KARATCOINBANK COIN has access to the KaratGold Ecosystem and thereby access to more than 480,000 people who have invested in Gold and in the KARATGOLD COIN. The system created within the project and successfully functioning on the basis of the gold-backed cryptocurrency will evolve into a global payment system. To arrive at this goal the KaratCoin Bank has developed mechanisms that will enable owners, retailers, and governments around the world to Use the innovative blockchain-based currency covered by gold, There are the following enti ‘with the following responsibi + Blockchain-based world central bank issuing a Stable Coin (Karatpay) 100% backed by 999.9 fine gold. It also manages the "World Combi" pot, which represents the already sold KBC coins, «Individual countries that can issue a "Country Specific Coin’, a type of bond that represents a pot of land” into which the transaction fees of the respective countries flow. Ifit does not give it out, itwill receive the fees directly. The countries can purchase the Stable Coin (Karatpay) from the central bank. For these transactions the transaction fee goes into the "World Combi Pot", «There are users / citizens who can be clearly assigned to a country. For their transactions the transaction fees go into the "pot" of their country. Ifa transaction takes place between two countries, the fees will be shared and split equally in both “pots ‘About payment system and proprietary blackchain 22wets The World Bank issuer of the stablecoin World gold pot / KCB Purchase and repossession of stablecoins Country level Country 1 Country 2 Citizen level Citizen of Country 1 Sale and purchase of stable Coins to and from citizens Countryn A country can buy stable coins from the central bank. For this the country must deposit the respective stable coins with its own gold as collateral. Itis settled by a contract that the country transfers right of property of its gold to the central bank. The corresponding amount of Stable Coin (Karatpay) is transferred to the country and can be sold to the citizens. World level ‘The World Bank issuer of the stablecoin World gold pot / KBC / KCB Purchase and repossession of stablecoins Country level | Country 1 Country 2 reg Countryn itizen of coun Transaction fee Citizen of Country 1 When citizens transfer funds within the country, the transaction fee goes into the pot of each country and into the KBC pot. When citizens of 2 different countries transfer money, the transaction goes equally into the pots of the two countries and also into the KBC pot. ‘About payment system and proprietary blackchainWorld level ‘The World Bank issuer of the stablecoin World gold pot / KBC/ KCB Purchase and repossession of stablecoins Countrylevel_ | Country 1 Country 2 Country n a Citizen of Citizen of Country 1 Country 1 Transaction fee There are the following possible fees / benefits: ‘© Transaction fees for transactions between citizens © Transaction fees for transactions between central bank and countries ‘* Transaction fees for transactions between citizens of different countries ‘© Spread for the sale of stable coins from countries to citizens ‘+ Fees for the exchange of speculative coins for stable coins ‘+ Fees for the exchange of speculative coins from different countries ‘There are fees for the operators / miners of the blockchain (certain percentage of all transaction fees, will be further defined during the development) Features of Blockchain: + With Blockchain everyone can see where and how goldis stored and which speculative coin is covered with gold ‘* Allgold moves are tracked on the blockchain ‘© The exchange between Stable Coins and Kombi Coins (either World combi coin or Country combi coin) takes place decentralized on the Blockchain ‘About payment system and proprietary blackchain 24Possible features outside the blockch: ‘+ Introduction of ATMs for the withdrawal of Stable Coins (Karatpay) and the receipt of cashgold. Deposit of cashgold and the receipt of the value in Stable Coins (Karatpay) on the wallet is also possible. ‘* Introduction of payment options in stores through payment terminals that support and replace any old methods such as MasterCard, local debit cards, etc. In addition to the well-known functionalities, these devices also accept Stable Coins (Karatpay) (even other cryptos but with higher fees). ‘© Launch of a new version of Karatpay that supports the new Blockchain and enables online payments. ‘+ Introduction of an Exchange Platform (Karatbit) for the exchange of stable and speculative coins (KBC and individual countries), other crypto currencies and FIAT. In this way the KaratCoin Bank is revolutionizing the world payment system thus creating financial future right now. 10. COMPANY STRUCTURE The underlying concept based on which the KaratCoin Bank is developing is very simple: Money provided with gold coverage is better than money provided with no coverage. Awareness of this fact empowered Karatbars Internation! GmbH, Stuttgart to create a system operating in 120 countries, which includes 500 thousand regular customers and to attract 120 million EUR of capital Karatbars Internation! GmbH, headed by visionary Harald Seiz, has built up a structure that right now offers its backers to use gold-backed assets in their settlements. This was the groundwork for creation of a world-wide blockchain-based payment system, the basis of which will be a cryptocurrency having gold coverage. ‘The KARATCOINBANK WORLD is putting the finishing touches on the services is building up and such services will excel the conventional payment infrastructure in terms of user-friendliness and reliability. The KARATCOINBANK COIN has access to the KaratGold Ecosystem and thereby access to far more than 480,000 people who invested in Gold and in the KARATGOLD COIN. How do the services created by the KaratCoin Bank work? Company structureThe chart of payments backed by gold MAINNET. KARATGOLD (KBC) LOSS) iN BANK MAINNET. MAINNET. Na @ Pe Merchants [___ ods & Services |] Customers / ‘& Services Scones Backers MAINNET. Company structure 26Everyone who has access to the KaratGold Ecosystem can freely effect payments backed by gold. KaratPay accounts can be credited and used for payments either online, or at the different points of acceptance. The APIs for the technical integration of merchants and servicers are already prepared. Therefore, shops and online shops as well as service providers can be connected and accept payments with CashGold. Each platform user can use the functional services provided by the KaratCoin Bank, such as: KARATGOLD EXCHANGE. It will facilitate the exchange of CashGold for FIAT currencies, KaratGold Coin and KARATCOINBANK COIN and other cryptocurrencies, KARATGOLD E-WALLET. The KARATCOINBANK COIN will be transferred into and via the KaratGold eWallet for the use within the KARATCOINBANK WORLD ECOSYSTEM and the KaratGold Ecosystem. It will enable users to easily convert KaratGold Coin (KBC), Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dash, XEM or FIAT from one to another, and from and into the KARATCOIN BANK COIN by simply using his personal KaratGold eWallet. The KaratGold eWallet plays a pivotal role in the payment system. It serves as a secure wallet for its users, which allows for the deposit and exchange of cryptocurrencies and fiat money. The KARATCOIN BANK COIN will serve as the universal base currency, as well as all upcoming products within the KARATCOINBANK WORLD ecosystem. The KaratGold eWallet will be connected to the leading crypto-exchanges. The KARATCOINBANK ATM accepting CashGold, KaratGold Coin and KARATCOINBANK COIN and other cryptocurrencies as well as FIAT currencies shall be installed and operated by the KARAT COIN BANK. The goal is a dense network of around 10,000 ATMs worldwide. Thus, it will offer Users greater convenience than conventional banks with their ATMs since transaction processing is not limited to FIAT currencies, but also includes new digital currencies. The KARATCOIN BANK PROFITCARD is a “cash-back” card. If used for payments with CashGold, KaratGold Coin and KARATCOINBANK COIN and/or for payments of fees which will be charged by the KARATCOINBANK WORLD banking company, the owner of this card earns bonus points which can be exchanged for CashGold, KaratGold Coins and KARATCOIN BANK COINS. The success of the KARATCOINBANK COIN depends on the ability to be accepted as a payment means by a substantial number of users within the KARATCOINBANK WORLD ecosystem banking & finance system. The payment system has an interface that transmits data swiftly and securely between owners, retailers, governments and the gold mine using the KaratCoin Bank. The Karatpay is an excellent facilitator for investors, governments and companies that do online and offline business, whether it's e-commerce, marketplace, gold storage, digital usage and many more. Company structure 7Through this gateway, payments will be processed with cryptocurrency, physical gold, fiat, proprietary ATM machines or credit cards. The fees charged by the service are very small, which makes our solution advantageous compared to others in the market. The payments, conversions, redeems and withdrawals can be done within seconds. Karatpay Gateway will also protect customer information through encryption, ensuring that the data can safely travel between the client terminal for the vendor and seller of Lunes. The payment will be deposited in the seller's wallet, and the seller may choose to receive it in fiat or digital currencies. This information is then stored, allowing the trader to have a listing of all transactions performed. Moreover, the balance and status of the gold extracted from the gold mine will be 100% securely stored and traded using our high end encrypted blockchain, thus reliably supporting payment turnover. Company structure 2811. KARATCOIN BANK TEAM 11.1 THEMANAGEMENT TEAM Harald Seiz, CEO * Founder, Owner and CEO of Karatbars International GmbH * Senator of Federal Association for Economic Development and Foreign Trade * Published author Joachim Frommer, Project Management © Expert in Business Development * Productmanager with almost thirty years of experience Andreas Zipperle, Chief Operating Officer * German Economic Council Ana Krimshtein, Legal Department * Anexperienced corporate attorney, with almost twenty years of experience. © Certified Public Accountant. © Graduate of University of Miami School of Law (Magna Cum Laude) Karatcoin bank team 2911.2 THE KARATGOLD ADVISORY TEAM Sh. fi © 1G a > Karatcoin bank team My|COAgency eading TOKEN SALE Consulting Agency founded by professionals with backgrounds in blockchain, investing, PR, and marketing, myicoagency.de Dirc Zahlmann, Head of International Sales and Member of the Board * Expert in Social and Direct Selling, Blockchain and Crypto Currency Advisory, Global Executive Search * Strong business development professional with a Bachelor of Arts (BA) focused in International Business. Jeannette Franz * Head of Support & Communications at Karatbars International GmbH Stuttgart * Project Management, Content Management & Think Tank at pier111 TV, Stuttgart * Project Management & Accounting at listen! Soundstudios, Stuttgart Nina Rezec * Managing Director Karatbars International Dubai © MBA in Valuation, Portfolio und Risk Management * Experience in Finance and Management (Mercedes-Benz, Ernst & Young, Takeda Pharmaceuticals) Ronald Stephan * Head of PR, Karatbars International GmbH, Stuttgart * Consultant for international Marketing Agencies (Customers like Porsche, Philips, IBM, etc.) * Master of Media Science, University of Mannheim / Siegen 30Susanna Epli * Project Management Consultant + Sales Management Consultant + Master of Business Administration Ute Sailer * Senior Sales Coordinator Photovoltaic and Real Estate, InPro GmbH Stuttgart * CFO, Relias Consulting GmbH Stuttgart * COO, ChefCoach Unternehmensberatung GmbH Stuttgart Uwe Heller * Founder & COO InnPro GmbH Renewable Energies, Stuttgart © Project & Sales Manager Renewable Energies, Stuttgart * Founder Real Estate Cooperative, Stuttgart * Project & Sales Manager Real Estate Agency, Stuttgart © Certified Financial Planner Andreas Houf © Master Consultant in Finance * Experience in Management, Internet marketing, Web design, and Automated Payment Systems (Internet and Social Media) Karatcoin bank team 312. DISCLAIMER = IMPORTANT NOTICE - PLEASE READ THIS SECTION AND THE FOLLOWING SECTIONS ENTITLED "DISCLAIMER OF LIABILITY", "NO REPRESENTATIONS AND WARRANTIES’, “REPRESENTATIONS AND WARRANTIES BY YOU’, “CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS’, MARKET AND INDUSTRY IN-FORMATION AND NO CONSENT OF OTHER PERSONS’, “NO ADVICE”, “NO FURTHER INFORMATION OR UPDATE”, “RESTRICTIONS ON DISTRIBUTION AND DISSEMINATION’, “NO OFFER OF SECURITIES OR REGISTRATION” AND “RISKS AND UNCERTAINTIES” CAREFULLY. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S). The KARATCOINBANK COIN is not intended to constitute securities or financial instruments in any jurisdiction. This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. This Whitepaper does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer by the seller of the KARATCOINBANK COIN (the “Token Provider’) to purchase any KARATCOINBANK COIN nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision. The KARATCOINBANK COIN provider will be the KARATBIT FOUNDATION, Belize, and will deploy all proceeds of sale of the KARATCOINBANK COINs to fund the herein described cryptocurrency project, businesses and operations. No person is bound to enter into any contract or binding legal commitment in relation to the sale and purchase of the KARATCOINBANK COIN and no cryptocurrency or other form of KARATCOINBANK COIN is to be accepted on the basis of this Whitepaper. Any agreement as between the Token Provider and you as a purchaser, and in relation to any sale and purchase, of the KARATCOINBANK COIN (as referred to in this Whitepaper) is to be governed by only a separate document setting out the terms and conditions (the “T&Cs") of such agreement. Inthe event of any inconsistencies between the T&Cs and this Whitepaper, the former shall prevail Youare not eligible and not allowed to participate in the KARATCOINBANK COIN TOKEN SALE (as referred to in this Whitepaper) if you are a citizen, resident (tax or otherwise) or green card holder of the United States of America, or a green card holder as well as a resident of Canada, the Republic of Singapore, Japan, South Korea or the Socialist Republic of Vietnam. The United States of America include Puerto RToken sale, the US. Virgin Islands, and any other possessions of the United States. Disclaimer 32No regulatory authority has examined or approved of any of the information set out in this White-paper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with. There are risks and uncertainties associated with the KARATCOINBANK COIN, the different elements of the KARATCOINBANK WORLD ecosystem and their respective services, businesses and operations (each as referred to in this Whitepaper). This Whitepaper, any part thereof and any copy thereof must not be taken or transmitted to any country where distribution or dissemination of this Whitepaper is prohibited or restricted. No part of this Whitepaper is to be reproduced, distributed or disseminated without including this section and the following sections entitled “Disclaimer of Liability’, “No Representations and Warranties’, “Representations and Warranties By You’, “Cautionary Note On Forward-Looking Statements’, "Market and Industry Information and No Consent of Other Persons’, “Terms Used’, “No Advice’, “No Further Information or Update’ “Restrictions On Distribution and Dissemination’, “No Offer of Securities Or Registration” and “Risks and Uncertainties” DISCLAIMER OF LIABILITY To the maximum extent permitted by the applicable laws, regulations and rules, the KARATBIT FOUNDATION or any entity or person being a part of the KARATCOINBANK WORLD ecosystem shall not be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this Whitepaper or any part thereof by you. NO REPRESENTATIONS AND WARRANTIES The KARATBIT FOUNDATION and any entity or person being a part of the KARATCOINBANK WORLD ecosystem does not make or purport to make, and hereby disclaims, any representation, warranty or undertaking in any form whatsoever to any entity or person, including any representation, warranty or undertaking in relation to the truth, accuracy and completeness of any of the information set out in this Whitepaper. REPRESENTATIONS AND WARRANTIES BY YOU By accessing and/or accepting possession of any information in this Whitepaper or such part thereof (as the case may be), you represent and warrant to the KARATBIT FOUNDATION or any entity or person being a part of the KARATCOINBANK WORLD ecosystem as follows: Disclaimer 33(a) (b) ( fe) (7) Disclaimer you agree and acknowledge that the KARATCOIN BANK COIN does not constitute securities in any form in any jurisdiction; you agree and acknowledge that this Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities in any jurisdiction or a solicitation for investment in securities and you are not bound to enter into any contract or binding legal commitment and no cryptocurrency or other form of payment have to be accepted on the basis of this Whitepaper; you agree and acknowledge that no regulatory authority has examined or approved of the information set out in this Whitepaper, no action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction and the publication, distribution or dis-semination of this Whitepaper to you does not imply that the applicable laws, regulatory requirements or rules have been complied with;(d) you agree and acknowledge that this Whitepaper, the undertaking and/or the completion of the TOKEN SALE of the KARATCOINBANK COIN, or future trading of the KARATCOINBANK COIN on any cryptocurrency exchange, shall not be construed, interpreted or deemed by you as an indication of the merits of the KARATBIT FOUNDATION or any entity or person being a part of the KARATCOINBANK WORLD ecosystem; the distribution or dissemination of this Whitepaper, any part thereof or any copy thereof, or acceptance of the same by you, is not prohibited or restricted by the applicable laws, regulations or rules in your jurisdiction, and where any restrictions in relation to Possession are applicable, you have observed and complied with alll such restrictions at your own expense and without liability to the KARATBIT FOUNDATION or any entity or person being a part of the KARATCOINBANK WORLD ecosystem; you agree and acknowledge that in the case where you wish to purchase any KARATCOINBANK COIN, the KARATCOINBANK COIN is not to be construed, interpreted, classified or treated as: © anykind of currency other than cryptocurrency; ‘+ debentures, stocks or shares issued by any person or entity ‘+ rights, options or derivatives in respect of such debentures, stocks or shares; ‘* units in a collective investment scheme; © unitsina business trust; © derivatives of units in a business trust; or ‘© anyother security or class of securities.{g) you are fully aware of and understand that you are not eligible and not allowed to participate in the KARATCOINBANK COIN TOKEN SALE or to purchase the KARATCOINBANK COIN (as referred to in this Whitepaper) if you are a citizen, resident (tax or otherwise) or green card holder of the United States of America, or a green card holder as well as a resident of Canada, the Republic of Singapore, Japan, South Korea or the Socialist Republic of Vietnam. The United States of America includes Puerto RToken sale, the US. Virgin Islands, and any other possessions of the United States; (h) you have a basic degree of understanding of the operation, functionality, usage, storage, transmission mechanisms and other material characteristics of cryptocurrencies, block-chain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technolog} you are fully aware and understand that in the case where you wish to purchase any KARATCOIN BANK COIN, there are risks associated with the KARATCOINBANK COIN and the KARATCOINBANK WORLD ecosystem and their respective services, business and operations; () you agree and acknowledge that neither KARATBIT FOUNDATION nor any entity or person being a part of the KARATCOINBANK WORLD ecosystems liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this ‘Whitepaper or any part thereof by you; and rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; {k)__allof the above representations and warranties are true, complete, accurate and non-mis-leading from the time of your access to and/or acceptance of possession this Whitepaper or such part thereof (as the case may be). CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS All statements contained in this Whitepaper, statements made in press releases or in any place accessible by the public and oral statements that may be made by KARATBIT FOUNDATION and/or any entity or person being a part of the KARATCOINBANK WORLD ecosystem, including their respective directors, executive officers or employees acting on behalf of them that are not statements of historical fact, constitute “forward-looking statements’. Some of these statements can be identified by forward-looking terms such as “aim’, ‘target’, “anticipate’, “believe’, “could’, estimate’, “expect’, “if, “intend’, ‘may’, “plan’, “possible’, “probable’, "project’, “should”, "would’, “will” or other similar terms. However, these terms are not the exclusive means of identifying forward-looking statements. All statements regarding the KARATBIT FOUNDATION’ financial Disclaimerposition, business strategies, plans and prospects and the future prospects of the industry which the KARATBIT FOUNDATION and/or any other entity or person being a part of the KARATCOINBANK WORLD ecosystem is in are forward-looking statements. These forward-looking statements, including but not limited to statements as to KARATBIT FOUNDATION's or the KARATCOINBANK WORLD ecosystem revenue and profitability, prospects, future plans, other expected industry trends and other matters discussed in this Whitepaper are matters that are not historical facts, but only predictions. These forward-looking. statements involve known and unknown risks, uncertainties and other factors that may cause the actual future results, performance or achievements of the KARATBIT FOUNDATION and the KARATCOINBANK WORLD ecosystem to be materially different from any future results, performance or achievements expected, expressed or implied by such forward-looking statements. These factors include, amongst others: {a) changes in political, social, economic and stock or cryptocurrency market conditions, and the regulatory environment in the countries in which the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem conducts its respective businesses and operations; (b) the risk that the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem may be unable or execute or implement their respective business strategies and future plans; (c)_ changes in interest rates and exchange rates of fiat currencies and cryptocurrencies; (d) changes in the anticipated growth strategies and expected internal growth of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem; (e) _hanges in the availability and fees of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem in connection with their respective businesses and operations; (f) changes in the availability and salaries of employees who are required by the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem to operate their respective businesses and operations; {g) changes in preferences of customers of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem; (h) changes in competitive conditions under which the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem operate, and the ability of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem to compete under such conditions; Disclaimer 36changes in the future capital needs of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem and the availability of financing and capital to fund such needs; (i) war or acts of international or domestic terrorism; (k) occurrences of catastrophic events, natural disasters and acts of God that affect the businesses and/or operations of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem; other factors beyond the control of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem; and (m) any risk and uncertainties associated with the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem and their businesses and operations, the KARATCOINBANK COIN, the KARATCOINBANK COIN Pre-TOKEN SALE, KARATCOINBANK COIN TOKEN SALE, the KARATCOINBANK COIN CREDIT CARD, the KARATGOLD PROFITCARD and the KaratGold eWallet (each as referred to in the Whitepaper). All forward-looking statements made by or attributable to the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem or persons acting on behalf of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem are expressly qualified in their entirety by such factors. Given that risks and uncertainties that may cause the actual future results, performance or achievements of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem to be materially different from that expected, expressed or implied by the forward-looking statements in this Whitepaper, undue reliance must not be placed on these statements. These forward-looking statements are applicable only as of the date of this Whitepaper. Neither the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem nor any other person represents, warrants and/or undertakes that the actual future results, performance or achievements of KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem will be as discussed in those forward-looking statements. The actual results, performance or achievements of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystern may differ materially from those anticipated in these forward- looking statements. Nothing contained in this Whitepaper is or may be relied upon as a promise, representation or undertaking as to the future performance or policies of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem. Further, the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem disclaim any responsibility to update any of those forward- Disclaimerlooking statements or publicly announce any revisions to those for-ward-looking statements to reflect future developments, events or circumstances, even if new in-formation becomes available or other events occur in the future. MARKET AND INDUSTRY INFORMATION AND NO CONSENT OF OTHER PERSONS This Whitepaper includes market and industry information and forecasts that have been obtained from internal surveys, reports and studies, where appropriate, as well as market research, publicly available information and industry publications. Such surveys, reports, studies, market research, Publicly available information and publications generally state that the information that they contain has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information, Save for the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem and their respective directors, executive officers and employees, no person has provided his or her consent to the inclusion of his or her name and/or other information attributed or perceived to be attributed to such person in connection therewith in this White-paper and no representation, warranty or undertakings or purported to be provided as to the ac-curacy or completeness of such information by such person and such persons shall not be obliged to provide any updates on the same. While the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem have taken reasonable actions to ensure that the information is extracted accurately and in its proper context, the KARATBIT and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem have not conducted any independent review of the information extracted from third party sources, verified the accuracy or completeness of such information or ascertained the underlying economic assumptions relied upon therein. Consequently, neither the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem, nor their respective directors, executive officers and employees acting on their behalf makes any representation or warranty as to the accuracy or completeness of such information and shall not be obliged to provide any updates on the same. TERMS USED To facilitate a better understanding of the KARATCOINBANK COIN being offered by the KARATBIT FOUNDATION for purchase, and the businesses and operations of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem, certain technical terms and abbreviations, as well as, in certain instances, their descriptions, have Disclaimer 38been used in this Whitepaper. These descriptions and assigned meanings should not be treated as being definitive of their meanings and may not correspond to standard industry meanings or usage. Words importing the singular shall, where applicable, include the plural and vice versa and words importing the masculine gender shall, where applicable, include the feminine and neuter genders and vice versa. References to persons shall include corporati NO ADVICE Noinformation in this Whitepaper should be considered to be business, legal, financial or tax advice regarding KARATCOINBANK COIN, the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem, the KARATCOINBANK COIN Pre-TOKEN SALE, the KARATCOINBANK COIN TOKEN SALE, the KARATCOINBANK CREDITCARD, KARATCOINBANK PROFITCARD and the KaratGold eWallet (each as referred to in the Whitepaper). You should consult your own legal, financial, tax or other professional adviser regarding the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem and their respective businesses and operations, the KARATCOINBANK COIN, the KARATCOINBANK COIN Pre-TOKEN SALE, the KARATCOINBANK COIN TOKEN SALE, the KARATCOINBANK CREDITCARD, KARATGOLD PROFITCARD and the KaratGold eWallet (each as referred to in the Whitepaper). You should be aware that you may be required to bear the financial risk of any purchase of KARATCOINBANK COIN for an indefinite period of time. NO FURTHER INFORMATION OR UPDATE No person has been or is authorized to give any information or representation not contained in this Whitepaper in connection with the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem and their respective businesses and operations, the KARATCOINBANK COIN, the KARATCOINBANK COIN Pre-TOKEN SALE, the KARATCOINBANK COIN TOKEN SALE, the KARATCOINBANK CREDITCARD, KARATGOLD PROFITCARD and the KaratGold eWallet (each as referred to in the Whitepaper) and, if given, such information or representation must not be relied upon as having been authorized by or on behalf of KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem. The KARATCOINBANK COIN Pre-TOKEN SALE and the KARATCOINBANK COIN TOKEN SALE (as referred to in the Whitepaper) shall not, under any circumstances, constitute a continuing representation or create any suggestion or implication that there has been no change, or development reasonably likely to involve a material change in the affairs, conditions and prospects of KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem or in any statement of fact or information contained in this Whitepaper since the date hereof. DisclaimerRESTRICTIONS ON DISTRIBUTION AND DISSEMINATION The distribution or dissemination of this Whitepaper or any part thereof may be prohibited or restricted by the laws, regulatory requirements and rules of any jurisdiction. In the case where any restriction applies, you are to inform yourself about, and to observe, any restrictions which are applicable to your possession of this Whitepaper or such part thereof (as the case may be) at your own expense and without liability to KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem. Persons to whom a copy of this Whitepaper has been distributed or disseminated, provided access to or who otherwise have the Whitepaper in their possession shall not circulate it to any other persons, reproduce or other-wise distribute this Whitepaper or any information contained herein for any purpose whatsoever nor permit or cause the same to occur. NO OFFER OF SECURITIES OR REGISTRATION This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. No person is bound to enter into any contract or binding legal commitment and no cryptocurrency or other form of payment is to be accepted on the basis of this Whitepaper. Any agreement in relation to any sale and purchase of KARATCOINBANK COINS (as referred to in this Whitepaper) is to be governed by only the T&Cs of such agreement and no other document. In the event of any inconsistencies between the T&Cs and this Whitepaper, the former shall prevail. You are not eligible to purchase any KARATCOINBANK COIN in the KARATCOINBANK COIN Pre-TOKEN SALE or the KARATCOINBANK COIN TOKEN SALE (as referred to in this Whitepaper) if you area citizen, resident (tax or otherwise) or green card holder of the United States of America or acitizen or resident of Peoples Republic of China or the Republic of Singapore. No regulatory authority has examined or approved of any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with. RISKS AND UNCERTAINTIES. Prospective purchasers of KARATCOINBANK COINS (as referred to in this Whitepaper) should carefully consider and evaluate all risks and uncertainties associated with the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem and their respective businesses and operations, the KARATCOINBANK COINs, the KARATCOINBANK COIN Pre-TOKEN SALE, the KARATCOINBANK COIN TOKEN SALE, the Disclaimer 40KARATCOINBANK CREDITCARD, KARATGOLD PROFITCARD and the KaratGold eWallet (each as referred to in the Whitepaper), all information set out in this Whitepaper and the T&Cs prior to any purchase of KARATCOINBANK COINS. If any of such risks and uncertainties develops into actual events, the business, financial condition, results of operations and prospects of the KARATBIT FOUNDATION and/or any other entity being a part of the KARATCOINBANK WORLD ecosystem Provider could be materially and adversely affected. In such cases, you may lose all or part of the value of the KARATCOINBANK COINS. JURISDICTION AND GOVERNING LAW The TOKEN SALE, any related material and especially the content of this Whitepaper, the Whitepaper itself and any associated documents and material and any conflict arising from it or in relation to it shall be exclusively governed by the laws of Belize. The courts of Belize shall have the whole and exclusive jurisdiction, Disclaimeright © 2018-2019 KARATCOIN BANK