Veritaseum

VeLend
Gold-Denominated Loan Products

Product Introduction
Veritaseum sells gold stable-tokens (VeGLD) that are 100% backed by physical gold - insured
and stored in a LMBA Vault. These tokens are redeemable worldwide for physical gold by the
token-holder (owner) upon demand or may be sold back to Veritaseum in lieu of redemption.

Gold has significant stable store of value and inflation protection benefits that can be
referenced here.

Veritaseum offers additional products and services that enables gold token-holders to
generate income returns on their gold via P2P gold lending products. One such lending
product is the gold-denominated hard money loan. A hard money loan is simply a short-term
loan secured by real estate.

Veritaseum is a not a party to the transaction between Lender and Borrower and does not
have an economic interest in the loan. Veritaseum provides the financial products, expertise,
and the technology infrastructure that enable the automatic facilitation, management, and
enforcement of the terms and conditions agreed to by the Borrower and Lender per the smart
contract deployed on the Ethereum Network.
Gold-Denominated Real Estate
Collateralized Loan “Proof-of-Concept”
On December 19, 2018 Veritaseum launched the
world’s first smart contract gold-denominated
peer-to-peer (“P2P”) loan on the Ethereum
blockchain. See video to the right for real-time on-
chain digital signature of the loan by the Borrower
and Lender (Veritaseum Lending, LLC) on their
mobile devices.

Figure 1: Click to view video

Big Picture: The borrower acquired a property in
Newark, NJ in November 2017 for $65,000 at vacant value and invested approximately $35,000
to improve the property. After reviewing the Borrower’s business plan to make additional $77.6K
in improvements, Veritaseum (the “Lender”) agreed to provide a residential gold-denominated
construction loan at approximately 77% Loan-to-Cost (LTC). Upon execution of the smart contract
by Borrower and Lender on VeLend, the Lender funded the VeGLD tokens into a smart contract
on the Ethereum blockchain.

“While the administrative oversight and management of the loan is very simple, intuitive,
and easy to manage for the Borrower and Lender (on the VeLend interface), the structure
of the loan is customized to the specific loan transaction. Nearly all aspects of the loan
agreement for which Borrower or Lender may exercise rights must take place on-chain.”

Each party, Borrower and Lender, benefits significantly from features smart contracts enable that
traditional loan infrastructure outside of the blockchain cannot provide. This includes both capital
and decision-making risks and errors that are significantly reduced if not removed entirely (this
was our goal). Because this is a construction loan, the Borrower can only draw-down on the loan
amount through the submission of draw requests (on-chain) after milestone improvements are
made to the property. This structure protects the Lenders interest by ensuring that its collateral
(the real estate property) is always worth more than its loan amount.

Please reference the next page for full economic terms of the loan agreement. These terms are
programmed into the smart contract and the VeLend user interface was designed to enable
Borrower and Lender to interact with each other and the on-chain contract.

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Loan Smart Contract Terms – “On-Chain”
Loan Amortization Schedule - Gold Ounces
BoP EoP
Balance (in Accrued Extension Balance
Month Date gold oz) Interest Fee (in gold oz) Notes
0 12/20/2018 61.0000 - - 61.0000
1 1/31/2019 61.0000 0.4575 - 61.4575
2 2/28/2019 61.4575 0.4609 - 61.9184
3 3/31/2019 61.9184 0.4644 - 62.3828
4 4/30/2019 62.3828 0.4679 - 62.8507
5 5/31/2019 62.8507 0.4714 - 63.3221
6 6/30/2019 63.3221 0.4749 - 63.7970
7 7/31/2019 63.7970 0.4785 - 64.2755
8 8/31/2019 64.2755 0.4821 - 64.7575
9 9/30/2019 64.7575 0.4857 - 65.2432
10 10/31/2019 65.2432 0.4893 - 65.7325
11 11/30/2019 65.7325 0.4930 - 66.2255
12 12/31/2019 66.2255 0.4967 - 66.7222
13 1/31/2020 66.7222 0.6116 0.6672 68.0011 1st Extension - applicable only if exercised
14 2/29/2020 68.0011 0.6233 0.6800 69.3044 2nd Extension - applicable only if exercised

Loan Assumptions - Initial Term Loan Assumptions - Default Period

Gross Loan Amount (ounces) 61.0000 Penalty 5%
Gross Loan Amount (USD) $ 77,636.53 Penalty Grace Period 5 days
Annual Interest Rate 9.00% Interest Rate (annual) 13.00%
Monthly Interest Rate 0.75% Interest Rate (monthly) 1.08%
Loan Effective Date 12/20/2018
Loan Maturity Date 12/31/2019 Loan Assumptions - Draw Request
Term (months) 12.13 months Borrower Request Anytime
Draw Minimum $ 5,000.00
Loan Assumptions - Extension Terms Gold Sale Price Discount* 0%
Interest Rate (annual) 11.00% Lender Consent Deadline 5 days
Interest Rate (monthly) 0.92%
Monthly Extension Fee 1.00% Gold Price Assumptions at Closing
Borrower Exercise Right 30 days Spot Gold Price at Closing** $ 1,256.80
Lender Consent Deadline 5 days Prem to Gold Price (at Veritaseum cost) 1.30%
Loan Gold Price Conversion $ 1,273.14

Loan Closing Settlment Statement USD Ounces

Gross Borrower Proceeds $ 77,636.53 61.0000
Short Interest from 12/19/18 to 12/31/18 12 days $ 244.26 0.1919
Points Fees 2.00% $ 1,552.73 1.2200
Lender Legal Fees 2.83% $ 2,200.00 1.7286
Title Policy Fees 1.84% $ 1,430.00 1.1236
Recording Fees 0.13% $ 103.00 0.0809
Bank Wire Fees 0.13% $ 100.00 0.0786
Property Taxes (Due 8/1/2018) 0.63% $ 486.68 0.3824
Property Taxes (Due 11/1/2018) 0.63% $ 486.68 0.3824
Net Borrower Proceeds $ 71,033.18 55.8117

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Blockchain Gold Loan Benefits to Borrower
There are many benefits, when compared to the traditional hard money lending marketplace, to
the Borrower by obtaining a P2P gold-denominated loans on the Ethereum blockchain.

1. Loan Issuance – The Borrower was able to obtain a gold-denominated loan, from Veritaseum,
when it was unable to source a traditional USD-denominated loan from traditional lenders
because these lending markets are underserved. Banks do not have an efficient infrastructure
and expertise to provide small loans (less than $1 million) with low maturities (1-year or less)
to small regional developers. In addition, hard money lenders are difficult to find, and the
structure of the loan and economic terms are often too burdensome for borrowers to take on.

2. No Monthly Cash Interest Payments – Instead of paying cash interest monthly, interest
accrues and is due at maturity after the Borrower has executed on the property improvement
business plan and either (1) refinanced the property, (2) or sold the property. This is a big
benefit to a borrower who is cash flow sensitive while the property is not generating any
income.

3. Reduced Counterparty Risk to Lender - Borrower is never at Lender’s discretion when

Borrower exercises its rights. For example, when the Borrower submits a funding request (with
supporting invoices) to release Borrower proceeds from the smart contract, the Lender is
obligated to approve or reject the request within 5 days. If the Lender fails to respond, the
smart contract automatically processes the Borrower’s request. In traditional loan structures,
borrowers are at the whim of lenders’ discretion, which can delay project business plans by
weeks and months at a time with limited to recourse to the borrowers.

4. Smart Contract Automation & Administration – All rights exercised by Borrower are
exercised and recorded on-chain. The smart contract automates many of the reporting and
facilitating aspects of the loan agreement without the need of an attorney, accountant, asset
manager, or Borrower administrator. The VeLend user interface allows the Borrower to interact
with and monitor the status of the loan and to exercise its rights under the loan contract.

5. Customization of Loan Terms & Conditions – Veritaseum was able to provide more
customization to suit the Borrower’s preferences, when compared to traditional loans, because
the loan administration is mainly performed through the loan smart contract (developed by
Veritaseum).

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Blockchain Gold Loan Benefits to Lender
There are many benefits to the Lender, when compared to the traditional hard money lending
marketplace, of funding a P2P, gold-denominated loan.

1. Income on Gold – Veritaseum offers an opportunity for gold investors to generate a gold-
denominated yield (inflation protected) by lending their gold to Borrowers. In today’s global
marketplace the opportunity cost of gold is approximately (-0.50% per annum). Income on
gold products enable gold owners to generate returns in a stable store of value asset that can
not only offset the cost of carry, but also generate income for the first time.

2. Principal Loan Amount Collateralized by Real Estate – Loans issued by Lender is structured
and underwritten to minimize the risk of principal loss for the Lender. Loan structures offered
to date include a conservative Loan-to-Cost or Loan-to-Value of the asset which may be
negotiated directly by Borrower and Lender.

3. Reduced Counterparty Risk to Borrower – Loan proceeds are not directly given to Borrower
at loan issuance. This reduces Lender risk from Borrower significantly as proceeds are released
into a unique smart contract between Borrower and Lender. The Borrower may only access
proceeds after submitting funding requests and proving to the Lender that the money
requested has already been spent improving the real estate collateral.

4. Smart Contract Automation & Administration – All rights exercised by Lender are exercised
and recorded on-chain. The smart contract automates many of the reporting and facilitating
aspects of the loan agreement without the need of an attorney, accountant, asset manager,
or Lender administrator. The VeLend user interface allows the Lender to interact with and
monitor the status of the loan and to exercise its rights under the loan contract.

5. Customization of Loan Terms & Conditions – Veritaseum was able to provide more
customization to the Lender’s preferences, when compared to traditional loans, because the
loan administration is mainly performed by the smart contract (developed by Veritaseum).

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Veritaseum’s Role
Veritaseum is a not a party to the transaction between Lender and Borrower and does not have
an economic interest in the loan. Veritaseum offers its technology and financial services expertise
to source the opportunities and structure them. The final terms and conditions of the loan,
economic and structure, is negotiated between Borrower and Lender and any risk taken to issue
the loan is borne by the Lender. Veritaseum is a third party that provides the below services to
add value to its clients in mitigating risks and uncertainty associated with any gold-denominated
loan products.

1. Investment Pipeline – Veritaseum identifies potential Borrowers and projects which need
financing.

2. Investor Pipeline – Veritaseum identifies potential hard money Lenders who are looking to
generate a return on their gold.

3. Smart Contract – Veritaseum creates the legal and business smart contract negotiated
between Borrower and Lender which is recorded and executed on the blockchain.

4. Technology Infrastructure – Veritaseum provides the user interface that enables Lender and
Borrower to interact with each other on-chain, enabling each party to execute its rights per
the contract in accordance with the agreed upon loan agreement. The user interface displays
the initial terms and conditions of the loan as well as the current status of the loan - on the
Ethereum network.

5. Purchase and Sale of Gold – Veritaseum sells gold to the investor who chooses to lend the
gold to generate a return on investment. Upon origination of the loan, the Lender delivers its
VeGLD to the loan smart contract or the Borrower, (depending on the loan agreement) who
will eventually require liquidation of the gold tokens for cash. Veritaseum will facilitate the sale
of gold and delivery of cash to Borrower’s possession upon Borrower’s instruction per the
smart contract.

6. Sale of Gold Derivatives – Veritaseum may provide products and services that assist Lender
or Borrower in minimizing or reducing (hedge) any gold price risk associated with the gold-
denominated loan product. These products are lender, borrower, and product specific.

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User Interface – Dynamic Smart Contract
Summary: Includes Lender and Borrower public address, loan amount (in grams or ounces),
maturity date, loan maturity settlement amount, loan extension period terms, and late payment
terms. The VeLend user interface enables each party to exercise their rights with each other
directly on Ethereum blockchain. It is a dynamic smart contract (not static) and the status of the
contract changes over time and so do the Borrower’s and Lender’s rights under the contract.

Wallet Login – The VeLend user interface is only accessible to customers who login to the
platform with their Ethereum wallet (by individuals or entities who possess the private key of the
account). Every transaction that takes place on VeLend takes place on-chain and must be
authorized by the Borrower or Lender.

Privacy – This specific loan screen terms and conditions is visible only to the Borrower and Lender
who control the private keys of the Borrower and Lender who are party to this transaction.

Customization – This screen can be customized to include any terms and conditions that is
relevant to each party per the (1) loan agreement, (2) type of loan, (3) structure of loan. Each
Borrower or Lender has flexibility to negotiate terms and conditions that are important to them.

Live Interface – This user interface screen information updates automatically as the Borrower or
Lender exercises its right over the term of the loan and as the status of the changes (interest rates,
loan amount outstanding, etc.).

Security – Information expressed in the user interface is pulled from the smart contract that sits
on the Ethereum network. It has the security benefits of the blockchain.

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Borrower Consent
After the loan agreement is fully negotiated and finalized between Borrower and Lender, the loan
smart contract is launched by the Administrator (VeAssets, LLC), revealed by the status “Created”
(to the right in the below image). On the VeLend user interface the contract is only accessible (for
view) to the specific Borrower and Lender of the loan smart contract. Each party can only access
the loan smart contract by logging into their Ethereum public address wallet (using their private
key).

Step 1 – Borrower Consent: Borrower begins the consent and signature of the loan smart
contract by clicking on the consent button.

Step 2 – Execution On-Chain: Borrower authorizes transaction on-chain. The Borrower must use
login to its Ethereum wallet to execute the loan smart contract on-chain. Once the Borrower signs
the loan smart contract on-chain through the VeLend platform, the Lender is notified and must
also provide its consent before the loan smart contract is binding and in effect.

1 2

Borrower Consent Transaction Hash – Upon Borrower’s consent of the loan the signature is
recorded into the smart contract on-chain, as reflected by the following transaction hash. Upon
Borrower’s consent and signature, the Loan must also be signed by the Lender before the smart
contract is effect and funded.

Borrower Consent Transaction Fee – As reflected by the attached transaction hash, Lender paid
$0.02 to record its consent transaction (signature) on-chain.

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Lender Consent
After the loan smart contract is launched by the Administrator (VeAssets, LLC) and the Borrower
has provided its consent on-chain (transaction hash referenced below) the status of the contract
is updated to “BorrowerConsent”. The Lender must use login to its Ethereum wallet to execute the
loan smart contract on-chain. This is seamlessly done after each party logs into Veritaseum
platform to access the VeLend interface. Below is a screen that is only available to the Lender after
the Borrower has already provided its consent to the smart contract.

Step 1 – Lender Consent: Lender begins the consent and signature of the loan smart contract by
clicking on the consent button.

Step 2 – Loan Amount and Proceeds Funding Confirmation: After clicking the consent button
above, the following Lender
consent dialog appears (bottom
left). Once the Lender provides
its signature the loan is fully
executed, and the loan smart
contract must be funded by 2
the Lender (as seen on right).

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Step 3 – Execution On-Chain: Once the Lender selects to
“Proceed” a MetaMask dialog box appears authorizing the Lender
to set an ETH gas price to record the transaction on-chain (as seen
on right). After the Lender confirms to record its consent on-chain
the loan smart contract is binding on both parties, Lender and
Borrower. The Ethereum loan smart contract records both
3
Borrower and Lender signatures to the loan and both parties are
obligated by the terms and conditions of the loan legal and
business provisions.

Lender Consent Transaction Hash – Upon Lender signature of the loan the transaction is
recorded into the loan smart contract on-chain, as reflected by the following transaction hash.
Upon Lender consent (signature) the Loan is automatically funded with 61 ounces of gold (VeGLD
tokens) and the smart contract is officially in effect between the two parties.

Lender Consent Transaction Fee – As reflected by the attached transaction hash, Lender paid
$0.03 to record its consent transaction (signature) on-chain. When a transaction is authorized by
a party on the Ethereum network, they must set a not-to-exceed ETH gas price. The screen shot
to the right is what appeared in the VeLend user interface after Lender clicked “Proceed” to
authorize the transaction on-chain. An ETH gas limit of no more than $0.48 was set by Lender, but
the actual ETH gas price charged was $0.03. This and other smart contract on-chain transactions
are facilitated directly on Veritaseum’s VeLend user interface platform.

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Binding Contract on Ethereum Network
Once the smart contract has been digitally executed on-chain by both parties it is instantaneously
binding, as reflected in the below status “Binding” (top right of the image). This view is available
to Lender and Borrower only on the VeLend interface. VeLend user interface enables Borrower
and Lender to monitor all aspects of the loan as its status changes throughout the loan transaction
and loan term. The signing of the contract is just one example of how the interface informs each
party of the status. See below 5 status updates that occur automatically as the Borrower and
Lender go through the signing of the smart contract on-chain from start to finish.

In stage 2 and 4 of the above the transaction is attempting to clear and settle on the Ethereum
blockchain. This status reflects that a transaction is in process but has not yet occurred.

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Funding Request by Borrower
Step 1 – Request Funds: After the Borrower has made improvements to the property the
Borrower has the contractual legal right to submit a funding request reimbursement to release
the loan amount proceeds in the smart contract. When the Borrower logs into the VeLend user
interface with its Ethereum wallet it can request funds at any time.

Step 2 – Amount of Funds: Borrower inserts the

amount of funds from the smart contract. In this case it
is $100, but in the construction smart contract loan
outlined in this presentation the Borrower submitted
two requests thus far. The first request was for 2
$25,500 and the second request was for $15,000.

Step 3 – Process Request On-Chain: Borrower must authorize its

account (via its wallet) to run the function that notifies the smart
contract, and therefore the Lender, that the funding request is
submitted. The MetaMask dialog box automatically pops up
automatically to
request the Borrower to
set an ETH gas limit and
3 confirm the processing
of the request on-chain
(status “Creating”)

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Step 4 – Borrower Request Processed: After the Borrower confirmation was processed on-
chain the loan smart contract was updated to reflect the exercise of Borrower’s funding request.
The status of the loan changed from “Created” to “Pending”, which reflects pending Lender’s
review and approval.

As can see by the above, in the Borrower’s view on VeLend is updated to reflect the submission
of the funding request, including the amount of the request, and the deadline or expiration date
by when the Lender must either “Approve” or “Reject” the funding request. This structural
feature of the loan protects the Borrower from untimely delays of Lender’s review of the
documents submitted by Borrower. In this contract the two parties agreed to a 3-day review
process and so the smart contract enforces this contractual obligation on the Lender. If the
Lender does not comply to either “Approve” or “Reject” the request, Borrower’s request is
automatically approved, and the proceeds are automatically released from the loan smart
contract and funded to the Borrower.

Borrower Request Transaction Hash – Upon Borrower signature of the funding request, it is
recorded into the loan smart contract on-chain, as reflected by the following transaction hash.

Borrower Request Transaction Fee – As can be seen by the above transaction hash, Borrower
paid $0.04 to process the request on-chain. A cost that is de minimis to ensure that the
Borrower rights are guaranteed and enforced on the Lender.

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Funding Request Approval by Lender
Upon Borrower on-chain submission of the funding request, Lender is instantly notified of the
request and has a 3-day period to act, “Approve” or “Reject” the request. Either action would
require the Lender to interact with the Borrower to record the decision making on-chain.

Step 1 – Lender Review: Upon Borrower submission of the funding request, Borrower provides
supporting documents to justify the funding request. The Borrower must submit invoices and
conditional lien waivers to verify that the amount requested from the loan smart contract was in
fact already spent on the property to enhance the value of the collateral property. This ensures
and protects the Lender because the funds are never released to the Borrower outright, but only
as a reimbursement for investment the Borrower made to the property.

If the invoices submitted do not justify the amount of funds requested, the Lender has the right
to reject the contract (as seen above, contract was rejected once and a second request by
Borrower was resubmitted (status “Pending”).

Step 2 – Process Request On-Chain – All requests must be processed on-

chain. Whether Lender “Approves” or “Rejects” Borrower’s funding request, it
must be recorded on-chain. The VeLend user interface for both Lender and
Borrower tracks the history of the loan (as can be seen above).
2
Lender Request Transaction Hash – Upon Lender review “Approval” of the
funding request, it is recorded on the loan smart contract on-chain by the
following transaction hash.

Lender Consent Transaction Fee – As can be seen by the above transaction

hash, Lender paid $0.06 to process the request on-chain.

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Sale of VeGLD from Smart Contract and
Delivery of Cash to Borrower
Upon Lender “Approval” of the Borrower funding request, the loan smart contract automatically
sells the VeGLD tokens (100% backed by gold) to VeAssets at the spot price for cash. Within
minutes of the sale, the cash from the sale of VeGLD is funded to the Borrower bank account
information that is stored on the smart contract.

1
Step 1 – Liquidation of VeGLD: After the Lender Gold Ounce Liquidation
approves the funding request, the smart contract Liquidation Date 1/31/2019
calculates and liquidates the necessary amount of Liquidation Price* $ 1,323.40
Liquidation Quantity 11.3344
gold from the smart contract to generate the cash
Liquidation USD Value $ 15,000.00
amount requested by Borrower. Lender Distribution** $ 15,000.00

*Per Apmex on 1/31/2019 at 2:02 PM EST

**By ACH

2
Step 2 – ACH Cash Payment to Borrower: Bank ACH Confirmation
Upon liquidation of VeGLD the cash is Confirmation Number: xxxxxxxxx
immediately processed via ACH to the To: Borrower
Delivery speed: Next Business Day
Borrower bank account that is on record in the
Delivery method: ACH
smart contract. A confirmation invoice is sent Amount: $15,000.00
to the Borrower and Lender for their records. Fee: $5.00 (Paid by VeAssets)
Frequency: One time, immediately
Start on date: 1/31/2019
Estimated arrival date: 2/1/2019

Smart Contract Automatically Updated: Upon sale of VeGLD, the smart contract reflects the
updated instantaneously. This occurs in real-time and is visible to each party on the VeLend
interface that is accessible only to the two parties who control the private keys of the wallet
public address accounts that entered into the loan smart contract agreement.

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Borrower Loan Proceeds Summary
The Net Borrower Proceeds fluctuate because of the fluctuation in gold price. Below is a
summary of the Borrower Proceeds on the date of closing compared to the estimated value of
the proceeds as of February 1, 2019. As shown below the Borrower has submitted to draw
requests (which were approved by Lender) and the smart contract sold gold from the smart
contract and distributed the cash proceeds to the Borrower’s bank account.

Gold-Denominated Loan Smart Contract on Ethereum Blockchain

Gold Gold
Gold Market Sold Balance
Date Price (oz) (oz) USD Value USD Balance
Gross Loan Proceeds 12/19/2018 $1,273.14 61.000 $ 77,636.53
Less: Short Interest (12 days) $ 1,273.14 0.1919 60.8081 $ 244.26 $ 77,392.27
Less: Property Taxes $ 1,273.14 0.7645 60.0436 $ 973.36 $ 76,418.91
Less: Trans. Expenses $ 1,273.14 4.2303 55.8133 $ 5,385.73 $ 71,033.18
Net Loan Proceeds $1,273.14 55.8133 $ 71,033.18
Borrower Draw 1 12/20/2018 $ 1,265.03 20.1576 35.6557 $ 25,500.00 $ 45,105.73
Borrower Draw 2 1/31/2019 $ 1,323.40 11.3344 24.3213 $ 15,000.00 $ 32,186.80
Borrower Proceeds Remaining in Smart Contract 24.3213 $ 32,186.80

The Borrower market value of the undistributed loan proceeds in the smart contract is worth
more that it was at closing due to the rising price of gold. To date the borrower has an
unrealized gain caused by rising gold prices of 2.13%.

Borrower Loan Proceeds & Hedge Analysis

Gold
Ounces USD
Net Proceeds throughout Loan Term Actual Estimated
Net Proceeds Value at Closing 55.8133 $ 71,033.18
Proceeds Drawn Down as of 2/1/2019 31.4920 $ 40,500.00
Proceeds Balance (market value) 24.3213 $ 32,186.80
Net Proceeds Market Value on 2/1/2019 55.8133 $ 72,686.80

Unrealized Gain/(Loss) from Rising Gold Price 0.0000 $ 1,653.62 2.13%

This gain may need to be offset with the cost of purchasing the gold loan amount price risk (via
hedge) outlined below.

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Hedge Gold Price Risk Derivative Products
It may be necessary and desirable for the Borrower to hedge its notional gold price risk. When the
Borrower must repay the gold-denominated loan on the maturity date the Borrower will need to
purchase gold ounces at the market price of gold and deliver the gold ounces to the Lender. If
the price of gold goes up it will increase the effective cost of the loan to the Borrower. Therefore,
the borrower may wish to hedge this risk by purchasing a VeAsset’s Assurance Contract for the
notional amount of the loan. This contract essentially allows the Borrower to sell VeAssets its
upside to eliminate its downside. The cost of the net hedge in the example is approximately $3,000
(or 3.86% of the Gross Proceeds Loan amount).

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VeLend and Etherscan
Tx Loan Details Veritaseum gold-denominated smart contract can be
7 Lender Approval & Distribution of ~11 oz verified and tracked by Etherscan, a leading BlockExplorer
6 Borrower Funding Request #2 - $15,500 that allows users to easily lookup, confirm and validate
5 Lender Approval & Distribution of ~21 oz transactions that have taken place on the Ethereum
4 Borrower Funding Request - $25,500 Blockchain. Transaction hashes reveal limited information
3 Lender Signed & Funded 61.0 oz
about the activity and actions between the Borrower and
2 Borrower Signed
Lender of the loan smart contract (enabling a certain level
1 Contract Issued
of privacy). The capabilities and user interface ability of
these tools is very limited when compared to the capabilities of Veritaseum platforms such as
VeLend. VeLend incorporates tools like Etherscan within its user interface to represent the
authenticity and validity of each transaction that takes place in a Borrower’s or Lender’s wallet,
while also providing a full summary of the account status, balances, and other rights and privileges
exercised by each party as allowed and enforced by the smart contract designed and created by
Veritaseum. Transactions on Etherscan rank from last transaction on top to first transaction on
bottom. A total of 7 have taken place (loan details above).

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Loan Collateral Improvement-to-Date
Before improvements were made the property was acquired for $65,000.

To date, the Borrower has invested over $40,500 of the loan proceeds into the property.
Approximately 24.3213 ($32,186) ounces of gold remain undrawn in the loan smart-contract.

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Loan Product Summary
Veritaseum incorporated this loan structure and product to meet the specific needs of
residential real estate residential developers. Features of the gold-denominated loans can be
modified to meet the need of borrowers and lenders depending on the specific asset and risk
tolerance.

Each action of either party to the loan is recorded on-chain. The smart contract is live the user
interface on VeLend updates to the second the status of the contract and of each request by
either party.

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