Invictus Capital IHF

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Sale is LIVE, you can purchase whilst tokens are still available. Purchase Invictus Capital
ICO Starts: Thursday, 3 May, 2018 - 18:00
ICO Ends: Wednesday, 30 May, 2018 - 18:00

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Rating

9.67
9.67
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Asset

IHF

Type

ERC20

Hard Cap

$15,000,000

ICO sale is LIVE, you can purchase whilst tokens are available. Purchase Invictus Capital

Tokenomics

Tokenomics

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Invictus Capital ICO

Token: IHF
Token Type: ERC20
Price: $0.10
Market Hard Cap: $15,000,000

Invictus Capital on the web

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Whitepapers outline all key information so you can understand how it works.


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About Invictus Capital ICO

The Hyperion Fund provides investors with diversified exposure to a portfolio of expertly-vetted early stage investments in the blockchain economy through simple agreements for future token (SAFTs), pre-sales and initial coin offerings (ICOs). Through blockchain technology, independent investors now enjoy unprecedented global access to early stage investment opportunities. However, the associated burden to perform the necessary due diligence is overwhelming, and public analysis tools are non-existent. Furthermore, the largest pre-sale bonus structures remain out of reach for independent investors—venture funds and high net-worth individuals still enjoy preferred access to these investment opportunities. The Hyperion Fund functions as a syndicated venture capital fund to provide independent investors access to these bonuses. The fund will be managed by Invictus Capital who will perform rigorous due diligence on investments, establish relationships with founders and evaluate the value proposition of their projects on behalf of Hyperion participants. Analysis of projects will rely extensively on data analytics employing an array of proprietary machine learning tools. The Invictus Hyperion Fund (IHF) token is an Ethereum ERC20 utility token. The value of the IHF token is directly represented by the holdings and investments of the fund. Once the fund has reached a size of 30M USD, the fund will buy-and-burn IHF tokens to the value of 50% of the returns realized quarterly. A 12.5% performance fee, based on returns, is levied. The remaining 37.5% is either reinvested or utilized for further buy-and-burns, depending on the total size of the fund. With zero annual management fees, fund managers’ incentives are strongly aligned with the interests of IHF token holders.

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276

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50

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263

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URL: https://invictuscapital.com/hyperion

White Paper

A TOKENIZED 
VENTURE CAPITAL 
FUND
WHITE PAPER

Contents
1.Legal and Disclaimer ................................................................................................................................................................ 4
2. Executive Summary ................................................................................................................................................................. 5
I. Abstract .................................................................................................................................................................................... 6
II. Investor Overview .................................................................................................................................................................... 6
III. Introduction ............................................................................................................................................................................ 6

A. Removing Barriers Facing Independent Investors ........................................................................................................................7
B. Professional Due Diligence .............................................................................................................................................................7
C. Supporting Blockchain Visionaries ................................................................................................................................................7

IV. Improving Odds of Partner ICO Success ................................................................................................................................ 7
V. Value of Syndication ................................................................................................................................................................ 7
VI. Tokenized Investment Funds .................................................................................................................................................. 8
VII. Investment Insight and ML Augmented Due Diligence .........................................................................................................8

A. Investment Insight ..........................................................................................................................................................................8
B. ML Augmented Due Diligence ........................................................................................................................................................9
C. Development Roadmap ..................................................................................................................................................................10
VIII. Investment Strategy ............................................................................................................................................................. 10
A. Minimum Investment Requirements ..............................................................................................................................................10
B. Investment Horizon .........................................................................................................................................................................11
C. Risk and Hedging ............................................................................................................................................................................11

IX. Portfolio Valuation ................................................................................................................................................................. 12
A. Importance of Portfolio Valuation .................................................................................................................................................12
B. Impairment Assessment ................................................................................................................................................................12

X. Hyperion Fund Initial Coin Offering ......................................................................................................................................... 13
A. ICO Details .......................................................................................................................................................................................13
B. ICO Token Pricing ............................................................................................................................................................................13
C. Token Distribution ...........................................................................................................................................................................13
D. ICO Funds Utilization .......................................................................................................................................................................13

XI. Post ICO Fee Structure and Token buy-and-burn ....................................................................................................................13
A. Performance Fee .............................................................................................................................................................................13
B. Token Buy-and-Burn Activation Threshold .....................................................................................................................................14
C. Token Buy-and-Burns, and Performance Fee ................................................................................................................................14
D. Custodial Fees .................................................................................................................................................................................14
E. Comparison of Fees to Other Funds ..............................................................................................................................................14

XII. Smart Contract Specification ................................................................................................................................................ 15
XIII. Security ................................................................................................................................................................................ 15

A. General Control Environment .........................................................................................................................................................15
C. Exchange Accounts ........................................................................................................................................................................15
D. Hardware Wallets ............................................................................................................................................................................15

XIV. Asset Transparency .............................................................................................................................................................. 15
XV. Marketing and Investor Relations .......................................................................................................................................... 15
XVI. Accounting and Reporting ................................................................................................................................................... 16
A. Relevant Reporting Standards ........................................................................................................................................................16
B. Treatment of Impaired Assets ........................................................................................................................................................16

2

XVII. Fund Timeline ..................................................................................................................................................................... 16
XVIII. Conclusion ......................................................................................................................................................................... 16
XIX. Glossary ............................................................................................................................................................................... 17
XXI. Appendices .......................................................................................................................................................................... 19
A. Funding Application Form ..............................................................................................................................................................19
XXII. Legal ................................................................................................................................................................................... 19
A. Disclaimer Of Liability .....................................................................................................................................................................19
B. No Representations And Warranties  .............................................................................................................................................19
C. Representations And Warranties By You  ......................................................................................................................................19
D. Cautionary Note On Forward-looking Statements  .......................................................................................................................20
E. Market And Industry Information And No Consent Of Other Persons  ........................................................................................21
F. Terms Used ......................................................................................................................................................................................21
G. No Advice  .......................................................................................................................................................................................21
H. No Further Information Or Update .................................................................................................................................................21
I. Restrictions On Distribution And Dissemination ............................................................................................................................21
J. No Offer Of Securities Or Registration  ..........................................................................................................................................21
K. Modifications ...................................................................................................................................................................................22
L. Mutual Fund Regulation ..................................................................................................................................................................22
M. The Cayman Islands and the Foreign Account Tax Compliance Act ..........................................................................................22
N. Risks And Uncertainties .................................................................................................................................................................23
3

1.Legal and Disclaimer
A. Legal
PLEASE READ THIS SECTION AND THE SECTIONS AT THE 
This White Paper, any part thereof and any copy thereof 
END OF THIS WHITE PAPER ENTITLED “DISCLAIMER 
must not be taken or transmitted to any country where 
OF LIABILITY”, “NO REPRESENTATIONS AND  distribution or dissemination of this White Paper is 
WARRANTIES”, “REPRESENTATIONS AND WARRANTIES 
prohibited or restricted. No part of this White Paper is to 
BY YOU”, “CAUTIONARY NOTE ON FORWARD-LOOKING 
be reproduced, distributed or disseminated without the 
STATEMENTS”, “MARKET AND INDUSTRY INFORMATION 
consent of the Company and shall include this section and 
AND NO CONSENT OF OTHER PERSONS”, “NO ADVICE”, 
the following sections entitled “Disclaimer of Liability”, 
“NO FURTHER INFORMATION OR UPDATE”, “RESTRICTIONS 
“No Representations and Warranties”, “Representations and 
ON DISTRIBUTION AND DISSEMINATION”, “NO OFFER 
Warranties By You”, “Cautionary Note On Forward-Looking 
OF SECURITIES OR REGISTRATION” AND “RISKS AND 
Statements”, “Market and Industry Information and No 
UNCERTAINTIES” CAREFULLY
Consent of Other Persons”, “Terms Used”, “No Advice”, “No 
Further Information or Update”, “Restrictions On Distribution 
You  should  consult  with  your  legal,  financial,  tax  and  other 
and Dissemination”, “No Offer of Securities Or Registration” 
professional advisors(s) before taking any action in connection 
and “Risks and Uncertainties” 
with this White Paper.
The tokens described in this White Paper (“IHF” or the 
B. Disclaimer
“Tokens”) are not intended to constitute securities in any 
1. Prospective IHF ICO participants should inform themselves 
jurisdiction. This White Paper does not constitute a prospectus 
as to the legal requirements and tax consequences within the 
or offer document of any sort and is not intended to constitute 
countries of their citizenship, residence, domicile, and place 
an offer of securities or a solicitation for investment in 
of business with respect to the acquisition, holding or disposal 
securities in any jurisdiction.
of the Tokens, and any foreign exchange restrictions that may 
This White Paper does not constitute or form part of any 
be relevant thereto. The distribution of this White Paper and 
opinion on any advice to sell, or any solicitation of any offer 
the offer and sale of the Tokens (this “ICO” or the “IHF ICO”) 
by Invictus Hyperion, an exempted company registered under 
in certain jurisdictions may be restricted by law.
the laws of the Cayman Islands or its nominated group or 
2. Invictus Capital is not providing you legal, business, 
associated company (“Invictus,” “Invictus Capital,” or the 
financial or tax advice about any matter. You may not legally 
“Company”) to purchase any tokens (“IHF”) nor shall it or any 
be able to participate in this unregistered offering. You should 
part of it, nor the fact of its presentation, form the basis of, or 
consult with your own attorney, accountant and other advisors 
be relied upon in connection with, any contract or investment 
about those matters (including determining whether you may 
decision.
legally participate in this ICO). You should contact us with any 
The Company will deploy the proceeds of sale of the IHFs to 
questions about this ICO or the Tokens.
fund the project, businesses and operations, as outlined in 
3. It is the responsibility of any persons wishing to acquire the 
this White Paper. 
Tokens to inform themselves of and to observe all applicable 
Any agreement between the Company and you as a 
laws and regulations of any relevant jurisdictions. Prospective 
purchaser, and in relation to any sale and purchase, of IHFs 
IHF ICO participants should inform themselves as to the legal 
is to be governed by only a separate document provided by 
requirements  and  tax  consequences  within  the  countries  of 
the Company (the “T&C”). The T&C will set out the terms 
their citizenship, residence, domicile and place of business 
and conditions of such agreement. In the event of any 
with respect to the acquisition, holding or disposal of the 
inconsistencies between the T&Cs and this White Paper, the 
Tokens, and any restrictions that may be relevant thereto. 
T&Cs shall prevail. 
4. The IHF ICO constitutes an offer of Tokens only in those 
This White Paper has been prepared in multiple languages. 
jurisdictions and to those persons where and to whom 
In the event of any inconsistencies between one version the 
they lawfully may be offered for sale. Yhe IHF ICO does not 
English language version shall prevail.
constitute  an  offer  to  subscribe  for  securities  except  to  the 
extent permitted by the laws of each applicable jurisdiction.
You are not eligible and you are not to purchase any IHFs in 
the Hyperion token sale (as referred to in this White Paper) 
5. Nothing in this White Paper is intended to create a contract 
if you are a citizen, resident (tax or otherwise) or green card 
for investment into The Hyperion Fund of Invictus Hyperion 
holder of the United States of America, or a citizen or resident 
(“Hyperion,” the “Hyperion Fund,” or the “Fund”), and each 
of the Republic of South Africa or Cayman Islands.
potential IHF ICO participant acknowledges that Invictus 
Capital will rely on this assertion of an ICO Participant’s 
No regulatory authority has examined or approved of any of 
statements with respect to compliance with the laws of the 
the information set out in this White Paper. No such action has 
jurisdiction in which the ICO Participant is legally domiciled.
been or will be taken under the laws, regulatory requirements 
or rules of any jurisdiction. The publication, distribution or 
dissemination of this White Paper does not imply that the 
applicable laws, regulatory requirements or rules have been 
complied with.
There are risks and uncertainties associated with the 
Company and its business and operations, the IHFs, the 
Invictus Hyperion Fund token sale and the underlying assets, 
as described below.
4

2. Executive Summary
The fundamental attributes of blockchain technology are 
This small hard cap has been selected as an optimum fund 
being leveraged in profound new ways, changing how our 
size that can be responsibly managed to achieve high returns. 
society operates, disrupting old conventions, and creating new 
As the Fund grows, Invictus Capital will dedicate increased 
possibilities. These attributes present a foundation for value 
resources to  portfolio management. This will be to ensure 
creation;  providing  the  potential  for  significant  returns  on 
that the size of the Fund, and duty to invest responsibly, never 
investment. Blockchain technology provides the technological 
exceeds the manpower required to do so.
basis for the value creation of most cryptocurrencies, the 
platforms on which they are created and operate, and the 
IHF is the token of the Hyperion Fund. The value of the token 
networks through which they are transferred.
is tied directly to the valuation of the Hyperion Fund. IHF is an 
ERC20 token based upon the Ethereum blockchain.  IHFs can 
Cryptocurrencies are digital representations of an entity 
be acquired during the IHF ICO, which is a once-time, closed-
or organization with value or utility within the blockchain 
end offering.
economy. The exchange of tokens using blockchain protocols 
has provided a new way for people to exchange value with one 
Operating on the Ethereum blockchain facilitates a 
another. These value exchanges have enabled entrepreneurs 
transparent, globally accessible ICO and provides IHF token 
to  raise  funding  in  the  form  of  fiat  and  cryptocurrencies, 
holders with simple options for transferring, storing and 
providing tokens specific to their projects in return.
trading their tokens on exchanges. Following the IHF ICO, the 
only way to obtain IHF will be directly from IHF holders on 
This has been mediated through the development of new 
exchange. No further tokens will be publicly sold or minted by 
investment protocols like Simple Agreements for Future 
Invictus Hyperion. 
Tokens (SAFTs), token pre-sales and Initial Coin Offerings 
(ICOs).  These  protocols  have  redefined  and  democratized 
IHF tokens issued will represent a participant’s share of the 
early stage investing. 
portfolio. 98% of the total amount contributed during the 
offering will go directly towards acquisition of assets under 
Through blockchain technology, independent investors  management (AUM). A detailed breakdown of Fund utilization 
are now able to invest in projects from across the globe 
and token distribution is available in Section X. 
while they are in their infancy — investment opportunities 
that, historically, were only available to wealthy accredited 
No annual management fee is collected by Fund managers. 
investors and first-world venture capitalists.
Fees are strictly performance-based and constitute 12.5% of 
realized returns per quarter. When the Fund exceeds 30M USD 
While these developments have provided access to a wide array 
at the end of a quarter, token repurchase and burning (buy-
of  novel  investment  opportunities,  they  have  also  exposed 
and-burns) will be triggered. Token buying to the value of 50% 
people  to  the  significant  risks  associated  with  early  stage 
of returns realized each quarter will be effected on the open 
investing. Coupled with the proliferation of ICOs on offer, 
market with the acquired tokens being burnt, thus increasing 
performing the necessary due diligence to make informed 
the  token  price.  Buying  will  be  executed  over  the  following 
investments has become onerous.
quarter to minimise short term impacts on prices.
Independent investors are simply unable to allocate the time, 
Token holders are at liberty to sell or exchange their tokens to 
energy and mental bandwidth required to understand and 
third parties at any time. There are no exit fees, broker fees or 
navigate all of the new investment opportunities — and the 
advice fees imposed by Invictus Hyperion.
corresponding pitfalls.
The fund will operate with Invictus’s hallmark data-driven 
Even though blockchain technology has transformed the early 
investment methodology. Predictive models and tools 
stage investment landscape, the independent investor still 
such as the Invictus Titan AI will be utilized to inform the 
faces barriers. Large bonuses or discounts are often offered 
due diligence, and evaluate the potential of, investment 
exclusively during private pre-sales  to investors or partners 
opportunities.
with  significant  capital  and  connections  to  the  project’s 
founders. Through the power of syndication, the Hyperion 
The size of the Hyperion Fund, a result of the syndicated 
Fund, administered by Invictus Capital, has been designed 
contributions made by participants, is anticipated to produces 
to function as a venture fund to access these private pre-sale 
several favourable advantages  for IHF holders. Firstly,  the 
investment opportunities.
investing power of the Fund over that of an individual 
attracts applications from entrepreneurs seeking funding 
The Hyperion Fund is a closed-end, tokenized venture capital 
that an individual would not attract alone. Secondly, the 
fund  designed  to  provide  token  holders  with  diversified 
size of investments that the Fund will be able to make will 
exposure to the returns, and risks of early stage investing in 
provide IHF Fund managers with the ability to engage with 
the blockchain economy. 
entrepreneurs for the purposes of performing due diligence 
Hyperion will focus on early stage investments in blockchain 
and to negotiate terms of investment on behalf of IHF token 
technology through SAFTs, private and public token pre-sales 
holders in a manner that they could not alone. 
and ICOs. The Fund will not invest in projects that already 
Security  is  extremely  important  and  the  smart  contract 
have a listed token. 
code relating to the issuance of IHF will be audited by an 
Hyperion will focus on early stage investments in blockchain 
independent third party, Hosho Group. 
technology through SAFTs, private and public pre-sales and 
A public IHF ICO will be held from the 30th of April 2018. 
ICOs. The fund will not invest in projects that already have a 
Invictus Capital will use the IHF ICO contributions to invest in 
listed token. 
SAFTs, pre-sales and ICOs. A full list of Hyperion Fund team 
The soft cap for the ICO of the Hyperion Fund will be 2M 
members and partners are available on the Invictus Capital 
USD. If the soft cap is not reached by the end of the IHF ICO, 
website. 
investors will have their investments returned to them in full. 
The hard cap for the ICO of the Hyperion Fund is 15M USD. 
5

Hyperion Fund
Cryptocurrency Venture Capital Fund
Brian Watson, Ciaran MacDevette, Luke Schwartzkopff, Matthew Finlayson, Bobby Jonker, Steve Williams, Olubode 
Adetunji, Raymond Botha and Daniel Schwartzkopff * on behalf of Invictus Capital
* CEO, Invictus Capital
I. Abstract
The Hyperion Fund provides investors with diversified exposure to a portfolio of expertly-vetted early stage investments 
in the blockchain economy through simple agreements for future token (SAFTs), pre-sales and initial coin offerings 
(ICOs). Through blockchain technology, independent investors now enjoy unprecedented global access to early stage 
investment opportunities. However, the associated burden to perform the necessary due diligence is overwhelming, and 
public analysis tools are non-existent. Furthermore, the largest pre-sale bonus structures remain out of reach for many 
independent investors — venture funds and high net-worth individuals still enjoy preferred access to these investment 
opportunities.  The  Hyperion  Fund  functions  as  a  syndicated  venture  capital  fund  to  provide  independent  investors 
access to these bonuses. The Fund will be managed by Invictus Capital who will perform rigorous due diligence on 
investments, establish relationships with founders and evaluate the value proposition of target projects on behalf of the 
Hyperion Fund. Analysis of projects will rely extensively on data analytics employing an array of proprietary machine 
learning tools. The Invictus Hyperion Fund token is an Ethereum ERC20 utility token. The value of the IHF token is 
directly represented by the holdings and investments of the Fund. Once the holdings and investments of the Fund has 
reached a value of 30M USD, as determined by Invictus Capital, Hyperion will buy-and-burn IHF tokens to the value of 
50% of the returns realized quarterly. A 12.5% performance fee, based on returns, will be levied. The remaining 37.5% of 
such returns will be either  reinvested or utilized for further buy-and-burns, depending on the total size of the Hyperion 
Fund. With zero annual management fees, Fund managers’ incentives are strongly aligned with the interests of IHF 
token holders. 
II. Investor Overview
III. Introduction
 The  benefits  to  holders  of  Invictus  Hyperion  Fund  (IHF) 
Blockchain technology and smart contracts have drastically 
tokens are clear: 
changed the landscape of early stage investing. Reports 
-   Token  holders  gain  exposure  to  investments  in  private 
indicate that in 2017, the amounts raised via ICOs far exceeded 
and public pre-sales, and ICOs that are vetted by experts 
that of early stage traditional venture capital2. Further, 
equipped with proprietary analysis tools (such as the 
ICOs and token pre-sales now provide smaller, independent 
Titan AI tool).
investors with an increased degree of access to early stage 
investment opportunities across the globe.
-   Hyperion caters for higher risk appetites while providing 
access to the possibility of higher returns characteristic 
USD raised by ICOs
of venture capital. Investors should be aware that risk is 
correlated with return.
20,000
-   
Token holders are able to trade their tokens on 
cryptocurrency  exchanges.  The  value  of  IHF  will  be 
15,000
affected by Fund performance and reductions in the total 
.
token supply through repurchases and burning by Fund 
$M
managers.
10,000
-   
A large fund created through syndication creates 
bargaining power that may be leveraged by Invictus 
5,000
Capital on behalf of token holders in negotiating benefits 
that would otherwise be unobtainable by individuals.
0
-   Through the Fund, participants will gain increased access 
7
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-1 Jan-18 Feb-18 Mar-18
to investing in private pre-sales.
Monthly
Cumulative
-   The Hyperion Fund team have successfully launched 
an ICO (CRYPTO20) which had one of the top 25 ICO 
Fig. 1. The amounts raised by ICOs per month and cumulatively since 
raises of all time at its conclusion. It is anticipated that 
January 2017 (sources: Invictus Capital and Kornilov et al3)
this  experience,  network  and  marketing  capacity  will 
significantly  increase  the  odds  of  success  for  projects 
Historically, early stage investing—a high risk, high reward 
Hyperion invests in.
venture—has been dominated by wealthy first world venture 
capitalists (VCs). To gain access to funding, entrepreneurs 
-   In the changing landscape of international cryptocurrency 
were required to pitch to VCs who enjoyed preferential access 
regulations,  specifically  regarding  ICOs,  fundraising 
to the high rates of return characteristic of these investment 
efforts may proceed increasingly through private pre-sales 
opportunities. 
often involving SAFTs. The Hyperion Fund thus provides 
IHF holders access to these raises.1
The Hyperion Fund leverages the power of syndication and 
industry presence to provide the opportunities of traditional 
venture capital to the independent investor. However, unlike 
traditional venture capital investment structures, returns 
6

S
BONU
Presales Begin
Presales Conclude ICO Begins
ICO Concludes
END
END
Phase 1
Phase 2
Phase 1
Phase 2
Private Presale Private Presale Public Presale Public Presale
Fig. 2. Generalized pre-ICO and ICO fundraising timeline leading up to the conclusion of an ICO. Bonuses offered relative to ICO closing price of 
an ICO decrease with time (source: Invictus Capital)
on blockchain investments can be realized more quickly, 
This is especially true for entrepreneurs in countries lacking the 
providing increased liquidity and turnover.
presence of angel investors and the communities they foster. 
It is anticipated that the utilization of data-science and 
The Hyperion Fund aims to support these entrepreneurs.
machine learning tools in the analysis and reporting on 
With the large number of dubious projects, scams and frauds 
projects along with  business insights, marketing assistance 
present within the ICO space, legitimate projects require 
and  partner  benefits  provided  by  Invictus  Capital  will 
partners whose investments represent more than simply 
strengthen the chances of successful investment outcomes.
financial support. Investments by reputed funds in well-vetted 
projects imbue these projects with credibility, distinguishing 
A. Removing Barriers Facing Independent 
them from amongst the rest. 
Investors
Early stage funding is provided - typically through private pre-
IV. Improving Odds of Partner 
sales - in exchange for tokens often at a massively discounted 
price in comparison to the public ICO price. These price 
ICO Success
discounts represent a potentially high return on investment 
Invictus Capital successfully launched CRYPTO20, which was 
(ROI) following the ICO. These investment opportunities 
the 22nd largest ICO of all time at its conclusion4. Invictus 
are often still reserved for VCs and remain off-limits to the 
Capital will leverage its experience and expertise in support 
average independent investor.
of projects it invests in through the Hyperion Fund, increasing 
Fig. 2 illustrates a common fundraising structure. Many 
their prospects of success. Further, the team behind Invictus 
entrepreneurs with a vision to launch a successful ICO require 
Capital  (the  “Hyperion  Fund  Team”)  are  experienced 
several phases of pre-ICO funding for product development, 
developers, providing an edge over traditional VCs when it 
legal  expenses,  negotiating  and  securing  partnerships,  and 
comes to the evaluation of projects.
marketing expenses. 
Invictus Capital will issue thorough reports that include salient 
B. Professional Due Diligence
due diligence considerations for projects that it chooses to 
invest in. These reports will go a long way towards promoting 
Hyperion’s fund managers aim to provide peace of mind 
and legitimizing a project, as they will be distributed via well 
through professional due diligence and reporting, removing 
established marketing channels.
the burden from investors.
Invictus Capital will endeavour to further projects it is 
Due diligence on investments will be supported by custom-
partnered with. It will provide, amongst other benefits:
built machine learning analysis tools (such as the Titan AI) 
-  A public ICO report
to quickly narrow down investment opportunities and detect 
scams.
-  Direct market reach via social channels
-  Assistance in listing tokens on exchanges
A drawback of the ICO fundraising protocol is the limited 
degree to which investors are able to engage with, and 
-   Introductions to a powerful network of marketers and 
scrutinize the people they are investing in. The Hyperion 
advisors in specific geographies (Korea, Japan, Russia, etc.)
Fund managers will act with aligned interests to those ofund 
-  Smart contract review
participants and the community by engaging with pre-ICO 
-  Guidance and strategy
projects.
C. Supporting Blockchain Visionaries
V. Value of Syndication
The key attributes of blockchain technology provide a basis 
The  Hyperion  Fund  is  an  example  of  syndication.  Through 
for transforming many sectors of our society, such as finance, 
the Hyperion ICO, participants will effectively pool their 
communications, logistics, healthcare, entertainment and 
investments  to  create  a  venture  fund  of  size  sufficient  to 
education to name a few. The value of the improvements 
unlock access to the larger bonus structures of private pre-
brought to these sectors underpins the returns on early stage 
sales, attract the attention of entrepreneurs and produce 
investments in blockchain technology projects. 
bargaining power for negotiating the terms of investment.
Entrepreneurs with the vision, and unique ability to capitalize 
Entrepreneurs will preferentially seek out funding from VCs 
on these attributes require financial backing and support to 
with  expertise  in  their  technological  area.  Invictus  Capital, 
develop their projects to the stage where they can conduct a 
through the Hyperion Fund, is capable of understanding the 
successful public pre-sale and ICO. 
potential impact of projects and attracting entrepreneurs.
7

Knowledge that their application will be evaluated by informed 
data. The intent is to provide high-level market insight, 
professionals and that the Hyperion Fund has the resources to 
and  to  generate  indicators  that  will  help  identify  profitable 
support them in line with the quality of their project, is highly 
investment opportunities.
attractive to entrepreneurs requiring support.
Number of Projects per Sector
VI. Tokenized Investment 
Other
Blockchain Platform
Music/Arts
Network/Communications
Insurance
Funds
Education
Real Estate
Betting/Gambling
Finance
4%
5% 3%
Tokenized investment funds represent a new paradigm in 
Jobs/Marketplace
3%
5%
the investment space. In a tokenized investment fund, no 
13%
Entertainment
3%
third party is needed to keep track of investors and their 
4%
Payments/Wallets
investment amounts - the Ethereum blockchain removes this 
IoT
6%
4%
intermediary, providing a trustless and transparent platform 
4%
4%
Prediction Market
upon which tokens can be transferred.
Drugs/Health
3%
4%
6%
Social Network
Funding/VC
Each token represents a portion of the underlying assets 
6%
3%
5%
5%
4%
within the Fund. Token holders can freely trade and transfer 
Security/Identity
Commerce/Retail
these  tokens  with  no  exit  or  entry  fees  beyond  the  typical 
Asset Management
Content/Advertising
Ethereum network transfer fees.
Energy/Utilities
Data/Computing/AI
Gaming/AR/VR
Media/Content
Definitions: 
Open-end mutual fund:
Fig. 3. Illustration of  the number of projects in USD per ICO sector. 
(source: ICOwatchlist.com5)
An open-end fund is a mutual fund issuing unlimited shares 
of investments in stocks and/or bonds. Investing creates 
USD Raised per Sector
more shares, whereas selling shares takes them out of 
Music/Arts
circulation. Shares are bought and sold on demand at their 
Insurance
Education
NAVs, which is based on the value of the fund’s underlying 
Real Estate
Betting/Gambling
Jobs/Marketplace
securities and is calculated at the end of the trading day. 
Entertainment
IoT
When a large number of shares are redeemed, the fund may 
Prediction Market
Funding/VC
sell some of its investments to pay the investor. Shares are 
Security/Identity
Blockchain Platform
Asset Management
bought directly from the fund administrators.
Data/Computing/AI
39%
Media/Content
Gaming/AR/VR
3%
Exchange Traded Fund (ETF):
Energy/Utilities
Content/Advertising
Commerce/Retail
5%
An ETF is like an open-end mutual fund but instead trades 
Social Network
Drugs/Health
5%
as a common stock on a stock exchange. It is not purchased 
directly from fund administrators. An ETF may trade at a 
Payments/Wallets
10%
16%
premium or discount to the NAV but this is often very short-
lived due to arbitrage by institutional investors.
Finance
Closed-End Fund (CEF):
Network/Communications
A CEF is seeded once-off via an IPO and then traded on 
exchange thereafter. No further shares are issued and CEFs 
Fig. 4. Illustration of  the amount raised per ICO sector. (source: 
may trade above NAV as buying and selling the shares on 
ICOwatchlist.com5)
exchange has no effect on the underlying assets.
Fig. 3 and 4 demonstrate that despite a relatively even 
The structure of the Hyperion Fund is similar to a tokenized 
distribution between sectors, some sectors have experienced 
CEF:
significantly  larger  raises  than  others.    This  indicates  that 
sector-level insight is essential for investing. 
-   The Fund acts as a once-off seeded venture capital fund. 
Total Fund value is managed through buy-and-burns of 
tokens by the Fund.
ICO Return (Bitcoin based) by USD raised
8
-   Post IHF ICO investors will only be able to purchase IHF on 
exchange from IHF ICO participants.
-   There  is  no  liquidation  option,  the  exchange  value  is 
6
determined by the Fund’s performance, and supply and 
demand.
4
age return (multiple)
er

VII. Investment Insight and ML 
Av
2
Augmented Due Diligence
0
$2-4M.
$4-6M.
$6-9M.
$9-12M.
$12-15M.
$15-19M.
$19-23M.
$23-30M.
$35-53M.
$30-35M.
A. Investment Insight
USD raise decile
The sheer amount of information that needs to be processed 
to identify promising early stage investments presents a 
Fig. 5. Bar graph showing the Bitcoin-based returns for increasing 
significant  challenge  to  investors.  Thousands  of  ICOs  have 
ICO raise amounts in USD, indicating that smaller ICO raises have 
already taken place, with dozens more launching every 
historically resulted in larger returns.
month.  Invictus Capital  has developed, and will continue 
*Returns expressed as multiples, outliers removed. (source: Invictus 
to develop, analysis and insight tools to help process this 
Capital and tokendata.io6)
8

Market Insight via Similarity and Clustering
 - completeness of the founding team
An investor’s ability to navigate markets, making wise 
 - technical superiority of the product 
investment  decisions  along  the  way  can  be  significantly 
 - expected time for product development 
enhanced by gaining a high-level perspective of the structure 
and behavior of a  market.  Invictus Capital  has developed 
 - buyer concentration
the Titan AI tool that utilizes its large, and continuously 
 - perceived risk of the market
growing corpus of white papers to gain an overview of the ICO 
These metrics will help guide model feature construction.
landscape -  including  the  trends  and  sub-sectors  that  exist 
within it.
In this tool, Latent Dirichlet Allocation (LDA)7 is applied to 
the text extracted from each white paper within the corpus to 
generate a set of topics.  Each of these topics has a probability 
of having certain keywords associated with it.  Each document 
is  then  assigned  a  mixture  of  the  topics  most  strongly 
associated with them and as such can be used to cluster 
documents based on their topic mix.
Fig. 7. Interactive document comparison by similarity screen of the 
Fig. 6. Interactive clustering screen of the Titan AI Tool, showing a 
Titan AI Tool. Note that the topics are abstract concepts and the 
particular node (document) with its associated keywords (topics) 
words associated with them are the words those topics are most 
(source: Invictus Capital
likely to contain. (source: Invictus Capital10)
8)
This clustering allows for the making of investment decisions 
in a faster and more informed way by giving us the information 
In order to accomplish this, data has been recorded regarding 
required to diversify our investments across sectors and 
both the details and the performance of past ICOs.  These 
compare projects to their competitors.
details  include  information  about  the  team  extracted  from 
LinkedIn, information about the project itself from the white 
Additionally, word and paragraph embedding unsupervised 
paper and any publicly available code repositories (including 
learning algorithms9 are used to create a vector representation 
code we can extract from the website directly).  Performance 
of each document. These vector representations can then 
information about the ICO raise size and the token’s 
be compared to each other and a quantitative measure of 
performance over time is then appended to the other scraped 
similarity established. This is used to ascertain the three 
information.  This information will be used to construct 
most similar projects to one chosen for research by subject 
predictive models using techniques such as Random Forest 
matter  (not  textual  similarity  as  in  the  plagiarism  detector 
regression13 to attempt to predict how successful an ICO is 
- although these can sometimes coincide when a project 
likely to be.
is highly plagiarised). These similarity scores are then used 
along with the topic information gained from LDA to create 
The web will then be continuously scraped for new ICO 
an informative tree representation.
projects and the data inputted into the predictive model.  The 
predictions will then be stored and the Hyperion Fund Team 
Predictive Feature Discovery and Analysis
will be alerted of any potentially promising ICOs for further 
The number of projects available and the rate at which 
investigation.
new projects are being founded necessitates some form of 
autonomous screening process to initially review available 
B. ML Augmented Due Diligence
early  stage  ICOs  and  flag  them  as  potentially  promising 
projects.    This  flagging  process  will  not  be  a  necessity  for 
Early stage investing is a particularly challenging investment 
investment and projects may even request funding directly 
landscape to navigate as the amount of information available 
via a form.  Instead, this will allow for more projects to be 
about potential investment prospects is limited.  Ventures are 
surveyed than would otherwise have been possible.
in  their  infancy  and  their  future  performance  is  difficult  to 
predict.  However, due to the huge returns on investment that 
Research11,12 has been conducted on the predictors of success 
early stage investing offers, it is still an attractive landscape 
of new technology companies. Although this research was 
provided  caution  is  used  and  extensive  due  diligence 
not conducted on the ICO space, there should be analogous 
undertaken. Additionally, many investors lack high-level 
predictive features. Several metrics indicating promise in 
market insight and simply do not know which startups to 
research are:
invest in, or are even aware of the existence of many.  Both 
9

of  the  difficulties  mentioned  above  are  exacerbated  in  the 
made publicly available). When appropriate, Invictus’s 
crypto-space where technologies and business models are 
engineers will perform simple validations on the software 
new and start-ups abundant.
made available to us (ensuring that the software does what 
Acutely aware of the above challenges, Invictus Capital has 
the owners claim it can do). Full code reviews for many large 
decided to leverage their scientists’ and engineers’ expertise 
projects will be far too labour intensive to perform.  For 
in data science and machine learning to aid our experienced 
this reason, we are developing and curating tools to give an 
VC  investors  and  finance  professionals  in  the  early  stage 
indication of the code quality of large projects autonomously.
investing process. Machine learning will be used to both 
Invictus is developing an AI tool based on a formal symbolic 
help identify promising investment opportunities as well as 
logic system known as separation logic15 to perform 
assist with due diligence once a start-up has been selected for 
comprehensive static analyses on bodies of code. This tool is 
further consideration.  These tools will help our analysts make 
based on a recently open-sourced project by Facebook known 
more accurate decisions and also improve scalability of the 
as Infer16.  While under development it is already capable 
Fund moving forward.
of automatically identifying many common bugs, and even 
Plagiarism Detection
violations of coding conventions, in a number of popular 
languages.  Invictus will tailor Infer to the ICO space—
The massive wave of interest in blockchain technology and 
including development of support for Solidity to review smart 
cryptocurrencies  has  led  to  huge  investment  cash  inflows 
contracts, and  support popular web technologies.
and correspondingly, unscrupulous businesses and scammers 
have entered the space attempting to take advantage of this 
If there is enough publicly available code for a project 
inflow.
without us having to first approach targets, Invictus will use 
the outputs from the code quality AI tool as inputs for our 
In many cases, it is easy to determine that these projects are 
predictive models discussed in Section VII B as well.
not worthy of investment, largely due to their poor quality and 
hasty construction. However, occasionally these unscrupulous 
C. Development Roadmap
projects can appear to be of high quality, often because they 
have plagiarized content from reputable projects.  The number 
Development on all of the features mentioned in Sections VII 
of projects in this space means that it would be difficult for 
A and B have either begun or have been completed.
even a crypto veteran to recognise plagiarism in every case.
Plagiarism Detection
It is this concern, along with Invictus’s drive to increase 
The plagiarism detection tool has already been developed and 
integrity in the crypto-community and support the ordinary 
is available for public use10. 
crypto-investor, that formed the impetus for the development 
of the Titan AI Plagiarism Tool.  This tool analyzes ICO white 
Market Insight via Similarity and Clustering
papers and is capable of identifying plagiarized content - even 
The market insight tools have already been developed and 
where word substitutions and re-orderings have been used in 
are publicly available.  Similarity trees are displayed after a 
an attempt to obfuscate the plagiarism.
paper is uploaded10, and the clustering tool is also publicly 
accessible8.
Titan already contains thousands of white papers in its corpus, 
which grows automatically as the community submits papers 
Predictive Feature Discovery and Analysis
for review.  The Hyperion Fund Team has also developed tools 
The predictive feature discovery and analysis tools are 
that autonomously scrape the web for ICO whitepapers to 
currently under development and should be completed in 
update the corpus periodically.
April 2018.  These will be internal tools not made available to 
When  a  PDF  is  uploaded,  it  is  pre-processed  and  the  text 
the public, but Invictus Capital will make key results produced 
extracted.    The  text  of  the  document  is  then  inputted  to  a 
by these tools available when finalized.
hash function to generate a unique ID for duplicate detection 
and caching purposes. Natural Language Processing (NLP) 
VIII. Investment Strategy
techniques are then used to break up the document into 
sentences and group sentences into paragraphs.  Each 
The Hyperion Fund will function as a venture capital fund 
paragraph is then queried against a distributed Elasticsearch 
and  will  exclusively  invest  in  early  stage  blockchain  and 
cluster  containing  the  corpus  of  previously  indexed  white 
cryptocurrency based projects and companies. Investments 
papers and candidate results are returned. The Elasticsearch 
will be undertaken with a view to constructing a diversified 
cluster allows for scalability and strong performance over 
portfolio consisting of holdings from a wide array of sectors 
a large search-space. Word frequency vectors are then 
(such  as  currencies,  platforms,  finance,  communication, 
constructed on a sentence by sentence basis and cosine 
computing, logistics, energy etc.), this strategy  aims to 
similarity14 performed between the candidate sentences and 
minimize risk and exposure to a single sector.
the sentences from the document being analysed.
A. Minimum Investment Requirements
Results below a certain similarity threshold are discarded and 
then grouped by their source (origin document).  Additionally, 
To navigate this risk of early stage investing, the Hyperion 
these  final  results  are  cached  to  allow  for  faster  processing 
Fund will only invest in projects that satisfy a list of 
time for users querying the same document.
predetermined criteria. The Fund will not invest in projects 
based on promising ideas alone. 
This tool has already been developed and will become more 
comprehensive over time, forming a key part of Invictus’s due 
A  non-exhaustive  list  of  investment  requirements  has  been 
diligence processes.
constructed to capture this investment philosophy.
Code Quality Analysis
Requirements:
Once a team has applied for investment and a due diligence 
-  A cohesive team with a track record of achievement
process has begun, as applicable Invictus will request access 
-   Presence of technical and business development aptitudes 
to the code that the team has produced (usually only limited 
within the team
items such as relatively uninteresting smart contracts are 
10

-  A minimum viable product (MVP)
Fig. 8. Illustration depicting the time-scales associated with investing 
in through pre-sales and ICOs, and realizing the returns on these 
-   Indication of personal commitment to develop the project
investments after a token lists on exchanges, and later after value 
-  A well-defined token vesting strategy
maturation. Returns realized can be reinvested in new projects.   
(source: Invictus Capital)
Hyperion Fund managers will evaluate projects in terms of 
their originality, value proposition and potential market 
C. Risk and Hedging
capitalization, differentiation from competition, and 
knowledge of the industry of application. Learnings and 
Traditional Initial Public Offerings (IPOs) are a useful 
insights  from  Section  VII,  inclusive  of  identified  optimal 
analogue  for  considering  the  external  factors  affecting  the 
raises and sectors, will also be leveraged.
realization of returns on investments in ICOs. IPO prices of 
shares  are  set  through  extended  processes  of  due  diligence 
The  application  form  shown  in  Appendix  A  will  be  used  to 
and thorough analyses of the existing business. These prices, 
source and filter potential projects.
however, can also be heavily influenced by  prevailing market 
conditions. Peer benchmark valuations frequently serve as 
B. Investment Horizon
key determinants of  IPO prices. These prices are typically 
Many early stage investments are structured such that the 
highest when equities are overpriced, which happens in times 
purchased tokens vest over time. In these cases, there is a 
of optimism or irrational exuberance. 
minimum commitment term based on when assets can be sold 
The analogy is relevant, but not entirely appropriate given 
and returns realized. This, together with strategies aiming 
that IPOs are conducted for established businesses and 
to realize long term growth, define the investment horizon. 
that tokens do not represent shares in a company. The ICO 
Typical vesting structures range between three months and 
landscape is characterized by offerings of tokens related to 
one year.
the  value  proposition  of  significantly  younger  entities  that 
The Hyperion Fund will view each exchange listing as a key 
often simply possess a MVP.
opportunity for the realization of return. The magnitude of 
Consequently, token valuations rely far more heavily on 
realization will naturally depend on the investment strategy 
projections than IPOs do. Returns on investments contingent 
and whether the listing is in fact the optimal time to liquidate. 
on  the  token  exchange  prices  are  highly  subject  to  market 
In the past, early investors with the ability to contribute 
behavior in the short and medium terms. It is crucial to 
significantly  have  occasionally  used  exchange  listings  too 
consider that the tokens’ prices offered during ICOs, and the 
aggressively and liquidated large volumes of tokens, thus 
number of tokens to be minted over a project’s lifetime, are 
causing severe negative price actions. Changes to vesting 
often predetermined. The market capitalizations that can 
procedures and other strategies are, however, mitigating these 
be calculated from these inputs provide initial, and highly 
outcomes. The nature of the technology and distribution 
speculative valuations of projects. These valuations must be 
agreements also help in ensuring that the interests of all 
carefully considered before any investments in presales or 
parties are catered for.
ICOs are made. 
Syndication creates the opportunity to communicate  For many projects it is highly unlikely that these initial 
investment goals, ensuring the token distribution and listing 
valuations will be realized. In these cases, the token’s values 
processes align with the Fund’s investment horizon objectives. 
will eventually decline to below the purchase price at ICO.
Providing enough vesting tokens to recover the initial 
Favourable market conditions at the time of an ICO will likely 
investment at first listing will be a priority. This however does 
have positive effects on the project’s speculative valuation. 
not preclude the holding of assets in longer term partnerships 
However, given the timeframe over which investments mature 
with projects depending on their fundamentals and the initial 
it is prudent to plan for changes in market conditions, given 
strategy of the investment. Long term involvement would be 
their  influence  on  token  pricing.  The  strategies  developed 
based on a deeper partnering by way of support and advisory 
should not seek to predict the market in any way, but rather, 
services, increasing the odds of future success.
to establish a convex payoff whereby the downside associated 
The  diagram  below  provides  an  example  of  potential  exit 
with market risk is mitigated but upside is unlimited. 
strategies. An initial realization of return may take place at 
The management of market risk associated with pre-
exchange listing, which may be full or partial.
sales and ICO investments is a priority, but more directly 
Investing
Realizing Returns
and immediately relevant is the risk associated with the 
Later
exit
uninvested funds held in liquid cryptocurrencies. A method 
for the management of this risk could be the utilization of 
contingent claims. Contingent claims are contracts whose 
payoff is determined by the occurrence of a future event. Call 
options are common examples in finance where the purchaser 
has the right, but not the obligation, to purchase a stock at a 
pre-agreed strike price, thus making the payoff equal to the 
Early
stock price at option maturity less the strike price. If this value 
exit
is negative, the option is worth nothing, and only the price of 
the option is lost. The option price is the expected value of the 
Time
payoff discounted from the future date to the present at the 
risk free rate (usually referencing treasury bills). The pricing 
Private
ICO
Token lists
Value
Presale
on exchange
matures
of options is non-trivial and employs advanced models of the 
e
s
underlying return distributions. 
 realiz
to return

As of the beginning of 2018, contingent claims on 
Time 
cryptocurrencies have not been widely available, but plans 
for increasing the diversity of instruments are being made 
11

public by existing market makers. The Chicago Board Options 
The Fund therefore will seek, as far as is possible, to accept 
Exchange,  for  example,  has  communicated  its  plans  to 
only upside exposure to the market and buy protection against 
increase its product offering beyond bitcoin futures17.
possible  adverse  actions.  For  example,  hedging  a  market 
Call and put options on cryptocurrencies or cryptocurrency 
downside risk could be accomplished by selling futures. This 
indices are likely to become increasingly available in the near 
however does not limit the losses if the market moves upward. 
future given their established popularity in financial markets 
The approach could instead move to the utilization of options 
and their relative tractability, as compared with the rest of the 
which limit loss to the option price and deliver exposure to 
contingent claims market. 
the upside. Options are an appropriate strategy under extreme 
movements.
Mathematical illustration of the underlying market dynamics
Chen et al.18 attempted the pricing of Bitcoin and CRIX (a 
IX. Portfolio Valuation
Cryptocurrency Index) call options. Their analysis concluded 
that it would be appropriate to use a Stochastic Volatility 
A. Importance of Portfolio Valuation
with Correlated Jumps (SVCJ) model with development based 
on the publication by Duffie et al.19, in order to account for 
The valuation of the assets held affect, among other things, a 
observed non-Gaussian, fat-tailed distributions. This is to 
fund’s Net Asset Value (NAV) and financial and performance 
say  that  prices  exhibit  a  far  greater  probability  of  extreme 
reporting. Invictus Capital will implement principles to 
movements than would be captured by traditional models 
mitigate challenges that arise when valuing illiquid or 
(like Black-Scholes) assuming a lognormal distribution. 
complex financial instruments. This ensures that these values 
are not distorted to the disadvantage of Fund investors.
The SVCJ model is described:
Whilst the IHF Tokens do not have a contractual right of 
 
 
d logS
dt
dW (S) + ZydN  
redemption/payment from the Invictus Hyperion at NAV, 
= μ
+ √V t t
t
 

management believes that the IHF tokens will be correlated 
to the value of the underlying assets on secondary markets.
 
V
d

)dt
dW () + ZvdN  
= κ
− V t + σV t t
t
t

The following principles will apply:
 
Cov(dW (S), dW ()) = ρdt  

Liquid investment pool: The liquid investment pool would 
t
t
consist partially of BTC and ETH, for which market data 
and pricing is readily available. The price will be updated 
 
(dN
)
dt
= 1 = λ
 

regularly  to  accurately  reflect  the  value  of  the  underlying 
cryptocurrency assets.
Where S   is  the  price  process.  The  first  term  in  [eq  1], μ , 
Pre ICO & SAFTs:  Investments at cost in SAFTs less any 
t
represents a drift and the second 
dW
V
(S)
impairment in value recognized by the Company’s investment 
t
 a wiener process 
t
committee. Impairments will not be partial. When appropriate, 
adjusted by the volatility (described by [eq 2]). The final term 
an investment will be impaired in full. 
ZydN
y
t
is the jump, with N t  the jump process, and Zt  the 
magnitude. The goal of including this description is to point 
Tokens held for projects listed on an exchange will be priced 
according to live market feeds.
out the constituents necessary to produce a mathematical 
model with similar properties to a cryptocurrency price. 
Table 1. Breakdown of Hyperion Fund NAV constituents. (source: 
Invictus Capital)
The picture of the price process painted by the model is a 
rich one, and it serves well to show how movements could 
Asset
Basis of Valuation
Frequency
be interpreted as a random process. It is important to note 
A) Liquid investment  Market prices of the  Live feed
the  addition  of  significant  unpredictable  jumps  in  order  to 
pool
underlying currency
improve the model. This is good guidance for intuition on the 
B) SAFTs
Investment at cost, 
Updated after 
evolution of cryptocurrency prices in that large, unexpected 
less any impairment  each investment 
movements are characteristic responses to the fundamental 
recognized by 
committee meeting
drivers.  Ultimately,  the  SVCJ  model  is  unlikely  to  capture 
the investment 
the complete nature of the underlying process which is 
committee
non ergodic, but it does imply caution. It is not reasonable 
C) Tokens held for 
Investment at cost 
Updated after 
to  assume  market  risk  if  it  is  not  specifically  part  of  the 
projects pre-listing 
less any impairment  each investment 
investment strategy.
on crypto exchanges recognized by 
committee meeting
the investment 
committee
D) Tokens for 
Market prices of the  Live feed
projects listed on 
underlying currency
exchange, but not 
yet realized
Fund NAV
SUM (A+B+C+D)
B. Impairment Assessment
Impairment of assets ensures that assets held are correctly 
valued and adjusted for should more information become 
Fig. 9. Fat-tailed (blue) vs normal distribution (red), illustrating the 
differences in the probability of extreme events (source: Invictus 
available for use in the valuation of holdings20.
Capital)
Invictus Capital will hold Investment Committee Meetings 
approximately  every  two  weeks  to  assess  each  asset  and 
12

identify any possible indicators of impairment. Investments 
will only be impaired in full in the event that Invictus Capital 
Invictus
Team
has  determined,  with  confidence,  that  a  return  will  not  be 
1%
1.5%
realized on the investment.
X. Hyperion Fund Initial Coin 
Offering
There will be no token creation, minting or mining after the 
IHF ICO period. Tokens will be transferable and tradable once 
the IHF ICO is successfully completed. Investment can be 
Participants
made in ETH or BTC. The USD equivalent amount of any ETH 
97.5%
or BTC invested will be locked in at the time of investment 
according to market rates, and this will be considered the 
Fig. 10. Token distribution breakdown (source: Invictus Capital)
participant’s contribution.
The Hyperion Fund Team’s Tokens will vest over two years 
A. ICO Details
to ensure that team incentives are aligned with IHF ICO 
participants. This is ensured via a public smart contract 
The Token Issuer is Invictus Hyperion, an exempted company 
vesting mechanism.
incorporated in the Cayman Islands. The Hyperion ICO will 
open to the public after a short initial phase dedicated to 
D. ICO Funds Utilization
the below two groups. For priority access to new funds you 
The IHF ICO funds (98%) will be dedicated to investing in 
will need:
projects which intend to have a public token sale or ICO.
-  To be an investor in the CRYPTO20 ICO; or
A small allocation (0.5%) is reserved for legal fees in 
-   demonstrate ownership of more than 500 C20 tokens 
connection with exchange trading.
using Invictus Capital’s verification tool. This amount is 
the  approximate  median  investment  in  the  CRYPTO20 
All unused funds from the 2% operating expense allocation 
ICO.
will be utilized in a discretionary capacity once the Hyperion 
Fund has commenced on-going trading.
The  verification  tool  asks  a  user  to  sign  a  message  using 
their private key which proves ownership of an address. This 
The  2%  operational  expense  allocation  is  a  once-time 
address is then used to confirm that the user currently owns 
allocation. After the Fund is established, there are no annual 
more than 500 C20.
management fees paid to Invictus Capital for managing the 
Token 
type 
   ERC20
Fund.
Hard 
Cap:    15,000,000 
USD
Price per token:    
 
 
~0.10 USD
Operational Expenses
2%
Minimum ICO Contribution:  
 
50 USD
Minimum Raise:    
 
 
2 000 000 USD
B. ICO Token Pricing
Priority ICO Begins (30th April 2018)
Days 1-3   
 
 
 
0.095 USD
Open  ICO Begins (3rd May 2018)
Day 
1-4 
    0.097 
USD
Underlying Assets
98%
Day 5-7        
 
 
              0.099 USD
Week 

    0.100 
USD
Fig. 11. Fund utilization breakdown (source: Invictus Capital)
Week 

    0.105 
USD
Week 

    0.110 
USD
XI. Post ICO Fee Structure and 
C. Token Distribution
Token buy-and-burn
ICO 
Participants 
 
   97.5%
Hyperion 
Fund 
Team 
  1.5%
Fees to Invictus Capital for the management of Hyperion 
Invictus Hyperion 
are purely performance based. This fee structure has been 
(legal, security & marketing)  1.0% 
established to ensure that the incentives of Invictus Capital 
and the Fund managers are aligned with Fund participants. 
A. Performance Fee
The Hyperion Fund performance fee is calculated as 12.5% 
of the Fund performance for the quarter, where performance 
is defined as the realized gain in the Fund value from a USD 
perspective. The fee is only applicable if the closing balance 
is greater than the opening balance adjusted for unrealized 
gains, buy-and-burns and performance fees paid in respect of 
the previous quarter.  
13

B. Token Buy-and-Burn Activation Threshold
The hard cap on the IHF ICO is 15M USD. Once the Fund has 
Performance Fee
reached an Adjusted Net Asset Valuation (ANAV) of 30M USD 
Token buy-and-burns
12.5%
(the token buy-and-burn threshold), token buy-and-burns 
50%
will be initiated.
Table 2. Example of calculation of Adjusted NAV for token buy-and-
burns and performance fee purposes.
Reinvested
37.5%
Description
USD
L Liquidity Pool -market pricing
10 M.
S  SAFTs -historical cost less 
20 M.
impairment if applicable
UT Unlisted tokens -historical 
2 M.
cost less impairment if 
applicable
Fig. 12. Utilization of quarterly returns, assuming Fund size over 
30M. USD (source: Invictus Capital)
LT  Listed Tokens -market 
2 M.
pricing
The 37.5% of quarterly returns marked for reinvestment may 
NAV - as shown on fund 
34 M.
alternatively be used for additional buy-and-burns in order to 
website
 (NAV= L+ S + UT + LT)
manage the total Fund size.
UG Unrealized gains - market 
1 M.
D. Custodial Fees
price less historical cost of 
(UG = LT- Historical Cost of 
investment of listed tokens not 
Investment)
Present regulations do not require custodial services to be 
yet sold. *
outsourced to an independent body. However, as is common 
Adjusted NAV
33 M.
within the regulated branches of the financial services sector, 
(ANAV = NAV - UG)
funds exceeding a certain size must be held by independent 
*Unrealized losses remain and are not adjusted for in calculating the adjusted NAV
custodians.  Should  laws  later  require  external  custodial 
services, the fees associated with these services will be 
Table 3. Example of quarterly performance calculation for buy-and-
deducted from the Fund on the same frequency that they are 
burn and performance fee purposes.
paid. 
Description
USD
E. Comparison of Fees to Other Funds
Q2 adjusted NAV
33 M.
Add: buy-and-burn i.r.o. Q1
2 M.
The Hyperion Fund Team managing the Hyperion Fund 
prioritize the development of the proposed investment 
Add: performance fee paid i.r.o. 
0.5 M.
projects (pre-sales and ICOs), and the mitigation of investor 
Q1
risks, by assigning just 2.5% of the tokens created to the 
Less: Q1 adjusted NAV
(31 M.)
Hyperion Fund Team and Company. 
Q2 fund performance
4.5 M.
This distribution is envisaged to accelerate the commencement 
Q2 buy-and-burn @ 50% of Q2 
2.25 M.
of the token buy-and-burn provision, when compared with 
fund performance
token distribution by competitors21,22. 
Q2 performance fee 
0.56 M.
Similarly, the Hyperion Fund is preferential to the interests 
(rounded) @12.5% of Q2 fund 
performance
of  investors when compared to the DeHedge Funds that 
implement a different token placement strategy. The DeHedge 
token placement strategy allocates 20% of all 2.5 billion 
C. Token Buy-and-Burns, and Performance Fee
tokens invested in pre-sales and ICO for the project team and 
As  long  as  the  token  buy-and-burn  threshold  is  satisfied, 
co-founders, as well as operation services23. 
quarterly token buy-and-burns utilize funds from the returns 
In the Token Fund21, investors pay 5% of their tokens during 
realized on investments within each quarter. These are 
either  entry  or  exit  to  reward  the  Fund  managers  and 
calculated using the ANAV.  
technical support team. An investor also pays, on average, 
Distribution of quarterly returns realized
2.5% of the amount of issued asset tokens as creation fees; 
pays management fees of 2% per annum daily; pays an 
Token 
buy-and-burns: 
  50.0%
average of 20% of the funds performance as exit fees; as well 
Rolled forward into new investments: 
37.5% 
as  an  unspecified  redemption  fee  in  the  funds22. However, 
Performance fee to Invictus Capital: 
12.5%
the  Hyperion  Fund  charges  no  additional  entry,  exit  or 
management fees.
The Funds’ performance distribution is designed to financially 
empower the investors on a long-term basis through the 
reinvestment of 37.5% of returns and buy-and-burns of 
50%  of  returns.  The  IHF  Fund’s  distribution  is  expected  to 
yield higher capital returns compared to other crypto-token 
investment projects that reinvest 25% of the income; share 
50% of the income to token holders; and receive 25% of 
income as performance fees for example22.  
14

XII. Smart Contract 
deposits from cold storage are executed in order to limit Fund 
Specification
assets held on exchange. 
C. Exchange Accounts
The IHF ICO and certain und administration, from a user’s 
perspective, will be enabled through a custom smart contract 
All exchange accounts are secured by two factor authentication 
that adheres to the ERC20 standard24. This ensures that 
and  email  verifications  for  any  withdrawals.  Trades  will  be 
token ownership and transfer of tokens is transparent and 
executed over multiple exchanges at varying times to mitigate 
immutable.
the risk of front-running once funds are moved from cold 
storage.
The smart contract enforces an ICO period by specifying an 
end block that restricts the minting of tokens to occur only 
D. Hardware Wallets
within a pre-defined period. This guarantees that the Fund is 
closed-end. Dilutive token allocation (for Invictus Capital and 
Ledger Nano S hardware wallets will be used for the storage 
the Hyperion Fund Team, see Section X) is pre-defined in code 
of all supported cryptocurrencies. For all cryptocurrencies not 
and verifiable by all parties.
supported, encrypted storage drives will be utilized. These 
storage devices will be held in secure safe deposit boxes with 
Reasons for choosing the Ethereum Blockchain:
back-up paper-wallets, which are  engraved on brass plates, 
-   Security  and  predictability  (as  opposed  to,  for  example, 
and also stored at a secure location. Locations are undisclosed 
having to run a separate blockchain),
due to security considerations.
-  Well-established codebase and development tools,
-   Higher  liquidity  -  easier  listing  on  exchanges  with 
XIV. Asset Transparency
infrastructure already in place, and
The Fund aims to have a minimum of 80% of funds invested at 
-   Allows for real time tracking of token-holders. See Section 
any given time, with liquid funds and returns retained in pool, 
XI and XIV for more information.
as a 50% split between the most supported currency pairs, 
In addition to the custom ERC20 compliant contract, there 
such as BTC and ETH, and 50% cash in USD. This provides 
is a vesting contract that locks up Invictus Capital and the 
increased stability and liquidity and easily facilitates further 
Hyperion Fund Team’s tokens for 2 years with vesting periods 
investment as the majority of ICOs accept the most supported 
every 6 months. This aligns the Hyperion Fund Team and 
coins. In heavy bear markets, Fund managers will aim to open 
Invictus Capital with token holders. The contract utilized is 
leveraged short positions on the most supported currency 
a slightly modified version of the CRYPTO20 vesting contract 
pairs to reduce the drawdown of holding BTC and ETH in the 
which can be viewed on Etherscan25.
liquidity pool. 
Invictus Hyperion reserves the right to terminate the Hyperion 
Transparency in Hyperion’s holdings will be enabled through 
Fund. In the event that the Fund scales down or closes, this 
the use of view-only wallet addresses. Where possible, this 
will be announced in advance and a blockchain snapshot of 
enables investors to view real-time holdings of the Hyperion 
Token holdings will be taken at the following quarter. All Fund 
Fund. For investments in projects pre-ICO Invictus Capital 
holdings - or an amount specified - will then be liquidated for 
will disclose the name of the project and the amount invested.
ETH, the sum total of which will be dispersed to token holders 
Due diligence reports and the Fund’s holdings will be 
shown in the snapshot in accordance with their percentage 
published as soon as the project has an appropriate public-
share of the Fund.
facing  presence  and  the  token  is  listed  on  exchange  with  a 
verifiable market value.
XIII. Security
Proof  of  ownership  of  crypto-assets  is  easily  fulfilled 
through  the  use  of  a  public  blockchain  explorer  and  public 
A. General Control Environment
key cryptography. The Hyperion Fund Team will sign a 
Invictus Capital has implemented security industry best 
verifiable message, or send a token transfer, to prove control 
practices for defense against Sybil attacks and bad actors. 
of a particular address. This address can then be seen on a 
Strong identity verification and authentication procedures are 
blockchain explorer to observe the stated holdings.
in place to ensure secure operations.
This real-time viewership ensures transparency without 
Invictus Capital also implements a risk-based approach to 
compromising the integrity of the Fund. The Hyperion Fund 
segregation of duties. This includes internal controls which 
does not actively trade or follow a deterministic fund strategy 
ensure that more than one person is required to complete 
- this means that the Fund is not at significant risk of front-
critical tasks. This intends to prevent fraud and error 
running or market manipulation, and traditional obfuscation 
potentially impacting the Fund’s performance. 
of trades and transfers will further mitigate either of those 
risks.
Invictus Capital has previously, and successfully, launched 
an ICO (CRYPTO20) that has had its holdings and security 
verified by a third party auditor (KPMG). The smart contract 
XV. Marketing and Investor 
and cyber-security were also externally audited. No security 
breaches occurred during the ICO, or to date. The Hyperion 
Relations
Fund Team will continue to enforce best practices for security.
The  Hyperion  Fund  Team  will  invest  significant  time  and 
B. Cold Storage
effort into post-ICO marketing targeted towards potential IHF 
investors in the traditional financial sector via the production 
All currencies will be stored in cold wallets within a secure 
of  information  sheets,  explainer  videos  and  planning 
vault together with the SAFTs. The vault is independently 
documents that are easily understandable. Token holders will 
managed with secure access to pre-registered representatives, 
be able to view detailed information on their holdings and 
and at pre-arranged times only. The location of the cold storage 
portfolio composition on the Invictus Capital website. Invictus 
vault is not disclosed for security purposes. Withdrawals and 
Capital will focus marketing efforts solely on non-regulated 
15

markets. Promotion and solicitation will be limited where 
cryptocurrencies  and  the  exposure  to  SAFTs  as  intangible 
participation is forbidden or likely to be forbidden in the near 
assets as opposed to financial instruments. Initial recognition 
future, in order to remain compliant with local legislation. 
will be recorded at cost; subsequent measurement can be at 
cost or fair value, less amortization (amortization will only be 
XVI. Accounting and 
calculated when the assets have a finite life). Tokens traded on 
exchange will be reported at fair value. SAFTs will be reported 
Reporting
at cost less any recognized impairment in value. All fair value 
gains will be taken through other comprehensive income 
Accounting standards for cryptocurrencies remain unclear. 
whilst  losses  will  be  taken  through  the  profit  and  loss  and 
The International Accounting Standards Board (IASB) will 
there will be no need for amortization as described above.
either  create  a  new  standard  or  change  existing  standards 
to address accounting for investments in intangible assets, 
B. Treatment of Impaired Assets
including digital currencies. They are known to set standards 
At the end of each reporting period, an entity is required to 
based on successful businesses leading the way in how to 
assess whether there is any indication that an asset may be 
account  for  their  investments,  for  example  in  the  case  of 
impaired (i.e. its carrying amount may be higher than its 
commodity broker-traders. The IASB may take years to 
recoverable amount). IAS 36 has a list of external and internal 
develop and implement a new standard.
indicators of impairment. If there is an indication that an 
A. Relevant Reporting Standards
asset may be impaired, then the asset’s recoverable amount 
must be calculated.
IAS 38 (Intangible Assets)
Due to the nature of cryptocurrencies and the volatility 
IAS 38 Intangible Assets outlines the accounting requirements 
associated with the these assets, annual assessments will 
for intangible assets, which are non-monetary assets which 
not be sufficient. Invictus Capital will therefore hold regular 
are without physical substance and identifiable (either being 
Investment Committee Meetings to assess each asset and 
separable or arising from contractual or other legal rights). 
identify any possible indicators of impairment.  Investments 
Intangible assets meeting the relevant recognition criteria are 
will only be impaired in the event that Invictus Capital has 
initially measured at cost, subsequently measured at cost or 
determined, with confidence, that a return will not be realized 
using the revaluation model, and amortized on a systematic 
on the investment such as the ICO being hacked, funds being 
basis over their useful lives (unless the asset has an indefinite 
lost during ICO, and the ICO being cancelled.
useful life, in which case it is not amortized).
Invictus Hyperion will report via the following mechanisms:
IFRS 9 (Financial Instruments)
-   The Fund NAV will be updated on the Fund website, 
IFRS  9  specifies  how  an  entity  should  classify  and  measure 
comprising live market data for market traded assets and 
financial assets, financial liabilities, and some contracts to buy 
investments at cost in SAFTs, less any impairment in value 
or sell non-financial items. It requires an entity to recognize 
recognized by the investment committee.
a  financial  asset  or  a  financial  liability  in  its  statement  of 
-   
Quarterly reports will include information on 
financial  position  when  it  becomes  party  to  the  contractual 
governmental risk and legislation, risk/return analysis and 
provisions of the instrument. 
portfolio performance.
At initial recognition, an entity measures a financial asset or a 
-   Annual reports will be made available on the investor 
financial liability at its fair value plus or minus, in the case of a 
portal of the Invictus Capital website comprising:
financial asset or a financial liability not at fair value through 
 
»  Statement of financial position at the end of the period.
profit or loss, transaction costs that are directly attributable to 
the acquisition or issue of the financial asset or the financial 
 
»  Statement  of  profit  or  loss  and  other  comprehensive 
liability.
income for the period.
 
»  Summary of significant accounting policies and other 
IAS 36 (Impairment of assets)
explanatory notes.
IAS 36 Impairment of Assets seeks to ensure that an entity’s 
assets are not carried at more than their recoverable amount 
XVII. Fund Timeline
(i.e. the higher of fair value less costs of disposal and value in 
use). 
Private ICO (Whitelisted Individuals) - 30th April
With the exception of goodwill and certain intangible assets 
Public ICO (Open to all) - 2nd May
for which an annual impairment test is required, entities 
End of ICO (Should ICO not sell out in previous phases) - 30th 
are required to conduct impairment tests where there is 
May 
an indication of impairment of an asset. The test may be 
First Investments - by June
conducted for a ‘cash-generating unit’ where an asset does 
not  generate  cash  inflows  that  are  largely  independent  of 
End of First Quarter - August
those from other assets.
IFRS 13 (Fair value measurement)
XVIII. Conclusion
IFRS 13 Fair Value Measurement applies to IFRSs that require 
The Hyperion Fund is a tokenized, closed-end fund focused 
or permit fair value measurements or disclosures and provides 
on early stage investment in projects involving blockchain 
a single IFRS framework for measuring fair value and requires 
technology.  The  fund  provides  investors  with  diversified 
disclosures about fair value measurement. The Standard 
exposure to the high returns and risks characteristic of these 
defines fair value on the basis of an ‘exit price’ notion and uses 
opportunities.
a ‘fair value hierarchy’, which results in a market-based, rather 
Invictus Capital administers the Fund, utilizing a wide range 
than entity-specific, measurement.
of machine learning and data-science tools to assist in both 
Invictus Capital has chosen, at this stage, to report 
the analysis of potential investments, and in the analysis of 
16

market trends.
investopedia.com/terms/p/privateplacement.asp (2018).
The Fund will buy-and-burn IHF tokens quarterly once 
2.   CNBC AK, Initial coin offerings now surpass early stage 
the Fund has grown to 30M USD. IHF tokens can be easily 
VC funding. https://www.cnbc.com/2017/08/09/initial-
transferred across the Ethereum blockchain and sold on 
coin-offerings-surpass-early-stage-venture-capital-
exchange, providing access to liquidity . 
funding.html (2017).
contact@invictuscapital.com
3.   Kornilov D, Zaitsev D, ICO Market Analysis. https://
https://www.invictuscaptial/hyperion
www.coinspeaker.com/2018/03/20/ico-market-analysis-
march-12-18-2018/ (2018). 
XIX. Glossary
4.   ICOdata, Crypto20 ICO Raise. https://www.icodata.io/ 
(2017).
Amortization: The process of allocating the cost of an 
intangible asset over a period of time. It also refers to the 
5.   ICOwatchlist, ICO Statistics - By Industry. https://
repayment of loan over a period of time 
icowatchlist.com/statistics/categories (2017).
Blockchain: A digitized, decentralized, public ledger of 
6.   Token Data, TokenData. https://www.tokendata.io/
cryptocurrency transactions
advanced (2018).
Buy-and-burn: The purchase of tokens on the open market 
7.   Blei, D.M., Ng, A.Y. and Jordan, M.I, Latent Dirichlet 
with the intention of destroying them (burning). A burn is 
Allocation. Journal of Machine Learning Research3, 993-
achieved by sending tokens to the ethereum zero address.
1022 (2003).
Contingent Claims: A claim that may be made only if certain 
8.   Invictus Capital, Invictus Capital Titan AI Clustering 
specified  outcomes  occur.  In  finance:  a  derivative  whose 
Tool. https://titan.invictuscapital.com/documents/
future payoff depends on the value of another asset.
cluster_chart (2018).
Data Science:  An  interdisciplinary  field  including 
9.   Le Q., Mikolov T., Distributed Representations of 
Mathematics, Statistics and Probability, employed with the 
Sentences and Documents. Proceedings of the 31st 
purpose of extracting information and insight from data.
International Conference on Machine Learning, Beijing, 
China, 32, (2014). 
ERC20: A set of methods and their functioning that must be 
met in order for a smart contract to be called an ‘ERC20 Token’.
10.  Invictus Capital, Titan AI Tool. https://titan.
invictuscapital.com/ (2018).
Ethereum: A cryptocurrency and decentralized platform 
that enables Smart Contracts and Distributed Applications 
11.  Roare, J.B. and Keeley, R.H, Predictors of success in new 
to be built and run without any downtime, fraud, control or 
technology based ventures. Journal of Business Venturing
inference from a third party.
5(4), 201-220 (1990).
Initial Coin Offering (ICO): An unregulated means by which 
12.  Gelderen, M. V., Thurik, R. and Bosma, N., Success and 
funds are raised for a new cryptocurrency venture.
Risk Factors in the Pre-Startup Phase. Small Business 
Economics 24(4), 365–380 (2005).
Machine Learning: A branch of artificial intelligence whereby 
computer programs “learn” (improve performance on some 
13.  Hastie, T., Tibshirani, R. and Friedman, J., Random 
specific task) from data without being explicitly programmed. 
Forests. In: Elements of Statistical Learning. 2nd ed., 
Machine learning is frequently used to construct predictive 
587–603 (2008).
models in many industries.
14.  Singhal, A., Modern Information Retrieval: A Brief 
Random Forest Regression: A predictive algorithm in the 
Overview. Bulletin of the IEEE Computer Society Technical 
machine learning domain that aggregates the results of many 
Committee on Data Engineering (2001).
individual decision trees and produces a continuous numeric 
15.  Reynolds, J.C., Separation Logic: A Logic for Shared 
output.
Mutable Data Structures. ACM–IEEE Symposium on Logic in 
Simple Agreement for Future Tokens (SAFTs): A contractual 
Computer Science, 1043-6871 (2002).
agreement created to help new cryptocurrency ventures raise 
16.  Facebook Infer Team, Facebook Infer [Online], Feb.. 
money  without  breaking  financial  regulations  relating  to 
http://fbinfer.com/ [Accessed: 23] (2018).
securities.
17.  Cointelegraph DP, CBOE Director For Product 
Smart Contract: An atomic contract with the terms of 
Development Talks Successes Of Bitcoin Futures And 
agreement  written  into  lines  of  code  that  execute  across  a 
Looking At Other Coins https://www.bloomberg.com/
distributed and decentralized blockchain network.
news/articles/2018-03-14/cboe-signals-big-plans-for-
Titan  Artificial  Intelligence  (AI)  Tool: Computer software 
trading-cryptocurrency-derivatives (2018).
developed by Invictus Capital for analysis of ICO white papers 
18.  Chen, C., Härdle, W., Hou, A. and Wang, W, Pricing 
and plagiarism detection.
Cryptocurrency options: the case of CRIX and Bitcoin, 
Venture Capital: Capital invested in a project in which there 
IRTIG 1792 Discussion Paper, 4 (2018).
is a substantial element of risk, typically a new or expanding 
19.  Duffie, D., Pan, J. and Singleton, K., Transform 
business.
Analysis and Asset Pricing for Affine Jump-Diffusions. 
Volatility: A statistical measure of the dispersion of returns for 
Econometrica, Journal of the Econometric Society, 68(6), 
a given security or market index.
1343–1376 (2000).
XX. References    
20.  Deloitte, IAS 36 — Impairment of Assets. https://www.
iasplus.com/en/standards/ias/ias36 (2013).
1.   Investopedia, Private Placement. https://www.
21.  Shpakovsky, V., Smerkis, V., Doganov, I., Koleoshkin, 
17

V., Bashlykov, A., Evgeny, Y. The Token Fund, https://
 
thetoken.io/TKN-WhitePaper-en_US.pdf, thetoken.io 
(2017).
22.  Seydak O., Perekopsky, I., Remizov, I., Vasin, S., 
Vorobey, F., Joshua, M., Retinskiy, A., The Blackmoon 
Whitepaper,www.blackmooncrypto.com: Whitepaper: 
Technology (2018).
23.  Mikhail, C., Bogdan, L., Dmitry, A.,DeHedge Whitepaper, 
https://dehedge.com/documents/dehedge-whitepaper-
en.pdf: Dehedge (2018).
24.  BokkyPooBah, ERC20 Token Standard. https://
theethereum.wiki/w/index.php/ERC20 Token Standard 
(2018).
25.  Etherscan, Crypto20 Smart Contract. https://
etherscan.io/ ddress/0x26e75307fc0c021472feb 
8f727839531f112f317#code (2018).
18

XXI. Appendices
 
Round by round tokenomics
Legal 
A. Funding Application Form
 
Issuer group owners / structure
A known and sizable venture fund focused on ICO and 
 
Issuer company jurisdiction 
pre-ICO, administered by a reputable cryptocurrency   
Offering geography / limitations
investment  company  can  be  expected  to  garner  attention 
 
Legal advisors
from entrepreneurs requiring support. An application portal 
has already been established on the Invictus Capital website 
 
ICO Terms & Conditions
to facilitate these applications. The application is not short, 
 
Pre-ICO financing terms
and has been intentionally designed to be time consuming 
 
IP registrations / ownership 
to serve both the entrepreneur and the fund managers. The 
Links and Uploads
length  of  the  application  aims  to  filter  out  uncommitted 
applicants. Applicants  with  confidence  in  their  projects  will 
 
ICO Terms & Conditions
invest the time required to complete the application process, 
 
Issuer company charter docs
and submit themselves to Invictus Capital’s rigorous vetting 
 Pitch-deck
procedures. 
 Website
The application process requires submission of the following 
 Github
information:
 Testnet
Full personal details of point contact
 
Team Resumes
Team members 
 
Previous employment/engagements 
XXII. Legal
 Expertise
 Achievements
A. Disclaimer Of Liability
Advisors 
To  the  maximum  extent  permitted  by  the  applicable  laws, 
Names 
regulations and rules, neither the Company nor the Hyperion 
Fund Team shall be liable for any indirect, special, incidental, 
Titles 
consequential or other losses of any kind, in tort, contract 
Affiliations
or otherwise (including but not limited to loss of revenue, 
Project details
income or profits, and loss of use or data), arising out of or in 
connection with any acceptance of or reliance on this White 
 Name
Paper or any part thereof by you.
 
Problem to address
 
Enablement of product
B. No Representations And Warranties 
 
Total value of market
The Company does not make or purport to make, and hereby 
 
Share of market aiming to achieve in 1, 5, 10 yrs
disclaims, any representation, warranty or undertaking in 
 Competitors
any form whatsoever to any entity or person, including any 
representation, warranty or undertaking in relation to the 
 
Why blockchain is required for this project
truth, accuracy and completeness of any of the information 
 
Attributes of blockchain specifically necessary
set out in this White Paper.
Blockchain technicals
 
Consensus method
C. Representations And Warranties By You 
 
Coding language of blockchain
By accessing and/or accepting possession of any information 
 
Other details
in this White Paper or such part thereof (as the case may be), 
you represent and warrant to the Company as follows:
Tokenization
 
Distinct tokens within project
(a) you agree and acknowledge that the IHF tokens do not 
constitute securities in any relevant jurisdiction;
 
Token Kind (eg ERC20)
 
Token Type and Function (utility etc)
(b) you agree and acknowledge that this White Paper does 
not constitute a prospectus or offer document of any sort 
 
Token hard cap
and is not intended to constitute an offer of securities in any 
 
Token creation (mined, premined)
jurisdiction or a solicitation for investment in securities and 
 
Token burnability
you are not bound to enter into any contract or binding legal 
 
Inflation rate
commitment and no cryptocurrency or other form of payment 
is to be accepted on the basis of this White Paper; 
 
Token allocation
 
Token vesting and lockup
(c) you agree and acknowledge that no regulatory authority 
has examined or approved of the information set out in this 
 
Token distribution (ICO, airdrop etc)
White Paper, no action has been or will be taken under the 
Project timeline and maturity
laws, regulatory requirements or rules of any jurisdiction 
 
Project initiation
and the publication, distribution or dissemination of this 
 
Company/foundation registration
White Paper to you does not imply that the applicable laws, 
regulatory requirements or rules have been complied with;
 
Fundraising timeline and goals
 
Raise to date
(d) you agree and acknowledge that this White Paper, the 
undertaking and/or the completion of the Token sale, or 
19

future trading of the Tokens on any cryptocurrency exchange, 
of the Hyperion Fund Team on behalf of the Company, that are 
shall not be construed, interpreted or deemed by you as an 
not statements of historical fact, constitute “forward-looking 
indication of the merits of the Company, the IHF tokens, the 
statements”.  Some  of  these  statements  can  be  identified  by 
IHF token sale and the underlying assets (each as referred to 
forward-looking terms such as “aim”, “target”, “anticipate”, 
in this White Paper);
“believe”, “could”, “estimate”, “expect”, “if”, “intend”, “may”, 
(e) the distribution or dissemination of this White Paper, 
“plan”, “possible”, “probable”, “project”, “should”, “would”, 
any part thereof or any copy thereof, or acceptance of the 
“will” or other similar terms. However, these terms are 
same by you, is not prohibited or restricted by the applicable 
not  the  exclusive  means  of  identifying  forward-looking 
laws, regulations or rules in your jurisdiction, and where any 
statements. All statements regarding the Company’s financial 
restrictions in relation to possession are applicable, you have 
position, business strategies, plans and prospects and the 
observed and complied with all such restrictions at your own 
future prospects of the industry which the Company is in 
expense and without liability to the Company;
are forward-looking statements. These forward-looking 
statements, including but not limited to statements as to the 
(f) you agree and acknowledge that in the case where you 
Company’s revenue and profitability, prospects, future plans, 
wish to purchase any IHF tokens, the IHF tokens are not to be 
other expected  industry trends  and other matters discussed 
construed, interpreted, classified or treated as:
in this White Paper regarding the Hyperion Fund are matters 
that are not historic facts, but only predictions.
(i) any kind of currency other than cryptocurrency;
These forward-looking statements involve known and 
(ii) debentures, stocks or shares issued by any person or entity;
unknown risks, uncertainties and other factors that may 
(i) rights, options or derivatives in respect of such debentures, 
cause the actual future results, performance or achievements 
stocks or shares;
of funds, cryptocurrencies, or the Company to be materially 
different from any future results, performance or achievements 
(ii) rights under a contract for differences or under any other 
expected,  expressed  or  implied  by  such  forward-looking 
contract the purpose or pretended purpose of which is to 
statements. These factors include, amongst others:
secure a profit or avoid a loss; 
(a) changes in political, social, economic and stock or 
(iii) units in a collective investment scheme; 
cryptocurrency market conditions, and the regulatory 
(iv) units in a business trust;
environment in the countries in which the Company and/or 
target assets of the Fund conducts its respective businesses 
(v) derivatives of units in a business trust; or
and operations;
(vi) any other security or class of securities.
(b)  the  risk  that  the  Company  may  be  unable  or  execute  or 
(g) you are fully aware of and understand that you are not 
implement their respective business strategies and future 
eligible to purchase any IHF tokens if you are a citizen, 
plans;
resident (tax or otherwise) or green card holder of the United 
(c)  changes  in  interest  rates  and  exchange  rates  of  fiat 
States of America or a citizen or resident of the Republic of 
currencies and cryptocurrencies;
South Africa or the Cayman Islands;
(d) changes in the anticipated growth strategies and expected 
(h) you have a basic degree of understanding of the operation, 
internal growth of the Fund and/ or the Company;
functionality, usage, storage, transmission mechanisms and 
other material characteristics of cryptocurrencies, blockchain-
(e) changes in the availability and fees payable to the 
based software systems, cryptocurrency wallets or other 
Company in connection with their respective businesses and 
related token storage mechanisms, blockchain technology 
operations;
and smart contract technology;
(f) changes in the availability and salaries of employees who 
(i) you are fully aware and understand that in the case where 
are required by the Company to operate their respective 
you wish to purchase any IHF tokens, there are risks associated 
businesses and operations;
with the Company and its respective business and operations, 
(g) changes in preferences of IHF ICO participants; 
the IHF tokens, IHF token sale and the underlying assets (each 
as referred to in the White Paper);
(h) changes in competitive conditions under which the Fund 
and/or the Company operate, and the ability of the Fund and 
(j) you agree and acknowledge that the Company or any of 
Company to compete under such conditions;
the Hyperion Fund Team is not liable for any indirect, special, 
incidental, consequential or other losses of any kind, in tort, 
(i) changes in the future capital needs of the Fund and/or the 
contract or otherwise (including but not limited to loss of 
Company and the availability of financing and capital to fund 
revenue, income or profits, and loss of use or data), arising out 
such needs;
of or in connection with any acceptance of or reliance on this 
(j) war or acts of international or domestic terrorism;
White Paper or any part thereof by you; and
(k) occurrences of catastrophic events, natural disasters and 
(k) all of the above representations and warranties are true, 
acts of God that affect the businesses and/or operations of the 
complete, accurate and non-misleading from the time of your 
Company; 
access to and/or acceptance of possession this White Paper or 
such part thereof (as the case may be).
(l) other factors beyond the control of the Company; and
D. Cautionary Note On Forward-looking 
(m) any risk and uncertainties associated with the Fund, and/
or the Company and its business and operations, the IHF 
Statements 
tokens, the IHF token sale and the underlying assets (each as 
All statements contained in this White Paper, statements 
referred to in the White Paper).
made in press releases or in any place accessible by the public 
All forward-looking statements made by or attributable to the 
and oral statements that may be made by the Company or any 
Company and of the Hyperion Fund Team or other persons 
20

acting on behalf of the Company are expressly qualified in their 
descriptions and assigned meanings should not be treated as 
entirety by such factors. Given that risks and uncertainties 
being definitive of their meanings and may not correspond to 
that may cause the actual future results, performance 
standard industry meanings or usage.
or achievements of the Fund and/ or the Company to be 
materially different from that expected, expressed or implied 
Words importing the singular shall, where applicable, include 
by the forward-looking statements in this White Paper, undue 
the plural and vice versa and words importing the masculine 
reliance must not be placed on these statements. These 
gender shall, where applicable, include the feminine and 
forward-looking statements are applicable only as of the date 
neuter genders and vice versa. References to persons shall 
of this White Paper.
include corporations.
Neither the Company nor any other person represents, 
G. No Advice 
warrants and/or undertakes that the actual future results, 
performance or achievements of the Company will be as 
No information in this White Paper should be considered 
discussed in those forward-looking statements. The actual 
to  be  business,  legal,  financial  or  tax  advice  regarding  the 
results, performance or achievements of the Hyperion Fund 
Company, the Fund, the IHF tokens and IHF token sale and 
may differ materially from those anticipated in these forward-
the underlying assets (each as referred to in the White Paper). 
looking statements.
You  should  consult  your  own  legal,  financial,  tax  or  other 
professional adviser regarding the Fund, the Company and its 
Nothing contained in this White Paper is or may be relied upon 
business and operations, the IHF tokens, the IHF token sale 
as a promise, representation or undertaking as to the future 
and the underlying assets (each as referred to in the White 
performance or policies of the Fund and/or the Company.
Paper). You should be aware that you may be required to 
bear the financial risk of any purchase of IHF tokens for an 
Further, the Company disclaims any responsibility to update 
indefinite period of time.
any of those forward-looking statements or publicly announce 
any revisions to those forward-looking statements to reflect 
H. No Further Information Or Update
future developments, events or circumstances, even if new 
information becomes available or other events occur in the 
No person has been or is authorized to give any information or 
future.
representation not contained in this White Paper in connection 
with the Company and its business and operations, the IHF 
E. Market And Industry Information And No 
tokens, the IHF token sale and the underlying assets (each as 
Consent Of Other Persons 
referred to in the White Paper) and, if given, such information 
or representation must not be relied upon as having been 
This White Paper includes market and industry information 
authorized by or on behalf of the Company. IHF ICO shall 
and forecasts that have been obtained from internal surveys, 
not, under any circumstances, constitute a continuing 
reports and studies, where appropriate, as well as market 
representation or create any suggestion or implication that 
research, publicly available information and industry  there has been no change, or development reasonably likely 
publications. Such surveys, reports, studies, market research, 
to involve a material change in the affairs, conditions and 
publicly available information and publications generally 
prospects of the Fund, the Company, IHF or in any statement 
state that the information that they contain has been 
of fact or information contained in this White Paper since the 
obtained from sources believed to be reliable, but there can 
date hereof.
be no assurance as to the accuracy or completeness of such 
included information.
I. Restrictions On Distribution And 
Save for the Company and its respective directors, executive 
Dissemination
officers  and  employees,  no  person  has  provided  his  or  her 
The distribution or dissemination of this White Paper or 
consent to the inclusion of his or her name and/or other 
any part thereof may be prohibited or restricted by the laws, 
information attributed or perceived to be attributed to such 
regulatory requirements and rules of any jurisdiction. In the 
person in connection therewith in this White Paper and no 
case where any restriction applies, you are to inform yourself 
representation, warranty or undertaking is or purported 
about, and to observe, any restrictions which are applicable to 
to be provided as to the accuracy or completeness of such 
your possession of this White Paper or such part thereof (as 
information by such person and such persons shall not be 
the case may be) at your own expense and without liability 
obliged to provide any updates on the same.
to the Company or any member of the Hyperion Fund Team. 
Neither the Company nor any of the Hyperion Fund Team 
Persons to whom a copy of this White Paper has been distributed 
has conducted any independent review of the information 
or disseminated, provided access to or who otherwise have the 
extracted  from  third  party  sources,  verified  the  accuracy 
White Paper in their possession shall not circulate it to any 
or completeness of such information or ascertained the 
other persons, reproduce or otherwise distribute this White 
underlying economic assumptions relied upon therein. 
Paper or any information contained herein for any purpose 
Consequently, neither Invictus Hyperion nor its directors, 
whatsoever nor permit or cause the same to occur.
executive officers, agents  and employees acting on its behalf 
makes any representation or warranty as to the accuracy or 
J. No Offer Of Securities Or Registration 
completeness of such information and shall not be obliged to 
provide any updates on the same.
This White Paper does not constitute a prospectus or offer 
document of any sort and is not intended to constitute an 
F. Terms Used
offer of securities or a solicitation for investment in securities 
in any jurisdiction. No person is bound to enter into any 
To facilitate a better understanding of the IHF tokens being 
contract or binding legal commitment and no cryptocurrency 
offered for purchase by the Company, and the businesses and 
or other form of payment is to be accepted on the basis of 
operations of the Fund and the Company, certain technical 
this White Paper. Any agreement in relation to any sale and 
terms and abbreviations, as well as, in certain instances, 
purchase of IHF tokens (as referred to in this White Paper) is 
their descriptions, have been used in this White Paper. These 
to be governed by only the T&Cs of such agreement and no 
21

other document. In the event of any inconsistencies between 
as a result of the HIRE Act, the value of Tokens held by all 
the T&Cs and this White Paper, the former shall prevail.
Investors may be materially affected. The Cayman Islands 
No regulatory authority has examined or approved of any of 
legislation requires Invictus Hyperion to make an annual 
the information set out in this White Paper. No such action has 
report  to  the  Cayman  Islands  Tax  Information  Exchange 
been or will be taken under the laws, regulatory requirements 
Authority (Cayman TIA). Any information provided by Token 
or rules of any jurisdiction. The publication, distribution or 
Generator to the Cayman TIA will be shared with the Internal 
dissemination of this White Paper does not imply that the 
Revenue Service of the United States.
applicable laws, regulatory requirements or rules have been 
Other Intergovernmental Agreements
complied with.
It is possible that further inter-governmental agreements 
K. Modifications
(future IGAs) similar to the US IGA may be entered into with 
other third countries by the Cayman Islands Government to 
The Company reserves the right to amend and revise this 
introduce similar regimes for reporting to such third countries 
White Paper without notice.
fiscal authorities.
L. Mutual Fund Regulation
OECD Multilateral Competent Authority Agreement
Invictus Hyperion is not regulated as a mutual fund for the 
Over 90 countries have signed the OECD Multilateral 
purpose of the Cayman Islands Mutual Funds Law (Revised) 
Competent Authority Agreement and Common Reporting 
because Invictus Hyperion is not issuing equity interests 
Standard (CRS) for the implementation of the automatic 
to IHF purchasers within the meaning of the Mutual Funds 
exchange of tax information based on the OECD’s Multilateral 
Law. Although the Tokens carry a contractual right against 
Convention  on  Mutual  Administrative  Assistance  in  Tax 
Invictus Hyperion, a IHF does not represent a share of Invictus 
Matters. The CRS is similar in form and substance to the US 
Hyperion’s authorised and issued share capital, a token-holder 
IGA and applies in respect of each “participating jurisdiction” 
is not entitled to be included on the register of members of 
(as  identified  in  a  list  published  by  the  Cayman  TIA).  On 
Invictus Hyperion and does not have capital at risk in the way 
16 October 2015, the Cayman Islands passed into law the 
a shareholder does. Therefore Invictus Hyperion is not subject 
Tax  Information  Authority  (International  Tax  Compliance) 
to the Mutual Funds Law and the potential registration or 
(Common Reporting Standard) Regulations, 2015, as amended 
licensing requirements that would otherwise apply if equity 
(CRS Regulations). As a result of this, Cayman Islands financial 
interests were being offered and Invictus Hyperion was 
institutions, including Invictus Hyperion, have substantially 
subject to the Mutual Funds Law. Specifically this White Paper 
expanded  international  tax  compliance  obligations  and  will 
will not be filed with the Cayman Islands Monetary Authority 
have substantially expanded reporting obligations from 2017, 
(CIMA),Invictus Hyperion is not subject to the supervision 
with the first reporting deadline under the CRS Regulations 
of CIMA and Invictus Hyperion is not required to have its 
being 31 May 2018. By investing (or continuing to invest) in 
accounts audited nor submit such accounts to CIMA.
Invictus Hyperion, Investors shall be deemed to acknowledge 
that: (i) Invictus Hyperion (or its agent) may be required to 
M. The Cayman Islands and the Foreign 
disclose to the Cayman TIA certain confidential information 
in relation to the investor, including, but not limited to, the 
Account Tax Compliance Act
investor’s name, address, tax identification number (if any), 
US Requirements
social security number (if any) and certain information 
relating to the investor’s investment; (ii) the Cayman TIA may 
The Foreign Account Tax Compliance Act (FATCA) provisions 
be required to automatically exchange information as outlined 
of the Hiring Incentives to Restore Employment Act (HIRE 
above with the IRS, HM Revenue & Customs, the United 
Act) provide that Invictus Hyperion must disclose the name, 
Kingdom  tax  authority  (HMRC)  and  other  fiscal  authorities 
address and taxpayer identification number of certain United 
(Competent Authorities) of CRS “participating jurisdictions”; 
States persons that own, directly or indirectly, an interest 
(iii) Invictus Hyperion (or its agent or delegate) may be 
in Invictus Hyperion, as well as certain other information 
required to disclose to the IRS, HMRC and other Competent 
relating to any such interest, pursuant to the terms of the 
Authorities certain confidential information when registering 
intergovernmental agreement between the United States and 
with such authorities and if such authorities contact Invictus 
the Cayman Islands (US IGA) and implementing legislation 
Hyperion (or its agent or delegate directly) with further 
and regulations which have been adopted by the Cayman 
enquiries; (iv) Invictus Hyperion may require the investor to 
Islands. If Invictus Hyperion fails to comply with these 
provide additional information and/or documentation which 
requirements, then a 30% withholding tax will be imposed on 
Invictus Hyperion may be required to disclose to the Cayman 
payments to Invictus Hyperion of United States source income 
TIA; (v) in the event a Token purchaser does not provide the 
and proceeds from the sale of property that could give rise to 
requested information and/or documentation and/or has not 
United States source interest or dividends. The withholding 
itself complied with the applicable requirements, whether 
tax provisions of FATCA took effect on July 1, 2014 other than 
or not that actually leads to compliance failures by Invictus 
in relation to proceeds from the sale of property, in which case 
Hyperion, or a risk of Invictus Hyperion or its investors being 
they have been postponed to January 1, 2019.
subject  to  withholding  tax  under  the  relevant  legislative  or 
Although Invictus Hyperion will attempt to satisfy the 
inter-governmental regime, Invictus Hyperion reserves the 
obligations imposed on them to avoid the imposition of this 
right to take any action and/or pursue all remedies at its 
withholding  tax,  no  assurance  can  be  given  that  Invictus 
disposal, including, without limitation, compulsory Token 
Hyperion will be able to satisfy these obligations. In this 
return of the investor concerned; and (vi) no investor affected 
regard, Invictus Hyperion may require investors to provide any 
by any such action or remedy shall have any claim against 
documentation or other information regarding the investors 
Invictus Hyperion (or its agent or delegate) for any form of 
and their beneficial owners that Token Generator determines 
damages or liability as a result of actions taken or remedies 
is necessary or desirable for Invictus Hyperion to avoid the 
pursued by or on behalf of Invictus Hyperion in order to 
withholding  tax  and  otherwise  comply  with  the  HIRE  Act. 
comply with any of the US IGA, the CRS Regulations or any 
If  Invictus  Hyperion  becomes  subject  to  a  withholding  tax 
future IGAs or agreements, laws or regulations entered into 
22

or implemented by the Cayman Islands for the purpose of 
ensuring and/or enhancing international tax transparency.
Other jurisdictions
It is possible that certain dividends, interest and other income 
received by Invictus Hyperion from sources within certain 
countries  may  be  subject  to  withholding  taxes  imposed  by 
such countries. Invictus Hyperion may also be subject to 
capital  gains  taxes  or  other  taxes  in  some  of  the  countries 
where it purchases and sells securities or otherwise conducts 
business. It is impossible to predict in advance the rate of tax 
that will be paid since the amount of the assets of Invictus 
Hyperion to be invested in various countries is uncertain.
N. Risks And Uncertainties
Prospective purchasers of IHF tokens (as referred to in this 
White Paper) should carefully consider and evaluate all risks 
and uncertainties associated with the Fund, the Company and 
its business and operations, the IHF tokens, the IHF token sale 
and the underlying assets (each as referred to in the White 
Paper), and all information set out in this White Paper and the 
T&Cs prior to any purchase of IHF tokens. If any of such risks 
and uncertainties develops into actual events, the business, 
financial condition, results of operations and prospects of the 
Fund, the Tokens, and/or the Company could be materially 
and adversely affected. In such cases, you may lose all or part 
of the value of the IHF Tokens.
Final | 30 April 2018 | © 2018 Invictus Hyperion.  All rights reserved.
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3.3

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