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ThinkCoin “We cannot solve our problems with the same thinking we used when we created them.” Albert Einstein Version 10.9 by TradeConnect a member of the ThinkMarkets Group Contents 1 Opening letter 26 7: Trading on the network 2 Abstract 26 ●7.1 Peer-to-peer matching 3 1: The TradeConnect Vision 28 ●7.2 Multiple participant trading 3 ●1.1 Problem 30 ●7.3 Friends’ network match 3 1● .2 Solution 32 ●7.4 Principal trading 4 2: ThinkMarkets: A Decade of Innovation and Growth 33 8: Security and Oracles 4 ●2.1 ThinkMarkets through the years 33 ●8.2 Security 6 ●2.2 ThinkMarkets revenues 34 9: Introducing ThinkCoin 6 ●2.3 Trade Interceptor 34 ●9 .1 Our Initial Coin Offering 7 3: A Breakthrough in financial products 35 ●9 .2 Token Allocation 7 ●3 .1 Derivatives 35 ●9 .3 Pre-ICO and ICO 7 ●3 .2 How derivatives work 35 ●9 .4 The Hard Cap 8 ●3 .3 Market size 35 ●9 .5 Bounty 8 3 ● .4 Current market challenges 36 ●9 .6 Fundraising Target 33 ●8.1 Race conditions 10 4: The TradeConnect network 36 ●9 .7 Timeline 10 ●4 .1 The TradeConnect Economy 37 10: Fund allocation 11● 38 11: Project roadmap 4.2 Trade Connect Token Economy 17 ●4 .3 TradeConnect in relation to traditional trading 40 12: Future Developments 19 5: How TradeConnect will work 40 ●12.1 Introducing wallets 19 ●5 .1 Transaction speed, liquidity and user base 40 ●12.2 Trading with StableCoins 19 ●5 .2 A hybrid approach to the blockchain 40 ●12.3 Improving Scalability - State channels, shards, and plasma chains 19 5 ● .3 Off-chain transactions aggregation and netting 20 5 ● .4 Post-Trade Ledger Private BlockChain Ledger: A Hybrid Approach to Centralized Trust 21 ●5 .5 Mid Market Price The Search for the truth 22 6: TradeConnect network overview 23 ●6.1 TradeConnect network roles 23 6.2 Liquidity - Achieving scale using the Connect Fee 41 13: The team 41 ●13.1 The TradeConnect Team 43 ●13.2 Strategic Advisors 44 ●13.3 Technology Team 46 14: Corporate structure and governance 46 ●1 4.1 TradeConnect Limited 46 ●1 4.2 The ThinkMarkets Group 46 ●1 4.3 Governance 24 ●6.3 Smart Liquidity Matching and Artificial Intelligence (AI) 48 15: Legal disclaimers and notices 24 ●6.4 Proposed Personas 49 16: Risks Dear Participant, This is an exciting time in the financial services industry: new technology like the blockchain and cryptocurrencies are delivering enormous opportunities to bring disruptive change to the financial world. I am inviting you to join this revolution by participating in the ThinkCoin Initial Coin Offering (ICO). Our ICO will enable the development of the TradeConnect trading network: a bold and disruptive vision for trading that will enable all parties to trade on a peer-to-peer basis, made possible by blockchain technology and the distributed ledger. By connecting all participants in the network with a set of transparent rules, we can level the playing field, reduce reliance on intermediaries, and increase functionality, Recording trades on the blockchain will enable greater transparency, vastly lower the cost of trading, and significantly speed up settlement. In order to trade and make payments on the network, traders will need ThinkCoin tokens, which can be acquired as part of this ICO or at a later date when they are listed on exchanges. This is your opportunity to be involved from the very beginning. We’re going to change trading forever, and we’d be delighted if you joined us. Thank you for reading. Kind regards, Nauman Anees, CEO, ThinkMarkets 1 Abstract TradeConnect is a multi-asset peer-to-peer blockchainbased exchange that will allow investors to trade a wide range of financial products such as cryptocurrencies, equities, FX, commodities and more. TradeConnect will disrupt a market that is dominated by banks, prime brokers and large funds, creating an immense opportunity to become the leading multi-asset blockchain-based trading network to trade a wide range of financial products not found on traditional crypto exchanges. Initially focused on the retail trading sector, the network will then be expanded into the institutional and corporate derivative trading markets, and subsequently to a range of other financial sectors. Ultimately, the trading solution will enable a client to trade any financial product with any counterparty using the public blockchain – agnostic of platform or broker. The Value of the Foreign Exchange (FX) markets, stock, futures, commodities and OTC derivatives markets stood at over US$542 trillion in the six months to July 2017. The advent of the blockchain has created the first major opportunity to disrupt these markets since the introduction of electronic trading in the 1980s. TradeConnect’s primary goal is to become the world’s largest multi-asset blockchain-based trading network. In order to achieve this goal TradeConnect will create a trading economy with the ThinkCoin token (TCO) used as a means of payment to trade financial products, grow the liquidity pool in the network and scale transactions. TradeConnect is issuing an Initial Coin Offering (ICO) of the ThinkCoin token (TCO). Funds raised as part of the ICO will be used primarily to acquire new users, develop a state of the art matching engine and expand the range of trading products Only TCO holders will be able to trade on the TradeConnect network . TradeConnect Limited is a member of the ThinkMarkets group of companies. ThinkMarkets is a licensed financial services company in the UK and Australia which brings more than a decade of experience, a history of innovation and a strong portfolio of intellectual property to use on the TradeConnect network: all of which will allow it to exceed the goals outlined in our roadmap. ICO Summary Token Name ThinkCoin Symbol TCO Total Supply 500,000,000 Tokens Available in ICO and Pre-ICO 300,000,000 (60%) Blockchain Ethereum ERC-20 Decimals 18 Pre-ICO: 3rd April - 9th Aprill: $0.21 USD 10th April - 16th April: $0.25 USD ICO: 17th April - 30th April $0.30 USD Social media Information on the ThinkCoin ICO is available via the following channels: @thinkcointoken @thinkcoin t/me.thinkcointoken 1 Bank for International Settlements statistics, September 2017 2 The TradeConnect Vision 1: 1.1 The problem 1.2 The solution Global financial markets are dominated by banks and other financial institutions, some of which lack transparency, have undue influence on global asset prices, and can impose unfair charges. We will create a cutting-edge new peer-to-peer multi-asset trading network that will disrupt and democratize trading. We are calling this network TradeConnect. New technology means we can now deliver greater transparency and equality for all market participants. Established financial players have failed to take the opportunities in blockchain technology, and still use a centralized order book to control prices and trading. Other limitations include: rading is not peer-to-peer, creating credit and • ●tfinancial risk ack of transparency in price-making and trade • ●lexecution This network will allow individuals and institutions to trade directly with one another on a balanced playing field with lower costs for all. Trades will be automatically settled on the blockchain, with recording and execution conducted off-chain to deliver the fastest service possible. To raise funds to design and develop the network, we are launching an ICO of ThinkCoin, a bespoke new digital token that will underpin trading on the network. ettlement of trades and funds can take days, versus • ●sseconds on the blockchain • ●lack of flexibility in transferring trades 3 ThinkMarkets: A Decade of Innovation and Growth 2: The ThinkMarkets group - including Expanded Growth and Regulation TradeInterceptor, ThinkPrime, ThinkAffiliates of global experience in financial products, After year-on-year double digit growth, we relocated our global headquarters to Australia to focus on Asia Pacific and improve client experience under ASIC Licensing. This set the foundation for global expansion to meet growing demand for extended product offerings in Precious Metal and Contracts for Difference (CFD) trading. excellent customer service and a large pool of Launch of TFX VPS and ThinkInvest has pooled its knowledge and resources to create the TradeConnect project. Together, they combine decades tens of thousands of users around the world. We expanded our offering to include high-speed Virtual Private Servers (VPS), reducing latency and improving the overall trading environment for automated traders. 2.1 ThinkMarkets through the years 2010 - 2011 The arrival of ThinkForex 2010 saw the launch of ThinkForex in New Zealand, with the goal of improving the forex trading experience by delivering industry-leading technology to the international trading community. 2013 Implementation of Co-Location Technology Our partnership with Equinix was announced in 2013, enhancing the speed of trade execution by using co-location data centres around the world to reduce trading latency. We operate data centers in London, New York and Hong Kong. Launch of CFDs 2012 Award: UK Forex Awards - Best Customer Service, Fastest-Growing Forex Broker We were awarded Best Forex Customer Service at the UK Forex Awards 2012, having been recognised for our industry-leading customer service and commitment to clients. In 2013 we expanded our product offering to also include contracts for difference (CFDs) – allowing clients to trade in a wider range of markets than ever before. World Finance Award Best New Broker and Best Broker Australia. 4 2014 2017 Forex Best Awards 2014 FX Street Award Acquiring of Trade Interceptor In 2014 we were recognized for our quality market analysis and research, and were awarded the Best New Contributor award at the Forex Best Awards 2014, hosted by FXStreet. 2015 Expanded growth and regulation Following another year of strong growth, our UK office TF Global Markets (UK) was launched in 2015 under Financial Conduct Authority (FCA) regulation, FRN 629628. Launch of ThinkPortal Our dedicated secure login portal, ThinkPortal, was launched in 2015 and provides greater security and ease of access for our clients. 2016 Launch of ThinkAffiliates ThinkAffiliates – the affiliate program offered by ThinkMarkets – was launched in 2016 to promote ThinkMarkets’ products and services. ThinkMarkets acquires Trade Interceptor ­- the world’s most searched-for trading analysis mobile app. The deal marks a major step forward in ThinkMarket’s mission to be the only truly mobile retail broker – a crucial commitment given the rapid growth of the mobile trading market. With over 50K active mobile users and more than 500,000 user registrations since inception the goal of creating the world’s largest mobile trading app is about to start. Payment coverage with PayPal ThinkMarkets announces new partnership with PayPal, providing even more range and diversity in payment facilities for its clients. ThinkMarkets’ users are able to fund their trading accounts on the MetaTrader 4 and Trade Interceptor platforms in a quick, efficient and secure manner. Launch of ThinkInvest ThinkInvest is the investment service of ThinkMarkets. Our PAMM and MAM service offers investors the ability to trade the financial markets by investing in the expertise of a Money Manager. Awards: UK Forex Awards 2017 ThinkMarkets is the proud winner of the Best Forex Trading Experience and Best Forex Trading Innovation UK Forex Awards 2017. 5 2.2 ThinkMarkets: A story of growth 2.3 Trade Interceptor by the numbers Since its inception the company has grown its global revenues 20% year-on-year with no outside investment. A global financial services firm, we are committed to becoming the leading provider of blockchain-based trading solutions and creating the “Think” token economy using TCO. Trade Interceptor is a mobile trading app with almost a decade of history and over 500,000 lifetime registrations. Trade Interceptor will power the user interface for the TradeConnect network. Year Registrations 2009 4236 2010 23,627 2011 92,622 2012 106,218 2013 92,701 $10m $1 2014 69,173 $5m $5 2015 49,387 2016 38,841 2017 115,881 TOTAL 601,694 Global Revenue $30m 0m $25m $25m $26m $ $2 26m $23m $2 $20m 0m m $15m 0 $17m $17 $ 17m 2015 201 015 2016 2017 7 ThinkMarkets user base 50000 2016 40000 40 0 00 0000 3 30000 0 68,153 22.16 Active Users Average Time in App (minutes) 10000 100 000 000 00 0 20 2010 2 2011 1 2012 2013 2016 20 201 013 2014 4 2015 20 01 16 2017 2017 20000 87,019 25.11 Active Users Average Time in App (minutes) 6 3: A breakthrough in financial products The TradeConnect network is poised to bring significant and lasting change to the trading of financial products by creating the first true multi-asset blockchain based trading network connecting individuals, prime brokers, corporations and brokers on an even playing field. We will combine transactions made on and off the blockchain, which will allow us to settle contracts faster than conventional trading and benefit from the trust inherent in distributed ledger technology. Trading is currently conducted with little transparency, with large prime brokers, banks and institutions controlling the flow of information and maintaining full control over both the prices set and the settlement process. The time has come to change this by decentralizing and democratizing the world of trading with the TradeConnect network. 3.2 How derivatives work At its heart a derivative trade is a contract between one party and another. They agree that one will ‘win’ and one will ‘lose’ in the event that the price of an underlying product either increases or decreases. The underlying product can range from individual shares, indices, foreign exchange, commodities, metals, and many other financial assets. In theory, derivatives can be based on almost anything two parties are willing to agree to base a trade on. The contract is tied to the value of the underlying product and may never be physically delivered - ie. the contract may be cash-settled instead. Such derivative contracts range from the very simple to the extremely complicated, but they share the same essential characteristics: traders can buy and sell contracts tied to them, enabling them to go long or short and to trade short term or long term, TradeConnect’s aim is to disrupt this marketplace using the latest peer-to-peer trading technology and remove the middle layer of brokers who wield undue influence.. 3.1 Derivatives As part of the ThinkMarkets Group, we will start with what we know: derivative contracts in the CFD, Forex (FX), commodities, equities and cryptotrading markets. ThinkMarkets already provides these products to thousands of customers around the world as a regulated broker. Our knowledge and experience mean we are wellplaced to expand and extend the TradeConnect network, and to ultimately offer trading in other financial products to all participants. 7 3.3 Market Size Liquidity and Inefficient Pricing The markets that TradeConnect will initially target are significant in size. With tens of billions in traded volume a day, there is a significant opportunity for an insurgent disruptor. There is a lack of liquidity in markets when they are volatile or if rapidly-developing news move markets fast. Naturally most liquidity providers and exchanges become latent in their prices and suffer from liquidity gaps. Total global derivatives market Estimated at over $1.2 quadrillion2 OTC derivatives notional value $542 trillion3 OTC foreign exchange derivatives $76 trillion2 3.4 Current market challenges Derivative trading markets are mature, but new technology has revealed several areas where the status quo is failing. No peer-to-peer trading Trading is currently dominated by brokers and counterparties with whom individuals are obliged to open an account to start trading. Individuals cannot easily trade directly with one another, limiting the marketplace. TradeConnect will allow individuals to trade with each other, eliminating the need to use a broker. Peer-to-peer trading on the blockchain will transform the way individuals invest their money and trade. 2, 3. TradeConnect’s peer-to-peer trading model is designed to avoid this by creating a unique trade scoring system that facilitate liquidity for users, a scalable connect fee model, a risk based approach to margin lending and a private consortium-based blockchain ledger open to participants in the network for full transparency. Lack of trust and integrity Trading with brokers requires clients to trust in their integrity. While many brokers are properly regulated, others may not be. There are also significant disparities in rules and regulations between jurisdictions, and potentially significant conflicts of interest for the broker to manage. Managing client money Clients are required to deposit their money with the broker and rely on them to hold it segregated from their own and in trust for the client. Such requirements vary by jurisdiction and many unregulated brokers do not provide adequate protection to their clients. By using the TradeConnect network and with all assets verified on the blockchain using TCO, participants do not have to worry about settlement of funds and their money being sent to a broker. Bank for International Settlements Statistics September 2017, notional contract values. 8 Inefficient settlement and payment Settlement of trades can take time in the current model of investing and trading. There are many cases where financial institutions have collapsed when they were not able to settle their funds, and individuals have lost their money. By conducting trades on the blockchain using the TradeConnect network with TCO as a method of settlement, this risk is substantially reduced. Lack of transferability Trades with a broker may not be transferable. The contract terms are written solely between the client and the broker, limiting the trade’s potential and increasing costs. This makes it harder for traders to transfer positions or trades and reduces flexibility. Our new peerto-peer trading technology will change that by allowing users to trade with other users on the network and transfer their positions at any time. 9 4: The TradeConnect network We intend to develop a multi-asset blockchain-based network for trading on a SOME DEFINITIONS peer-to-peer basis. To reach the speeds of Ethereum is an open-source, decentralised, blockchain-based platform that runs applications known as ‘smart contracts’ without any possibility of downtime, censorship, fraud or third-party interference. execution and settlement modern markets expect, the network will combine blockchainbased smart contracts with off-chain transactions. This solution will benefit from: he trust, integrity and visibility of the blockchain • ●tledger • ●the ability to hold and settle funds on the blockchain • ●the greater speed of using off-chain processing consortium-based private ledger visible to only • Aparticipants in the network combined with the public blockchain A peer-to-peer solution removes reliance on brokers and other intermediaries and enables direct trading between two or more participants Your money stays in your control, with funds for trades committed to the blockchain pending execution and settlement of the trading contract. Settlement and payment can be nearimmediate, with no delays and no fees for transferring funds. These apps run on a custom-built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. Ethereum also provides a cryptocurrency token called ‘ether’, which can be transferred between accounts and used to compensate participant nodes for computations performed. A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties, making these transactions trackable and irreversible. 4.1 The TradeConnect Economy TCO tokens are classified as utility tokens. Participants in the TradeConnect Network that wish to trade and use all its features will need to hold ThinkCoin tokens. These are the units of trade in our token new economy. By transferring fiat currency or other cryptocurrencies into TCO, traders can trade in the various markets offered on the network. The value of the trade is held securely in an Ethereum smart contract and is settled and released directly back to the participants wallet automatically upon determination of the trade. 10 4.2 TradeConnect Token Economy TradeConnect has a token economy that is marketneutral and, unlike other exchanges and principal market making brokers, is primarily based on transactional volume vs “risk taking”. The structure of the network will allow a diverse token economy based not just on commissions, but a variety of market-neutral models based on the growth in volume versus the market risk in the network . Connect Fee Distribution 25% 25 5% 25% 25 5% 50 0% % 50% 50 0% % 50% 2 % 25% 2 % 25% The primary sources of revenue are the Connect Fees, Margin Lending, auctions of Digital Personas and Token Listings. Connect Fee Makerss In traditional trading models, every broker charges a set commission. This arbitrary amount is seldom in the best interest of the trade being placed or the trader. Ta ers Take Takers The most beneficial way to serve the trading community is to bring all participants together on a level playing field and with maximum transparency, while rewarding those participants who bring the most value to the network. Makerss TCTake Netwrok Netwrok Ta ers ok Takers TC Netwrok Netwrok ok TradeConnect has decided to remove commissions altogether and will implement a Connect Fee paid in TCO that will fund the ongoing development and maintenance of the network as well as incentivize traders to participate in the TradeConnect economy. In contrast to traditional brokerages or exchanges which keep most — if not all — of the fees generated from trading activity, the TradeConnect network will rebate back 75% of all connect fees to active Makers and Takers on the network. 11 Example Trade 1 FX 100K Lot Connect Fee $7 (spread 0.7) Maker Pool $3.5 Taker Pool $1.75 Network $1.75 Individual Maker / Taker Daily Distribution Breakout Individual Maker Rebate based on 0.57% of volume $8851.90 Individual Taker Rebate based on 0.017% of Volume $132.00 Distribution Formula: (Daily Pool Distribution) x (Individual % of [Maker or Taker] Trading volume): Numbers Indicative of hypothetical spread. To ensure fair and transparent distribution, all fees will be divided into two daily pools (for Makers and Takers), then distributed at a specified time each day. Each participant’s daily allocation will be determined by the percentage of trading volume they completed that day relative to the total trading volume completed by all participants within in their pool. Example Based on Daily Connect Fees of $3,105,930* The roles in the connect fee system are: - a network participant who is willing to buy • Maker and/or sell actively in a given market, often by offering up large block orders. TradeConnect will facilitate Maker orders with advanced ticket options to allow Makers full control of their market exposure. . - a user who wants to place a trade on the • Taker network using a given price that is being offered . TradeConnect will facilitate Taker orders with the full ticket options expected in modern financial markets. Pools - This is the pool where fees for all the • Maker maker trades done for the day are held in reserve. Total Daily Distribution Breakout Total Maker Pool (50%) of Daily Connect Fees $1,552,965 Total Taker Pool (25%) Of Daily Connect Fees $776,482.50 Total Network Fees of Daily Connect Fees (25%) $776,482.50 Pools - This is the pool where fees for all the • Taker taker trades done for the day are held in reserve. Distribution Formula: (Daily Connect Fees) x (Distribution %): . *Numbers Indicative of hypothetical participation and trading volume across a range of markets. at 10 contracts per second during market hours. Does not include adjustments for PERSONA fees or Margin Lending fees paid my Makers or borrowers to the network.. 12 You want to trade across the Trade Connect network in order to take advantage of the network’s transparent pricing and competitive spreads . You convert $1,000 into TCO and hold it in your TradeConnect wallet. Assuming the price of TCO is 0.50USD on the market, you would receive approximately 2000 TCO into your account to trade with. Let’s say the price of one share in Apple is approximately $175. You then use 50 TCO to enter a trade by committing it to the blockchain, and purchase a Micro Share of Apple, an option not available in most traditional trading spaces. The difference in the bid and ask in the Apple share price is the spread and will determine the Connect Fee. You hold your Apple trade for a few days, and then close it for a small gain. For each and every trade 50% will be allocated to the Maker Pool, 25% to the Taker Pool and 25% to the Network. As a taker of this trade this single Apple trade would now count towards your trading participation volume and will determine your taker rebate at the close of the trading day With your trade profits allocated to your TCO Wallet you can exchange TCO for BTC, ETH, USD, GBP over numerous exchanges, or hold it for your next trade. As the trading participants, volume of products, counterparties and trades on the network all gain in number, the demand for TCO tokens by existing and new participants will increase in turn. This increased demand for TCO tokens, that will be listed and freely transferable on several exchanges, is likely to drive the price of TCO, thus providing value to early participants How TCO demand may be impacted by increasing volume on the network. Demand Dem d for or TCO TCO (as as pr price e in USD) USD For Example: 6 5 4 3 2 1 0 0 10 1 20 0 30 0 40 50 Network Netwo wo k National work Nation onal Traded on T d Volu Volume olume (USD (U D $billio $billions) ions) s) *This graph only illustrates the impact of demand for TCO (and therefore price) as trading volume on the network increases. Not based on any projections or predictions as to TCO price. Margin Lending Margin Trading is a form of trading that allows the user to borrow funds that are not currently available in the wallet. Margin trading has advantages and risk that need to be carefully managed. The TradeConnect team has extensive experience in managing margin risk and liquidity, as our parent company ThinkMarkets has been a margin brokerage since inception. TradeConnect’s peer-to-peer trading model will naturally decrease the demand for leverage and margin lending by smaller participants in the market. Unlike existing OTC brokerages where even the smallest clients use leverage to reduce their margin requirements while maintaining the same risk per trade or unlimited risk in some cases;, There will likely be demand for increased purchasing power by some participants in the Network, 13 in consideration of this TradeConnnect will support a Margin Lending facility. Current margin lending platforms are faced with two key challenges: • Limited Margin Funding Pool Platforms allow any user to become a margin liquidity provider, This creates a significant potential for negative balance risk as lending is allocated by taking tokens and /or crypto from smaller wallets who do not have the capital to lend properly . • Margin Lending Liquidity Gaps During hyperactive periods in the market everyone chooses to use margin funds to buy or sell large amounts of any given asset, In some cases the margin lending pool of credit is used quickly and poses a danger to the exchange’s capital structure, If all participants then had to liquidate their positions in a fast market the exchange would not be able to cope, thus going into a negative position quickly as they would have to fund their margin users’ collateral back. Solutions We will create a structured margin lending model that allows only certain market participants with sizeable assets, credit and liquidity to offer margin lending on TradeConnect. 1. Qualified Margin Lenders • Net Open Position and Credit Limit • Balance Sheet Stress Tests 2. Mid Market Lending Rate Lending rates vary dramatically on crypto exchanges and other centralized brokerages. These lending rates are arbitrarily decided based on what the exchange perceives it can charge to users, rather than the actual demand for lending. The consortium of vetted margin lending providers on the network will vote each day on a lending rate for the day, determining a benchmark lending rate. The providers can provide lower or higher rates then the benchmark, but there will be a rule to enforce staying within a tolerance of 1 -5% of the benchmark to avoid price manipulation. Margin lenders will benefit from daily interest earned on the lending pool which in turn will also generate a small daily revenue for the Network as it retains a small % as an administrative fee. Example The Lending Consortium distributes $5,000,000 in margin lending at 5.75% and all associated participants hold their related positions for one day. The daily lending fees incurred would total $787.67 minus $39.38 (0.2875%) for network administrative fees, netting the Lender Pool $748.29 in daily fees. Unlike other exchanges that offer lending to almost anyone that offers to lend their unused wallet balances, we will use our persona scoring engine to rate margin liquidity providers and conduct a detailed stress test. Some of the lending criteria are: • Allocated Capital to TradeConnect • Solvency Test 14 Digital Personas In centralized trading models there is very little known to a market participants about the actual underlying trade, aside from the price, time, size and product being traded. The reason for this is that prime brokers, banks, liquidity providers and brokers want to preserve this information to their own use. Trade Connect has evolved this by creating unique Digital Personas. These personas will tag each unique subscriber on the network with unique scores and, over time, build a profile that will allow market makers and takers to bid for the right type of trader. This will allow Liquidity Providers on the network to pay the most for the right type of trade and reduce their overall charges. For each successful persona that is auctioned, TradeConnect will retain the additional spread percentage the Maker bid in the auction. Example Maker J prefers matching with mid-frequency takers that generally trade in volumes that allow him to efficiently make markets in FX He bids on a Persona Auction at 3% to take on a maximum amount of volume within specific price ranges. Maker J wins the auction, as he is willing to pay the most in auction fees while offering the best spread to the market, and is filled as his target markets move within a range and matching Takers come into the market. Average Spread per Trade 0.7 Average Spread Cost $7.00 Average Auction Fee $0.21 Total Volume FX (100K) Lots 130 Total Connect Fees Generated $910.00 Total Auction Fees Paid by Maker J $27.30 Total Maker Pool Distribution $455 - $27.30 = $427.70 Total Taker Pool Distribution $227.5 Total Network Distribution $227.5 + 27.30 = $254.8 Numbers Indicative of hypothetical participation and trading volume. Token Listings With the explosive growth of the blockchain sector, a new marketplace is developing for not only trading but listing and facilitating liquidity for ICOs and digital tokens. TradeConnect will capture a percentage of the total raise from new coins coming to market that wish to list and are approved on TradeConnect. 15 Tokens and cryptocurrencies ThinkCoin (TCO) - an asset-backed token TradeConnect will initially support the most liquid cryptocurrencies as collateral, based on their market size and available market liquidity. Our wallet will initially support: TCO will be an asset-backed token. We will hold the equivalent value in fiat currencies such as USD, GBP, AUD, JPY and other G10 currencies for the available TCO we store in our network. This will stabilize the price of TCO, provide liquidity for makers and takers, and allow market participants who wish to exit TCO into fiat a single venue to trade and exchange their currency. Our wallet will initially support:. 1. Bitcoin 2. BitCoin Cash 3. Ethereum 4. Dash 5. Monero 6. LiteCoin 7. ThinkCoin (TCO) We are able to achieve this through our vast banking network that gives us the ability to hold client funds in a fully segregated manner. We have a decade of experience in handling client money, and TradeConnect operates on a market-neutral revenue model without taking risk. Counterparties and market participants must change their fiat into TCO: they can do this on the TradeConnect network, which will initially provide us the ability to maintain price and liquidity in the token. All cryptoassets will be secured by partnering with BitGo, which has a robust institutional custody offering with advanced security and treasury controls. BitGo has a powerful API that will allow us to develop various internal controls for signing and auditing of transactions. 16 4.3 TradeConnect in relation to traditional trading TradeConnect will differ from traditional trading in several key respects. It brings the advantages of current trading, but with a lot of added benefits: TradeConnect Traditional Trading Volume The more transactional volume in a market the better. With traditional trading models there is no way to measure the transactional volume – but with the blockchain there is. Multiple Assets The ability to trade multiple assets differs greatly between brokers and banks. In the blockchain ecosystem you should be able to trade any asset without barriers of entry, since risks to credit and settlement are removed using the TradeConnect network. With TradeConnect we aim to create a network where any financial asset can be traded in one place using smart contracts that are designed specifically for each different asset type Liquidity The single largest factor in any trading venue is liquidity. Traditional trading models suffer from liquidity shortages by centralizing all the order flow on their internal trading books. By using the blockchain and peer-to-peer trading, individuals can immediately unlock this liquidity and cut out the middle layer of brokers - creating an even playing field. Peer-to-peer trading The ability to trade without the middle layer of brokers, prime brokers, banks and corporations allows any individual or entity to trade with each other without paying brokerage fees and charges, taking back full control of their trading 17 continued... TradeConnect Traditional Trading Funds in your control With ThinkCoin (TCO), participants of the network will be able to have full control of their money thanks to the blockchain. Instant settlement With TradeConnect your transactions ‘off chain’ and on the public ledger provide a method for trades to be settled near-instantly, removing traditional trading models’ need to wait for confirmation. Brokers and banks can take several days to settle and fully confirm a trade. This barrier is instantly removed by moving some parts of the process off-chain and committing the final transaction price and trade to the public ledger. Connect Fee TradeConnect’s unique Connect Fee model that will allow the market maker and network itself to each receive a percentage of the fees generated on each trade. Asset-backed token Each subscriber to the network that wishes to trade using TCO must convert either crypto or fiat equivalent into TCO. As part of the ThinkMarkets group of companies TradeConnect will have access to deep banking relationships that will hold the equivalent amount of fiat in multiple currencies. 18 5: How TradeConnect will work 5.1 Transaction speed, liquidity and user base 5.3 Off-chain transactions aggregation and netting There are three factors that will determine the success of the TradeConnect network: To overcome these challenges, we propose creating and initially storing trading contracts off-chain on the TradeConnect network to settle the majority of the price-making and liquidity-matching transactions near-instantly. Once these transactions are settled offchain, the profit and loss are aggregated as one bulk transaction onto the ethereum blockchain and then netted out. • the number of participants in the network, • the speed at which the transactions are confirmed maintenance of enough liquidity to ensure all • the transactions are matched and executed instantly. Trading, participants and therefore liquidity will be incentivised by the Connect Fee: please see page 11. 5.2 A hybrid approach to the blockchain The blockchain has certain limitations that could make delivering these guarantors of success difficult. If we assume each trade is offered as a smart contract on the blockchain, a significant number of ethereum transactions would be required regardless of whether each trade is then accepted by a counterparty. This approach would cause significant delays across the whole ecosystem and cause transaction times to expand significantly. Before trading begins, the participants will be required to lock an amount into an ethereum trading contract. The parties can then only trade their account balance. A Market Maker creates off-chain trades to offer to other participants and signs it with their private key. The trade would then be propagated off-chain to potential counterparties. Counterparties who decide to accept the offer to trade would sign the off-chain contract with their private keys, and the contract to trade is generated. The contract would then be determined by an oracle such as an independent price feed - to determine the results of the trade. The result is finally made available and submitted to the blockchain along with the transaction, and payment occurs through the blockchain automatically. A simple trade would require two ethereum transactions: • ● A Market Maker offering their trade • ● A Counterparty accepting the offer This would therefore result in the minimum transaction time being equal to the time to mine two blocks: in practice, tens of seconds. We will solve the latency of the public blockchain with various hybrid approaches below. 19 5.4 Post-Trade Ledger Private BlockChain Ledger: A Hybrid Approach to Centralized Trust As the volume the network grows we anticipate there will be a greater dependency on verifying the actual process of the connect fees, persona auctions, margin lending pools, distribution of the connect fee rebates from the maker/taker pools, and more. Use Case B As the volume on the TradeConnect network grows we expect connect fees from the maker and taker pool each day to increase. To deliver accurate distribution of the connect fee rebates, a private ledger will need to be maintained showing the detailed calculations and breakouts of each trade, network charges, maker fees, taker rebates and pricing . A private internal ledger can store all this information in real time and allow it to be verified much faster then the public blockchain can. Since only the final end result of the trade is sent to the public blockchain, TradeConnect will launch a private blockchain ledger driven on a consortium model . Private blockchains suffer from the same fate as centralized models, where there is only one signer and the data can be modified. TradeConnect will allocate signing rights to a consortium from the pool of Oracles that are providing prices on TradeConnect. Initially we expect to have several Oracles as price makers who will provide a mid price for the markets we trade in. As the network expands, we expect to create an election system for oracles to create as fair a mid price and consortium process as possible. Use Case A If there are multiple makers in each trade this will allow the taker to associate each trade confirmation, fill data, persona fees for each maker and details about the price of the match along with the oracle price for full transparency before the trade is placed on the blockchain . 20 5.5 Mid Market Price The Search for the truth In any fast-moving market such as cryptocurrencies and FX trading, there will be times when market makers will pull their bids and offers based on their perception of risk, volatility, and liquidity. This results in erratic price spikes, liquidity gaps , increases to the cost of trading and ultimately is not to the benefit of the trader. We will create a fair mid market price by allocating the mid price for each market to oracles that will set the mid that other makers will have to trade around. This is already done in financial markets as many high frequency firms create a proprietary view of the market using a similar process of oracles or, in their case, price makers . For example, let’s assume the mid price for BTC/USD is 10,891. Market makers on the network will see this price in the oracle price feed and from there they will be able to place their bids and offers for liquidity around this mid price. Prices and liquidity that are the most competitive to the mid price will be given preference to user to trade with . • Oracle Price, 10,891 • Maker A Price - Bid 10.890, Offer 10.893, 10M • Maker B Price - Bid 10,888, Offer, 10,899, 7M • Maker C Price - Bid 10,897, Offer, 11, 905, 4M For example, let’s assume the mid price for BTC/USD is 10,891. Market makers on the network will see this price in the oracle price feed and from there they will be able to place their bids and offers for liquidity around this mid price. Prices and liquidity that are the most competitive to the mid price will be given preference to user to trade with . 21 6: TradeConnect network overview 22 6.1 TradeConnect network roles 6.2 Liquidity – Achieving scale using the Connect Fee Participants in the TradeConnect network divide into two roles: ‘Subscribers’ and ‘Providers’. They can be institutional investors, traders, or individuals. When you trade using a TradeConnect contract you will pay a small percentage amount on the trade in TCO, known as the Connect Fee. This is paid when executing a trade using the network and equates to similar fees and charges payable on trading, such as commission. The Subscribers are: The Market Maker (‘Makers’) creates the terms of the contract to trade a particular financial product. The contract is signed offline via ethereum and is offered to the market. A ‘Maker’ could be any trading entity or individual. Counterparties (‘Takers’) can browse the contracts that are being offered and can accept them by signing with their private key. The trading contract is then submitted to an oracle which will sign a contract result and submit it to the smart contract. There are three kinds of Providers: The TradeConnect Contract stores the locked ThinkCoin tokens which are being traded by the parties and settles the trades made off-chain. The contract is also the guard of the rules. The size of the fee will be based on the type of trading product as a percentage of the size of the trade itself and would be included in the terms of all smart contracts on the network. A percentage of the connect fees will be distributed through the blockchain back to Market Makers. This will encourage and reward those parties that offer trades to other participants, thus encouraging ongoing liquidity in the network. Such a fee will encourage more traditional brokers to use the TradeConnect network, enabling them to earn a rebate on trades placed through the network and save on the fees and capital required to trade with prime brokers. A proportion of the Connect fee will also revert to TradeConnect to develop and build the network for all participants. Relays are the off-chain stores of trading offers created by Market Makers. Oracles deliver information and ultimately determine the contract result. In addition, the oracle submits the off-chain transaction to the smart contract. Likely oracles include trusted price providers Bloomberg, Thompson Reuters, Cbonds, Fidessa, Interactive Data, Markit, Morning Star, S&P, Six Financial and all major networks worldwide. 3. The execution fee for every operation made on ethereum 23 6.3 Smart Liquidity Matching and Artificial Intelligence (AI) The ability to source and price the underlying liquidity correctly to all participants in the network is key to increasing the matching rate, transactions and ultimately fulfilling the goals of TradeConnect. Problem In traditional trading most of the liquidity is internalized by the bank, prime broker, and the brokers. Often, individual retail traders do not receive the best price on the market. The liquidity that high-frequency firms provide by buying and selling in milliseconds may not be appropriate for a trader who simply wants to buy shares of a stock such as Apple. To match liquidity efficiently TradeConnect will create machine learning scoring models based on the latest AI concepts. Solution: Digital Personas The ThinkMarkets group combines deep experience and almost a decade’s-worth of data acquired on how tens of thousands of traders react and interface on our trading platform. This knowledge allows us to create complex scoring models that will tag each subscriber on the network with various scores. These scores will be embedded into the smart contract off-chain to allow makers and takers to match one other better. The units of this scoring will be called ‘Personas.’ 6.4 Proposed Personas Personas are algorithms that will ‘learn’ how a subscriber interacts on the network and build a roadmap so each trade is matched on the network with the right participant as quickly as possible and at the best price. As the TradeConnect network grows, personas will be become smarter and improve in real time as trading volume grows and there is a larger pool of subscriber data to build from. Trade Quality Persona This is the score that will model how a specific trade interacts with a given financial instrument over the course of the lifetime of the trade and the subscriber placing it. For example, by modelling when a given trade was opened, closed, changed for its stop loss, the level of profit and how the trade is managed by the subscriber we can measure the ‘quality’ of a trade against other participants in a pool. The score will adjust higher or lower based on the quality of the trade and will be tagged with the Trade Quality Persona. As the volume of trades on the network grows the vast quantity of data will allow the trade quality persona to serve as a reference point for makers and takers in their bidding for the trade. For example, a taker can choose to only accept trades that have a high-quality score based on the open times of the trade, and thus is willing to reduce the spread and commissions for the trade. 24 Price-matching Persona Participants in the network will want to capture trades from traders that earn them the highest yield in spread and the lowest risk. As trades are matched peer-to-peer or any of the various other matching options on the network, the price matching persona will create a score to capture the prices that a participant trades in relation to the rest of the participants in a pool. The score will adjust higher or lower depending on how close to the ‘mid-point’ or better or worse it is in relation to the rest of the network. Each trade on the network will be tagged with this Price Matching Persona and will encourage makers and takers to bid for the right to match the trade. As the network grows, this bidding process will create the best pricing scenario for each trade. 25 7: Trading on the network The TradeConnect network will enable a range of different trading scenarios with various combinations of participants. 7.1 Peer-to-peer matching This is the network’s most straightforward function: connecting two participants with equal stakes in a trade. Smart contract based on peer to peer match TRADER ER A TRADER TRA TR A ADER B T deConne TradeConnect Trade nect network n rk ma atches matches M an nd Takers Makers and Offers to buy O uy 100 ba based d on underlying unde der de erlying price ce e reach reaching chi hi 1,000 hing Offerss to Sell O ll 100 0 based b on o underlying underlyin ng price ng reaching 1,0 1,000 1,000 Oracle O racle Underlying U d l ing Underlyin g price i g ov ver 1,000 1, goes over Underlying U Underlyi d lyin ing price i s un er 1,000 stays under TRAD TRADER DER RA wins i 100 10 1 TRAD TRADER ADE ER B i s 100 1 wins 26 Use case Advantages: Mike joins the TradeConnect network. ike and John trade across the network on a • ●Mverifiable and unalterable contract He exchanges some BTC to TCO via an exchange and he is ready to trade. He holds the TCO in his own cryptocurrency wallet. • ●Their funds are always held in their control. ettlement is immediate and determined by the • ●Scontract and not a third-party broker Mike logs onto the network and can see the hundreds of products and markets that are available. Mike wants to trade on the price of the FTSE. He offers the market a long trade at $100. The network AI matches him with John who wishes to short the price of the FTSE for $100. On accepting the trade John (as Market Taker) transfers $101 of TCO to the trade smart contract recorded on the blockchain: $100 as his trade and $1 as the Connect Fee. These sums are held by the network in the smart contract pending conclusion of the trade and settlement. As the price of the FTSE falls Mike loses his $100. The smart contract is settled automatically, and Mike’s $100 is transferred to John. The Connect Fee is distributed between the Market Maker and TradeConnect, with TradeConnect’s share going towards the management and support of the network. 27 7.2 Multiple participant trading TradeConnect’s algorithms will be able to match multiple traders to fill trades of larger size or lesser liquidity. TRADER TRADE DE B DER Smart contract based on multiple peer to peer with additional liquidity Offers Off ffers to sell 25 2 based on n underlyi underlying ying g price re reachin reaching ing 200 00 The T e trades s are ae match hed; smart s matched; co are are created d contracts b between CHEN CH C and d Tr s B, C, and D Traders CH CHEN offers to buy off y 1100 0 based on underlying price und d derlying pric c ce reaching 200 rreac ac aching 00 TRADER TRAD T D DER C Offe Offers Off ffers to selll 25 2 based o underlying underlyin ing ng price on reaching ng 20 00 200 TRADER TRAD T AD ADER D Offe Offers O ers to sell ll 50 0 based on o underlying underlyin n price ng reaching ng 200 20 Oracle Ora rac acle Und derly d rlying pric rice Underlying price goe es over 200 es 0 goes Und Underlying U derlying g pric price rice sta st tays underr 200 200 stays CH CHEN HEN wins 100 w wi T TRADE DER B wins w 25, 2 TRADER TRA ADE ER C wins ns 25 and TRADER TRA RA ADER D win in nss 50 n TRADER wins 28 Use case Advantages: Chen works for a brokerage firm which is a member of the TradeConnect network. and his brokerage reduce costs by trading on • ●Cthehennetwork and receive the Connect Fee rebate for trading The brokerage wishes to hedge some of its long exposure on Barclays Plc. Rather than place a trade with a prime broker, Chen offers a trade to the TradeConnect network. He can then avoid the prime brokers fees and charges and as the Market Maker the brokerage will receive the Connect Fee rebate. are matched and priced automatically across • ●Ttherades network with multiple participants ettlement is immediate and determined by the • ●Scontract and not a third party Chen offers the market a long trade on Barclays with a size of $10,000 thus reducing their exposure. The network peer-to-peer matching algorithms match his trade with multiple Takers who wish to short the price of Barclays at the available price. On accepting the trade each of the Market Takers transfer their accepted trade size plus the Connect Fee. These sums are held by the network in a smart contract pending conclusion of the trade and settlement. As the price of Barclays increases the Market Takers lose their committed funds. The smart contract is settled automatically, and Chen’s brokerage is paid out. The Connect Fee is distributed between the Market Maker and TradeConnect, with TradeConnect’s share going towards the management and support of the network. 29 7.3 Friends’ network matching Participants can offer and accept trades directly with their personal network creating a more personal use case. ABDUL ABD DUL Offers fr friends frie riends $ $1200 00 0 CFD o n EUR/USD D on Frie Friend iend A comm co commits mmits $400 plus uss $4 connect ct fee fe US USD SD converted converte c ed to TCO; P Platfo tform Platform connects Ab co Abdul A with h friends & creates c s smart t contr c tracts contracts Frien Friend end B comm c commits mits $ plu lus $4 lus $ $400 plus fe f connectt fee Frien Friend nd C commi commits mits $ plu $4 $ $400 plus connectt fe fee Oracle Orac ac cle price EUR pric pr ce increases, ses Ab bd wins bdul Abdul EU price falls, EUR fall A lose es Abdul loses Abdul Abdu ul rec u receives ceivess TCO T O $12 120 12 00 - £400 0 each ea worth $1200 Frie en A, B and ends an nd C from Friends Frie Friends iendss A, B and an C win TCO Ow worth $400 00 0 each f from Abdu dul ul Abdul 30 Use Case Advantages: Abdul and his friends join the TradeConnect network. can trade directly with his friends or with • ●Athebdulwider network as he chooses They each transfer some USD to TCO via an exchange and are ready to trade. Although Abdul can trade with the whole network, he wants to have a trade just with his friends. Abdul as Market Maker offers his friends a Forex trade on EUR/ USD. • ●Abdul and friends get to set the terms of the contract he contract is verifiable on the network and • ●Tautomatically settles Abdul or friends have to pay their money • ●Ntoeither a third party to hold and settle He offers a trade size of $1,200 to go long on EUR. Three of his friends are willing to accept his offer. The network matches the trades with each committing $400 to the trade plus the Connect Fee of $4. These sums are held by the network in a smart contract pending conclusion of the trade and settlement. The Euro increases in price against the USD. Abdul wins $400 from each of his friends (at $10 per point). The TCO is transferred directly and automatically by the smart contract on settlement. The Connect Fee is distributed between the Market Maker and TradeConnect, with TradeConnect’s share going towards the management and support of the network. 31 7.4 Principal trading TradeConnect, ThinkMarkets or other brokers and counterparties can participate to provide liquidity to the network. At the network’s inception we anticipate that liquidity will need to be provided through principal trading but, as the number of participants increase, we will see more trades being matched between trading parties directly. Smart contract based on TSL counterparty JOHN N O Offers s tto sell ll 50 based ba ased und d rlying price derly ce on underlying reaching reach h hing hi 1,000 1 000 MIKE MIK M IKE IK TradeConnect Trad T adeConne nectt n networ ork ma atches s network matches Makers a and nd Takers Offe Offers ffers to buy 10 ffe 100 bas based ased on n underlying un g price pr re rreaching e 11,000 1,00 00 0 00 LIQUIDITY LIQ QU U UIDITY PROVIDER PRO ROV OVIDER O Offers tto sell ell 50 bas based ased on underlying unde derlying price derl ce reach chin hi 1,000 h hing reaching Oracle e Underlying U Underlyin ng g price go over ov 1,000 1,0 goes Underlying Underl rlyi ying price e unde der 1,00 00 stayss under 1,000 MIK MIKE KE E 10 00 winss 100 JOHN HN N wins w 50 LIQ QU UIDITY LIQUIDITY PROVI VIDER R winss 50 5 PROVIDER 32 8: Security and Oracles 8.1 Race conditions 8.2 Security Off-chain transactions introduce additional challenges. For instance, multiple users accepting the same offer could cause issues if users had to wait until on-chain verification for confirmation of a trade’s execution. System security relies on Trading contracts and Oracles. This can be mitigated by: racles in cooperation with relays can reject • ●osigning contracts they have already signed on making or taking offers over • restrictions the locked balance Trading contracts will be created using the best industry standards: open-source, recorded on the blockchain, audited by two external security auditors, and formally verified. Oracles will be trusted third parties. All transactions will be visible on the blockchain and therefore easy to audit. 33 9: Introducing ThinkCoin ThinkCoin tokens will power the trading environment as the unit of all trades on the TradeConnect network. Whether you trade Forex (FX), commodities, shares or other financial products, ThinkCoin will let you do it and in a simple, secure and user-friendly way. You can acquire TCO through our ICO or, once the ICO is finished, by exchanging fiat currency and other cryptocurrencies via numerous exchanges. 9.1 Our Initial Coin Offering During the initial coin offering (ICO), TradeConnect will issue virtual currency tokens called ThinkCoins (TCO). There are many reasons why we have chosen to carry out an do initial coin offering (ICO). First, an initial coin offering not only allows us to onboard participants from different regions, but also to incentivise them to promote the TradeConnect network via affiliate commissions. Second, tokens provide liquidity since they can be traded on various networks after the ICO. In addition, Participants will have the option of buying and selling their tokens on many exchanges around the world. Finally, and most importantly, we want to democratise trading: TCO tokens will be used to trade a vast array of financial products and we want as many people as we can to join the network on launch. Note Any purchase of TCO is governed by our Terms and Conditions, the latest version of which can be found at It is imperative that you read the Terms and Conditions before purchasing TCO. If you do not agree to or understand all or any part of the Terms and Conditions, you should not buy TCO. 34 9.2 Token Allocation 9.3 Pre-ICO and ICO TradeConnect will issue the tokens in two stages: Our Pre-ICO will have two pricing stages: to enable early development • AandPre-ICO engage participants • 3rd April - 9th April: $0.21 USD • 10th April - 16th April: $0.25 USD ICO itself to enable the systems and • The structures to be built In addition to these stages of token issue, 1% will be retained to be used as bounties during the pre-ICO and ICO; 15% will be allocated to management, employees and advisors to reward and incentivise; and the final 24% will be retained for future use, such as a building liquidity pools for significant participants. The token allocation will break down as follows: The total number of tokens issued will be limited to 500,000,000. A total of 60% of available tokens will be issued (up to 300,000,000 TCO) during the offer period. In case not all 60% of TCO tokens available at the PreICO and ICO stages are sold, the remainder will be burnt in order to maintain the distribution as specified above. 1% 1% During the ICO - 17th April to 30th April – TCO tokens will be 0.30 USD each. 15% 9.4 The Hard Cap 5% 24% % 60% The Hard Cap for the Pre-Sale, Pre-ICO and ICO will be $30,000,000 USD. 9.5 Bounty Pre-ICO & ICO participants Retained TradeConnect may offer additional token bonuses or discounts to Pre-ICO and ICO participants. These may include bonuses for significant investments or for support online and on social media. Details can be found on at The Team Bounties 35 9.6 Fundraising Target and soft cap We anticipate the ICO to be a huge success and raise a much larger sum than our minimum raise, or soft cap. To develop the initial version of the TradeConnect network we are targeting a soft cap of $5,000,000 USD through the Pre ICO and ICO. If we are unable to raise this sum, the funds committed by participants will be returned. A more significant raise will enable us to develop the network further, increasing its capacity and speed, with more products and participants. Details of our anticipated spend and the development road map can be found below. 9.7 Timeline The preliminary timeline is: • Pre-Sale launch: 5th March 2018 • Pre-ICO launch: 3rd April - 16th April 2018 • ●ICO: 17th April - 30th April 2018 36 10: Fund allocation We anticipate spending the money raised as follows: 10% 0% % 3% % 12% % 45% % 30% 0% New Use User ser er Acquisit Acquisition sitio ion and Ma Marketing Mar arketing TradeConnect TradeConnec Trade ectt Development ec Develop D opm ment Operations Opera Op erations era Licensing Licensin ng n g Additions Addition ons ns & Changes Chang nge ges Legal, Audit L l, Audi dit & Advisory di Ad Adviso ory 37 11: Project roadmap Following a successful ICO and with July 2018 available funds, we anticipate the following UI Submitted for TradeConnect wallet • Beta and trading platform development timeframe: Phase One April 2018 • ICO closes and development begins to modify ThinkMarkets backend for blockchain use work begins on TradeConnect • Development Personas and Liquidity algorithms. work begins on on/off-chain • Development settlement process for maker and takers protocol and smart contract details for • TradeConnect FX and CFD trades finalized license upgrades submitted globally • TradeConnect for exchange Trading license additions submitted for Japan, US, • Global Singapore and South Africa May 2018 • Launch of the TradeConnect Wallet Alpha UI submitted for TradeConnect • Working wallet and trading platform begins for liquidity providers and • Integration early adopters • ThinkCoin (TCO) listed on Exchanges network goes live in Alpha to • TradeConnect select testers for pricing only • TradeConnect network API finalized August 2018 UI submitted for TradeConnect wallet • Beta and trading platform • TradeConnect network goes live in Beta October 2018 and CFD trading on the ThinkConnect • FX network begins • ThinkCoin used as official currency for TradeConnect network open to integration • TradeConnect for institutional liquidity Connect fee distribution starts on • Daily TradeConnect November 2018 joins Trade Connect network and • ThinkMarkets begins process of integrating its user base as participants on the network December 2018 approval of TradeConnect exchange • Target trading licenses for NYSE, NASDAQ and CME 38 Phase Two Exchange Trading Integration January 2019 begins offering trading in equities, • TradeConnect commodities, futures and more. Customer can now buy stock in companies using ThinkCoin (TCO) smart contract on the network opens trading for the institutional • TradeConnect sector for hedge funds, prime brokers, asset managers and corporations March 2019 allows trading in equities for investors • TradeConnect in Japan, Singapore, Europe, and Australia. July 2019 • TradeConnect IPO 39 Future developments 12: 12.1 Introducing wallets There are many opportunities to explore partnerships with other companies to add both hot and cold cryptocurrency wallets to our offering: these are storage solutions, where cryptocurrencies can be safely ‘stored’ on devices with or without access to the internet. Before this stage, we will explore soft wallets: applications, rather than hardware, that will act as our users’ primary portal into the crypt world. 12.2 Trading with StableCoins We have described trading with Ether or ERC20 tokens. Financial institutions, such as ThinkMarkets, can hold clients’ money on trust for them. It will therefore be possible in the future for TradeConnect to introduce StableCoins - tokens either with the characteristics of fiat currencies, or pegged to them. 12.3 Improving Scalability State channels, shards, and plasma chains Offline transactions are just the beginning of the technological evolution of the TradeConnect network. Further steps, including state channels, shards and plasma chains will enable better scalability, with multiple transactions being settled with one transaction on the blockchain. Ultimately the whole network could run on a separate plasma chain. We believe that within three years these systems will be sufficiently mature to handle institutional participants and high-frequency trading. These could be minted and in consideration for fiat currency and used for trading. We would then expect the further reduction of the barriers to entry for new users as the interface would likely differ little from what customers currently use to when they trade derivatives by conventional means. 40 13: The team 13.1 The TradeConnect Team Nauman Anees Chief Executive Officer & Co-Founder Michael Herron A serial fintech entrepreneur with over 10 years of experience in the fintech sector, Nauman is the CEO and Co-Founder of ThinkMarkets, a global brokerage headquartered in the UK and Australia that is established as an industry leader in identifying and developing innovative trading technologies. With a strong background in computer science, he has extensive knowledge in designing and building complex trading systems and applications . He is highly strategic and drives the global teams across all the office to execute the company’s goals. Strategic Advisor Faizan Anees Director and Co-Founder Faizan co-founded ThinkMarkets in New Zealand in 2010, and since then business has gone from strength to strength, winning multiple awards and with offices across the US, the UK, Australia, China and Dubai. He is a serial entrepreneur and has over 12 years of experience in sales and business development. Over the last ten years he has been involved in several acquisitions and exits in his investment portfolio. Rodolfo Festa Bianchet CEO & Co-Founder of TradeInterceptor Rodolfo has worked in financial services for almost thirty years. He has founded several companies based around analysis, research and financial information technology. He is the founder and managing director of TradeInterceptor, a mobile trading app that became the undisputed market leader. A corporate and financial services lawyer of more than a decade’s standing, Michael brings a deep understanding of financial services, the technology that drives innovation in the space, and the regulatory framework. Michael has worked as General Counsel and Head of Compliance for several international financial services companies and has acted as advisor to several technology start ups. Adil Siddiqui Director of Operations Adil brings more than 15 years of experience in trading solutions, risk management and FX, gained both in the City of London and Wall Street. He specialise in quantitative trading solutions, risk management and treasury products as well as financial journalism, and provides bespoke consultancy in matters relating to regulations with FSA, CYSEC & ASIC. Naeem Aslam Chief Market Analyst, ThinkMarkets A former hedge fund trader at Bank Of New York and portfolio manager at ITC with more than a decade’s trading experience, Naeem is a regular guest on Bloomberg, CNN and other major outlets, and maintains a column for Forbes. He has lectured at the LSE, Warwick University and the University of Leeds, and regularly deliver keynote addresses at events and conferences around the world. 41 Harshad Kale Caroline Olsen Director of Finance Marketing & Social Media Manager, TradeConnect Harshad is a result-driven and growth-oriented finance professional with proven abilities in strategic planning, improving efficiency of operations, controlling finance functions and management. He arrived at ThinkMarkets with experience at the National Australia Bank, CHS Group and Rockwell Olivier. Caroline is a social media expert with years of experience in driving digital engagement and creating broad brand awareness with exciting and fresh content strategies. Andrew Lowry Alla Polyanskaya PR & Content Manager Audit & Compliance Manager With more than a decade’s experience as a journalist, copywriter and editorial strategist, Andrew has delivered compelling content for a range of blue-chip clients. His writing career has taken him everywhere from North Korea to the Texas panhandle to Trump Tower in New York. With a background in oil and gas and finance, Alla brings a combination of technical engineering and strategic business development skills to the company. Having been with the company since its inception, Alla also brings years of experience in relationship management, financial engineering, regulatory compliance, and world-wide industry knowledge. While managing the Australian Financial Services Licence, she also oversees compliance matters for Asia Pacific, and managed the securing of ThinkMarket’s license from the UK’s Financial Conduct Authority. Jai Bifulco Marketing Manager, ThinkMarkets Across 12 years experience in marketing, sales and business development in the fintech, investment and technology space, Jai has worked in all corners of the globe with startups and established corporations alike. He prides himself on a fresh, creative approach backed by solid management and a skillset developed across a diverse range of companies and sectors Imane Benhima Digital Marketing Manager An expert in performance marketing, Imane has worked across finance, education and advertising. She combines a forensic idea for detail with a breadth of knowledge on paid digital acquisition channels. Fluent in English, Arabic, French and Spanish, she has designed, executed and optimised large-budget campaigns across the globe. Keith Goldson Marketing Advisor Keith has supported a range of companies with business development, digital and commercial strategies, with a special focus on the equities, commodities, forex and cryptocurrency sectors. Prior to this, Keith was a Chief Operating Officer for six years in the comparison sites industry, and gained experience in the advertising industry with M&C Saatchi. 42 13.2 Strategic Advisors John Farrell FX and CFD Product Advisor, Etana Custody Marek Kirejczyk Blockchain Developer & Advisor, A blockchain engineer and consultant, Marek cofounded blockchain focused software house EthWorks and currently harnesses blockchain technology to create transparent supply chains as lead developer at Ambrosus. An Ethereum evangelist, Marek is also the founder of founder of Ethereum Meetup Poland and author of ethereum.rb library. Sena Gbeckor-Kove BlockChain Security Advisor Sena is a highly experienced technologist who has specialised in taking innovations from the drawing board to users’ hands and ensuring their needs are met. ananse, his current startup, delivers end-to-end encryption to clients in fintech, communications and IOT verticals. He leads the mobile wallet team at HTMLCOIN, a fork of QTum, advises several AI and blockchain startups, and provides tech oversight at a crypto and blockchain incubator. Paul Hill Non-executive Director, ThinkMarkets With a successful background in leading equities and derivatives organisations both in the UK and Australia, Paul is now a strategic consultant within the financial services space, and since 2012 has consulted for a range of fintech operations as they have expanded into new marketplaces. John brings a wealth of experience in the FX space across sales, product development and management. He has been a strong and passionate advocate for the financial service industry’s embrace of the blockchain, and has an extensive record in advising startups on infrastructure scaling and channel development. Cal Evans Legal Advisor, CEO Gresham International In 2016, Cal left a top California law firm to start Gresham International, a legal services and compliance firm which now specializes in Cryptocurrencies. He has provided compliance services to numerous ICOs and has worked with some of the largest crypto-mining operations, fund managements, and investment groups. Cal is also a Board Member of the British Blockchain Association and regularly writes thought leadership pieces for the media. He has worked with more than 40 ICOs and assisted in the raising of more then $200 million. Dr. Christina Czeschik Blockchain Developer & Advisor, Serapion Originally a trained doctor and health IT specialist, Christina is an expert in information security and usability, with special regard to their application in blockchain technology. She has authored numerous articles and two books on blockchain topics and serves as our link to the vibrant German-speaking blockchain community. 43 Ashley Aberneithy 13.3 Technology Team CEO, Ashley Aberneithy is CEO of, a disruptive business aimed at optimising the hedging strategies of financial firms by exploring common heuristics and behavioural traits which exist amongst financial market traders. After studying Computer Science at UCL he worked in the investment banking space, and then was a Director at Star Financial Systems. He now splits his time between running and supervising PhD students in the area of risk decision psychology. Ben Swann Director, Ben has worked in the financial derivative industry for fifteen years, building software solutions for several of biggest companies in the retail finance sector. Ben is the CTO and founder of Star Financial Systems providing low latency trade processing services to the retail finance industry and a Director of Analytic AI providing algorithmic risk management solutions. Yakub Rahimov CEO, 7marketz Yagub is serial entrepreneur operating in the fintech ecosystem. Investing since the age of 16, Yagub is an award-winning trader and has been a successful investor in cryptos and bitcoin investor since 2009. He has a vision that machine learning combined with the blockchain technology will define the future of finance. Atanas Tashev Head of Mobile Team An iOS and C# frontend developer for both mobile and desktop, Atanas has worked for than ten years at Riflexo, where he has aided in the developing of custom trading applications for banks, brokerage companies and financial information providers. These have including charting front-ends, mobile apps, desktop trading applications, technical analysis indicators, market analytical tools, financial websites and investment publications Hristo Katsarski Java Developer A developer and engineer with more than twenty years’ experience, Hristo is also technical director of Riflexo, a software development company that specialises in realtime financial applications. Riflexo’s institutional clients include top-tier US banks, and the company serves a community of over 450,000 individual traders worldwide. Martin Benkov, Development Manager With over a decade experience in software development, Martin has spent the past six years architecting trading platforms and managing development teams. He has built TradeInterceptor’s first in-house engineering department and taken ownership of development operations. 44 Panayot Stoyanov Alexandra Laleva Head of UX & Design TradeConnect Product Manager Panayot Stoyanov is a passionate and versatile product designer focused on solving complex problems in the financial services industry. He successfully integrates the latest user experience trends with a strong minimalist visual language and pixel-perfect design. His natural flair to perfection helps him develop complete user journey flows and create end-to-end working prototypes. As a proven professional, Panayot, accurately manages to develop wireframes, flowcharts and design specifications creating the relevant documentation for the development team. Alexandra has more than five years of experience in the financial and fintech industries for global forex and tech companies. She is responsible for product planning, including gathering and prioritizing requirements, and managing communication between multiple stakeholders. She works closely with cross-functional teams to ensure that they understand their roles and have the tools they need to execute the strategy to demanding deadlines. Aldin Music IT Engineering Manager With over 15 years of experience designing and implementing cutting-edge networks, Aldin leads technical innovation in the company. He has certifications ranging from Cisco Certified Network Associate (CCNA) and Microsoft Certified IT Professional (MCITP), and is skilled at identifying emerging threats, addressing security vulnerabilities, and designing layered security policies. Strahil Shorgov Senior Software Developer Atanaska Ilieva Web & Digital Designer Atanaska Ilieva is a web designer with more than six years’ professional experience. She has been actively involved in website creation, with main focus on brand recognition. She proactively conducts research to identify opportunities for improving companies’ web presence. Partnering with UI designers and web developers, eliminating misleading labels and unnecessary clicks she manages to translate navigation and process flows into beautiful and easy-to-use solutions. Atanaska also has experience in delivering various marketing creatives: landing pages, banners, social media assets and communication email templates. Strahil joined Riflexo as a software developer and worked on both in-house proprietary projects and contractor projects for financial institutions. For eight years he’s built been building mobile, desktop and web solutions with various technologies using mainly java (on Android) and C# (on Windows). He deploys data analysis and performance algorithms, implementing complex charting solutions and analytical tools and indicators. 45 Corporate structure and governance 14: 14.1 TradeConnect Limited 14.3 Governance This White Paper, the offer of ThinkCoin tokens together with the website and other materials such as the Terms are brought to you by TradeConnect Limited. TradeConnect Limited is incorporated in Bermuda. The TradeConnect team and advisors have the expertise to take advantage of the opportunities that are arising from the revolution in cryptocurrencies and blockchain ledger technology. As a member of ThinkMarkets, TradeConnect is uniquely placed to take advantage of the existing network, access to clients, marketing and trading infrastructure of the wider group. To enable the effective governance and management of TradeConnect, the company has adopted a Corporate Governance Framework. The sponsors of the Framework are the shareholders, directors and senior managers. They are collectively responsible for the implementation and effective operation of the framework and through that the successful implementation of the TradeConnect project. 14.2 The ThinkMarkets Group TradeConnect Limited is a member of the ThinkMarkets group of companies which have offices in London, Melbourne, Shanghai, Shenzhen, Sofia and Dubai. The Group provides financial services products, specifically derivative trading, to thousands of customers around the World. As a financial services company, ThinkMarkets is authorised and regulated in the UK and Australia and meets the stringent rules and requirements of the countries in which it operates. ThinkMarkets also offers customers trading opportunities of a wide range of cryptocurrencies. The primary benefits arising from the establishment and operation of this framework are: • ●Enhanced Value • ●Effective Performance • ●Strong Control TradeConnect Limited is a separate legal entity and is the offeror of TCO through the pre-ICO and ICO. TradeConnect is the owner and author of this white paper and will be responsible for the development of the TradeConnect network. Neither TF Global Markets (UK) Limited nor TF Global Markets (Aust) Pty Limited are offering TCO as part of this ICO. More information on ThinkMarkets can be found at: 46 Committee/Group Members and Roles Functions Executive Committee Nauman Anees (CEO) The Executive Committee has overall responsibility to implement the TradeConnect Protocol and achieve success for the company and ThinkCoin participants. Faizan Anees (Commercial Director) Harshad Kale (Finance Director) Michael Herron (Strategic Advisor) Rodolfo Bianchi (Market Strategist) Adil Siddiqui (Compliance Director) Advisory Committee Marek Kirejczyk Sena Gbeckor-Kove John Farrell Cal Evans Dr Christina Czeschik Audit Committee Harshad Kale Alla Polyanskaya Technical Working Group Rodolfo Festa Nauman Anees Hristo Katasaki Chris Purtill James Sorenson The Advisory Committee functions to advise the directors and members of the executive committee as to the strategy, function, and direction of the company. The members of the Committee bring diverse experience across a number of fields that TradeConnect can draw upon to implement the TradeConnect network and achieve growth. The role of the Audit Committee is to ensure that formal and transparent arrangements are in place for the consideration, monitoring and oversight of Internal Control & Risk Management Systems, Financial Reporting, Internal Audit and External Audit. The Technical Working Group is made up of the developers, scientists, engineers and market professionals who can develop and create the TradeConnect network, front end, trading contracts, APIs etc to bring the vision into reality. Martin Benkov Marek Kirejczyk Sena Gbeckor-Kove 47 15: Legal disclaimers and notices The ThinkCoin token (TCO) is not intended to constitute a security in any jurisdiction. This White Paper is not a solicitation for investment and does not pertain in any way to an offering or securities in any jurisdiction. The ThinkCoin token is a utility token. This product is not a digital currency, security, commodity, or any other kind of financial instrument and has not been registered under the securities laws any country, including the securities laws of any jurisdiction in which a potential token holder is a resident. Ownership of the Token does not entitle the owner to any rights with respect to TradeConnect or the ThinkMarkets Group, such as distributions or voting rights. ThinkCoins cannot be used for any purposes other than as provided in the White Paper, including but not limited to, any investment, speculative or other financial purposes. ThinkCoins confer no other rights in any form, including but not limited to any ownership, distribution (including but not limited to profit), redemption, liquidation, proprietary (including all forms of intellectual property), or other financial or legal rights, other than those specifically described in the White Paper. You should carefully consider the risks, costs, and any other issues of acquiring the TCO, and, if necessary, obtain your own independent advice in this regard. If you are not in the position to accept or understand the risks associated with the sale of the TCO (including the risks related to the non-development of the TradeConnect platform or any other risks as indicated in this White Paper, you should not acquire TCO until you have received the necessary independent advice. The purchase of TCO in no way guarantees any kind of return or increase in value. No persons involved in TradeConnect Limited are acting in their capacity as directors, employees or regulated persons in either TF Global Markets (UK) Limited or TF Global Markets (Aust) Pty Ltd. Certain statements, estimates and financial information contained in this White Paper constitute forwardlooking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties, which may cause actual events or results to differ materially from the estimates or the results implied or expressed in such forward-looking statements. Purchase of the TCO is final and non-refundable. Individuals, businesses, and other organisations should carefully weigh the risks, costs and benefits of acquiring the TCO before participating in the ICO. You are not eligible and you shall not purchase the TCO through the ICO (or Pre ICO) if you are a citizen or resident (tax or otherwise) of any country, state, or territory where the purchase of the TCO or similar crypto tokens may be prohibited. By purchasing the TCO, you represent and warrant that you are legally permitted to purchase the TCO and assume the responsibility for complying with your applicable laws and regulations. This ICO is not being targeted or directed at potential participants that are resident in either the United States of America, the People’s Republic of China or the Republic of Korea and TradeConnect reserves the right to reject purchases from any potential token holder for any reason. This document does not require any registration with or approval from any regulatory authority in any jurisdiction. 48 16: Risks Prior to purchasing TCO, you should carefully consider the risks listed below and, to the extent necessary, consult a lawyer, accountant, and/or tax professional prior to determining whether to purchase TCO. By purchasing, holding and using TCO, you expressly acknowledge and assume the following risks: 1. Security Hackers or other malicious groups or organisations may attempt to interfere with TradeConnect or TCO in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing, which may result in loss or corruption of TCO. 2. Fundraising The Pre-ICO and ICO may not reach the target sale amount and so the Company may not have the sufficient funds to execute on its business plan. There is no guarantee the Company will be able to execute its business plan. If the Company is successful in implementing its business plan, you will not benefit or participate in the Company’s growth by virtue of your ownership of the TCO. 3. Token Value Digital currencies are extremely volatile and TCO token may suffer from said volatility. TradeConnect does not guarantee any specific value of the TCO token over any period of time. The TCO token may be significantly influenced by digital currency market trends and TCO value may be severely depreciated due to non-TCO related events in the digital currency markets. 4. Loss of Private Key(s), Custodial Error or Purchaser Error A private key, or a combination of private keys, is necessary to control and dispose of TCO stored in your digital wallet or vault. Accordingly, loss of requisite private key(s) associated with your digital wallet or vault storing TCO will result in loss of such TCO. Moreover, any third party that gains access to such private key(s), including by gaining access to login credentials of a digital wallet or vault service you use, may be able to misappropriate your TCO. Any errors or malfunctions caused by or otherwise related to the digital wallet or vault you choose to receive and store TCO, including your own failure to properly maintain or use such digital wallet or vault, may also result in the loss of your TCO. 5. Ethereum Because TCO and TradeConnect Services are based on the Ethereum protocol, any malfunction, breakdown or abandonment of the Ethereum blockchain may have a material adverse effect on TradeConnect or TCO (including the value of TCO or the ability to use it to access the Services). 6. Regulation The regulatory status of TCO and blockchain technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether regulatory agencies may apply existing regulation with respect to such technology and its applications. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement changes to law and regulation affecting TradeConnect and TCO. Changes in laws or regulatory status or actions by governmental authorities could negatively impact TradeConnect and TCO in various ways. This could result in substantial modifications to the proposed implementation of the TradeConnect project and TCO utility or may even cause the Company to cease operations in a jurisdiction or at all. 49 7. Tax Purchasing TCO may result in adverse tax consequences to you, including the imposition of withholding taxes, income taxes and tax reporting requirements. You should seek tax advice from your own tax counsel in connection with purchasing TCO. 8. Competition It is possible that alternative platforms and solutions could be established that utilise the same or similar protocols underlying TradeConnect and attempt to facilitate services that are materially similar to the Services. Such competition could negatively impact TradeConnect and TCO, including TCO’s utility for obtaining Services. 9. Demand It is possible that TradeConnect will not be used by a large number of individuals, companies and other entities. Such a lack of use or interest could negatively impact the development of TradeConnect and the potential utility of TCO, including its utility for obtaining Services. 10. Development TradeConnect is yet to be developed and may undergo significant changes over time. Although we intend for TCO and TradeConnect to follow the specifications set forth in Schedule 1 and the White Paper, and will take commercially reasonable steps toward those ends, we may have to make changes to the specifications of TCO or TradeConnect for any number of legitimate reasons. This could create the risk that TCO or TradeConnect, as further developed and maintained, may not meet your expectations at the time of purchasing TCO. Furthermore, despite our good faith efforts to develop and maintain TradeConnect, it is still possible that TradeConnect will experience malfunctions or otherwise fail to be adequately developed or maintained, which may negatively impact TradeConnect and the potential utility of TCO, including its utility for obtaining Services. It is possible that, due to any number of reasons, including without limitation, the failure of the business relationships, or competing intellectual property claims, TradeConnect may no longer be a viable business and may dissolve, or TCO may fail to launch. 11. Governance Because TCO confer no governance rights of any kind with respect to TradeConnect or Company, all decisions involving TradeConnect or Company will be made by Company at its sole discretion, including, but not limited to, decisions to discontinue TradeConnect, to sell more TCO for use in TradeConnect, or to sell or liquidate the Company. These decisions could adversely affect TradeConnect and the utility of TCO that you hold, including TCO’s utility for obtaining Services. 12. Links We have no control over your participation, correspondence, or business dealings with any third party found on or accessed through the Services, including without limitation with respect to any payment for or delivery of related goods or services, and any other terms, conditions, warranties, or representations associated with such dealings, are solely between you and such third party. 13. Unanticipated Risks Cryptographic tokens such as TCO are a new and untested technology. In addition to the risks included in this Schedule 3, there are other risks associated with your purchase, holding and use of TCO, including those that the Company cannot anticipate. 50






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