Bulls. Hedge. Fund WHITE PAPER. Version

Transcription

1 Bulls Hedge Fund WHITE PAPER Version

2 Table of Content Overview of cryptocurrency Current status of cryptocurrency investment Agenda of cryptocurrency Utility of hedge fund Traditional investment market and cryptocurrency market What is Bulls Hedge Fund Role of issue token Bulls fund token (BULLS) Bulls Investment token (BULLIN) Token spec Investment strategy ecosystem Investment flow to Bulls Hedge Fund Buy back flow from Bulls Hedge Fund Assets management and website About Bulls Investment Platform Leadership, Team Road map Risks

3 Overview of cryptocurrency Blockchain technology is still in the process. It originated in the paper Bitcoin: A Peer-to-Peer Electronic Cash System invented by Satoshi Nakamoto and it continue to evolve even now. The simple data(like Bitcoin, Litecoin) stated in the blockchain has value. The legal tender which we have dealt with over the years, has three main functions. Measure of value, Store of value, Tradable value. Value has been born in the cryptocurrency and now it has a function as legal tender. It is a merit of blockchain technology that mere data has value. Moreover, by using Peer-to-Peer technology, by managing the ledger in a distributed manner, high safety is realized. Since ancient times human beings have been recording on stone to leave information in posterity, in modern times we have succeeded in balancing safety of high alteration resistance by describing data in block chains. In addition, various technologies derived from blockchain technology accelerated further due to the emergence of a blockchain with Ethereum Smart Contract. People issue various tokens in the form of ICO(Initial Coin Offering), creating cryptocurrency with dapps development and new functions. As of July 2018 the number of cryptocurrency is 1624 *1 *1 Reference data:

4 Current status of cryptocurrency investment Currently the investment market status of cryptocurrency has been declining since Bitcoin price reached $20,780 on December 17, You might feel that this Phenomenon is similar to dot com bubble. But in fact, Google, Amazon, and ebey have been surviving 15 years later and in 2015 they are increasing their market value more than at the time of dot com bubble. Monthly transactions of Bitcoin in the current cryptocurrency market are as high as $ 120billion.

5 Agenda of cryptocurrency Current issues about cryptocurrency are as follows. Hacking risk, loss and security. High Volatility. Huge number of cryptocurrencies and tokens. Technical response such as hard fork and airdrop. Hacking risk, loss and security. There are 3 kinds of hacking risks. Risk of Exchange being hacked Risk of cryptocurrency being hacked Risk of your wallet being hacked Unfortunately, these risks can not be completely wiped away. As a solution, you can avoid the hacking risk by storing the variance of the cryptocurrency exchanges you handle, a certain cryptocurrency in a secure wallet called cold wallet. Hacking of the cryptocurrency itself also revealed in Specifically, Monacoin (MONA), Verge (XVG), Bitcoin Gold (BTG) has been vulnerable to the vulnerability of Proof of Work and are suffering from hacking. Although Hacking risk of cryptocurrency itself canʼt be zero, it is possible to avoid some degree by scrutinizing the security for each cryptocurrency and diversifying investment.

6 High volatility Cryptocurrency market has higher volatility compared to other investment market. Ctyprocurrency rate is ten times more volatile than the legal tender. In the cryptocurrency, you can see that up and down movement of 10% in one day on a daily basis. How would such fluctuations occur in the USD versus the JPY? If the USD 100yen becomes 90yen in one day, the market will not be able to avoid confusion. In fact, in the USD, the maximum value of the difference between the high and low of the day from 2 April 2007 to 9 July 2018 was 7.93yen. The maximum volatility remains at 7.75%. *2 Likewise, the maximum difference of Bitcoin price movements from 13 April 2013 to 9 July 2018 is $4110, the maximum rate of change is 60% *3 This is an example of how you can read the high volatility it has. Cryptocurrency market is available 24/7. And also has high volatility. From this point, it can be said that cryptocurrency is more dangerous for investment beginners. *2 Reference data: *3 Reference data:

7 Huge number of cryptocurrency and tokens As of 2018 the number of cryptocurrencies exceeds Also, 5 major cryptocurrency is as follows Bitcoin(BTC) Ethereum(ETH) Ripple(XRP) Bitcoin Cash(BCH) EOS(EOS) The functions and features are greatly different. In order to understand the functions and features of each cryptocurrencies, consider future potential, grasp the vulnerability of each. If you try to invest cryptocurrency market, you have to understand not only market trends but also knowledge of programmatic. This is a time-consuming and labor-intensive work, and it will be persistent work. In addition to the five listed above, there are many cryptocurrencies that can be invested. Technical response such as hard fork and airdrop Most of cryptocurrency have a possible hard fork. In 1 August 2017 Bitcoin had made first hard fork and later Bitcoin Cash had been born. In wallet and exchanges, it was supposed to distribute the same amount of Bitcoin Cash as the Bitcoin it owns, but in fact itʼs not distributed some of cases. Current Bitcoin Cash is equivalent to approximately 0.11BTC when converted to Bitcoin. Therefore, if you can not respond to a hard fork it will be a loss of opportunity. In addition, there are cases where special processing is required to deal with these hard forks. There are also cryptocurrency that periodically airdrop(free distribution of cryptocurrency) as typified by NEO. It is necessary to deal with such cases as well. Of course, you will lose opportunity if you do not comply.

8 Usage of hedge fund From the environment and agenda surrounding the cryptocurrency, you can see that it is extremely difficult to invest in cryptocurrency on an individual basis. In order to maximize profits. We need the corresponding effort and knowledge. Based on the above, we propose a hedge fund specializing in cryptocurrency. Hedge funds often have the best result among all investment methods. This is to make absolute profit pursuit type operation. Even if the market is suitable for the downward trend, hedge funds can earn profits by short(short selling) etc. Since it is not a market-following type like index funds and active funds, we will operate to generate revenue at any occasion. However, many hedge funds have problems with disclosure.

9 Traditional investment market and cryptocurrency market Letʼs compare the traditional investment market with the cryptocurrency market. At first, S&P 500 and gold market, there are clear that cryptocurrency market has no correlation. BTC: SPX has correlation coefficient of *4 in past 365days. BTC: GOLD is 0.01 *4 Looking at these correlations from a diversified investment perspective, cryptocurrency is a very attractive investment target for investors investing in traditional stock investment and futures market. *4 reference data:

10 What is Bulls Hedge Fund Bulls Fund is a hedge fund that invests in absolute profit pursuit type. In this case the revenue is compared to Bitcoin(BTC), Ethereum(ETH), and legal tender. The revenue here refers to revenue generation as compared to Bitcoin(BTC), Ethereum(ETH) which are responsible for the base currency of cryptocurrency as of 2018 and legal tender. Bulls Fund focuses on only cryptocurrency as cryptocurrency fund. Bulls Fund aims to maximize revenue to the extent that the risk level can be controlled based on financial engineering. Also, you usually need to invest in a hedge fund with a legal currency, but Bulls Fund can only invest in Bitcoin(BTC) or Ethereum(ETH). Also, as an advantage of tokenized fund, investment result into blockchain. so it is impossible to change the investment result because of blockchain. Thus, transparency can be guaranteed. And it is possible to periodically obtain the Bulls Fund's status by Smart Contract, which also leads to reduction of administrative man-hours by automation. You will be able to obtain revenue information of Bulls Fund on a regular basis. This will eliminate the issue of disclosure by existing hedge funds.

11 Roles and structure of tokens Bulls Fund issue two tokens. Bulls Fund token(bulls) Title Contents Token Name Bulls Fund Token Symbol BULLS Platform Ethereum (ERC-20) Total Supply 5,000 ICO Price 1BULLS = 1BTC 1BULLS = 16ETH *ETH/BTC = This is a token distributed when investing to Bulls Fund. Bulls Fund Token will be handled when buying back funds, including investment revenue from Bulls Fund. This ICO will issue and sell this token. The market capitalization of the token is equal to the total amount of funds managed by Bulls Fund. The price of tokens after ICO is as follow. BULLS Token Price = ( Total Assets Price / Total Token Supply )

12 Bulls Investment token (BULLIN) Title Contents Token Name Bulls Investment Token Symbol BULLIN Platform Ethereum (ERC-20) Total Supply 10,000,000,000 ICO Price 1BULLS = 1,000,000BULLIN Bulls Investment Tokens(BULLIN) is used as a fee for the investment platform called Bulls Investment Platform made by Bulls Fund. This is used like Ethereum ETH. We plan to distribute in airdrop format from Bulls Fund token. All Bulls Fund Token holders can get this Bulls Investment Platform serves as a matching service between investor and cryptocurrency traders. Also, when a cryptocurrency trader makes a trader registration to the Bulls Investment Platform, it also functions as a voting ticket for the election. BULLIN will grow the platform to list on the cryptocurrency exchange.

13 Investment strategy Bulls Fundʼs investment strategy is to pursue absolute earnings within the risk level control. Besides investing in Bitcoin and Ethereum as a base, Investment management will be carried out in mind that it will make profit more than legal tender. The main investment target of the fundʼs portfolio is autonomy essential to the super national economy such as distributed computing, data storage and communication, decentralized exchange, investment solution, forecast market, fixed asset protocol, cross chain gross settlement system, identity protocol solutions that enable type infrastructure, cryptocurrency with smart contract, reputation system and social networks. The management team at Bulls Fund shows not only the inclusion of many assets in the portfolio but also the view that diversification is necessary. It is also important to leave the possibility of earning income from various market conditions and new investment opportunities(like Initial Coin Offering). As a result, multi investment strategy is applied. Bulls Fund will also support to team which after we will invest in. Specifically, we will Contribute to maximizing the value of invested cryptocurrency by linking media and agencies that are affiliated with Bulls Fund to the foundation of cryptocurrency and backing up activities based on marketing support. Middle and long-term investment strategy (at least 50% of total assets) In the cryptocurrency market, the middle and long-term strategy is positioned at the top of the market capitalization among the cryptocurrencies, and we construct a portfolio around the cryptocurrency within the risk level control. Evidence from the practice of investing in stocks suggests that passive portfolios can outperform the actively managed accounts in the long term, especially if the investor

14 tends to low volatility and stable income from assets. Passive accounts track indices and have low transaction costs because of lower mandatory turnover. Currently, there is no generally accepted hedge fund for cryptocurrency, however passive strategy can determine their own investment policy with the help of it. Passive strategy centered on mining and staking(at most 30% of total assets) Mining investment will greatly contribute to achieving absolute revenue, In Bulls Fund, we calculate the return on investment from Mining Difficulty and maximize revenue, At the same time, staking targeting cryptocurrency that adopt PoS(Proof of Stake) or a similar consensus algorithm are also candidates. There are mechanisms to increase assets like interests by having more cryptocurrency. However, we should keep liquidity so we should not put weight it. Aggressive investment for Initial coin offering(ico) and highly growing cryptocurrencies.(at most 20% of total assets) Currently, investing to ICO(Initial coin offering) is trend. We will invest to it and ICO tokens(after ICO tokens which is good features or prediction). In order to implement this strategy, we need many investigation periods and also man-hour. However, the revenue from ICO or ICO tokens is very large amount. For example, EOS managed ICO, and its price increases 2300% in the moment. Not only this, Bancor was rose up 250% after ICO price. In fact, now ICO is taking a place even now. And most of ICOs are scam. Thatʼs why we have to consider investing to this. So, this strategy can use at most 20% of total assets.

15 Ecosystem Bulls Fundʼs ecosystem will pay 5% of the invested assets as a commission to fund managers and technical security teams. Cryptocurrency from the token holders is strictly managed as investment management assets. Also, 20% of the revenue on investment will be paid as a commission as an incentive to fund managers and support teams. Regarding commissions, we will adopt the high watermark method, which is the highest historical value as a target of success fee for parts beyond it. This is done once every quarter. Once a year, 2% of total assets are paid as management fee as management fee.

16 Investment flow to Bulls Fund for investor You can buy Bulls Fund Token(BULL) by Bitcoin(BTC), Ethereum(ETH) or USDT via website. After you buy token, system check status and make token activate. Later, we distribute token to you. Entry fee is automatically distributed to fund manager and support team. Purchase Price = Token Price + Entry Fee (5%) Total Assets Price = Token Price * Total Supply Buying back flow from Bulls Fund for investor. Bulls Fund secures the liquidity of the BULLS token according to certain rules. Investors can request buy back from Bulls Fund at any time. In that case you can specify whether to buy back in Bitcoin(BTC), USDT, Ethereum(ETH). You can apply from the dashboard of the website when requesting a buying back. This will be the preparation period before preparing a Bitcoin(BTC), USDT, Ethereum(ETH) to

17 respond to the buyback. The value of the token is calculated at the timing of the request. BULLS Token Price = ( Total Assets / Total Supply ) Selling Price = BULLS Token Price * Amount of BULLS Token After calculation, the fund manager will prepare the BTC, USDT or ETH necessary for buyback. Investors can choose in advance whether to buy back from BTC, USDT or ETH. Assets management and website The portfolio of Bulls Fund will be disclosed on the website(it will be updated every day AM 1:00(UTC +9). We will disclose it after automatically calculating from wallet owned by fund by API. In addition, specific investment amount will be reported to BULLS token holders only in private group of mail or Telegram. When purchasing a new token, the token price is calculated by converting the total asset of the most recent fund by Bitcoin(BTC), USDT or Ethereum(ETH) is applied. After ICO basically we will designate purchase restrictions and recruitment period. In addition, when purchasing a new BULLS token, you have to process KYC( Know Your Customer ) on the website and purchase it after approval.

18 About Bulls Investment Platform Bulls Investment Platform is a matching platform for cryptocurrency special traders and investors who wants to take part in cryptocurrency market. Although many investors desire to enter the growing cryptocurrency market, the current situation is that few investors are entering from the technical knowledge and the complexity peculiar to the cryptocurrency. Also, cryptocurrency specialized traders are concentrating on young people and it cannot be said that they are trading with sufficient capital. The white paper on Bulls Investment Platform is here.

19 Leadership, Team Bokuto Kagami Shoichiro Takahashi CEO at FGR PTE. LTD. Co-Founder, CEO at Bulls Inc. Co-Founder at Bulls Inc. Co-Founder at Kcabo Inc. Yuki Daifuku Xristos Giegourtov Partner Management at Bulls Inc. Fund Manager at Bulls Inc. CEO at Bitcoinnomadoguchi Inc. Yoshiki Ishigaki CEO at Kcabo Inc.

20 Roadmap

21 Risk and Disclaimer Purchasing BULLS tokens entails great risk. Buyers and fund managers are exposed to inherent market, liquidity, technology, loss, theft, regulatory and misunderstanding risk. The buyer agrees to understand and accept these risks and potential losses of all funds without restorability by sending Bitcoin(BTC) or Ethereum(ETH). Fund managers do not take any risk except the risk of losing individual investment. For security reasons, the fund manager reserves the right to change the content of the information published in the public domain without disclosing information on how to store cryptographic assets.