Global Blockchain Assets Exchange and Liquidity Provider Whitepaper 1.0 1
We believe... I 1. Abstract 2 2. Problem 4 Bad Security 4 Low Liquidity 4 Inappropriate System Architecture 4 3. Pro Trading Platform 6 3.1. Technical Architecture 6 3.1.1. Hadron Collider Matching Engine 6 3.1.2. Absolute ZERO Cold Storage 6 3.2 User Experience Keywords 7 3.3. Preferred Trader 8 3.4. Supported Coins 8 3.5. Revenue Model 8 3.6. Product Preview 9 3.6.1. Pro 9 3.6.2. Pro Mobile App 9 4. WaterDrop Liquidity Provider 11 4.1. Global Trade Book 11 4.2 Prime Brokerage 11 4.2.1 Ultra-low Latency Direct Market Access 11 4.2.2 Crypto Credit 12 4.2.3 Real-time Reporting 12 4.3 WaterDrop Ecosystem 12 5. TB Token 14 5.1 Overview 14 5.2 The Burning Plan 14 5.3 TB Utility 15 5.4 Allocation 15 5.5 Lockup Period 16 5.6 Fund Usage 17 5.7 Token Specification 17 6. Roadmap 19 I
Think Big in the Blockchain World. We believe... We believe everyone will hold tokens in the future, and it will be the passport to the new world. Because of the systematic benefits in transparency, efficiency, accessibility, and programmability, tokens are becoming the blood of the new world, connecting the economy activities, social life, and productivity. Simultaneously, digital assets exchange will play as the heart of the new world, which pumps blood through the blood vessels of the circulatory system. This is why we think there will be more and more people getting participated in the blockchain world. It will be an irresistible trend in the human history. People from all around the world can directly access to a single market, and it will be the largest market capability ever. Building from 0 to 1, we carefully designed and developed our security system, matching engine and customer services, which has gone beyond the industry standard. We expect to accelerate the process of tokenization, and take advantage of the blockchain technology to our daily life. I
01 Abstract 1
1. Abstract Pro is a Next Gen cryptocurrency exchange, which offers an excellent liquid trading environment, a 100% cold storage of crypto assets, a variety of order types and a high performance API for professional traders. Pro WaterDrop is a globally sourced trading platform; it is a Prime Brokerage specializing purely in cryptocurrency. This will provide high liquidity to other cryptocurrency exchanges throughout the world, which helps small exchanges have healthier liquidity and make a better trading environment to create a greater network externality for the overall crypto ecosystem. WaterDrop s Global Tradebook is backed by the tech behind our explosively fast Matching Engine, Smart Order Routing, and absolute cold storage system. It creates a globally united crypto tradebook that provides highly liquid market, which creates excellent market depth for advanced traders and institutions. Larger customers will provide liquidity to the market, by having larger trading volume, which in return will grant them a greater discount. Incentivizing higher volume trading. Individual customers will benefit from smaller spreads and greater market thickness due to the highly liquid exchange. 2
02 Problem 3
2. Problem Bad Security Most exchanges use risky hot or hybrid wallets which are susceptible to hacks For example Coincheck uses a fully hot wallet system and was hacked in Jan. 2018, $500 million worth of the NEM coins were stolen. Bitfinex is using hybrid wallets, both hot and cold wallets. This is the main reason they can still be hacked and have their client s digital assets stolen. Some loose rules on security will also lead to property loss beyond redemption, hackers can potentially use the flaws to control the accounts make the them ransacked. Pro uses a 100% cold wallet storage system, removing the risk of your secret keys being hacked. Low Liquidity The exchange which lack of Liquidity will often create spike or flash crush in the price. Behind Professional, there s our liquidity platfrom named WaterDrop liquidity system, with the direct access of our partners, mine pools, institudes traders, offering high liquidity on the platform. Inappropriate System Architecture Many cryptocurrency exhcanges were start from a rough design of system architecture, even some popular exchanges on the market couldn t provide a stable trading enviornment for clients. The problem is they don t have appropriate system architecture design, once an exchange lanuch, the system achitecture is difficult to modify becuase the system has to be offline for a long time to finish the maintance and update which is unacceptable for serious traders and institutes. 4
03 Pro Trading Platform 5
3. Pro Trading Platform 3.1. Technical Architecture Enterprise-level Financial System Implements a network of queue that without needing locks Unlimited write speed of order queue, ensuring Unlimited automatic horizontal scaling Capable of processing 5,000,000 orders / second / pair 3.1.1. Hadron Collider Matching Engine The Matching Engine is capable of processing 5,000,000 orders / second / pair, making it one of the most advanced matching engines in the industry. 3.1.2. Absolute ZERO Cold Storage has stringent security measures and prioritizes the safety of customers digital assets. So we developed a storage system which implement unilateral data transferring in withdrawal procedure that avoid secret keys of wallet being stolen, we named it Absolute ZERO cold storage system. Even when our staffs maintaining the system, the system needs multiple VPs to confirm and sign with hardware security keys, which can mostly avoid ethics risks. 6
3.2 User Experience Keywords SAFE Our most crucial mission is to make our users asset safe. 100% Cold Storage Multi-location Encrypt backup Carefully designed operating procedures White / black box testing Invited white hat hackers community to test major systems for weaknesses Professional Seamless Maintenance System Status Disclosure High Liquidity Multi-platform Client Real-time Clearing and Settlement Credibility Legal and Compliance Operation Statues Disclosure Caring We have experienced co-founder who has served for 100 millions users games and fintech softwares, and we re confident to have a full solution on services problem handling. Fast Ticket and Social Media Responses i18n (Internationalization) - Multilingual Services 7
3.3. Preferred Trader 3.4. Supported Coins will support trading pairs in the following coin: BTC ETH TB ( Coin) In the future, we will consider adding more token that with strong credibility, large community and liquidity. Contact us if you wish your coin to be listed on. 3.5. Revenue Model s revenue will come from the following sources: Source Exchange Fee Withdrawal Fee Listing Fee Description will charge a 0.2% fee per trade. will charge a small fee for withdrawal. will select digital assets to be listed on, there may be a fee associated with those listings. Margin Fee Co-Location Hosting Services Automated Trading Strategies Trading tools There may be a fee or interest on the borrowed amount. provides co-location hosting services which will cost a fee to institude or professional traders provides automated trading strategies, which will charge a small fee. provides trading tools for professional traders, which will charge a small fee. 8
3.6. Product Preview 3.6.1. Pro 3.6.2. Pro Mobile App 9
04 WaterDrop Liquidity Provider 10
4. WaterDrop Liquidity Provider WaterDrop is a digital currency order book platform originating from all over the world. It is also the prime broker of pure digital currency. This will provide high liquidity for other digital currency exchanges, helping small exchanges to have healthy liquidity and a better trading environment. The Exchange Cloud Service allows regional substations to build their own exchanges in 5 minutes. Under the premise of ensuring high-quality product experience, there is ample room for customer service. The WaterDrop Global Order Book is based on the Blending Engine, Smart Order Routing, and Absolute Zero Cold Storage System to create a global, co-cryptographic currency order book that provides traders and institutions with a highly liquid and deep trading experience. 4.1. Global Trade Book Smart Order Routing Smart order routing (SOR) is an automated process of handling orders, aimed at taking the best available opportunity throughout range of different trading venues. has partners in Japan, Europe, USA, South Africa and Southeast Asia, providing large liquidity and tight spread, which help the orders can be execute with the best offer. 4.2 Prime Brokerage There are many startup companies that want to create exchanges in their own countries. We provide them with technical services, access to mobility services, and make them more convenient to access, use the stable and secure series of services, and focus on customer service. 4.2.1 Ultra-low Latency Direct Market Access Advanced trading platforms and market gateways are essential to the practice of high-frequency trading. Order flow can be routed directly to the line handler where it undergoes a strict set of Risk Filters 11
before hitting the execution venue(s). The race for ultra-low latency direct market access is a hot topic amongst high frequency traders, traditional brokers and technology vendors. Typically, ULLDMA systems built specifically for HFT can currently handle high amounts of volume and incur no delay greater than 500 microseconds. Low-latency systems can contribute to best execution with direct strategy access (DSA) and Smart Order Router. will bring ULLDMA to cryptocurrency trading markets, and take it to the next level. 4.2.2 Crypto Credit WaterDrop s Prime Brokerage will make an credit facility for users to leverage trading opportunities. TB token can be used as collateral for trading. 4.2.3 Real-time Reporting The Prime Brokerage users will have authority to access activity statements, getting detail information about their account activity including positions, balance, transactions, and more. Users will be able to obtain trade reports of all executions. 4.3 WaterDrop Ecosystem For the clients who has promotion resources and license for cryptocurrency exchange and want to build up their own business, we offer technical and liquidity support, make it available for them to start their cryptocurrency exchange, and help them to focus on the customer services. We provide high liquidity services, and they can put their orders or positions to WaterDrop Platform, which will build a healthy ecosystem with our partners. 12
05 TB Token 13
5. TB Token 5.1 Overview We use TB token as Fuel to power our matching engine. TB Fuel will be the most unique coin in the history. Limited offered, never increase the supply We will use 50% exchange fees to buy TB Fuel as the fuel of matching engine Can be used for fees of services, including cover fees, as credit collateral, margin fee and various other fees. TB Fuel will be deflation progressively, and becoming a valuable platform token. 5.2 The Burning Plan The Burning Plan TB coin will be use as fuel of Matching Engine, which will be burnt and destroyed every quarter. tbfuel = mevalue feerate tbfuelprice 14
5.3 TB Utility TB token can be used for fees of services, including cover exchange fees, as credit collateral, and other fees. TB holders can use value in return for: Transaction Fee Exchange Fee Crypto Credit Other Services Listing Fee Prime Brokerage Direct Market Access System Co-location Automated Trading Strategies Trading Tools 5.4 Allocation % Amount (TB) Participant 40% 8,400,000,000 Team 20% 4,200,000,000 Strategic Partners / Institutional Buyers (Long term holders) 20% 4,200,000,000 Foundation Management 10% 2,100,000,000 Community / Ecosystem 5% 1,050,000,000 Security Research and Development 5% 1,050,000,000 Legal Risk Consultant and Compliance 15
5.5 Lockup Period The 8,400 million TB issued by the founders should be suject to a four-year lock-up period from May 1st, 2018, to May 1st, 2022. Founders are prohibited to assign or sell their TB holdings in any way before May 1st, 2019. Team members can only assign or sell 25% of their TB every year from May 2nd, 2019 to the end of lock-up period. 1st. Year 2nd. Year 3rd. Year 4th. Year 25% 25% 25% 25% The 4,200 million TB holded by the foundation should be suject to a four-year lock-up period from May 1st, 2018, to May 1st, 2022. The foundation is prohibited to assign or sell their TB holdings in any way before May 1st, 2019. The foundation can only assign or sell 25% of their TB every year from May 2nd, 2019 to the end of lock-up period. 1st. Year 2nd. Year 3rd. Year 4th. Year 25% 25% 25% 25% The 4,200 million TB exchanged by the strategic partners, consultants and angel investors should be subject to a four-quarters lock-up period from May 1st, 2018, to May 1st, 2019. Strategic partners, consultants and angel investors are prohibited to assign or sell their TB holdings in any way before August 1st, 2018. The strategic partners, consultants and angel investors can only assign or sell 25% of their TB every quarter from August 2nd, 2018 to the end of lock-up period. 1st. Quarter 2nd. Quarter 3rd. Quarter 4th. Quarter 25% 25% 25% 25% 16
5.6 Fund Usage 5.7 Token Specification Token Name Code Token TB Issuance Amount 21,000,000,000 Token Private Sale Price Particulars 1 USD = 4200 TB ERC-20 Ethereum-Based Token 17
06 Roadmap 18
6. Roadmap 2018 Q2 Pro Launch TB Token will be tradable at the same time. 2018 Q3 EOS Digital Wallet Launch A high-performance, decentralized, user friendly digital wallet to be built on EOS.IO 2018 Q4 Margin Fund Support margin trading on main pairs. 2018 Q4 Automatic Lending Lending your cryptocurrencies at best rates. 2019 Q1 Cryptocurrency Futures Contracts Launch various cryptocurrency futures contracts 2019 Q2 EOS Futures Contract 2020 Distributed Online Bank 19
GENERAL INFORMATION This whitepaper describes the initial sale in which the THINKBIT TOKEN (TB) is sold. TB is a crypto token that is designed to be used for all services provided by the THINKBIT PRO TRADING PLATFORM and THINKBIT WATERDROP THINKBIT PRO TRADING PLATFORM as explained in this whitepaper. TB also can be used as a Crypto Token to pay for any other services provided by other business entities. THINKBIT will generally not limit the usage of TB or the types of business entities that would like to use TB for their business. TB 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 of securities in any jurisdiction. Please note that purchases of TB are final and non-refundable. Individuals, businesses, and other organizations should carefully weigh the risks, costs, and benefits of acquiring TB. LIMITATION OF THE PURCHASERS You are not eligible to and you shall not purchase TB through its token sale if you are a citizen or resident (tax or otherwise) of any country or state where the purchase of TB or similar Crypto Token may be prohibited or the token sale is deemed to be not compliant with the applicable laws and regulations. In particular, if you are a resident of People s Republic of China, you cannot purchase TB through the token sale. Purchases of TB should be undertaken only by individuals, entities, or companies that have significant experience with, and understanding of, the usage and intricacies of Crypto Tokens and blockchain based software systems. Purchasers should have functional understanding of storage and transmission mechanisms associated with other Crypto Tokens. Any entities of THINKBIT and officers and employees thereof will not be responsible in any way for loss of any Crypto Tokens, TB or fiat currency resulting from actions taken by, or omissions of the purchasers. If you do not have the required experience or expertise, then you should not purchase TB or participate in the sale of TB. You should carefully consider the risks, costs, and any other demerits of acquiring TB, and, if necessary, obtain your own independent advice in this regard. If you are not in the position to accept nor to understand the risks associated with the token sale of TB (including the risks related to the non-development of THINKBIT PRO TRADING PLATFORM) or any other risks as indicated in this whitepaper, you should not acquire TB, until such that you have received the necessary independent advice. RISKS 20
The purchase of TB carries with it significant risk. Prior to purchasing TB, the purchaser 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 TB. (a) TB will be stored in a wallet, which can only be accessed with a password selected by the purchaser. If a purchaser of TB does not maintain an accurate record of their password, this may lead to the loss of TB. If your password protection is weak and it is cracked or learned by somebody else, this may also lead to the loss of TB. As a result, purchasers must safely store their password in one or more backup locations that are well separated from the primary location. (b) The purchaser recognizes that some of the services under the THINKBIT PRO TRADING PLAT- FORM is currently under development and may undergo significant changes before release. The purchaser acknowledges that any of its expectations regarding the form and functionality of the THINKBIT PRO TRADING PLATFORM may not be met for any number of reasons. (c) The purchaser understands that while THINKBIT will make best efforts to connect the THINKBIT PRO TRADING PLATFORM to most of the major Crypto exchanges around, it is possible that some exchanges may decline the connection with the THINKBIT PRO TRADING PLATFORM, which may result in the less liquidity provided through the THINKBIT PRO TRADING PLATFORM than expected in this whitepaper. (d) The purchaser understands that while THINKBIT will make best efforts to release the THINKBIT PRO TRADING PLATFORM on time, it is possible that the official release may be delayed. (e) As with other Crypto Tokens, value of TB may fluctuate significantly and become reduced in value for any number of reasons, including but not limited to, supply and demand, overall Crypto Tokens market conditions, political or geographical reasons, changes of regulations in any jurisdictions, and technical reasons. (f) TB will be issued on the Ethereum blockchain. As such, any malfunction or unexpected functioning of the Ethereum protocol may impact the purchaser s ability to transfer or securely hold TB. Such impact could adversely affect the value of TB. DISCLAIMER To the maximum extent permitted by the applicable laws, regulations and rules, TB, any entities of THINKBIT and officers and employees thereof shall not be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any ac- 21
ceptance of or reliance on this whitepaper or any part thereof by you. Any entities of THINKBIT and officers and employees thereof shall not be liable for your loss of TB after it is transferred to you by any reason including but not limited to your failure to maintain or backup an accurate record of your password or password cracking by somebody due to your poor maintenance of your password. THINKBIT will do its best to launch its operations and develop THINKBIT PRO TRADING PLATFORM. Any person undertaking to acquire TB acknowledges and understands however that THINKBIT does not provide with any warranty as to the release of the THINKBIT PRO TRADING PLATFORM. They acknowledge and understand therefore that THINKBIT (incl. its bodies and employees) assumes no liability or responsibility for any loss or damage that would result from or relate to the incapacity to use the TB. Regulatory authorities are carefully scrutinizing businesses and operations associated to Crypto Tokens in the world. In that respect, regulatory measures, investigations or actions may impact THINKBIT s business and may limit or prevent it from developing its operations in the future. Any person undertaking to acquire TB must be aware that THINKBIT s business model or THINKBIT PRO TRADING PLAT- FORM and its existing platforms may change or need to be modified because of new regulatory and compliance requirements from any applicable laws in any jurisdictions. In such case, purchasers and any person undertaking to acquire TB acknowledge and understand that neither THINKBIT nor any of its affiliate shall be held liable for any direct or indirect loss or damages caused by such changes. This whitepaper and any other materials or explanations made by THINKBIT and its officers and employees shall not and cannot be considered as an invitation to enter into an investment. They do not constitute or relate in any way nor should they be considered as an offering of securities in any jurisdiction. This whitepaper does not include nor contain any information or indication that might be considered as a recommendation or that might be used as a basis for any investment decision. Neither THINKBIT nor any of its officers and employees are to be or shall be considered as advisor in any legal, tax or financial matters. Acquiring TB shall not grant any right or influence over THINKBIT s organization and governance to the purchasers. NO REPRESENTATIONS AND WARRANTIES THINKBIT does not make or purport to make, and hereby disclaims, any representation, warranty or 22
undertaking in any form whatsoever to any entity or person, including any representation, warranty or undertaking in relation to the truth, accuracy and completeness of any of the information set out in this whitepaper. REPRESENTATION AND WARRANTIES BY THE PURCHASERS By participating in the token sale of TB, the purchasers represent and warrant to THINKBIT as follows: (a) you are authorized and have full power to purchase TB according to the laws that apply in your jurisdiction of domicile; (b) you are solely responsible for determining whether the acquisition of TB is appropriate for you; (c) You are not acting as an agent on behalf of any other person or entity who wish to purchase TB or participate in its token sale; (d) You have carefully considered the risks, costs, and any other demerits of acquiring TB and understood such the risks, costs, and any other demerits associated with TB and its token sale; (e) you are not acting for the purpose of speculative investment; (f) you agree and acknowledge that TB does not constitute securities in any form in your jurisdiction; (g) you agree and acknowledge that this whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities in your jurisdiction or a solicitation for investment in securities; (h) you agree and acknowledge that no regulatory authority has examined or approved of the information set out in this whitepaper, no such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction and the publication, distribution or dissemination of this whitepaper to you does not imply that the applicable laws, regulatory requirements or rules have been complied with; (i) you agree and acknowledge that this whitepaper, the undertaking and/or the completion of the TB token sale, or future trading of TB on any cryptocurrency exchange, shall not be construed, interpreted or deemed by you as an indication of the merits of THINKBIT or TB; (j) the distribution or dissemination of this whitepaper, any part thereof or any copy thereof, or acceptance of the same by you, is not prohibited or restricted by the applicable laws, regulations or rules in your jurisdiction, and where any restrictions in relation to possession are applicable, you have observed and complied with all such restrictions at your own expense and without liability to THINKBIT; 23
(k) you agree and acknowledge that in the case where you wish to purchase any TB, it is not to be construed, interpreted, classified or treated as: (i) any kind of currency other than cryptocurrency; (ii) debentures, stocks or shares issued by THINKBIT (iii) rights, options or derivatives in respect of such debentures, stocks or shares; (iv) rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; (v) units in a collective investment scheme; (vi) units in a business trust; (vii) derivatives of units in a business trust; or (viii) any other security or class of securities. (l) you have a good understanding of the operation, functionality, usage, storage, transmission mechanisms and other material characteristics of cryptocurrencies, blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology; (m) you are fully aware and understand that in the case where you wish to purchase any TB, there are risks associated with THINKBIT and its business and operations; (n) you agree and acknowledge that THINKBIT is not liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this whitepaper or any part thereof by you; (o) you will not use the token sale for any illegal activity, including but not limited to money laundering and the financing of terrorism; and (p) all of the above representations and warranties are true, complete, accurate and non-misleading from the time of your access to and/or acceptance of possession this whitepaper or such part thereof (as the case may be). UPDATES TO THE DETAIL OF THE TOKEN SALE THINKBIT reserves the right, at its sole discretion, to change, modify, add, or remove portions of this whitepaper and the terms at any time during the sale by posting the amendment on the THINKBIT website. Any purchaser will be deemed to have accepted such changes by purchasing TB. If at any 24
point you do not agree to any portion of the then-current version of this whitepaper and the terms, you should not purchase TB. MARKET AND INDUSTRY INFORMATION This whitepaper includes market and industry information and forecasts that have been obtained from internal surveys, reports and studies, where appropriate, as well as market research, publicly available information and industry publications. Such surveys, reports, studies, market research, publicly available information and publications generally state that the information that they contain has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information. THINKBIT has not conducted any independent review of the information extracted from third party sources, verified the accuracy or completeness of such information or ascertained the underlying economic assumptions relied upon therein. Consequently, any entities of THINKBIT and officers and employees thereof do not make any representation or warranty as to the accuracy or completeness of such information and shall not be obliged to provide any updates on the same. 25