WHITEPAPER








1. INTRODUCTION

Cryptocurrencies hold a market cap of more than $300 billion. According to the specialists, after making some research, the capitalization of cryptocurrencies in the future could explode in the next five years, rising between $5 to $10 trillion. As time goes by, there will be more investors joining this community.

Cryptocurrency market, it is quite similar to traditional market as both have comparable business models, attracting investment and returning capital growth and value. Cryptocurrency market issues coins, or in our case, crypto tokens, and their valuation depends on the trajectory of the project or market expansions.

Cryptocurrency market feels forced to turn into financial vehicles when it does not have access to funds. It will turn into ICO (Initial Coin Offering) and STO (Security Token Offering) to raise funds.

In accordance with Bitcoin whitepaper, these coins are made from digital signatures, which provides strong control of ownership and at the same time, prevents double-spending through different mechanisms.

If you have been following banking, investing or cryptocurrencies, over the past years, you have heard the term “blockchain”, which the main definition is “blockchain is a decentralized, distributed, public ledger”. It is the main characteristic of the cryptocurrency market, the Blockchain technology.

The world situation after the COVID-19 crisis presents an unique window of opportunity in history, over the next five years, in which the world of cryptocurrencies will have to settle, positioning itself as a clear alternative to the traditional investment market.

1.1. Block-Invest Business Model

  1. Customer transfers its BTC to Block-Invest wallet
  2. BKI (Block Invest token) is purchased with BTC
  3. A pool of BTC is ready for cryptocurrency market trading
  4. Analyst directs trading with AI tools and cloud computing support
  5. BKI price fluctuates “because of” the underlying assets (value of the fund)
  6. Once lock-up period expires, customer can redeem its BKI
  7. BKI are sold and exchange with the equivalent BTC
  8. BTC are transferred to customer BTC wallet




2. TOKEN TECHNOLOGY



The BKI Token is a core component of the Block-Invest ecosystem and it is designed to facilitate all kinds of operations that make the token an integral part of the ecosystem and the driver for its economy.

The use of BKI token allows the investor the entry into unique strategies in a closed marketplace. This mentioned marketplace will reflect intraday the value of the fund, giving the investor a fairly image of it.

The procedure of the investor becomes a user of Block-Invest Fund will be the following:

- Registration and verification on the platform - obtaining both wallets, the BKI and the BTC ones.
- Deposit BTC - sending the btc in client possession into the BTC wallet from the platform.
- Purchase the BKI tokens - using the BTC to purchase them and receiving them in the BKI wallet on the platform.
- Sale of BKI tokens - after time-horizon, the client will be able to sell the BKI at the price it is at that moment and receives the BTC in his/her wallet.

2.1. Registration and verification on the platform


To become an investor in the Block-Invest Fund, first of all, the user will need to register at the “sign up” bottom or “buy token” at the “HOME” on the website. Finding the “sign up” bottom at the right-hand top corner of the website. The investor will be able to find in the footer a tutorial which explains how the platform works.

The user needs to make a simple registration & verification on the platform and fill the field required. Filling these fields, after 24-48h, we will verify the user and will pass to level 2 of Verification and become an investor.

Once the user is already registered and verified, they will have access to the platform and will be able to explore all the information given, such as the balance of the amount invested, the fluctuation of the token, the historical of the transaction, value of the fund, etc.

2.2 Deposit BTC


The user will need to charge the balance of his/her BTC wallet, sending bitcoin from his/her current wallet to their own personal Block-Invest wallet by using their personal QR code or WalletAddress.

Once the user has deposited the BTC, it will take around 15 minutes to update the new balance on the client's profile, showing the amount of BTC transferred. The client will be able to buy BKI.

2.3. Purchase BKI tokens


At the point the user is registered & verified, and has already deposited the bitcoin into the BTC Block-Invest wallet, he/she will be able to buy BKI tokens. At the platform, the users will find a calculator that will help them to calculate the desired amount to be invested.

At the platform, the user will come across a section of buying BKI, sending the BTC to the exchange (fund) and receiving the BKI in his/her Block-Invest wallet. The balance of the BTC will subtract the amount invested from the one transferred and the balance of BKI will be the corresponding of BTC bought by the user.

2.4. Sale of BKI tokens


Once the user has met the lock-up period (see in section 4.2), the client will have the chance to get his/her investment back. Block-Invest buys back its tokens through the marketplace with its accumulated btc. After the time horizon, the client can choose to stay or to go, but if he/she decides to stay it does not mean that he/she needs to stay another year or with the same amount invested.

On the other hand, if the investor decides to leave, the token holder will sell the BKI in his/her account and receive the corresponding BTC in his/her account in the Block-Invest Platform. The token holder will be able to transfer his/her digital asset to any destination outside of the wallet, as he/she will do with any other BTC wallet.

Token holders must trust the self determination of the experts as if they follow the strategies that they have written down. The value of the fund will increase as the price of the token. The price of BKI will be affected by the strategy that the experts will follow and reductions in the total token supply through repurchases by the clients.




3. FUND LAUNCH DETAILS



TOKEN NAME

Block-Invest

SYMBOL

BKI

REPRESENTATION

Each BKI will represent a participation of the fund, which is the total value of the fund divided by the total amount of the BKI in circulation.

TOKEN SALE PRICE

1 BKI will be equivalent to a 0, 0001 BTC. After the token launch, 1st of January 2020, will depend on the value of the fund and the tokens in circulation and the price will increase/decrease.

CURRENCIES ACCEPTED

Bitcoin

MINIMUM INVESTMENT REQUIRED

The platform will have a calculator which calculates the min investment of 0, 05 BTC. The min investment will be revised quarterly, taking into account the value of BTC.

NUMBER OF TOKENS

60M of BKI will be done, but the unsold tokens will be kept at the Fund ́s reserve where they will not count as circulating.

MANAGEMENT FEE

The fund will charge every investor a 3% for the management of the fund based on a percentage of assets under management (AUM) at the end of the year.

PERFORMANCE FEE

The fund will charge on a monthly basis a 30% of the realized profit.

LOCK-UP PERIOD

The investor will have to stay at the fund for 1 year. After this period has been completed, the investor will be able to redeem the investment at any time.

REDEMPTION

Will be at any time once the lock-up period has been completed.

NOTICE PERIOD

The notice period is 15 days in length.



4. ECONOMIC



4.1. Price


Block-Invest Fund has created an ERC-20 token, called BKI, which the main function of this token is the exchange of the investment of the client (BTC), giving security to the client and the access to this fund.

Tokens are held in a reserve wallet implemented in the platform, waiting to be released and transferred to investors that have charged the wallet with Bitcoin. The number of tokens issued and in the reserve are reflected in the Fund ́s reporting and replicated in the value of the token.

Every time that an investor makes the BTC transaction to the Fund, the Fund releases reserved BKI at a rate calculated daily. The price of the token is calculated as follows:

BKI price = Fund ́s portfolio value / Tokens in circulation

Investment = Co-investor ́s tokens * Token price

4.2. Lock-up period


Lock-up period is 12 months. Investors are not allowed to redeem until the lock-up period expires. Thanks to this time horizon, the fund will preserve liquidity and maintain market stability.

4.3. Redemption and notice period


While some funds allow for monthly, quarterly, semiannual withdrawals. We will allow the investors to redeem the tokens as long as the time horizon has passed. These terms have critical implications for liquidity and the portfolio management process.

Otherwise, infrequent redemption periods are not necessarily a disadvantage, as an investor might prefer to ensure that large, frequent investor redemption will not occur.

In addition, investors may be required to give a prior notice of their intent to redeem. This notice period is established in 15 days in length.

At the point the customer marks the order to sell, Block-Invest has 15 days to return the money. Investor´s sale price will freeze at the time he/she decides to close the position.




5. INVESTMENT STRATEGY



It is quite important to measure, diversify and balance the investment portfolio. The portfolio manager might make investment decisions, which are influenced by factors such as level risk tolerance and investment time horizon, mentioned above. However, every strategy is no fixed rule on how the managers will manage the portfolio. Therefore, the Block-Invest Analyst Team will approach the following fields to achieve the optimal return, helping themselves with Artificial Intelligent tools.

Currency allocation refers to the distribution of investable funds between various assets.

- Security analysis: analysts use their knowledge of various companies and the industry to identify investments that offer the most attractive risk return characteristics from within each asset class.

- Portfolio construction: after determining the target asset allocation and conducting a security analysis, the portfolio manager will construct the portfolio in line with the objectives outlined. The portfolio must be well diversified, and the risk inherent in the portfolio must be in line with the fund's risk tolerance level.

- Portfolio monitoring and rebalancing: the portfolio must be regularly monitored. Changes in fundamental factors and set by the fund may require changes in the portfolio's composition.

- Performance measurement and reporting:this step involves measuring the performance of the portfolio relative to the benchmark stated at the website reporting portfolio performance.




6. RISK MANAGEMENT



While risk is generally seen in an unfavorable light, the challenge for companies and investment managers lies in carefully choosing, understanding, and managing the risks entailed by their decisions.

Many managers focus on return, which is actually not as easily managed or controlled as risk.

6.1. Risk considerations


Crypto funds may use the profit to generate higher returns. While advantage has the potential to improve returns on investment, it could also magnify losses. The smaller the margin requirements on these assets, the greater the improvement that is available to the fund. Margin calls can also magnify losses if the fund is forced to liquidate or close certain positions. If the fund's position is relatively large, the liquidation (closing) of the position can have a significant adverse impact on price.

Investor redemptions may also magnify losses for crypto funds. Redemptions usually occur when a crypto fund is performing poorly. They cause the fund to liquidate certain positions quickly (which can adversely influence realized prices) and incur in transaction costs.




7. ELIGIBLE INVESTORS



The Fund operates with the expectation that investors fit the following criteria:

- All investors must hold a BTC wallet and the knowledge of the procedure of sending cryptocurrencies and receiving tokens, such as BTC or BKI. Otherwise, how to use the ETH wallet created by Block-Invest Fund, which will be compatible with the ERC-20 token (BKI).

- Knowledge of the risks involved in the cryptocurrency market, particularly those not related to fluctuation of the price, since the Block-Invests strategy minimizes that risk.

- Investors who hold U.S. citizenship, Republic People of China or who are resident in the U.S. are not eligible.




8. FEES


The smart contract itself calculates and issues new tokens allocating them in the BKI wallet in our platform. BKI will be exchanged by the value of the BTC corresponded and transferred into the investment manager ́s own account holdings within the fund.

Every day, the analysts will add new entries into their account holding an increased number of BTCs in their own fund or make redemptions. Profits from the fund’s trading activities will be reinvested net of fees into growing the fund’s assets under management.

A fund that charges flat fees does not believe in their fund and thus Block-Invest does not charge any flat fees, apart from 30% monthly profit fee of the gains since the beginning ; after 12 months of being part of the community of Block-Invest, it will be charged 3% of maintenance. In other words, Block-Invest makes money for the good of the client and our own good.




9. DISTRIBUTION


9.1. Profit allocated

Self-determination of the analysts might give profit from Block-Invest ‘s trading activities will be invested net of fees into growing Block-Invest ‘s assets under management and the value of BKI tokens.

Furthermore, if Block-Invest determines that further increasing its assets under management would be disadvantageous to future appreciation of BKI tokens. It may designate to buy back tokens at prices up to, but not exceeding, the current Intrinsic Value of BKI.





10. KYC & AML PROCESS


Announcements will be made on our social media channels when registration starts. Participants can visit the registration website to complete a registration form containing the following:

- Email
- Password
- Agree to the terms and declaration

A user ID and a Verification link will then be generated. The participant should upload [CA45] the user ID. Participants will be required to visit the link to submit their information through our platform, in the section “settings”. The following details are collected for the verification process:

- First name
- Surname
- Date of birth
- Passport/ ID number
- Image of passport or ID front/back
- Image of selfie with the passport front/back

Participants can then check the status of their registration by entering with their user ID in the Block-Invest Platform in the section “settings”. The possible registration status are as follows:

- Level 1 (invalid): no registration found with the user ID
- Level 2 (approved): participant is eligible to proceed to funding




11. DISCLAIMER


PLEASE READ THIS SECTION AND THE SECTIONS AT THE END OF THIS WHITE PAPER ENTITLED DISCLAIMER OF LIABILITY, NO REPRESENTATIONS AND WARRANTIES, REPRESENTATIONS AND WARRANTIES BY YOU, CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS, MARKET AND INDUSTRY INFORMATION AND NO CONSENT OF OTHER PERSONS, NO ADVICE, NO FURTHER INFORMATION OR UPDATE, RESTRICTIONS ON DISTRIBUTION AND DISSEMINATION, NO OFFER OF SECURITIES OR REGISTRATION AND RISKS AND UNCERTAINTIES CAREFULLY.

From BLOCK-INVEST, we would like to be as transparent as possible; therefore, we recommend that the investor take extreme caution by reading this document and making the investment decision. You should consult with your legal, financial, tax and other professional advisors(s) before taking any action in connection with this White Paper.

The main reason is the acquisition of the offered tokens entails a high risk, so there is a high probability, from the statistical or historical point of view - in comparison with the other companies of similar characteristics launched in recent years – which the value of the token does not meet the expected expectations . The tokens described in this White Paper are not intended to constitute securities in any jurisdiction. This White Paper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction.

This document provides a description of the planned Block-Invest Platform and the future intended use of the BKI token. This is provided for information purposes only and does not create any binding legal obligation. This White Paper does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer by BLOCK-INVEST, an exempted company registered under the laws of the Cayman Islands (the Company) to purchase any tokens (BKI) nor shall it or any part of it, nor the fact of its presentation, form the basis of, or be relied upon in connection with, any contract or investment decision.

This document will evolve over time as the project progresses, and the BLOCK-INVEST team may publish modifications, revisions and / or updates of the drafts naming them with different versions.

The Company will deploy the proceeds of sale of the BKIs to fund the project, businesses and operations, as outlined in this White Paper.

Any agreement between the Company and you as a purchaser, and in relation to any sale and purchase, of BKIs is to be governed by only a separate document provided by the Company (the Terms & Conditions (“T&C”)). The T&C will set out the terms and conditions of such agreement. In the event of any inconsistencies between the T&Cs and this White Paper, the T&C shall prevail.

You are not eligible and you are not to purchase any BKIs in the BLOCK- INVEST token sale (as referred to in this White Paper) if you are a citizen, resident (tax or otherwise) or green card holder of the United States of America, or a citizen or resident of the Republic of South Africa or People’s Republic of China or Cayman Islands.

No regulatory authority has examined or approved of any of the information set out in this White Paper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this White Paper does not imply that the applicable laws, regulatory requirements or rules have been complied with.

There are risks and uncertainties associated with the Company and its business and operations, the BKIs, the BLOCK-INVEST token sale and the underlying assets, as described below.

This White Paper, any part thereof and any copy thereof must not be taken or transmitted to any country where distribution or dissemination of this White Paper is prohibited or restricted. No part of this White Paper is to be reproduced, distributed or disseminated without including this section and the following sections entitled Disclaimer of Liability, No Representations and Warranties, Representations and Warranties By You, Cautionary Note On Forward-Looking Statements, Market and Industry Information and No Consent of Other Persons, Terms Used, No Advice, No Further Information or Update, Restrictions On Distribution and Dissemination, No Offer of Securities Or Registration and Risks and Uncertainties.


(CC BY-NC-ND 4.0)

Attribution-NonCommercial-NoDerivatives 4.0 International *2020-21