Dukascopy Bank Crypto ICO

ICO CONCEPT (ver. 27.09.2018)

Abbreviations

Coins — Dukascoins

Dukascopy or the Bank — Dukascopy Bank

Notes — Dukasnotes

MCA — Mobile Current Accounts

Introduction

Dukascopy Bank considers the emission of two cryptocurrencies: Dukascoins and Dukasnotes.

Dukascoins are designed as a crypto means of payment to be created in limited quantity to serve both as payment and speculation means. Dukascoins are expected to gain in value due to limited supply. Their initial purpose is to reward new clients in a promotional plan aiming at popularizing the Dukascopy Connect 911 messenger and associated Mobile Current Accounts of Dukascopy to a very wide extent.

MCA is a new type of Swiss bank account offered by Dukascopy, intended to provide Swiss and foreign residents with cheap, secure, mobile and extremely user-friendly banking services embedded into a modern messenger. The same messenger gives access to all social activities powered by Dukascopy. The Bank's objective is to collect millions of MCA users who would benefit from unbeatable conditions for transacting among themselves using Dukascopy’s facilities.

Unlike Dukascoins, Dukasnotes are designed to be stable in value.

The convertibility of Dukasnotes into real (fiat) currencies will be at all time guaranteed by Dukascopy via a guarantee fund subject to independent audit and deposited with Dukascopy. In order to stabilize the Dukasnotes exchange rate, they will be pegged to a fiat currency.

Dukasnotes will be issued without limit by series of smart contracts. Each series will be denominated in a fiat currency. Dukasnotes will be issued by Dukascopy against a contribution to the guarantee fund. The objective is to offer a payment means which will be disruptive in terms of speed, user-friendliness and costs. This crypto is expected to be used mainly for domestic and international peer to peer payments and for buying goods and services offered on the Internet by providers using Dukascopy's payment solutions.

Dukascopy Bank is planning to implement Dukascoins first. The development of Dukascoins is already on the stage of White Paper and Technical Specification finalization. The development of Dukasnotes is on the stage of White Paper Thesis. Dukascopy expects that development and implementation of Dukascoins in the Bank may take 2-3 months. At the same time infrastructure developed for Dukascoins will be fully applicable to the launch of Dukasnotes. The launch of Dukasnotes may be expected in 2-3 months after implementation of Dukascoins. A time taken for necessary FINMA approval may affect estimated timelines.

DUKASCOINS

White Paper Thesis and Special features

  • Dukascoins are crypto tokens/smart contracts based on the Ethereum blockchain technology. In case a better blockchain technology will appear on the market, Dukascopy may adopt such better technology to replaceEthereum.
  • The objective of Dukascoins is to finance the expansion plan of the Dukascopy Connect 911 messenger/MCA service. This plan is based on a financial incentive (welcome bonus) paid to each new identified user as defined below. Users will be identified via opening a MCA account.
  • Dukascoins will become a key component of the Dukascopy ecosystem.
  • The maximum amount of Dukascoins which will be issued is 20 billion Dukascoins (20 Dukascoins x 1 billion users). All Coins will be stored on a special account and remain unused (not transferred, not sold, etc.) until been released. Dukascopy has no right to use stored (not released) Dukascoins. The smallest fraction of a Dukascoin will be 0,000000001.
  • Dukascoins are designed to gain in value thanks to a deficit of supply.
  • Dukascoins will be released only upon the opening of a new MCA account. For each new MCA client account (successful completion of the account opening process), 20 Dukascoins will be issued by Dukascopy: 5 for the Introducing Agent (IA), 5 for the new MCA client and 10 for Dukascopy. Dukascopy guarantees that Dukascoins will be issued only as mentioned above. The issuing process of Dukascoins will be subject to independent audit.
  • If a new MCA client has no IA, Dukascopy is considered as the IA and receives the 5 Coins which were intended to the IA.
  • Dukascopy will release Dukascoins only in favor of physical persons, not for legal entities (at the exception of legal entities which are IAs of Dukascopy). Legal entities can however buy Coins on the secondary market and receive Coins as Introducing Agents of Dukascopy when referring prospective MCA clients to Dukascopy.
  • Regarding MCA clients who opened their account before the ICO/airdrop of Dukascoins, Dukascopy will release 10 Dukascoins per MCA account and will offer the following:
    • MCA account holders who did not benefit from the MCA promotional program will receive 5 Dukascoins and their IA, if any, will receive 5 Dukascoins as well;
    • MCA account holders and their IA who received 5 EUR pursuant to the MCA promotion program will be offered the possibility to buy 5 Dukascoins at the price of 5 EUR during a period of 1 month counting the date of ICO/airdrop. All Dukascoins not purchased by MCA clients pursuant to this offer will become property of Dukascopy.
  • Only released Dukascoins can be spent or transferred on the secondary market.
  • Dukascopy will offer a custody service for Dukascoins. Coins released by Dukascopy will be paid to a MCA custody account (free of charge operation). MCA custody account will always be linked to MCA account of the client. Dukascopy will allow clients to transfer Dukascoins to each other, free of charge, via custody accounts.
  • At any moment, clients may transfer Coins from their custody account to an external crypto wallet belonging to them (outside Dukascopy system). Such a transfer will be subject to a fee. Dukascoins transferred to external crypto wallets will function according to the usual blockchain technology, out of Dukascopy intervention.
  • Dukascoins are intended to be used for doing instant payments.
  • Dukascopy will not take any other obligations than releasing new Dukascoins when above mentioned conditions will be fulfilled.
  • Once a year, Dukascopy will publish the total number of identified users of the Dukascopy Connect 911 messenger/MCA holders and the total number of released Coins. Those figures will be confirmed by the external banking auditor of Dukascopy.
  • Dukascopy has the right to suspend the release of Dukascoins at any moment.
  • In case of theft/hack of smart contracts, the Bank has the right to issue new tokens to replace stolen ones if Dukascopy deems that the theft has been duly proven. Claims should be submitted to Dukascopy Bank not later than 30 calendar days after the theft was committed.
  • Marketplace: clients who have a MCA account will have the possibility to do public or private offers to buy or sell Dukascoins at their chosen price. Private offers will be sent directly to the intended user(s), via Dukascopy Connect 911 messenger. For public offers, the Bank will organize the bulletin board, where all offers will be publicly announced. Offers can be done and taken only by MCA clients through Dukascopy Connect 911 messenger.
  • Dukascopy secures the settlement of transactions done via the bulletin board in the following way: when an offer is done, Dukascopy blocks the offered Dukascoins or the money necessary to do the purchase at the offered price. Offers placed on the bulletin board can be taken by any MCA holder (user) without further confirmation from the seller. The bulletin board will only show placed offers. Buyers will have to click to take available offers. Dukascopy Bank will not provide automatic matching of opposite offers, will not ensure FIFO or guarantee the execution at best price. Every MCA client will have full freedom to choose any offer. Each deal executed through the bulletin board will be indicated on a public log of deals. It will be possible to express offers in different fiat currencies.
  • All prices of deals made through the bulletin board will be indicated on an online chart showing historical prices. This chart will be publicly available.
  • Dukascopy is planning to make special offers to sell large amounts (1'000-10'000 or more) of Dukascoins at “Fill or Kill” principle. Such offers will be based on Coins released and owned by Dukascopy.
  • Dukascoins shall be used only in the context of licit activities.

Other obligations taken by Dukascopy Bank with respect to Dukascoins

  • Dukascopy will publish a White Paper explaining the Dukascoins ICO/Airdrop project.
  • Before official launch of Dukascoins the managing smart contract should pass independent IT security audit.
  • During 3 days after a welcome bonus has been paid by Dukascopy in Dukascoins, Dukascopy will offer a special buy-back option to the new MCA holder and to the IA: the client and/or the IA will be able to exchange their Dukascoins against fiat money at a specific exchange rate, which initially will be of 1 EUR for 1 Coin. This exchange rate will be subject to change at Dukascopy's discretion.
  • Dukascopy may use its own Coins to increase its promotional program, to develop and support its crypto infrastructure etc. at Dukascopy's discretion.
  • Dukascopy may accept Dukascoins as payment from its clients for using Dukascopy services (to pay fees etc.). Dukascopy freely determines the exchange rate of Dukascoins it accepts as payment.
  • To receive Coins on external crypto wallets, clients have to link their existing external crypto wallets to their MCA accounts. Alternatively, clients may instruct Dukascopy to assist them in creating such external crypto wallets and to link them to their MCA accounts.
  • On the secondary market, Dukascopy can buy Coins only from MCA clients.

Special terms & conditions related to the custody service of Dukascoins offered by Dukascopy

  • Dukascopy will offer custody services of Dukascoins. For doing so, Dukascopy will set up an infrastructure for the safe custody of Coins belonging to its clients. In such service, Dukascopy's responsibility will be to devote sufficient professional care for ensuring a safe custody. If Dukascopy needs to collaborate with third party service providers to deliver this custody services, it will be Dukascopy's duty to select such third parties adequately. Dukascopy may offer such custody service for its tokens like other banks offer custody services for securities or precious metals, either physical or not. Coins of clients would be recorded in the Bank's off-balance sheet. Dukascopy would provide an online reporting allowing clients to see how many Coins they hold, entries and exits of Coins. These deposits will be valued if a representative market price exists. A custody fee may be charged.
  • Dukascopy may pay an interest for fixed term deposits in Dukascoins of 1 year or more. Initially, the interest rate will be equal to 5% per annum. If the client will request to free Dukascoins before the maturity of the deposit, the client will have to pay a penalty of 5% instead of receiving an interest. The interest rate (positive or negative) is based on the number of Coins and is credited or payable in Coins. For instance, 100 Coins deposited for 1 year would give an interest of 5 Coins per year. The minimum/maximum size of such deposits, the duration, interest rate and penalty will be subject to change at Dukascopy's discretion.
  • Holders of a MCA custody account must accept that Coins can be credited to their custody account by third parties, without prior notice.

DUKASNOTES

White Paper Thesis and Special features

  • Dukasnotes are crypto tokens based on the Ethereum blockchain technology. If a better blockchain technology will appear on the market, Dukascopy may adopt such improved technological solution to replace Ethereum.
  • At all time and without any exception, the nominal value of all issued Notes will be corresponding to the contribution paid by clients to the guarantee fund for receiving those Notes.
  • Dukascopy can acquire Notes at same conditions as its clients including by contributing to the guarantee fund.
  • Dukasnotes have associated tickers referring to the fiat currencies to which they are pegged. For instance, there will be USD-Ticker for the Notes pegged to the USD, EUR-Ticker for the one pegged to the EUR, etc. The fiat currency to which a Dukasnote is pegged is called the "reference currency".
  • Dukasnotes are issued upon request of the Bank's clients or for the own needs of Dukascopy Bank. Dukasnotes can be ordered by any physical person or legal entity holding a MCA account.
  • Dukascopy Bank has the right to accept Notes as means of payment for Dukascopy Bank's services.
  • Dukasnotes will be issued by series of 1'000'000'000 Notes per managing smart contract related to a specific reference currency. Unlike Dukascoins, Dukasnotes are issued without limit and are designed to be stable in value.
  • The unit value of Notes is equal to the reference currency unit. For instance, 1 USD-Ticker will be equal to 1 USD. The smallest fraction of Dukasnote will be 0,001.
  • Each Dukasnote will have a unique serial number which will allow to charge fees on transactions in Notes done externally to Dukascopy's infrastructure to further remunerate Distribution Partners (see below).
  • Smart contracts of Dukasnotes will have embedded protection features which will automatically prevent transactions in case the amount of Dukasnotes will be not sufficient to pay the transaction fee.
  • In order to receive Dukasnotes, clients (or the Bank) will have to contribute to the guarantee fund by transferring to it an amount of any fiat currency accepted by the Bank (currently the Bank accepts 23 different fiat currencies) corresponding to the desired nominal value of Dukasnotes. For instance, it will be possible to obtain 1'000 USD-Ticker against the transferring of 1'000 USD or an equivalent amount in any of the 22 other accepted currencies. Issued Dukasnotes will be deposited by the Bank to the MCA custody account of the client who ordered the Notes.
  • Dukasnotes can be left in custody at the Bank or used for payment transactions outside and independently of the Bank's infrastructure. At any moment, bearers of Notes may transfer them from their MCA custody account to external crypto wallets (outside Dukascopy's system).
  • Notes in custody at the Bank are freely transferable, free of charge, between holders of MCA accounts at Dukascopy.
  • Notes transferred to an external wallet are freely transferable via the blockchain technology. To transfer Notes to an external crypto wallet, the client has to link an existing external crypto wallet belonging to him to his MCA account or, upon request, Dukascopy may assist the client in creating a new external crypto wallet linked to his MCA account.
  • Dukasnotes can be ordered only from a MCA account. This implies that the delivery of Dukasnotes is subject to limits inherent to MCA accounts. Dukascopy can consider increasing limits, on a case by case basis and upon receiving further KYC information. For more details about MCA accounts and limits please visit www.dukascopy.bank.
  • Dukascopy Bank commits to exchange, upon request and within 2 business days, the nominal value of any Note into its counter-value in its reference currency, at the exchange rate of 1.00 (the Bank may apply a commission to such conversions). Dukascopy Bank credits the proceed of the exchange on a MCA account with the Bank which implies that the person requesting the exchange must hold a MCA account under his name. Dukascopy guarantees that at all time, the guarantee fund will be sufficient for meeting its obligations of exchanging Notes into fiat currencies, upon client request.
  • Notes remitted by clients to Dukascopy for exchange into fiat currencies may either be destroyed or kept for itself by Dukascopy Bank. If Dukascopy Bank uses the guarantee fund for this exchange, Notes will be destroyed. If Dukascopy acquires Notes without using the guarantee fund, Notes will be kept by Dukascopy for its own account until they will be remitted again to clients or used by the Bank.
  • Dukasnotes denominated in any reference currency can be exchanged at Dukascopy Bank against Dukasnotes denominated in any other reference currency. For instance, USD-Ticker can be exchanged into EUR-Ticker at the EUR/USD exchange rate defined by Dukascopy Bank. The exchange can be done only on a MCA account open in the name of the person requesting the exchange.
  • Bulletin Board (marketplace): clients having a MCA account will have the possibility to do public or private offers to buy or sell Dukasnotes at their chosen price. Private offers will be sent directly to the intended users via chat in Dukascopy's messenger. For public offers, the Bank will organize a bulletin board, where all offers will be publicly announced. An offer can be done and taken through the Bank's messenger, only by MCA holders. Every time an offer will be placed, the amount of the offer in fiat currency or in Dukasnotes will be blocked by Dukascopy on the account of the offering client in order to secure the transaction. Placed offers can be taken by any other MCA holder (user) without additional confirmation from the client doing the offer. Offers will allow “Fill or kill” (all or nothing) or partial fill types of orders. It will be possible to express prices in different fiat currencies. The bulletin board will only show placed offers. Dukascopy Bank will not automatically match opposite offers, will not ensure FIFO or guarantee execution at best price. Every MCA client will have full freedom to choose any offer. Each deal executed through the bulletin board will be indicated on a public log of concluded deals.
  • Dukasnotes shall be used only in the context of licit activities.
  • Remunerations:
    • transfers of Notes outside Dukascopy's infrastructure will be subject to a transaction fee;
    • transfers of Notes inside Dukascopy's infrastructure between MCA holders are free of charge;
    • transferring of Notes from a MCA custody account to external wallets is subject to fees;
    • Dukascopy reserves the right to apply a positive or a negative interest to holders of Dukasnotes kept at the Bank via the Dukascopy custody service;
    • Dukascopy may charge custody fees for Notes kept on MCA custody accounts;
    • Dukascopy reserves the right to charge a commission at the issuance and conversion of Notes, either into fiat currency or into Notes having a different reference currency. Such commission would induce the appearance of a secondary market where transactions could be done at better conditions than those offered by Dukascopy;
    • Dukascopy fees are payable in Notes;
  • Fractions of Notes paid by clients as commission/fee may either be destroyed or kept by Dukascopy Bank for itself. Dukascopy Bank will reduce the guarantee fund by the nominal value of destroyed Notes.
  • Dukascopy will have the right to cancel Notes with 3 calendar months prior notice. In such case, bearers would be invited to exchange their Notes at Dukascopy against an amount of fiat currency equivalent to the nominal value they hold (at the exchange of 1.00, without spread).

Other obligations taken by Dukascopy Bank with respect to Dukasnotes

  • Dukascopy publishes a White Paper for explaining its Dukasnotes ICO project.
  • The Bank mandates auditors for confirming every year the balance of the guarantee fund and the total nominal value of issued Notes. The result of the audit will be published on Dukascopy Bank's website.
  • Protection against cybercrime: if bearers of Notes loose tokens due to cybercrime directly due to technical vulnerabilities of the managing smart contract, they will be able to claim compensation or replacement of their stolen Notes to Dukascopy. If Dukascopy deems that the crime has been duly proven, it will compensate the bearer(s) at the bearer's discretion either in fiat currency or in Notes. Compensation for all thefts committed and proven during the last 12 calendar months are capped at the amount of commissions/fees earned by the Bank during the same period. Claims should be submitted to Dukascopy Bank no later than 30 calendar days after the theft was committed. The amount of commissions obtained by Dukascopy will be subject to publication on Dukascopy Bank's website.
  • Before official launch of Dukasnotes the managing smart contract should pass independent IT security audit.

Special terms & conditions related to the custody service of Dukasnotes offered by Dukascopy

  • Holders of a MCA custody account must accept that Notes can be credited by third parties to their custody account, without prior notice.
  • Dukascopy's responsibility is limited to devoting proper professional care for ensuring safe custody of tokens. If Dukascopy needs to collaborate with third parties to provide custody services, Dukascopy's responsibility will be limited to selecting such third parties adequately.
  • Dukascopy will provide online reporting allowing clients to see, at any time, how many Notes they hold in custody at the Bank, together with entries and exits of Notes to/from their custody account.

Distribution Partners

  • Dukascopy will create the status of Distribution Partner (DP). This status will be provided to those acquiring more than a certain amount of Dukasnotes. Details are  available upon Non Disclosure Agreement.

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