BITGEAR

Bitgear Ecosystem

Gear Engine

Gear Portal

Gear Market

Gear Defi

Whitepaper Augustus 2020www.bitgear.io

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Contents

Intro

Bitgear Ecosystem

2.1 Gear Engine

2.2 Gear Market

2.3 Gear Portal

2.4 Gear Defi

Why create a token?

Token economics and utility

4.1 Fee reduction

4.2 Bonus/Staking

4.3 Burning

ICO Economy

5.1 ICO details

5.2 Use of funding

Roadmap

Vision and development

Important and legal

Data

1

2

3

4

5

6

7

8

9

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Bitgear.io provides professional and simplifi ed tools for

trading, defi and digital assets, which are wrapped in an

easy to use ecosystem.

We enable you to invest using a simple automated arbitration

engine that will create optimal trading opportunities while

passively investing and use different decentralized fi nancial

products.

Trading manually should be easy. Our simple to use 1-click-

exchange can buy/sell cryptocurrencies at the best prices

possible. Do you want to use professional tools while

trading? Bitgear has a professional exchange with logics

and algorithmic equations at your disposal.

Every part of Bitgear will be connected via a multi-purpose

wallet that enables trading on an array of exchanges

without having to register to any of them. Users do not

need a technical background or know the ins and outs of

arbitrational trading. Traders are also protected by Bitgears'

very own privacy layer “Cloak”. We are aiming to become

the largest, most inclusive, digital asset ecosystem for

everyday users and professionals alike.

Welcome to Bitgear.io

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Bitgear Ecosystem

We are building the “Bitgear Ecosystem” to offer a one-stop-

shop for everything cryptocurrency and trading. You will be

able to trade coins directly to other coins of your choice

with one click of a button locking in the best price, derived

from over twenty different exchanges. Start arbitrage

trading with almost no effort at all and in just a few simple

clicks your personal Gear Engine is ready to go.

The Bitgear Ecosystem is derived using four components,

two of which will be ready for our initial launch. These

components are the “Gear Market” and “Gear Engine”. Both

components are currently in an early alpha state and are

being used and tested to ensure we are ready to go the

instant we fi re up the servers and unlock the GEAR token.

The ecosystem will be expanded as funding and the

expansion of the Bitgear team goes forward but we are very

proud to already have two great and very effi cient tools for

everyday use practically ready to go.

By using Bitgear.io there will be no need to register or go

through the hassle of using other exchanges for buying/

selling most tokens and coins.

We aim to create a welcoming and inclusive ecosystem

that will resonate with all users because of its simplicity

and feature-rich capabilities that are not currently offered

by other digital asset trading platforms.

Bitgear is built with the DeFi ecosystem and its users in

mind. We love the DeFi approach and are creating Gear

Funds to take DeFi to the next level.

Bitgear - Gear Engine

One of the focal points and main components of the

ecosystem is “Gear Engine”. Here the everyday user can

invest their funds and partake in our arbitrational trading

engine, thus creating passive income for all users with just

a few clicks.

Backed by an array of arbitration trading algorithms, the

GearEngine will do all the work for our users. You will not

have to choose a method or style of trading, instead, our

algorithm will take over and choose what it deems the most

profi table strategy. Sometimes it will use all the methods

available, or sometimes just a few. The most important part

is that the users will not have to manage the complicated

part of setting up an arbitration bot, choosing the exchange

or even direct what it should do. We also only use methods

that have a high chance of success, thus reducing both

the chance of risk or failure. If the engine does however

fail on a single arbitration or trading algorithm, Bitgear.io

will bankroll the loss or arbitrage out of our own volume to

make good on the trade, thus turning a failed attempt into

a successful one, using one of our many options to market

make or internal arbitrage.

5PAGE

Our users will not see any of this internal trading, and will

never see a red number on their personal Gear Engine

screen. They will see trade volume, profi tability, as well as

what the current Bitrate / win-rate median is at.

We have so many fail-safes set up that a chance of a loss

on a trade is near 0%. Gear Engine allows the user to take

advantage of every trade regardless of the circumstance.

Here is a quick overview of some of our current market-

making tools, logic, and algorithms. For data on our

percentage earnings and success rates etc. be sure to

check out the data part of the whitepaper.

• Volume-weighted average price (VWAP)

Volume-weighted average price (VWAP) – volume changes

throughout the day/week almost with peaks and valleys at

predictable ranges each time. VWAP: To execute a large

order, the algorithm we deploy depends on the time of day

(minimize the impact on moving market).

• Percentage of Volume (PoV)

Percentage of Volume (PoV) – addresses the problem

of VWAP by using the live trading volume of the day as

a benchmark. The idea is to have a constant percentage

participation in the market to maximize order fi ll effi ciency.

If the quantity remains to be traded is Q, participation ratio

is Y, the algorithm computes the volume V traded in the

period (t-/_\T, t) and executes a quantity q=min(Q,V*Y)

We have a lot of algorithms and market-making tools that

underpin the Gear Engine and working their magic in the

background. Our more complicated and advanced options,

of which there are eight at this time, give us an edge over

the competition.

The Gear Engine is in early alpha, with several months of

both data gathering and testing currently being done.

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Bitgear - Gear Market

The Gear Market is a 1-click-exchange that enables our

users to buy or sell the most popular coins with the click of

a button, all while getting the best market price.

This is done by scanning prices of the chosen currency

on up to twenty different exchanges and buying/selling

via the cheapest market prices available until the order is

fi lled. This creates a cheaper average price than you could

achieve without our system.

To ensure liquidity at all times we may also use our own

liquidity and arbitraging engine to take a favorable trade for

our user if it makes the trade cheaper than what the user

could have done on their own. A single buy/sell order will

trigger a series of events in the background which leads to

our user getting the cheapest price the market has to offer

at that exact moment.

We put out multiple orders on multiple exchanges almost

instantaneously as our own liquidity is used as a buffer to

enable instant 1-click exchanging of assets to our users.

The Gear Market is in early alpha and the private demo is

ready the moment the whitepaper is released.

Bitgear - Gear Portal

For our more advanced traders that want full control of their

trading pairs and want the possibility of the different types

of buying/selling mechanisms, Gear Portal is the perfect

tool. A professional traders playground with an array of

tools at your disposal.

The Gear Portal is not only a multi-purpose wallet. It enables

our users to trade on any exchange without going through

the hassle of registration, and is packed with a wide array

of automatic trading logic and algorithms. Instead of

switching exchanges the user simply uses the Gear Portal,

this will give them access to all the top exchanges and

trading pairs, and all the common trading mechanisms

needed to trade at an advanced level. Here you will have

charts and the needed tools for technical analyses all

embedded within our ecosystem.

The logic system and trading algorithms are very advanced

and easy to use and can be managed without the need

of a technical background. Easy to use, professional, and

highly effective is what we are going for. In our Gear Portal

ecosystem you are able to set everything from cost average

buying, automatic accumulation, price triggered buying/

selling, to more complicated logic like percentile activated

partial buying/selling or price tracing percentile buying/

selling.

Algorithm and logic creation will be subject to a community

bounty program where we will honor the best and brightest

ideas with certain bounties depending on popularity. This

will be an ongoing effort over the whole lifespan of the

company to insure involvement of the community for future

development.

All of this is achieved without ever leaving the comfort and

safety of the Bitgear Ecosystem. We will in turn ensure

highest security standards and take on the complete risk of

fund loss away from our users.

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Bitgear - Gear DeFi

Due to current demand from our customers, we are also

creating Gear DeFi. Anyone that would like to have some

part of their assets invested in this new and exciting asset

class for the longer term will be able to use Gear DeFi and

its wide range of available products.

Gear DeFi will be a feature-fi lled ecosystem with special

tools ranging from classic funds to full DeFi aggregators

enabling yield farming to the average user.

This will include a DeFi lending and staking platform as well

as the Bitgear.io private Defi network. Our multi-purpose

wallet will revolutionize passive investing and adoption of

DeFi products from different providers without the risk of

revealing your identity or having to go through the hassle

of lengthy KYC procedures. Our DeFi aggregator will allow

very simple to use, 1-click yield farming options, and a wide

variety of decentralized fi nance tools for both the technical

trader and everyday investor.

We envision this as an easy way for all of our users to be able

to get exposure to a diversifi ed portfolio of various funds,

and hedging mechanisms all within a legally regulated

environment where your equity is secured at all times.

Bitgear.io is currently looking into the possibilities of

acquiring a full fl edged banking license within the EU.

GEAR Economy

Total Supply: 91,000,000 GEAR

Initial Circulating Supply: 69,975,000 GEAR

Presale Rounds: 49,500,000 GEAR 1

Marketing: 16,500,000 GEAR 2

Team: 19,000,000 GEAR 3

Liquidity: 6,000,000 GEAR

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The total supply of GEAR is 91,000,000, which will

be represented as an ERC20 token on the Ethereum

blockchain. If we move to create our own chain we will

enable a swapping mechanism at that time.

Some of the tokens will be subject to a regulated lock-up

and will vary depending on contractual agreements. GEAR

tokens are subject to B2B practices and will only be given

to seed investors and strategic partners.

10% of the tokens, namely the development token

allocation, will be subject to a timed lockup. The liquidity

tokens represent 5% of the total circulating supply and will

be used to provide liquidity. 65% of all tokens will be sold

to supporters of the project that believe in the long term

growth.

We will be able to re-acquire tokens in the form of a buy-

back for a token burn in any way we deem necessary. This

includes acting as a normal buying entity on the secondary

market or our own exchange.

Use of funding

The funds will be used to ensure further development of the

platform and website as well as guarantee our project team

can stay 100% focused on continuing to develop the tools

within the Bitgear ecosystem.

Up until now this was accomplished by using our own

funds and bootstrapping the project without any outside

source of funding or investment. New partnerships and the

hiring of new members of our team will ensure a steady

and continuous rise in quality and the development to a full

decentralization of our platform.

The formation of a large support team will be one of our

main goals coming out of the funding. This is to ensure

maximum customer satisfaction and minimal reaction

time to any support questions our community might have.

A part of the funding will be used to hire marketing

managers and launch a marketing campaign which will aim

to spread our new exciting website and its unique approach

and possibilities to the masses. Our goal is to appeal to the

casual user and score in the area of simplicity.

Lastly, we will be using the largest portion of our liquidity on

our trading engine as this will require the largest investment

in both time and resources. Finishing the Gear Engine will

greatly improve our ability to capitalize on arbitration and

market making opportunities.

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Bitgear - Roadmap

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Why create a token at all?

One of the important questions we asked ourselves when

we started this project was “why create a token?”. We

aim to create a completely decentralized ecosystem. One

which will not be subject to the wrongdoing of a centralized

economic system, where small businesses and individuals

are not hindered by the political and fi nancial motivations

present in centralized entities.

To be able to scale at a later date and go the immutable

way of decentralization, we created a token that would

open up many possibilities and enable us to get closer to

our goal of being a company that is acting on behalf of our

users and partners. One of the possibilities is horizontal

scaling where we could still interact with the Ethereum

mainchain via ERC20 token but run on a sidechain of

Ethereum or another chain with bridging capabilities using

a lightweight consensus mechanism. We also aim to use

decentralized computing power to run our algorithms and

straight logic engines.

With these reasons in mind, we decided to create a token

that will be integral to our ecosystem in both scale and

utility. As you will see in the utility of our token we are also

going for an approach where we engage and incentivize

within our ecosystem in a way that is benefi cial for token

holders.

open up many possibilities and enable us to get closer to

our goal of being a company that is acting on behalf of our

users and partners. One of the possibilities is horizontal

scaling where we could still interact with the Ethereum

mainchain via ERC20 token but run on a sidechain of

Ethereum or another chain with bridging capabilities using

a lightweight consensus mechanism. We also aim to use

decentralized computing power to run our algorithms and

With these reasons in mind, we decided to create a token

that will be integral to our ecosystem in both scale and

utility. As you will see in the utility of our token we are also

going for an approach where we engage and incentivize

within our ecosystem in a way that is benefi cial for token

Where are we currently and what have we already achieved?

Our arbitrage engine is up and running, and we are already

seeing (with limited funds) the capabilities of the platform.

A lot of components are already tested and are in the MVP

stage with most of the technical development having

already been completed.

We are currently looking at potential partnerships that can

help with decentralization. This project has been years in

the making and we are already using the engine on our

personal portfolios while using this opportunity to continue

to gather data from real-time trading and simulations. We

will continue to work to get our liquidity pool up and running.

This will enable us to put all of our work into a full fl edged

business and maximize our possibilities.

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TOKEN economics and utility

The GEAR token acts as fuel for the Bitgear ecosystem. To

use our Gear Engine arbitrage tool you will have to hold a

certain amount of GEAR (to be announced), which will be

used as a “fuel” component that makes the engine run,

allow token transfers to and from the Bitgear.io wallet as

part of an investment pool.

GEAR acts not only as the wheel that moves your

investments and makes them participate in the Bitgear

ecosystem, but also gives you a bonus payout on top of your

payout depending on the current ratio of earnings made by

the Gear Engine.

While GEAR is being used for the use cases shown above,

there will also be a burning component. Depending on the

revenue the Gear Engine generates we will burn a certain

amount of tokens. These burn events will not have a fi xed

time but a fi xed logic behind it. The timing of the burn will

be spontaneous while still using the formula that applies to

our burning mechanism. Essentially we do not want traders

to speculate on the burning mechanism and timing that is

meant to reward holders of GEAR.

Since we want to give our investors the best experience

possible while participating in our ecosystem we feel that

this is a good approach to the burn mechanism.

Overall GEAR will comprise four underlying utilitarian

components. Burning, bonus, fee reduction, and fueling.

This gives the token utility, while also not acting as a

security. Our goal is to not be classifi ed as security since

this would come with a lot of regulations, we will gladly

change this. As regulations and laws change going forward

we will continue to evaluate and will consider making

changes that benefi t our token holders.

This is why we opted to go with a utility token instead of a

security token. We want everyone to be equally rewarded

for being an investor with us. We will go more in-depth

to the different utilitarian components of our token in the

following;

1. GEAR - Fuel

2. GEAR - Fee reduction

3. GEAR - Bonus (staking)

4. GEAR - Burn

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GEAR - Fuel

The token is needed to fuel the engine that enables the

arbitraging (aka Gear Engine) component of the system. It

will be used to enable various tasks and fuel the system

as a whole. How much GEAR is needed will depend on the

general usage of the platform itself and will vary depending

on the trading volume as a whole, as well as the number

of users that are running their engines simultaneously.

You will always be shown how much Gear Engine time the

amount of GEAR provided will be able to achieve and how

high the bonus for the given amount will be.

A minimal burning process of the GEAR that is used will

get triggered and will depend on various factors such

as the total network load of the Ethereum network, GAS

needed and fee structure of the different exchanges that

are currently used for arbitraging the different investments.

For the period of the trading process, your GEAR will be

locked in place but can be removed anytime by simply

pausing the Gear Engine process. Your unused GEAR + your

investment will be returned to your personal wallet after

a short unlocking period. The burn and the bonus will be

calculated on the next usage of the Bitgear.io Gear Engine

platform.

The burn rate of GEAR as fuel will be set to 0.01% per 24h

for the initial start of the platform but will change due

to adoption changes and improvements the site will be

constantly undergoing. Do keep in mind that we will also

have a random token burning event depending on the total

revenue of the site.

Work in progress so to speak and is defi nitely subject to

change to a fair and modest rate. We will always disclose

the new burn rates on our social media ahead of time.

though the timing will vary so speculative trading based on

the burn can be avoided..

The burn rate may be subject to community voting at

some point so everyone will get to enjoy holding GEAR and

participating as a community on decisions that can impact

the platform as a whole.

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GEAR - Fee reduction

When using our Bitgear ecosystem there will be trading

fees which are paid in GEAR or in ETHEREUM if no GEAR

is used in the process. Using GEAR for trading fee payment

is rewarded by a 50% reduction of the fees overall. This

greatly benefi ts our users and our Bitgear ecosystem by

rewarding GEAR holders while also creating a way for the

Bitgear team to incrementally buyback GEAR ensuring a

smooth burning process when the time has come.

As we will be introducing new and exciting expansions

to our ecosystem the fee utility will rise with every new

introduction and will benefi t the holders and users of the

token more with every step forward. We intend to use GEAR

as a fee reduction mechanism but it will also have other

utility within the entire ecosystem.

*A special use case (due for further testing) the Gear Fund

will be closed and private, at fi rst will be a management

fee reduction of 0.5% when using GEAR to pay said fees.

So depending on the form we can legally go forward with

our Gear Fund, will also use GEAR in face to face fi nancial

advising.

GEAR - Bonus/Staking

When using GEAR to fuel the different components on

Bitgear.io you will also be rewarded with a bonus depending

on the amount of GEAR you stake. So not only will it fuel

your engine with a minimal amount of GEAR but it will also

provide you with a bonus (for example on the amount of

arbitrational earnings that are made).

Over time we will lower our earnings as a thank you to

the community for using and locking your tokens. Staked

tokens will be locked up for a fi xed timeframe and fi xed

amount with a rising tier system depending on the total

amount staked.

Both the lockup and bonus will be communicated with you

ahead of time in a clear and simple manner.

Our bonus tier system will reward GEAR holders based on

the amount they are holding. This tier system will grant

bonuses in the form of fee reductions of up to ~33% for the

Gear Engine. So at the maximum tier we would be deducting

10% from the earnings instead of 15%. The exact number of

fee reduction of the different components of the ecosystem

will be determined as we continue to test the system on a

larger scale. Increased liquidity will enable us to fi ne-tune

the settings and create a structure that best benefi ts our

users. We are currently looking at implementing a three-

tier-system with every tier requiring 100% more tokens than

the previous one.

GEAR - Burning

As the engine runs and generates revenue for our customers

and for Bitgear.io itself the GEAR token will be equipped with

a burning feature that will be performed at random intervals

dependent upon the revenue generated during that time

period. This means that we will burn tokens equivalent to a

certain percentage of the profi t of Bitgear.io. Unlike what is

commonly done by other exchanges these burns will not be

at fi xed dates or at a fi xed sum but rather at random times

at fi xed rates to counteract speculative trading of the GEAR

token.

GEAR burning will be completely based on income and

will burn a 20% equivalent of our profi ts in token value and

reduce the total supply of the GEAR token this way.

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Vision and future development

We have a lot of different goals for the future of our

platform. One of the goals is to become a very large

liquidity provider for current centralized and decentralized

exchanges. We also aim to act as a tool to smooth out

arbitrational spikes between exchanges by introducing a

large amount of volume by market making. This can lead to

a more homogenous market overall and eliminate the need

to be “on the right exchange” when it comes to trading.

Listings and new cryptocurrencies that have just been

added for trading can suffer from a huge arbitrational gap

which we can both take advantage of and help reduce.

The larger our personal investment assets are the more

we can act in this fashion. This also lowers our fees since

exchanges profit from the liquidity and smoothing out of

market movements considerably. We aim to get most of

the exchanges to a similar price as quickly as possible and

eliminate huge gaps in price in the process.

Scaling in terms of speed and maximum arbitrational

yield is currently the goal and will be our top priority in the

development of GEAR. We aim to be able to arbitrage even

the smallest of spatial arbitrages by reducing the fees to

an absolute minimum, making even small trades profitable.

This will be achieved by providing the exchanges with a

high amount of liquidity and trade volume for which an

honorarium in form of fee reduction is usually granted as

written previously. Exchanges love liquidity and we intend

to provide exactly that. In terms of speed we will be building

our physical servers very close to the largest exchanges

that are currently operating and will spread servers across

the globe when speed becomes the only last competitive

point, which it currently isn’t. Our testing indicates that we

are already faster than most of the competition due to our

streamlined logic and algorithms.

Full decentralization of the platform by using the power

of decentralized computation to run the Gear Ecosystem

without the need for servers. The engine is very lightweight

and already optimized for maximum efficiency and speed.

This greatly benefits the steps that are needed to make the

platform truly decentralized. The speed (tps) is sufficient

to sustain the speed we need for our arbitrational trading

engine and service we provide to our customers. While this

is our ultimate goal we will always put user experience as

our priority and will move to a decentralized system only

when we are happy with the speed and overall experience it

will provide our users.

Our biggest goal is to make Bitgear.io an ecosystem

that can provide a multitude of services that any person

interested in cryptocurrency can benefit from. This includes

the inclusion of a FIAT gateway and the usage of our

ecosystem with said FIAT without the need to exchange

it beforehand (thus reducing the need for high fees). For

this we plan to set up our company at a crypto-friendly

environment within the European Union. This move has

already been done by some of the biggest exchanges and

will make the implementation of FIAT a realistic goal. Our

idea is that everything crypto should be able to be done

in a few clicks. This includes trading arbitration like a pro

or exchanging your currency into another, all while feeling

confident it will be bought or sold at the best price possible.

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Important and legal

We as a company do not intend to stay still at any given

moment or let this whitepaper hinder us in any way but act

more as a guideline on things we want to achieve and goals

we have set for Bitgear.io. This is why we want to distance

ourselves legally and state that this whitepaper is not to

be seen as fi xed regulations or even “the law” but rather a

roadmap that is at heart an encouragement to adaptation

and fl exibility.

We believe you need to adapt whenever change is needed

or an opportunity presents itself ready to be seized to be

a winner in the end. Only by keeping possibilities in mind

and taking chances we can truly fl ourish. And we defi nitely

intend to do so while keeping our users best interest in the

focus of our decision making.

Although we have a licensed fi nancial advisor in our ranks

we can not deem this fi nancial advice since we are not

able to analyze your personal fi nancial situation and offer

tailored advice afterwards.

Investing in the token we provide, is solely to partake in the

Bitgear.io economic system that runs on a token, which

provides integrated utilities and is controlled by smart

contracts that run on the Ethereum blockchain. We do not

condone trading of the GEAR token on a secondary market.

Depending on your current residency our token might be

deemed a security in your country. If you are unsure if this is

the case please check with our local authorities or contact

a lawyer that is familiar with cryptocurrency and securities

investment.

As of this moment we see our token as a utility tool for the

usage of our platform, and will serve in the near future as

a catalyst in our focus in becoming a fully decentralized

exchange. We can not guarantee anything in the nature of

economical market value, or even tradability of the token

outside of our ecosystem, but will always work towards

providing the best basis for maximum success.

Data:

Data on 30 day straight logic arbitrage with only guaranteed

earnings: Coins/Tokens: ETH VEN NEO GAS

due to the very limited liquidity only these are currently

possible in real world application use on only 2 exchanges

Average earnings in percent = 0.96% per day

Trades that might appear as duplicate entries are not

duplicates but in fact they represent multiple trades that

we compiled out of 100s of the exact same trade to slim

it down a bit.

Data on 30 day straight logic arbitrage with only guaranteed

earnings: Coins/Tokens: ETH VEN NEO GAS

due to the very limited liquidity only these are currently

possible in real world application use on only 2 exchanges

Average earnings in percent = 0.96% per day

Trades that might appear as duplicate entries are not

duplicates but in fact they represent multiple trades that

we compiled out of 100s of the exact same trade to slim

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Appendix