Loyakk Vega Business Overview - O22 · annually due to increased costs and lost revenues. Zdnet estimates the cost of data leaks to the global economy to be $2 Trillion USD by 2019

LOYAKK VEGA ENTERPRISE RELATIONSHIP PLATFORM

Business Overview

Loyakk Vega Enterprise Relationship Platform

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DISCLAIMER

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TOKENS MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR

HYPOTHECATED EXCEPT AS PERMITTED HEREIN.

The Motivation…................................................................................................ 4

The Platform….................................................................................................... 6

The Token…........................................................................................................ 9

The Application…............................................................................................... 10

The Value Webs ….............................................................................................. 13

The Transformative Impact…............................................................................. 18

Roadmap..…......................................................................................................... 20

The Team…..................................................................................................................... 21

Additional Considerations......................................................................................... 25

Table of Contents

Loyakk Vega Enterprise Relationship Platform

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Building The Next Generation Enterprise Business Networks To Enable Businesses ToCollaborate & Thrive In The Decentralized Economy

The output of each business is a component of and contributor to an overall value chain.Whether it is refineries producing oil that ultimately becomes jetfuel or it is a servicescompany building software that helps find oil, each business is a part of the overall fuelsupply chain in the world. The economic benefit derived by a business depends on itsability to collaborate with others in the value chain and the overall size of the market. Inreality, these value chains are not linear and include simultaneous contributions frommultiple members of the value chain.

Loyakk's mission is to transform how businesses create and deliver value in the newdecentralized economy with their globally distributed network of partners, channels,distributors and vendors. Businesses today face multiple challenges related to datasecurity and privacy, data reconciliation, contract disputes, inefficient processes andlimited governance within their business networks leading to billions of dollars lostannually due to increased costs and lost revenues. Zdnet estimates the cost of data leaksto the global economy to be $2 Trillion USD by 2019.

Loyakk is addressing these business challenges through our patent-pending blockchain-enabled Vega Enterprise Relationship Platform. Loyakk Vega is an enterprise-gradeplatform that is being designed specifically for secure business-to-business engagement. Itleverages patent-pending blockchain technology to support permissioned sharing of data,standardized communication interfaces, accelerated movement of value based on smartcontracts and consistent propagation of business rules & security policies - leading togreatly improved security, efficiency & distributed governance across any businessnetwork.

The Vega Enterprise Relationship Platform will enable exchange of data, business contextand value in a secure, permissioned, verifiable and immutable manner. Enterprises canshare sales and deal data, actionable intelligence, leverage and drive automatedprocesses via smart contracts and do business with anyone across the world as long asthey create value for the end customer.

The Motivation

Loyakk Vega Enterprise Relationship Platform – Business Overview

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Loyakk is building the blockchain-enabled Vega Enterprise Relationship Platform to enableenterprises to connect, interact and exchange data and value with their various partnersand customers in their business network. We will power Business Networks where data,information and value are exchanged based on complex business contexts, distributedrelationship structures and legal agreements.

'Blockchain-powered business networks is a very compelling notion when youconsider the needs of business to streamline & secure interactions across thebusiness partner network. Loyakk's vision and platform to create decentralized ValueWebs holds much potential.” Anthony Thomas, Global CIO, Nissan Motors

“By reimagining how business interact and move data and value betweenorganizations, blockchain has the potential to disrupt the broader businessapplication space. Loyakk has the required technical and business managementexpertise and the enterprise software DNA to deliver on this audacious goal ofbuilding enterprise value webs.” Jonathan Becher, Chief Digital Officer of SAP andInvestor in Loyakk.

“Enterprise Applications have been left untouched thus far by the power andpotential of blockchain, which is ironic given the billions in value that move betweenenterprises each day. Loyakk’s vision to bring together secure datamovement coupled with much more tightly connected ecosystem value chains isa very compelling vision, and holds the potential for rewriting the rules of enterprisesoftware.” Patricia Hatter, ex-CIO, McAfee.

Loyakk’s customers include global brands such as SAP, Abbott Labs, Novartis, Infosys andMphasis. These companies use the current Loyakk Vega platform to manage high-valuerelationships with their customers and partners in a unified and high-touch manner, andare providing valuable input and insights into the function and impact of blockchaintechnology on distributed & decentralized business networks. This knowledge andrequirements are key in defining our vision, strategy and roadmap for the blockchain-enabled Vega Enterprise Relationship Platform. We will continue to work with ourcustomers to evolve our blockchain platform and solution strategy.

Loyakk is run by a blue-chip team with a potent mix of enterprise software DNA andtechnical capabilities spanning business applications and blockchain. The team has filedBlockchain Patents, worked on Hyperledger Fabric and Quorum based applications, builtStock Option Trading Systems at ETrade, and High-Frequency Trading Platforms at CMTand Pension. The business leadership has led the creation of multi-billion dollar solutions,and orchestrated global marketing efforts at SAP, Oracle-Siebel & VMware.

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The Platform

The Loyakk Vega Enterprise Relationship Platform will leverage patent-pending nested-blockchain architecture and a proprietary consensus mechanism to share and/or movedata and value between business network participants based on identity, relationshipand business rules. Vega will thus deliver key features that are the foundation of value-webs. These are as follows:

u Secure Information Exchange – In a Loyakk-powered Business Network, informationis value. Building operations around an business network begins by ensuring allusers get access to the right (shared) data and ensuring that this data is verifiable,permissoned and immutable.

u Workflows – Data moves at times manually and at times programmatically.Regardless of what initiates data movement (across organizations and blockchains),it needs to be controlled and be auditable. For this purpose, Vega supports dataworkflows between all business network applications across the blockchain. Thesedata workflows are aligned with business processes; the right information issecurely shared based on relationship contexts, legal agreements and applicablebusiness rules. Individual parties can control and track access to their proprietarydata or content.

u Relationship Management - Relationships are the cornerstone of any businessecosystem. In value-webs relationships are dynamic and relative. Vega’srelationship management capabilities enable enterprises to create and managerelationships amongst participants of the value-web with a goal of maximizing thethe output of the ecosystem.

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THE

PAST

THE

FUTURE

Billions of interactions that happen each day are distributed across

email & archaic systems, and are:

- Unsecure- Chaotic- Difficult to track across

company boundaries

Vega Enterprise Relationship Platform enables creation of Business Networks that are:

- Partitioned - Completely Secure- Auditable- Unified Business

Context, Data & Value movement

The Loyakk Vega Platform transforms Business Network Interactions and Sharing of Critical Data & Value

The Loyakk Token enables Permissioning, Standardization and Propagation of Data, Value & Rules across the Business Network. The function of the Loyakk Token is described in the Token section of this document, and also in the Tokenomics document.

Note: all flexible blockchain zones shown above are hypothetical use models are for illustration only.

For more details on the foundational Blockchain aspects of the Loyakk Vega Platform, please refer to the Solution Architecture Overview available on the Loyakk Website: http://www.loyakk.io

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Businesses will be part of multiple Business Networks

powered by Loyakk

The BIG Picture

The Loyakk Vega Platform enables Business Networks with Flexible Blockchain Zones

The Loyakk Token is essential for all inter-company

interactions across Value Webs

The Token

All parties using the Loyakk Vega platform require the Loyakk token to interact &transact within the Loyakk-powered Business Network. The Loyakk token is a carrier ofdata along with the rule and permissions that control access and propagation – beyondcompany boundaries. It enables Permissioning, Standardization and Propagation ofData, Value & Rules across the Business Network, as described below :

Permissioning - The Loyakk token carries the permissioning rules that set theappropriate visibility and access control rules for the network – be it at individual, team,organization or across companies. The Loyakk token thus ensures that confidential datais accessed by only authorized parties.

Standardization - The Loyakk token specifies the common interface, standard formatsand the rules for data interchange and interoperability so multiple parties can interactand transact seamlessly with each other.

Propagation -The Loyakk token propagates network-specific data, governance rulesand policies that control how the data is used, processed, propagated and updatedbased on identity, relationship, location, segments and user behavior. This ensures thatbusiness is conducted in adherence with the rules of the Business Network.

The Loyakk Token details are further described in the ‘Tokenomics’ document availableon the Loyakk Website: http://www.loyakk.io

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The Application

The Loyakk Vega Enterprise Relationship Platform’s Application Layer includes a set ofapplication modules that enable an enterprise to manage relationships across itsbusiness network.

The Vega Applications use Loyakk tokens to enable secure exchange of data, rules, andvalue within the business network. The platform leverages patent-pending nested-blockchain architecture to validate transactions and move data and value betweenecosystem participants based on identity, relationship and business rules. Following aresome of the key capabilities of the Loyakk Vega Enterprise Relationship ManagementApplication:

Partner Management Module

Enterprises collaborate with Partners to meet new demands from customers. Thepartner management module enables granular sharing of critical deal, market andsolution data, co-selling, revenue-sharing and partnering on delivery services deliveredover a set of workflows that are unique to the partner management. The partnermanagement module is thus a foundational component on which value-webs are built.

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Channel Acceleration Module

With the channel engagement application module, enterprises can enable, engage andempower channel partners to sell faster, service customers better and execute onchannel strategies in a unified and consistent manner. With channel relationshipsexecuting around the blockchain-enabled Loyakk Vega platform, businesses and theirchannel partners will be able to share relevant customer data & insights, execute smartcontracts, manage deal registrations, run loyalty programs, and manage channelrelationship with greater efficiency and effectiveness.

Vendor Management Module

Multiparty vendor relationships are core to value-webs. The vendor managementmodule enables enterprises to manage their relationships across all vendors in a unifiedand consistent manner and enable dedicated experience based on predefinedengagement templates, policies, locations, product and service agreements.

Customer Engagement Module

Regardless of the specific entity customers are transacting, so long as the entity is a part of a value web, Loyakk's customer engagement application ensures enterprises are to deliver unified, personalized, experiences on to customers based on their profile, location, behavior and relationship attributes. More importantly this delivery will be consistent and compliant with rules as required (business, legal etc.).

Distribution Management Module

Enterprises in distribution-intensive businesses need to work with multiple stakeholders including suppliers, inbound and outbound transportation, customs, packers, insurance and financial institutions. The Loyakk Vega platform enables them to share contracts, place orders, manage deliveries & stock movement, invoices, payments, letters of credit etc. within a common private blockchain ledger. With data verifiability, immutability and provenance tracked at every point of the supply chain this module is valuable for industries like food, pharma, industrial products where counterfeiting is a real problem.

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Common Platform Components

These services span the range of core components that drive day-to-day interactionsand will be leveraged by Customer, Channel, Partner, Distributor and Vendor modules:

u Content Publishing – Enabling users to publish and manage any type of content(rom multiple sources. Content access is permissioned and thus controlled.

u Conversations – The Loyakk Vega platform enables secure unstructuredconversation modalities to suit interaction needs such as sharing time-sensitivecustomer escalation, confidential deal data and critical business performancemetrics with customers and partners in the ecosystem.

u Analytics – All the data within the Value Web can be tracked with provenance,analyzed and reported. Given the high quality of the data, analytical conclusionsdrawn will be accurate and relevant.

u Unified User Experience - The Loyakk Vega platform has been architected todeliver unified, hyper-personalized relationship experiences to multiple ecosystemsegments based on user profile, relationship, location, behavior etc.

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The Business Networks

Loyakk’s Vega platform creates an ‘Uber Layer’ on top of applications deployed on theplatform This gives rise to company-centric Business Networks. These will be industryspecific - High-tech, Insurance, Wealth Management and Life Sciences & Healthcare etc.Loyakk will collaborate with domain-specialist partners to define and execute onrelevant industry solution roadmaps and go-to-market plans.

High-Tech Industry Business Network Use Case (B2B)

Enterprises will enable Hi-Tech businesses to rethink their High Value relationshipsacross their business networks. By bringing partners, contractors, resellers and othersales agents into the sales cycle, businesses will be able to transform how they engageacross their global ecosystem.

A software vendor, for example can utilize Vega for the entire RFP to proposal tocontract to project execution and payment lifecycle. The vendor can securely shareconfidential and selected customer and deal information with specific partners spreadout anywhere on

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Members of this value-web can co-create proposals by sourcing and assembling proprietary andconfidential information and content from multiple partners / sources. If and when the contractis awarded to the software vendor (or consortium), the vendor can then engage participatingpartners via smart contracts as applicable. Project information, activities and results can berecorded on the blockchain for verification, provenance of project tasks can avoid potentialproject issues, while smart contracts taking care of enforcing the rules for engagement andpayments.

Insurance Industry Use Case

A distributed value web powered by Vega can enable the insurer and various third parties toeasily and instantly access and update relevant information (e.g., claim forms, evidence, adjustorreports, police reports etc.) and efficiently execute their roles via pre-established smartcontracts. With Vega's ability to provide a shared data repository / ledger across multipletrusted parties in the value web, Insurers can independently verify the authenticity of customers,policy contracts and increase the velocity of the quote and policy issuance while reducing oreliminating errors. New data feeds can combine location, 3rd party risk data and analytics toimprove the risk selection process and help in product innovation.

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In the use case above, an High Net Worth (HNW) client buys expensive Jewelry from aretail outlet. The retail outlet does an instant credit check, approves the client and makesthe sale. The financial advisor is notified about the transactions and alerted that theclient’s portfolio’s allocation has changed vis-à-vis the client’s risk profile and the model.The Portfolio manager makes the necessary investment decisions to rebalance theportfolio and notifies the client.

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Wealth Management Industry Use Case

The Use Case below illustrates how a Wealth Management Firm will be able to delivergroundbreaking relationship experience to it's most valuable customers. Working across thecustomer's lifestyle and bringing in new services and partners, Financial Service firms will beable to delight the customer while delivering services that are uniquely tailored to thecustomer.


Further, client, product and risk information are selectively shared with the insurancecompany that generates a quote. Once the quote is accepted, a smart contract isestablished with the client’s insurance company to issue the insurance policy with relevantcoverages for the newly purchased jewelry. Smart contracts also take care of the advisoryfee payments and the fees for the using the models. Vega also ensures that each entitysees only relevant / permissible information while delivering a high-touch, personalizedexperience for the end client. Identity and relationship templates ensure personalized,high-touch interactions and engagement between all parties.

Life Sciences Health Care (LSHC) Use Case

Multiple parties – patients, providers, payers, and pharma companies - in Life Sciences &Health Care (LSHC) industry have to securely and seamless share data to deliver greatervalue and care to their patients. While this is a crucial need, lack of viable relationshipsolutions are resulting in significant challenges in the areas such as patient trust andindustry collaboration amongst provider networks and health information exchanges.

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With Loyakk Vega’s Business Network for LSHC, providers and participants in the businessnetwork will be able to access selective partitioned data related to the patient’s medicalrecord. The patient will be play a key role by controlling / permissioning the data sharedwith the entities in the ecosystem.

The Loyakk Vega Platform can also impact Clinical Trials by providing the ability forcollaboration across the Value Web of stakeholders such as institutions, sponsors, andregulators. The Loyakk Vega platform will also provide visibility and end-to-endtraceability (and verifiability by regulators) as drugs move through the supply chain and,intermediaries validate receipt and provide updates on status.

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The Transformative Impact Of Business Networks With Loyakk

Enhanced Business Network Collaboration & Relationships

Vega's shared data, smart contracts, and automated processes connect and enable allmembers to get on the same page, contextually engage with each other, accelerate revenuegeneration, reduce transaction times, decrease processing costs and improve overallexperience and satisfaction for customers and all ecosystem members alike.

Smart, Innovative Business Models

Vega's value-based relationship structures, intelligent processes, personalized, multi-channelexperience delivery and revenue-sharing dynamics will power smart, innovative,decentralized, scalable business models. Enterprises can expand their ecosystem, forge newrelationships and drive increasingly sophisticated interactions and transactions on theblockchain. This in turn will enable these ecosystems to continue to achieve greater levels ofautonomy and ultimately evolving into self-governing, cognitive business networks.

Revenue Transformation with Efficient Value Movement

Vega accelerates large and complex deals across multiple participants of a value-basedecosystem by automating contract management (deals, pricing, offers, discounts,performance criteria & contract fulfillment). Asset movement across the ecosystem thenbecomes accretive and not dilutive. E.g.: vendors and channel will be paid on time andaccurately and with better line-of-sight to revenue across the ecosystem. Processing timesand costs are greatly reduced and overall execution and profitability is vastly improved.

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The Loyakk VEGA Partner Network

Loyakk will build a network of development partners with whom we may jointly developspecialized solutions for industry-specific business networks and also enable developersto build specialized solutions that will augment the Vega Platform & Applications andgive our customers added value and choice.

The foundational Patent-Pending Blockchain aspects of the Loyakk Vega Platform aredescribed in Solution Architecture Overview document available on the LoyakkWebsite: http://www.loyakk.io

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The Loyakk VEGA Roadmap

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Any significant changes to the timeline will be reflected on www.Loyakk.io from time-to-time

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The Team

Salim Ali, CEO & Co-founder

Salim has led creation of multiple products and programs targeting enterprise customers.As Global Vice President at SAP, Salim conceived & scaled multiple new business withrevenue KPIs of $1.2B, and jumpstarted SAP’s Digital Business. Salim's experience spansproduct management and engineering across Veritas, Tibco and Openvision. Salim is afrequent speaker on Blockchain and it's impact on Enterprises, and has been instrumentalin defining Loyakk’s Blockchain-anchored Value Web framework and the resultingbusiness solutions. Salim has MBA from The Kellogg School at Northwestern, and an MSin Computer Science. Salim can be reached at [email protected]

Jitu Telang , CTO & Co-founder

Jitu has significant experience building large scale realtime response and data miningplatforms. His most recent responsibility at CMT and Penson Financials included craftinghigh frequency trading platforms, and developing and managing multi-million dollartrading strategies. Jitu has held senior development roles at IBM and Trilogy. Jitu hasorchestrated Loyakk’s patent-pending Blockchain architecture that provides an Adaptive& Nested Node Architecture both of which are essential for Enterprise usage andadoption of Blockchain capabilities. He holds a Masters in Computer Science fromLouisiana State University. Jitu can be reached at [email protected]


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Jaijiv Prabhakaran, Chief Architect

Jaijiv is a senior and accomplished technologist with over 15 years of experience insoftware development. His most recent experience includes designing and developinglarge scale object oriented OLTP systems at ETrade as a Senior Architect, where he wasresponsible for developing ETrade's award winning trading platform. Prior to ETrade, healso worked in lead positions at Sun Microsystems and Datamatics. Jaijiv holds a Master'sdegree in Computer Science from Louisiana State University.

Tsvetan Georgiev, Technical Architect and Development Lead

Tsvetan is part of the team responsible for architecting Loyakk's blockchain-enabledenterprise relationship platform core that blends proprietary patent-pending blockchaincapabilities with Ethereum, Quorum & Corda frameworks. Tsvetan has experiencearchitecting blockchain applications and developing tools on Hyperledger Fabricincluding helping enterprises integrate blockchain technology with enterpriseapplications such as SAP. He has designed complex use cases on Hyperledger andplayed a pivotal role in the development of a Hyperledger CD Management Consolewhich focused on abstracting the complexity of creating and managing blockchainnetwork on Hyperledger - by leveraging Fabric Java SDK, REST APIs and Docker APIs.

Jimjees Abraham, Blockchain Solutions Architect

As Solutions Architect, Jimjees is focused on developing solution blueprintsincorporating Loyakk's patent-pending extensions to elements of Ethereum andintegrations with back-office systems for Loyakk's industry-specific Value Web solutions.He has also designed and developed blockchain-based solutions in the areas of supplychain and loyalty management on Hyperledger Fabric. Jim has experience identifyingkey value drivers in blockchain-based transformations helping enterprises in theirblockchain adoption. Jim worked as a solution architect in SAP Labs and SAP consultingfor 14 years, mainly focusing on CRM and Banking.


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Sadiq Quasim, Director, Loyakk Ltd.

Sadiq runs Loyakk Ltd. the primary entity responsible for driving the Loyakk ICO andorchestrating awareness and adoption in UK and Europe. Sadiq's innovative efforts to bridgetechnology to business requirements have been applied in initiatives across major centralgovernment organizations like the Cabinet Office and The DWP, as well as blue chipcompanies EDS, CSC and Bupa. Sadiq's vision for Loyakk is to empower enterprises toreinvent the way they drive business and value across their fast-growing ecosystem ofcustomers, channel, partners, distributors and suppliers. Sadiq has been a critical part of theextended team defining the blockchain-enabled Vega Enterprise Relationship platform.

Rakesh Sreekumar, Chief Marketing Officer

Rakesh is responsible for all things marketing and for Enterprise Adoption of the Loyakk VegaEnterprise Relationship Platform. He is a keen observer of the Enterprise Blockchain marketand has helped conceptualize Loyakk’s industry-specific value web solutions. Rakesh has ledmarketing efforts at Siebel and VMware, where he worked directly for the head of worldwidemarketing, helping launch & manage enterprise marketing initiatives. Rakesh has broadmarketing experience building category leaders across the breadth of the software industryspanning CRM, Business Intelligence, Marketing Automation, ERP, Industry Applications,Mobile, Cloud and Infrastructure Solutions. Rakesh has an engineering undergrad and amanagement degree from XLRI, India and an MBA in International Business fromThunderbird School of Global Management.


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The Advisors

Jonathan Becherex-Chief Digital Officer, SAP / President, San Jose Sharkshttps://www.linkedin.com/in/jbecher/

Patricia Hatterex-CIO, McAfee, Intel / Board of Directors, Barrick Goldhttps://www.linkedin.com/in/patricia-hatter-5473873/

Anthony ThomasGlobal CIO, Nissan Motorshttps://www.linkedin.com/in/anthonythomasa/

Gerry McClementInvestor, “Big Four” UK Bankhttps://www.linkedin.com/in/gerry-mcclement-999a43135/


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Loyakk Vega Enterprise Relationship Platform – Token Details & Terms

Additional Considerations

REGULATORY, COMPLIANCE, AND LEGAL CONSIDERATIONS SECTION

This token sale has not been registered or qualified under the securities laws of any jurisdiction anywhere in the world. Prospective purchasers of a SAFT are required to inform themselves about, and to observe any restrictions relating to, the SAFT and any related documents in their applicable jurisdiction. This whitepaper does not constitute an offer to sell, or a solicitation of an offer to buy, a SAFT or Loyakk Tokens in any jurisdiction in which it is unlawful to make such an offer or solicitation. Neither the U.S. Securities and Exchange Commission (the “SEC”) nor any other federal, state or foreign regulatory authority has approved the purchase of the SAFTs or the Loyakk Tokens. Furthermore, no such authority has confirmed the accuracy or determined the adequacy of this whitepaper. We have however taken reasonable steps and good-faith measures to account for evolving law and regulatory practices regarding ICO’s which we have touched upon herein.

This whitepaper contains a summary of the SAFT, the Loyakk Token and certain other documents referred to herein. Each prospective purchaser should review these documents for complete information and take all reasonable steps to educate themselves on the subject matter covered in. Loyakk reserves the right to unilaterally and exclusively modify the terms of this sale, the SAFTs and the Loyakk Tokens described in this whitepaper, and the SAFTs are offered subject to Loyakk’s ability to reject any submission to purchase tokens, in whole or in part, by any prospective purchaser.

Currently, digital tokens are being closely and regularly scrutinized by various regulatory bodies around the world, including but not limited to the SEC, European Securities and Markets Authority, and each individual state in the United States. Law regarding ICO’s is an evolving area of law, and there is no clear guidance from regulatory agencies, courts, and laws regarding legally-compliant practices for ICO’s. As a result, future evolution of the law and potential consequences are too speculative for the Loyakk to reasonably foresee and act upon. Loyakk has taken good-faith measures to account for the evolving law and rules on ICO’s and in an effort to comply with such law. However, there is a substantial risk that in numerous jurisdictions, including the United States, that Loyakk Tokens may be deemed to be a security, meaning such token must be registered or comply with an applicable exemption from registration. For example, applicable securities laws may limit the ability to hold more than certain amounts of Loyakk Tokens; restrict the ability to transfer Loyakk Tokens; require disclosure or other conditions on you in connection with any sale of Loyakk Tokens; and may restrict the businesses that facilitate exchanges or effect transfers of your Loyakk Tokens. Every user, purchaser, and holder of a Loyakk Token is required to make diligent inquiry into determine if the acquisition, possession and transfer of Loyakk Tokens is legal in its jurisdiction and to comply with all applicable laws and Loyakk’s SAFT, Terms of Use, and other documents referenced herein. The legal ability of Loyakk to provide Loyakk Tokens and the Loyakk Token network in some jurisdictions may be eliminated by future regulation or legal actions. In response to such action, Loyakk may take actions that adversely impact you and the Loyakk Tokens you hold, including: (a) ceasing operations or restricting access in certain jurisdictions, (b) adjusting Loyakk Tokens and the network in a way to comply with applicable rules and regulations, (c) voiding or not processing token purchases, or (d) ceasing operations entirely.

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Each purchaser of the Public Sale: (a) if in the United States, or a U.S. Person (as defined in Regulation S under U.S. Securities Act of 1933 (the “Securities Act”)), must be an accredited investor (as defined in Regulation D under the Securities Act) or (b) if outside of the United States, must be a non-U.S. Person (as defined under Regulation S under the Securities Act) who is not purchasing for the account or benefit of a U.S. Person and who is eligible to purchase SAFTs and Loyakk Tokens under the applicable laws of the purchaser’s jurisdiction. Each purchaser of the Loyakk Token must be sophisticated in terms of investment, business, and/or blockchain technology, or be able to fend for themselves or have access to the information that can allow such purchaser to fend for themselves with regard to the subject matter of this token purchase sale.

Blockchain technologies have been the subject of evolving and intense scrutiny by various regulatory bodies around the world. For example, some U.S. jurisdictions regulate providers of money transmission services who create a medium of exchange or a method by which value is transferred from one person to another person or location. The implications of triggering such requirements may include registration with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”), and implementing an anti-money laundering/know-your-customer compliance program that meets federal standards, including transaction monitoring, designation of a compliance officer, employee training, and periodic auditing and testing. In certain U.S. states and other international jurisdictions, there may be various compliance obligations, such as the need for licenses or registrations, minimum net worth requirements, bonding, biographical and financial approval of officers and directors, and other ongoing compliance, examination, and reporting obligations. We do not intend to operate in any jurisdictions that require a license or registration to conduct a money services business, money transmitter or virtual currency business. If you are a resident of a jurisdiction that requires such licensing or registration, do not purchase the SAFT or receive Loyakk Tokens. The application of these regulatory agencies to Loyakk Tokens and Loyakk is unclear, but if implicated these requirements will require us to expend significant time and resources to comply with them or face adverse regulatory action. In addition, Loyakk Tokens are subject to risks related to regulatory inquiries or actions taken with regard to the blockchain. A lack of a central regulatory authority and structure and the global nature of digital assets and blockchain technologies limit legal remedies and recourses –As a result, you may have no legal remedies or recourse against Loyakk, other users, holders, purchasers or sellers of Loyakk Tokens, and any other person or entity that may interfere with Loyakk, Loyakk Tokens, or your digital wallet.

Companies with total assets above $10 million and more than 2,000 holders of record of its equity securities, or 500 holders of record of its equity securities who are not accredited investors, as the last day of their fiscal year must register that class of equity securities with the SEC under the Exchange Act of 1934 (the “Exchange Act”). From this token sale, Loyakk may surpass $10 million in assets as it builds out its Loyakk Token network. Furthermore, there is the possibility that this token sale or future transactions in SAFTs or Loyakk Tokens may result in more than 2,000 holders of record or 500 unaccredited investors. While the SAFTs do not have obvious features likely to result in

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their being considered equity securities, there is no clear guidance from the SEC on this issue. Furthermore, Loyakk believes that Loyakk Tokens, when issued on conversion of the SAFTs, will be utility tokens and not securities (equity or otherwise) or otherwise comply with applicable securities registration exemptions, but there is no clear guidance from the SEC on this point. Any requirement that Loyakk or iStrategies Ltd. register a class of equity securities with the SEC would require significant time and expense. Loyakk, Inc is the developer of the technology and platform, and iStrategies Ltd. Is licensing the technology, Loyakk brand and assets to market, initiate fundraising efforts, including but not limited to an initial token (or coin) offering, and resell to enterprise customers across all markets excluding the United States.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain statements in this whitepaper constitute forward-looking statements under applicable securities law. Except for statements of historical fact, information contained herein constitutes forward-looking statements, including: (1) Loyakk’s technical ability to develop Loyakk Token and enable decentralized enterprise networks for customers with iStrategies, Ltd. as described herein; (2) the projected utility and functionality of the Loyakk Token and its functionality on Loyakk Token network; (3) the completion of, and the use of proceeds from the sale of all SAFT’s; (4) the execution of Loyakk’s vision and its growth strategy and use cases for Loyakk Token and its network; (5) the use of Loyakk Token by token purchasers, fundraisers, consumers, or enterprises seeking to use Loyakk’s token for business or personal transactions; (6) the sources and availability of third-party financing for Loyakk Token transactions; (7) the completion of Loyakk’s or iStrategies’s projects that are currently underway, in development or otherwise being considered; (8) future working capital and capital requirements; and the functionality; (9) versatility of the blockchain protocol to accommodate the functionality and utility of Loyakk Token; (10) the development and evolution of applicable law, including securities and tax law, to enable Loyakk and iStrategies to develop Loyakk Token without impediment, regulation, or large expense as a result of compliance efforts; and (11) the viability of the strategic partnership between Loyakk and iStrategies. Forward-looking statements can also be identified by words such as “can,” “expect,” “will” and other identifiers of non-historical events. Forward-looking statements are provided to allow potential purchasers of the SAFTs the opportunity to understand management’s beliefs and opinions with respect to the future. Loyakk is an early stage company and any token purchase through a SAFT is inherently risky. Forward-looking statements are not guarantees of future performance, and you should use your own prudent judgment in assessing the likelihood of future performance. Although forward-looking statements contained herein are based upon what management believes are reasonable assumptions, they necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Loyakk undertakes no obligation to update forward-looking statements for any reason, except as required by applicable securities laws.

Documents

Loyakk Vega Business Overview - O22 · annually due to increased costs and lost revenues. Zdnet estimates the cost of data leaks to the global economy to be $2 Trillion USD by 2019