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WHITE PAPER
T U P A N
ForestAu Green &
Philadelphia Digital
Investment Banking
V . 1 . 1 2 0 2 1
www.tupan.io 2
White Paper
Tupan
“I do not believe in environmental conscientization.
I believe in generating wealth, employment, and income through social
development with shared knowledge and applied to the environment in a
regenerative way.”
H.E. Mr. Oderli Feriani, Amb.
ICC - International Criminal Court (Hague)
and Amazonia Embassy's Office (Brazil)
Founder of TUPAN (Crypto Asset)
F o r e s t A u G r e e n
www.tupan.io 4
This White Paper is being provided by ForestAu Green LLC for informational purposes only
and may be amended from time to time. An offer may be made only by an authorized
representative of the Token Issuer. This White Paper is a part of the principal terms and
conditions for subscribing to the Future Crypto Tokens (the “Token(s)”) of ForestAu Green
LLC, a Delaware limited liability company (“we”, “our”, “us”, the “Company”, or the “Token
Issuer”). Please read this White Paper before deciding about purchase of the Token.
This White Paper of Tupan project that belongs to ForestAu Green LLC is done for information
purposes only. ForestAu Green LLC does not guarantee the accuracy, or the conclusions
reached in this White Paper, and this White Paper is provided “as is”. ForestAu Green LLC
does not make warranties, express, implied, statutory or otherwise, whatsoever, including, but
not limited to:
(i) warranties of merchantability, fitness for a particular purpose, suitability, usage, title
or non-infringement.
(ii) that the contents of this White Paper are free from error; and
(iii) that such contents will not infringe third-party rights.
ForestAu Green LLC has no liability for damages of any kind arising out of the use, reference
to, or reliance on this White Paper or any of the content contained herein, even if advised of
the possibility of such damages. In no event ForestAu Green LLC is liable to any person or
entity for any damages, losses, liabilities, costs, or expenses of any kind, whether direct or
indirect, consequential, compensatory, incidental, actual, exemplary, punitive or special for
the use of, reference to, or reliance on this White Paper or any of the content contained herein,
including, without limitation, any loss of business, revenues, profits, data, use, goodwill or
other intangible losses.
Important Notice
This White Paper is not endorsed by any government authority. It is only available on the
Tupan website and may not be redistributed, reproduced, or passed on to any other
person or published, in part or in whole, for any purpose, without the prior written consent
of ForestAu Green LLC.
This White Paper, or any part of it, must not be taken or transmitted to any country or
territory where its distribution or dissemination is prohibited or restricted. Any private
persons or legal entities who come into possession of this White Paper must inform themselves
about and observe any relevant legal or regulatory restrictions they may be subject to and
seek all necessary professional advice.
www.tupan.io 5
CONTENT
ABSTRACT ................................................................................................................................................. 6
SUMMARY ................................................................................................................................................ 7
REASONS FOR CREATION OF TUPAN ..................................................................................................... 10
INITIAL COIN OFFERING (ICO) ................................................................................................................ 11
THE TUPAN ............................................................................................................................................. 12
BLOCKCHAIN TECHNOLOGY ................................................................................................................... 13
TOKENOMICS ......................................................................................................................................... 14
PURCHASE STRUCTURE .......................................................................................................................... 15
HOW DOES THE ICO WORK? .................................................................................................................. 15
OUR ECOSYSTEM .................................................................................................................................... 16
TIMELINE ................................................................................................................................................. 17
BUSINESS AND TAX MODELING ............................................................................................................. 18
ROADMAP .............................................................................................................................................. 19
TEAM ...................................................................................................................................................... 20
RISK FACTORS ......................................................................................................................................... 21
SOCIAL MEDIA ........................................................................................................................................ 26
www.tupan.io 6
ABSTRACT
Tupan is a project created by ForestAu Green LLC.
File Reg. No.: 191162211.
Business address: 1515 Market Street, #1200, Philadelphia, PA, 19102.
ForestAu Green LLC is the issuer of Tupan Token, engaged in the acquisition, ownership,
operation, management, and sale of environmental agricultural digital assets located in the
Amazonia region of Brazil.
The ForestAu Green develops the Amazonia region by promoting the economic and social
integration of the environment and active governance through acquisition of Environmental
NFTs.
The Amazonian Rainforest is located in northern Brazil and plays an essential role in the
ecosystem. It covers one-third of the world's tropical forests, 20% of the planet's freshwater,
and is the environment with the greatest biodiversity and home to different indigenous
societies. Its importance is unquestionable, and its preservation is essential.
The Amazonia occupies 58.9% of the Brazilian national territory. It is a home to 400 mammals,
1.3 thousand birds, 40 thousand plants, and 44% of all native fruit species in Brazil (IMBIO). It
represents 67% of the planet's tropical forests and is responsible for 17% of all global
photosynthesis.
Due to its richness and importance in the global scenario, the preservation of Amazonia has
become a priority theme in different sectors of society, in the most diverse countries and
governments.
The data on degradation, deforestation, and environmental damage calls attention and is
alarming on a global scale since the preservation of the Amazonia biodiversity is a key factor
in global climate regulation.
www.tupan.io 7
SUMMARY
The ForestAu Green LLC engaged in the acquisition, ownership, operation, management, and
sale of environmental agricultural digital assets located in the Amazonia region of Brazil, has
acquired perpetual Environmental Rights to the production output of 4.2 billion cubic meters
of Environmental NFTs.
The output rights were transferred to the ForestAu Green via purchase of Environmental NFT
Rights – Non-Fungible Tokens - that are fully created (or inserted) in the Waves blockchain.
They represent the Environmental Rights which were transferred to the ForestAu Green
management, that will pay royalties to the Brazilian landowner equivalent to the 4 billion and
200 million square meters of selected Amazonia Rainforest.
This area is equivalent to:
• 4 times the area of Hong Kong,
• 7 times the area of Singapore, or
• 1/10 of the total area of Switzerland.
www.tupan.io 8
The Brazilian landowners using a math modeling transformed this area into cubic meters of
preserved forestry ecosystem and issued an equivalent Environmental NFT to the output of a
determined 1m3 of the preserved forest at a value of $ 1.43 (on September 15th, 2020).
Therefore, each TUPAN is equivalent to One Cubic Meter of Preserved Forest and
each Tupan Token issued by ForestAu Green is a DeFi backed by NFTs.
Since the ForestAu Green currently owns the rights to 4.2 billion cubic meters of
Environmental Rights, represented by these NFTs, they have issued Tupan Tokens which
corresponds to the preliminary enterprise value, estimated at US$ 6 billion on September 15th,
2020. The issuance of Tupan is limited to 3.69 billion tokens, maximum.
Tupan aims to provide each Purchaser the opportunity to indirectly invest in Brazilian
Amazonia Bioeconomy and social environmental assets.
Tupan provides transparent management and full disclosure of financial records and
KYC/AML compliance during purchase of Tokens.
In the near future, Tupan holders will not only have facilitated access to all economic and
financial projects, but they will have the means to watch the work in real-time, visualizing
their forest cubic meters in a blockchain-based augmented reality application.
Cooperation between Philadelphia Digital Investment Banking (the Tupan’s fiat escrow bank
account), with its high operational capacity, risk management and returns, provide high
usability to Tupan, driving it to a DeFi in its structure.
Philadelphia Digital Investment Banking provides the necessary tools to structure different
types of businesses and financial projects. An efficient risk management is vital to the existence
of any enterprise in the modern world reducing to zero the possibilities of losses.
The main objective is to generate revenue and cash flow through the exchange of forest assets
to continue value, we will direct resources to reforestation, preservation, and regeneration
activities in the Forest Farm areas.
The execution of these activities will be the responsibility of the Tupan team and future partner
institutions, to increase value to the Tupan holder.
www.tupan.io 9
Our core business is based on the organization and promotion of socio-economic structures,
which aim to strengthen the local economy, create jobs, combat child labor and child
abduction, protect native populations, develop medicinal projects, and support forestry.
ForestAu Green intend to grow over time through selective acquisitions and investments in
high demand tree farms and related forestry assets to efficiently integrate new acquisitions
and investments into our operations.
ForestAu Green plan to practice intensive forest management and forestry techniques that
increase the biological growth of their Environmental NFT of preserved forests.
www.tupan.io 10
REASONS FOR CREATION OF TUPAN
Tupan was born as a solution to the greatest fears of society. The fear that we are damaging
our own house, quality of life and home of future generations, now must be fought.
The Tupan team has joined the power of the 21st century technologies with their efficiency,
safer and less bureaucracy with the experience and enthusiasm of the team to maintain the
existence the Amazonia forests. Forest Degradation is the consequence of a set of human
actions that are harmful to the environment, such as burning and unsustainable wood
exploitation.
Deforestation is the total or partial removal of vegetation cover from the soil, which can be
done naturally or by human activity. Both of these phenomena are harmful to the ecosystem
and are directly related to the intensification of greenhouse gases, desertification, loss of
biodiversity, soil erosion, outbreaks of infectious diseases, etc.
Over the last few years, data related to degradation and deforestation has been actively
discussed in different institutions and media vehicles. It is due to the urgent need to rethink
the current concepts of development and find global initiatives that aim to stop the loss of
biodiversity and polluting gases emissions in the atmosphere.
A changing climate, a growing population, increasing demand for food and energy, expanding
urban areas and many other factors create severe threats to natural resources and biodiversity
worldwide. The degradation of ecosystems can result in the potentially irreversible loss of
ecosystem functions and services, with the ultimate effect of reducing human well-being.
One of the biggest problems facing humanity is to manage natural resources in such a way
that to compromise between the increasing needs of the global population and the
maintenance of ecosystem health.
Such problems impact on the whole society. In addition to the problems mentioned above, we
also have the unbalance in the rainfall regime, deaths caused by climate phenomenon,
advancement of diseases and pollution.
In this context, the demand for helping the environmental with regenerative systems is
growing.
www.tupan.io 11
INITIAL COIN OFFERING (ICO)
An initial coin offering (ICO) is the cryptocurrency industry’s equivalent to an initial public
offering (IPO). A company looking to raise money to create a new coin, app, or service
launches an ICO as a way to raise funds.
Interested investors can buy into the offering and receive a new cryptocurrency token issued
by the company. This token may have some utility in using the product or service the company
is offering, or it may just represent a stake in the company or project.1
For prospective purchasers, the ICO:
1. Provides a unique opportunity to access, through a low-cost/tax-efficient structure, the
Brazilian Amazonia Sustainability market (the largest biome in the world), through
economic, social, and environmental efforts.
2. Relies on the financial and business consulting expertise, proven credibility of
ForestAu Green Funds team; and
3. Is conducted through a simple, direct, and innovative way using a blockchain based
technology asset known as “TUPAN” (the “Token”).
To participate of the ICO the users should go to https://www.tupan.io for the instructions.
1 https://www.investopedia.com/terms/i/initial-coin-offering-ico.asp
www.tupan.io 12
THE TUPAN
One Tupan is and will always be equivalent to one tokenized part of an NFT.
ForestAu Green LLC issued the total of 3,690,000,000 (three billion six hundred ninety million)
Tupan Tokens and will not reissue any token ever. This tokenization was supported by NFTs
of Brazilian landowners with more than 4,200,000,000 m3 of native preserved forest.
This structure was possible because the Brazilian landowner decided to preserve and develop
the regeneration in 100% of their lands, and to have a successful performance, they decided
use the structure of blockchain to issue a NFT and sell it to a USA established company because
the transparency in working in a mature capital and crypto market.
To maintain the provision of NFTs issued, the Brazilian landowner needs to invest part of the
token sold in a regenerative design and development technics with social and environmental
impacts.
Therefore, each TUPAN is equivalent to One Cubic Meter of Preserved Forest and
each Tupan Token issued by ForestAu Green is a DeFi backed by NFTs.
www.tupan.io 13
BLOCKCHAIN TECHNOLOGY
Tupan Token is developed on the Waves Blockchain algorithm, so that the user has facility,
speed and security of transactions on Waves platform. The use of Waves Algorithm in the
creation of digital tokens is tested in many ICOs.
Waves is the most accessible trading platform. Each transaction has fixed fee of 0.001 Waves,
regardless of value. Even with a higher number of users and scalability, Waves platform is the
fastest because it performs each transaction in less than 5 seconds.
For more information, access the waves protocol: waves.tech/waves-protocol.
www.tupan.io 14
TOKENOMICS
ForestAu Green LLC has perpetual output of NFT of 4,200,000,000 (four billion and two-
hundred million) cubic meters of the Amazonian Forest. Tupan token corresponds to the
perpetual output of one cubic meter that corresponds to the portion tokenized NFTs.
Therefore, the quantity of Tupan tokens to be distributed is limited to 3,690,000,000 (three
billion six hundred and ninety million) Tupans. It means that the TUPAN buyers will have
their money in equivalent of Brazilians farms, and they will be engaged in a real forestry
business conducted and managed by ForestAu Green team.
• TOTAL SUPPLY: 3,690,000,000 Tokens (100%)
• Price: 1 Tupan = US$ *
• Softcap: 1 million Tupan
• Hardcap: 184.5 million Tupan
Token Sale
50% of gradual launch,
ICO and Purchase of NFT
Reserve
13% for risks prevention
10% for marketing,
CpC / affiliate program
Team and Advisors
5% for Advisors
12% founders bonuses
ICO
10% of token sales
* Consult exchanges or our website for current price.
www.tupan.io 15
PURCHASE STRUCTURE HOW DOES THE ICO WORK?
When buying Tupan, the investor gains from the currency appreciation in the crypto market
while investing in the Regenerative Circular Bioeconomy with great environmental and social
impact.
Our ICO is based on an audited smart contract generated the Tupan tokens.
• After KYC/AML approvals, each U.S. Purchaser subscribes to Tokens by signing terms
and conditions to purchase using USD, ETH, Bitcoin, Waves or USDT.
• Tupans shall be deemed in U.S. dollars, and payments in Bitcoin, Ethereum and Waves
shall be valued in U.S. dollars at an exchange ratio equivalent to the volume-weighted
average hourly price of Bitcoin, Ethereum and Waves across exchanges in the one hour
preceding the entry of the payment.
• The funds are invested in Sustainable Bioeconomy; ForestAu Green manages the funds
as defined here;
Non-core use of the Tupan Token:
• Purchase of the Tupan Token on cryptocurrency exchanges;
• Sale of the Tupan Token on cryptocurrency exchanges;
• Transfer of the Tupan Token within the blockchain between wallets.
a) crypto works as DeFi
(tradable token)
b) crypto works as NFT
(non-fungible token)
www.tupan.io 17
TIMELINE
Apr 2019 Concepting and Planning
Organizational, Legal Regulations, Financial, Marketing Strategy
Sep 2019 Approval of Token and Inventory Value
Oct 2019 Registration - US SEC
Mar 2020 Relation with Financial Institutions
Jun 2020 First Website and Landing Page
Nov 2020 Pre-sale
First batch (www.tupan.io)
Dec 2020 Choice of Exchange Provider
Mar 2021 Promo Video Marketing Networks and Social Media
Apr 2021 Road-show Miami
(Depending on COVID-19 restrictions)
Apr 2021 Publishing of Whitepaper
May 2021 Start of TUPAN ICO
May 2021 Road-show Europe
(Depending on COVID-19 restrictions)
Jun 2021 New Exchanges Introduction
Sep 2021 End of TUPAN ICO
www.tupan.io 18
BUSINESS AND TAX MODELING
Overview
The Brazilians rural / forestry
properties using the Waves
blockchain issued NFTs for each
one owned farm.
www.tupan.io 20
TEAM
Oderli Feriani
Founder - Chairman
Paulo de Vasconcellos
Filho
Governance and
Strategy Specialist
Sebastian dos Santos
Specialist in
Crypto Assets
Paulo Soares
CIO
I.T. Specialist
Augusto Carneiro
Strategic Board
Member
Tim Chen
Strategic Board
Member
Luciano Pantuso
Strategic Board
Member
Mario Augusto
Coimbra
Jungle Specialist
José Alves
Business
Specialist
Luis Pissinatti
Private Investment
Specialist
Douglas Giacomini
Brito Legal Specialist
www.tupan.io 21
RISK FACTORS Purchase of cryptocurrency is associated with
the extreme level of risk. The prospective buyer
should provide or carefully study the
information about these risks. Any actual risk
can have a significant negative impact on the
Tupan platform and the price of the Tupan
Tokens.
Cryptocurrency holders can face various risks
and uncertainties containing, but not limited
mentioned below. Uncertainty and risks that
are not included in the list, can have a
significant impact on the entire Tupan
ecosystem and the price of the Tupan tokens.
The investments described in this document
can be very risky, even loss of the entire
investment. The activity to which the funds
raised will be applied is novel and does not
correspond to any proven business model. The
"Tokens" that can be acquired will not be
guarded by entities legally authorized to
provide investment services and the
registration technology that is planned to be
used (blockchain) is also new and can carry
significant risks.
This document is not an information brochure,
nor has it been subject to any type of review by
any administrative authority. It is essential that
those who decide to buy or invest in assets of
this type or similar consider all the associated
risks and assess whether they have enough
information to understand what is being
offered.
Risks associated with the forest products
industry
The cyclical nature of the forest products
industry could weaken our operating results.
Our operating results will be affected by the
cyclical nature of the forest products industry.
These activities are, in turn, subject to
fluctuations due to, among other factors:
• Changes in domestic and international
economic conditions;
• Interest and currency rates;
• Population growth and changing
demographics; and
• Seasonal weather cycles (for example, dry
summers and wet winters).
Increasing competition from a variety of
substitute products could lead to declines in
demand for forestry products and negatively
impact our business. Our cash distributions are
not guaranteed and may fluctuate.
We expect to be substantially and materially
dependent upon business relationships
Brazilian farms operators and our success will
depend on their technical performance.
If we are unable to find suitable investments or
pay too much for environmental services, we
may not be able to achieve our investment
objectives, and the returns on our investments
will be lower. We depend on external sources of
capital for future growth, and our ability to
access the capital markets may be restricted.
As a new startup company, our general and
administrative expenses will likely be a larger
percentage of our total future potential
revenues than other more established
companies, which may have a greater effect on
our financial performance and may reduce cash
available for distribution to our Tupan Token
holders.
We will likely depend upon others to manage
our Brazilian farms, and a loss of the services of
one or both of them could endanger our
ongoing operations. Our real estate investment
activity will be concentrated in Brazilian farms,
making us more vulnerable economically than
if our investments were diversified in other
parts of the world.
Our farm interests are expected to be located in
Brazil and negative economic and other
developments in Brazil could have a material
negative effect on us. We expect to depend on
third parties for logging and transportation
services, and increases in the costs or decreases
in the availability of quality service providers
could negatively affect our business.
We depend on the efforts and expertise of our
key executive officers and would be adversely
affected by the loss of their services. In the
future we may sell part of our interests in
forestry farms in response to changing
conditions, but if we are unable to sell these
forestry farms promptly or at the price that we
www.tupan.io 22
anticipate, our land sale revenues may be
reduced, which could reduce the cash available
for distribution to our Tupan Token holders.
Acquiring forestry farms and in entering into
long-term supply agreements, we may agree to
lock-out provisions that materially restrict us
from selling that property for a period of time
or impose other restrictions, such as a limitation
on the amount of debt that can be placed or
repaid on that property. These factors and any
others that would impede our ability to respond
quickly to market opportunities could
negatively impact our results of operations and
reduce our cash available to pay distributions to
our Tupan Token holders.
Large-scale increases in the supply of forestry
may affect forestry prices and reduce our
revenues.
Uninsured losses relating to the forestry farms
we may own or may acquire can reduce our
Tupan Token holders’ returns. Harvesting our
forestry may be subject to limitations that
would negatively affect our results of
operations.
We face possible liability for environmental
clean-up costs and wildlife protection laws
related to the forestry farms we acquire, which
would increase our costs and reduce our
profitability and cash distributions to our
Tupan Token holders.
Our estimates of the forestry growth rates on
our properties may be inaccurate, which would
impair our ability to realize expected revenues
from those properties. Changes in assessments,
property tax rates, and state property tax laws
may reduce our net income and our ability to
make distributions to our Tupan Token holders.
The impacts of any climate-related legislation
or regulation remain uncertain at this time.
Changes in energy and fuel costs could affect
our financial condition and results of
operations.
Actions of joint venture partners could
negatively impact our performance. We will be
subject to changes in global market trends that
would negatively impact our ability to make
distributions to our Tupan Token holders.
We intend to acquire interests, either directly,
or through subsidiaries or affiliates in forestry
farms located in Brazil. These non-U.S.
investments could cause our business to be
subject to unexpected, uncontrollable and
rapidly changing events and circumstances that
may be experienced in the United States.
Adverse changes in the following factors,
among others, could have a negative impact on
our business, results of operations, and
financial condition:
• Effects of exposure of currency other than
U.S. dollars, due to having non-U.S.
customers and foreign operations;
• Potentially negative tax consequences and
restrictions on the repatriation of earnings;
• Regulatory, social, political, labor or
economic conditions in Brazil; and
• Trade protection laws, policies and
measures, and other regulatory
requirements affecting trade and
investment, including loss or modification
of tax and tariffs exemptions, and import
and export licensing requirements.
Risks related with cryptocurrency and Tupan
Tokens Risks
Participation in blockchain-related offerings
like the Token Issuer’s Offering involves a high
degree of risk.
The tax treatment of Tupan, the rights
contained therein and the Token distribution is
uncertain and there may be negative
consequences for Subscribers upon certain
future events. We may incur liabilities that may
exceed our available capital or resources. Our
Token may not be widely adopted and may
have limited users.
Tupan and/or the issuance of Tokens may
constitute the issuance of a “Security” under
U.S. Federal Securities Laws. The Offering may
be subject to registration under the U.S.
Securities Exchange Act of 1934 (the “Exchange
Act”) if the Token Issuer has assets above USD
$10 mln and more than 2,000 U.S. Subscribers
participate in the offering.
Tupan Subscribers will have no control and we
may only have limited control once the Tokens
are delivered. There may be apparent and
actual conflicts of interests. Subscribers may
lack information.
Tupan has a limited history. If our Token
www.tupan.io 23
protocol is unable to satisfy data protection,
security, privacy, and other government-
and/or industry specific requirements, its
growth could be harmed.
Risks associated with the token issuer
We are dependent upon the collective skill set
of our management team. Failure to effectively
manage our growth could negatively affect our
business and operating results.
We may incur unrecoverable legal costs. If we
fail to comply with applicable government laws
it could result in the suspension or termination
of our ability to conduct business. You should
seek out independent technical, legal,
professional, tax, and financial advice.
Our forecasts are reliant upon hypothetical
assumptions and lack independent review. The
risks associated with the Brazilian forestry farm
industry may adversely affect the value of the
Tokens.
We cannot forecast or predict the outcome of
our activities. Transferability will be restricted.
The Offering price and Subscription Amount
are arbitrary and variable. We may require
future capital to continue our operations.
Мarket stagnation
Because the public trade of Tupan Tokens
haven't started yet, their sale might not be
active and the market might not be liquid. This
might increase the volatility of token prices.
Despite the existence of working products that
facilitate the sale of Tupan Tokens and their
exchange for other cryptocurrencies, an
efficient and effective public market for Tupan
Tokens can stagnate. Furthermore, if the
development of the market of liquid Tupan
Tokens has stagnated, their price may show
large volatility, as Tupan Tokens holders can
experience problems with liquidity at some
moment.
Increase or decrease in cryptocurrency prices
as a result of speculative trading risks
Evaluation of cryptocurrency on the collateral
or secondary market is usually non- transparent
and highly speculative. Tupan Tokens do not
provide their owner any rights to own the
fund's assets.
The Tupan Tokens price can volatile
significantly over a short period. There is an
extreme risk that the Tupan Token holder may
lose the funds paid for the Tupan Tokens. The
worst scenario is when their value drops to
zero.
Tupan Tokens can have a zero market price
There are no predictions or guarantees relative
to the movement of liquidity of Tupan Tokens.
Tupan platform is not responsible for the future
market value of Tupan Tokens, their liquidity,
the speed of transfer and the possibility of
entering various markets.
Tupan Tokens can not be redeemed
Beside the cases provided by the applicable law
or legally mandatory documentation, Tupan is
not responsible for the redemption of Tupan
Tokens and the return of funds to their owners.
There is no guarantee, and there will be no
guarantee in the future, that Tupan Tokens are
valuable and useful. No promises can be given
regarding the value of Tupan Tokens, the
prolongation of acceptance of payments and
similar actions.
The return of the funds paid for Tupan Tokens
can be infeasible in cases when an appeal is
made to a version of the laws and regulations
different from the acceptable on the Tupan
platform.
Holding Tupan Tokens
The custody of the cryptocurrencies or Tokens
to be issued is not carried out by an entity
authorized to provide investment services.
The custody of cryptocurrencies or Tokens, are
based on what is known as distributed ledger
technology or blockchain, a novel technology
and not without risks, as described below.
Risks associated with blockchain technology
and software
Risk of congestion of blockchain
Many cases of blockchain transactions in which
cryptocurrency transactions are used (e. g.
Bitcoin or Ethereum) are subject to periodic
congestions during which transactions can be
postponed.
Some people can occupy a local network
environment with malicious intent to benefit or
gain an advantage purchasing cryptocurrency.
www.tupan.io 24
This can include a situation when the creators
of blocks that can delay or completely avoid
adding the transaction of buyer in the
blockchain.
Technical risks
Investors are advised that the functionalities of
the future Tupan platform described in this
White Paper are subject to change due to
technical limitations.
Risk of government intervention
Tupan is working in a new field of activity,
which can be largely controlled and monitored
by various agencies, including increased
attention of law enforcement and investigation
agencies. There is no guarantee that regulators
will not undertake a detailed analysis of the
operations done by Tupan.
There is also no guarantee that legal action will
not be taken against Tupan. These actions may
include various penalties, fines, disapprovals,
reprimands and other punitive measures
against Tupan. Such retaliation may require
Tupan to reorganize its operations or reduce its
offer of specific products and services. This can
affect the reputation of Tupan and lead to
higher operating costs, which will negatively
affect the Tupan Tokens and Tupan platform.
Legal risks
The legal status of cryptocurrency, tokens,
blockchain technology and digital assets in
many jurisdictions is not defined and
uncleared.
It is difficult to predict which public authorities
will regulate such technologies. It is difficult to
predict the likely changes and amendments to
the laws governing this in general, and also the
applications with the blockchain technology,
cryptographic tokens and digital assets. These
changes can have a pessimistic effect on Tupan
Tokens.
Inability to maintain and receive licenses and
permissions
Since the date of the sale of Tupan Tokens, there
are no rules that require the company to receive
the permissions and licenses necessary for this
type of activity. There is a risk that such
requirements can be introduced in future and
will affect the Tupan platform.
In this case the business of Tupan will be based
on the urgency of these licenses and
permissions and compliance with the relevant
conditions on behalf of Tupan platform. The
terms of receiving and renewal of licenses, as
well as control over the licensee's compliance
with these licenses by regulatory authorities
may differ.
These agencies may require Tupan to comply
the following conditions: conditions of
employment of qualified personnel; multiple
standards; conditions of maintaining a certain
technical level; consent to give permission to
monitor our operations; standards of the
system of quality control; level of service
related requests; provision of relevant
information at the request of licensing agencies.
The realization of these requirements may
result in financial contributions and significant
time, as well as delays in the operation of the
Tupan platform.
In addition, public and private persons have the
right to comment on Tupan and participate in
the licensing process in other ways, including
court appeals and political pressure. Tupan can
not extend or does not receive the required
licenses.
In addition, these licenses can limit the ability of
Tupan to perform its work on a commercial
basis or to carry out its activities.
Onerous contract risk due to the compliance
with regulations, laws and standards
Tupan may not satisfy the applicable laws and
regulations. It may also not recognize the
results of relevant audits done by regulators.
Another scenario is an increase of government
regulation of operations done by Tupan. All of
these issues can entail the significant additional
costs, simply complicating the work or leading
to numerous sanctions. Result is a negative
impact on the business of Tupan platform.
The property and activities of Tupan are guided
by various government agencies and
authorities to comply with the applicable rules
and regulations. These regulators have
considerable freedom and power in law
questions and their explanation. State agencies
have the right to carry out the periodic
inspections to monitor the property and
activities of Tupan platform. Any such audit
www.tupan.io 25
may conclude that Tupan violates certain
regulations or rules, laws. Tupan platform may
not correct the violations or be unable to appeal
those conclusions.
Any mistake made by Tupan in the field of
compliance with the applicable regulations,
laws or results of supervision may result in
penalties, fines or more drastic requirements
and sanctions. They may include the need to
stop certain activities; they may even contain
criminal and administrative charges against the
relevant persons.
Such decisions, sanctions, demands and tighter
control of government regulation can increase
the costs of Tupan and have a very detrimental
impact on its platform and its business as a
whole.
Other Risks
Tupan platform has not been rated by any
credit rating agency.
www.tupan.io 26
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%F0%9F%8C%B3%F0%9F%8C%B2%F0%9F%8C%B3-tupan-
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