commodities trading · the founders of arkratos have a multi-billion-dollar revenue generating...
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COMMODITIES TRADING REVOLUTIONIZED
KRATOS Whitepaper
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TABLE OF CONTENTS NOTICE ..................................................................................................................................... 3
ABSTRACT ................................................................................................................................. 4
OUR VISION .............................................................................................................................. 4
OUR MISSION ........................................................................................................................... 4
WHO WE ARE ........................................................................................................................... 5
COMMODITY TRADING CHALLENGES .................................................................................. 5
Delay in secured capital ................................................................................................... 5
Unreliable and Uncertain Process .................................................................................... 6
ARKRATOS – Offering .............................................................................................................. 6
What Traders get when using KRATOS ............................................................................. 7
Value Proposition - Why Traders will choose the KRATOS platform instead of the
next best alternative .......................................................................................................... 8
KRATOS PLATFORM – COMPETITIVE ADVANTAGE ............................................................ 10
TOKEN CURATED REGISTRY .................................................................................................. 10
Investible Token Curated Registry .................................................................................. 12
Participants ........................................................................................................................ 13
Smart Contract for TCR .................................................................................................... 13
Staking for Application ..................................................................................................... 14
Managing the Risk in TCR system ................................................................................... 16
KRATOS platform Token ....................................................................................................... 18
Initial Coin Offering (ICO) .................................................................................................... 18
Token information ............................................................................................................. 19
Pre ICO ............................................................................................................................... 20
ICO ...................................................................................................................................... 20
Funds raised ....................................................................................................................... 20
BLOCKCHAIN TECHNOLOGY .............................................................................................. 21
Blockchain and its value add to commodities trading .............................................. 21
A NEW ECOSYSTEM TO SOLVE OLD PROBLEMS ................................................................ 23
PROOF OF CONCEPT (POC) FLOW .................................................................................... 24
KRATOS PLATFORM TECHNICAL OVERVIEW ...................................................................... 25
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KRATOS Off-Chain Components .................................................................................... 26
KRATOS platform Components ....................................................................................... 27
KRATOS platform ............................................................................................................... 27
Application Services Layer .............................................................................................. 28
Database Layer ................................................................................................................ 28
Security and Encryption Services ................................................................................... 28
Blockchain Adaptors Layer ............................................................................................. 28
API Services ........................................................................................................................ 28
KYC and AML..................................................................................................................... 29
Document Authentication & Enhanced Security ........................................................ 29
KRATOS platform Functions ............................................................................................. 30
KRATOS platform Technology Overview ....................................................................... 31
Future enhancement to the KRATOS platform ............................................................ 31
EARLY ADOPTERS .................................................................................................................. 31
MILESTONES ............................................................................................................................ 32
ARKRATOS TEAM ................................................................................................................... 33
Founding team .................................................................................................................. 33
Advisors ............................................................................................................................... 36
IMPORTANT NOTES ................................................................................................................ 39
No representations and warranties................................................................................ 39
Representations and warranties by you ....................................................................... 39
Cautionary note on forward-looking statements ........................................................ 41
Market and industry information .................................................................................... 42
Terms used ......................................................................................................................... 42
No advice .......................................................................................................................... 42
No further information or update ................................................................................... 42
Restrictions on distribution and dissemination .............................................................. 43
Risks and uncertainties ..................................................................................................... 43
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NOTICE
The KRATOS Tokens (“KRATOS” as referred to in this Whitepaper) are not intended to constitute
securities or any other regulated products in any jurisdiction. The KRATOS Tokens do not entitle you to
any ownership or any other interest in ARKRATOS Blockchain Solutions Pte Ltd (“ARKRATOS”) or any of
its affiliated companies.
This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended
to constitute an offer of securities or any other regulated products or a recommendation or
solicitation for investment in securities or any other regulated products in any jurisdiction.
This Whitepaper does not constitute or form part of any opinion or any advice to sell, or any
recommendation or solicitation of any offer to purchase any KRATOS Tokens nor shall it or any part of
it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract
or purchase decision.
The proceeds of sale of the KRATOS Tokens will be used by ARKRATOS to fund the development of
the KRATOS platform (as referred to in this Whitepaper), and other business and operational costs
(see p. [21]).
No person is bound to enter into any contract or binding legal commitment in relation to the sale
and purchase of the KRATOS Tokens and no cryptocurrency or other form of payment is to be
accepted on the basis of this Whitepaper.
Any agreement between ARKRATOS and you as a purchaser, and in relation to any sale and
purchase, of KRATOS Tokens is to be governed by a separate document setting out the terms and
conditions (the “T&Cs”) of such agreement and no other document. In the event of any
inconsistencies between the T&Cs and this Whitepaper, the T&Cs shall prevail.
You are not eligible, and you are not to purchase any KRATOS Tokens in the KRATOS Initial Coin
Offering (as referred to in this Whitepaper) if you fall into any of the following categories:
(a) a minor below the age of 18;
(b) a citizen, resident (tax or otherwise) or green card holder of the United States of America;
(c) a person or entity (any established firm, company, partnership, trust, corporation,
government, state or agency of a state, or any other incorporated or unincorporated body
or association) from any jurisdiction which prohibits initial coin offerings,
(collectively, the "Restricted Categories").
No regulatory authority has examined or approved of any of the information set out in this
Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or
rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not
imply that the applicable laws, regulatory requirements or rules have been complied with.
This Whitepaper, any part thereof and any copy thereof must not be taken or transmitted to any
country where distribution or dissemination of this Whitepaper is prohibited or restricted.
No part of this Whitepaper is to be reproduced, distributed or disseminated without including this
section and the section titled "IMPORTANT NOTES" at p. [39] of this Whitepaper.
PLEASE READ THE SECTION TITLED "IMPORTANT NOTES" AT p. [39] OF THIS WHITEPAPER VERY CAREFULLY.
IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL,
FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S).
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ABSTRACT
ARKRATOS is a blockchain solutions company founded in Singapore in 2017.
ARKRATOS has developed a blockchain solution called KRATOS, a trading platform
for the physical commodities business. The platform addresses challenges for the
physical commodities trading business, in particular the lack of access to trade
finance for Small to Medium Enterprises (SME) players in the commodities.
KRATOS will address the lack of trade finance for SME’s through a Token Curated
Registry (TCR) process. Currently SME’s must almost exclusively go through banks to
raise trade finance. This is a long and cumbersome process, often delaying the
trade lifecycle and significantly reducing trade profits. At times, certain trade
finance deals will not be financed due to manpower issues and system
inefficiencies among banks. ARKRATOS’ management and advisory team has over
a 100 year of collective experience in trading physical commodities and has been
working very closely with players in the physical commodities trading space to
deliver an innovative and robust model for various players to both receive and
provide trade finance.
KRATOS will provide SMEs a platform to facilitate fundraising for TCR processed
qualified trades. This in turn will enable KRATOS to achieve its vision in 3 years as the
premier one stop shop for all physical commodities trading needs, making us the
Alibaba of physical commodities trading.
OUR VISION
“To be the industry standard in international commodity trading by 2020, by utilizing
end to end decentralised solutions.”
OUR MISSION
Our focus is to make commodity trading a more transparent, less complex, and a
less costly process by building trust and transparency within the ecosystem. This will
be done by utilising the latest decentralised technologies.
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WHO WE ARE
The KRATOS platform is being developed by ARKRATOS (ARKRATOS Blockchain
Solutions Pte Ltd), which is incorporated in Singapore. The company accounts will
be audited by internationally recognised audit firms and subject to GAAP
standards.
The founders of ARKRATOS have a multi-billion-dollar revenue generating group
with:
o Paid up capital: US$230 million
o Consolidated Revenue: US$2 billion
o Operations in over a dozen countries across Asia, Africa and Europe
o Over 100 years of collective experience and expertise in international
physical commodity trading
o A significant presence in the international commodity trading ecosystem
COMMODITY TRADING CHALLENGES
Delay in secured capital
In the current market situation, trading companies, especially Small and Medium
Enterprises (SME) are finding it challenging to obtain financing for commodities
trading. Although SME’s are meeting the stringent economic requirements for trade
finance, limited visibility and insufficient evaluation from potential financiers makes
SME significantly less likely to receive financing relative to larger players. Larger
players have economic advantages due to their size and leverage on financial
institutions, further reinforcing SMEs’ problem of limited access to trade finance. The
changing landscape of financial regulation along with capital requirements are
hampering the financial industry from taking on even the most risk averse and safe
trade finance opportunities.
The situation is challenging for SME players worldwide, but it is even more
challenging for SME’s operating in Emerging Markets. Financial institutions in
Emerging Markets are very selective and often do not have a fully developed trade
finance market. The Asian Development Bank published a study in 2017 stating that
the gap in global trade finance requirements amounted to USD 1.5 Trillion. SME’s
bore the brunt of rejections (about 75%). 80% of the banks in the survey also believe
that digitization of the trade finance business will cut costs. Further, banks don’t
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have the manpower or cost efficiencies to effectively evaluate every trade finance
deal. As a result of this, many worthy trades from SMEs are declined before being
put through a rigorous vetting process.
Unreliable and Uncertain Process
A typical trade flow includes multiple participants: Importers, Exporters, Traders,
Banks, Shipping Companies and Insurance agents. Transactions might include a
significant amount of manual administration that can be triggered by even minor
discrepancies in documentation. This tedious process can lead to weeks in delays
and result in increased costs. The Exporters collect payment in exchange for their
services and products. The Importers ensure that they are paying for the accurate
standard of purchased products. Physical products require crucial quality
assurance, which assurance is currently bursting with complications and
manipulation. The areas in which many of the goods are manufactured have very
lenient supervision and quality documentation practices, meaning that
documentation can be easily altered. These circumstances often cause significant
reconciliation costs in commodity trades. For example, in a coal transaction, the
calorific value of coal could be incorrect due to the mistake of the loader. The
merchant is forced to rely on the information from multiple parties and the provided
quality assurance documentation, especially given the lack of transparency in the
system.
ARKRATOS – OFFERING
KRATOS- A decentralized physical commodities trading platform.
Built on blockchain technology and smart contract, KRATOS addresses the
challenges relating to insufficient trust, documentation and quality assurance as
referred to on p. [5] to p. [6] above. It facilitates the clients to track all the necessary
details of the commodity they are willing to trade. The KRATOS platform covers the
entire physical commodity trading ecosystem, from origination to end user. The
KRATOS platform digitizes paper contracts and transforms these digital contracts
into smart contracts—contracts that self-execute if certain conditions are met. For
example, once a delivery and payment are made, a smart contract will archive
itself as a completed contract, thus streamlining documentation.
Importantly, the KRATOS platform is modular, allowing the execution of some
modules (a set of related smart contracts), but not others. The KRATOS platform
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utilizes many modules within the KRATOS platform, including KYC/AML, Human
Resources, Administration, Finance, Risk Management, Trading and Logistics
modules. For example, in the Trading module, users will be able to consummate a
trade between the various parties, including logistics.
What Traders get when using KRATOS
Whitelisting of quality trades through Token Curated Registry
ARKRATOS has developed a Token Curated Registry process for trades submitted to
the KRATOS platform. Trades submitted on the platform for trade finance will be
curated by token holders. The output of this curation process will be a list of high-
quality trades, which will represent a subset of trades that may not otherwise
receive financing.
This list facilitates trade financing in two ways. First, the list constitutes a filtered list of
high-quality trades with significantly less noise than otherwise. As a result, it
becomes more efficient for potential financiers to vet the list of high-quality trades
on KRATOS than to vet any potential trades coming to their attention in other ways.
Second, the list facilitates trade financing by expanding SME’s sources of trade
finance. Traditionally, banks represent the only (main) source of trade finance; on
KRATOS, additional sources of trade finance are institutional players such as family
offices, funds, token holders, and ARKRATOS’ own fund (seeded with money
including money from SMEs that are typically excluded by many banks).
Without this list, traditional financiers like banks will typically discard the mass of
trades proposed by smaller players. The principal reason why are the high search
costs involved in filtering the mass of new trades from little-known exchange
partners of unknown quality. Search costs include, for example, evaluation costs
such as a) evaluation if the new actor is trustworthy, b) executing an expensive first-
ever due diligence process of the actor, and c) evaluating legal and practical
recourse to a new actor’s assets in case of the actor’s default, among others.
Overall, the purpose of Token Curated Registry model is to create a list that will
enable deserving SMEs with high quality trades to gain access to additional
channels for trade finance while democratizing the financing process of these
trades beyond a select group of banks.
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Detailed explanation of Token Curated Registry has been explained at latter part of
the document.
Trade Finance Module
ARKRATOS is in the process of developing a trade finance module within the
KRATOS platform. The trade finance module will be made available to any bank
and non-banking financial corporations. NBFCs include family offices, funds, and
individual investors for example.
Value Proposition - Why Traders will choose the KRATOS platform instead
of the next best alternative
1. Currently there are limited resources available to SMEs in the form of trade
finance. They have to rely upon banks to get trade finance. This can often
lead to delays in the trade lifecycle. It can also lead to trades not being
consummated due to a lack of funding or vetting. Large commodities players
typically obtain financing anywhere from 6% to 8% for trade finance deals.
SMEs that are unable to obtain traditional financing will go to specialized
funds that will charge up to double the interest, e.g. up to 15% for trade
finance deals.
The World Trade Organization (WTO) published a report on trade finance and
Small to Medium Enterprises (SME) in 2016. Size of SMEs varies from country to
country. In the EU the definition of an SME is a company of 10 to 250
employees with an annual turnover anywhere from 2 to 50 million Euros. In
Singapore the definition of an SME is a company of less than 200 employees
with sales turnover of 100 million Singaporean Dollars. The report estimated
that the trade finance market was above 12 Trillion USD annually. Short term
trade finance (which is applicable to physical commodities) makes up 6.5 to
8.0 USD trillion of the 12 Trillion trade finance market. Importantly, over 50% of
trade finance requests are rejected for SMEs versus just 7% for multinational
players. The report stated that the largest financial institutions are inclined to
finance for their large clients. Additionally, there has been risk aversion in
emerging and frontier markets since the crisis of 2008 and 2009.
2. KRATOS introduces additional avenues for funding. Funding can now consist
not only of funding by banks, but also other actors such as family offices,
funds, and investors, whether alone or in combination. Trades that previously
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weren’t analysed due to a lack of manpower or various inefficiencies will be
vetted through a token curated registry process managed by token holders.
3. The KRATOS platform is a blockchain-based system that ensures a high
degree of transparency and efficiency, and less complexity, all of which will
assist in timely deliveries and significantly lower costs in relation to physical
commodity trading. All parties involved in the commodity transaction will be
able to trace the product from the point of origin to the point of final delivery.
This concept helps protect buyers and sellers, traders, banks, insurance
agents, and shippers from the type of fraud & systemic abuse previously seen
in the international commodity trading processes.
The KRATOS platform:
o Encompasses KYC/AML, Human Resources, Administration, and Finance
modules, among others.
o Streamlines documentation resulting in a timely and accurate delivery as
documentation will be uploaded to a single portal which all relevant
parties can view in real time.
o Is faster because it runs on smart contracts and the blockchain, which
unifies immutable documentation across the supply chain
How KRATOS Works has been explained below: -
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KRATOS PLATFORM – COMPETITIVE ADVANTAGE
Not just any other project or team is likely to do as well as KRATOS. The KRATOS
platform is comprised of individuals and advisors with deep-rooted knowledge of
the physical commodities trading space.
The KRATOS platform is founded by Srinivas Koneru, who additionally founded a
physical commodity trading firm, Rhodium Resources, which established operations
in 2011 in Singapore. Rhodium now has over 70 employees globally with offices in
Europe, Middle East and Asia. The turnover of the firm last year amounted to over 2
billion USD, with half of that turnover coming in the form of trade finance deals. The
company’s management collectively has over a 100 year of commodities trading
experience. The CEO of Rhodium, Cheam Hing Lee, previously specialized in credit
risk and market risk at Cargill and was eventually appointed in Cargill Director of
Structured Trade Finance Group. Rhodium Resources deals with over 180 clients
spread across 35 countries. Both the CEO and the employees within Rhodium have
been advising ARKRATOS on the build out of the KRATOS platform. In addition to
the development of the platform, the company is also advising ARKRATOS on the
formulation of a new trade finance fund. This trade finance fund is meant to
represent one of the potential sources of financing for high-quality trades on
KRATOS’ token curated list of high-quality trades. In sum, these resources,
competencies, and experience in the physical commodities trading space make it
difficult for others to do equally well what ARKRATOS does and plans to do.
TOKEN CURATED REGISTRY
A token curated registry is a process that produces a list which has been vetted
through a network of participants. In the KRATOS platform, participants in the TCR
process must be token holders. If token holders stake their tokens, they have the
right to curate a list of submitted trades into a list of high-quality trades. The token
curated registry system vets or filters trade finance applications submitted on the
platform.
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How TCR Works: -
Token holders are incentivized to ensure that the resulting list or token curated
registries are of the highest quality for both the common interest as well as well as
for their own self-interest. First, by maintaining a registry of the highest standards,
token holders who submitted trade finance applications are rewarded by gaining
access to another vehicle for trade finance which was previously inaccessible.
Second, token holders who curated trade finance applications are rewarded if
they make sound economic decisions and they are punished if they make bad
economic decisions while producing the token curated registry.
How TCR works in KRATOS: -
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Investible Token Curated Registry
Once transactions between participants are consummated and made eligible via
the TCR process for trade finance, the list will be shared with a network of financiers.
This network includes, but is not limited to, individuals, family offices, funds and
banks. Token holders can also choose to participate in the financing of a curated
trade. This system thus democratizes the entire financing process, gives financiers a
high-quality list of eligible deals, and offers financing opportunities previously
unavailable to them. This system also allows additional players (individuals, funds,
family offices) access to high quality trade finance deals as an asset class.
TCR Benefits to stakeholder: -
The KRATOS Token Curated Registry will consist of the following:
• Database of ecosystem participants
• Database of trades that participants nominate for Trade Financing within the
platform
• Smart Contract whitelisting participants and Trade Financing qualified Trades
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Participants
Trading Companies (Users)
Trading companies are entities that are already on-boarded the KRATOS platform
after qualifying as legitimate business entities via the platform’s KYC/AML process.
The trading can submit trade tickets for TCR review in order to get into a whitelist of
qualified deals for trade finance.
Curators
Curators will be token holders that will curate on which trade qualifies for the
whitelist to get financing via the platform. This can include any type token holder,
including trading companies.
Financiers
Financiers will be the end consumers of the whitelist (data). Once the trade is white
listed, they will able to participate in the funding of the trade. Fees will be charged
to financiers to gain access to the whitelist of qualified trade finance deals.
Participant Grid
Applicants Curators Financiers
Participants SME Commodity
Companies
Parties that obtain
KRATOS tokens to
participate in TCR
Individuals or entities
that benefit from a
qualified whitelist for
financing.
Users Traders within the
SMEs
SME Commodity
Companies,
Investors, Advisors
Banks, funds,
individual investors,
Family Offices
Incentives To be on the list of
vetted trades via
TCR and receive
financing
To vet the best set of
trades to earn
application fees and
help quality trades
get financing
Want to only
participate in
qualified financing
deals provided via
TCR. Participate in
profitable financing
deals.
Smart Contract Submits
Application and
Pays Fees
Stakes and votes on
trades and earn
application fees.
Pays fees to read
the TCR-processed,
whitelist of qualified
trade finance deals.
Smart Contract for TCR
Smart contracts will act as a trusted automation tool to manage the token registry
process. By using a blockchain, smart contracts can manage the voting and
reward distribution more transparently and securely compared to many other
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centralized systems. Smart contracts will execute on several parameters, and the
specific values of these parameters will evolve as we test and refine the TCR system
based on feedback and performance in practice. Illustratively:
• Application Fees: This will be pre-defined fees which applicant has to put on
stake.
• TCR Fees: Curators need to stake fixed participation fees for TCR.
• Curator Percentage: Minimum curators required to start the voting process.
Anonymous system generated token holders will be notified using machine
algorithm and minimum 10 votes will be required to complete the voting
process. Since the voting list will be random which avoids possibilities of any
kind of off-line communication between token holders.
• Voting Time: Each trade ticket will be open for 24 hours.
• Majority Vote: To complete TCR process, majority vote percentage will be set
at 51%. For e.g. if there are total 10 voters and 6 voted in favour of the
application and 4 voted against it, so majority vote (6) will be taken as the
final result of the application.
• Pay Off: Rules to be defined on different criteria of pay off to applicant and
curators, explained further in section staking for application below.
Staking for Application Using smart contracts, a user can anywhere and at any time choose to submit an
application to the TCR system and activate the voting curation and voting process.
Activating the TCR process requires application fees that the applicant pays by
staking or locking-up tokens. Activating the TCR process also requires provision of
necessary encrypted information (e.g. trade type, value, traders’ credit score,
traders’ past performance etc.) so that the trade can be sufficiently reviewed by
curators. Application fees get distributed amongst the curators voted in majority if
the application is successful. In case the application gets rejected, then only 40% of
the application fees will be returned back to the applicant, while the other 60% of
the fees will be used to cover the gas fees of related smart contracts used in the
TCR process and for rewarding curators.
Assuming an application fees is 1000 tokens, we can model the pay off structure
simplistically as:
Pay off structure for successful application
Applicant -1000
Smart Contract gas fees +10
Curators +990
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Pay off structure for rejected application
Applicant -600
Smart Contract gas fees +10
Curators +590
Staking for Curation
Token holders who wants to participate in the TCR process will enter the process
through smart contracts which include the defined voting rules and participation
fees criteria which they have to put on stake.
Reward
Curation rewards, which represent a predefined percentage of application fees,
are distributed among curators who participated in the voting process and whose
vote aligned with the majority vote of the final voting poll.
Punishment
Curators who fall under minority voting list of the application process will lose all the
token they put on stake and this will be equally distributed as the reward to the
curators in majority list.
We will provide whitelisted data through APIs to financers. Financiers do not need to
stake any tokens. Just to make this popular first and easy to be consumed by banks,
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financial institutions etc. TCR or Token Curated registries are decentralized lists
managed by members through a voting mechanism. TCR design are as follows:
• Result of application: Properly vetted trade tickets with majority votes is the
final outcome of an application. It ensures high quality of the whitelist
available for financing.
• Application fees: The application fee is fixed to complete the voting process.
Fees are charged as the fixed pay (e.g. 30,000 tokens). Since token is on ERC-
20 protocol so the payment mode can be either in tokens or ETH. This also
helps in early phase of TCR as there may be limited supply of tokens for the
applicants.
• Rewards / Punishment: As explained in reward & punishment section,
Curators need to stake tokens to participate. Rewards & Punishment for
voting are independent of whether the application gets approved or
rejected but it is dependent on the majority & minority voters list. This
undoubtedly encourages curators to focus on the long-term goal of
maintaining a high-quality whitelist.
Managing the Risk in TCR system
An attack using Spam Applications may be launched by a well-funded entity by
submitting a large number of low-quality applications. Since there is initial level of
filtration system already in place which requires extensive details of the trade ticket
as well as credit score test during the application process, so this reduces the
chances of getting low-quality applications. Also, the fees required for applying to
TCR are quite high, the possibilities of such attack are often dismissed.
There are more expensive forms of attack than spam applications. One such attack
is known as 51% Attack. This attack can happen when a well-funded entity acquires
51% of token causing changes to voting rights on application parameter. In case
this attack takes place, the minority’s only recourse would be to fork the smart
contract, find out the malicious curator and airdrop new tokens to all other minority
curators.
A weaker form of 51% attack is known as Low vote Turnout. In case the vote turnout
is low, the attacker would need more tokens to launch an attack. For example, if
the vote turnout is just 10%, the attacker would acquire 11% for the attack to
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launch. To mitigate this kind of attacks, large pool of random token holders is
already getting notified to participate and also there is minimum number of 10
voter required to complete the voting process.
In the previous three types of attacks, the attacker is either an applicant or a voter
having the power to directly control the result of the vote. Contrary to them all, a
different type of attack is Bribery. The bribing entity is likely to not have voting rights.
However, as the perceived legitimacy of the whitelist grows over time, bribery also
becomes problematic. In order to combat bribery, there is an algorithm where
random subset of votes is tallied. This will significantly reduce the possibility of
attacks.
Sybil type attacks where applicants can bring fake voters during the curation
process are not possible because of stringent KYC system of all the users on the
platform. Also, the algorithm of machine selecting the anonymous and random
voters during TCR minimizes the occurrence of this attack.
Since application fees are distributed to the majority voters only, voters are
sometimes economically incentivized to coordinate with each other off-chain. For
example, if one third of the voters are certain to vote ‘yes’ and another one third of
the voters are certain to vote ‘no’, the remaining voters coordinate with each other
and chose any side arbitrarily. This form of attack is termed as Off-Chain Voting. This
kind of attack is not possible because of the machine algorithm of random
selection of curators by which voters are anonymous hence cannot co-ordinate
with each other.
Once an application is submitted, the original applicant can update his public
filing. He may deliberately introduce material errors in the updates that will be
reflected in the Database until the discrepancy is discovered. So, this attack is
launched by filing “vandalism”. Curators will have visibility to these updates and
accordingly they can challenge such application to mitigate the attack. Curators
(Challenger) who is challenging will stake minimum 50% of the application fees. If
challenger wins then application will be rejected to be included in the whitelist and
challenger will get back his stake together with the reward of 50% stakes of the
voters who participated in the challenge.
And if the challenger loses then application will be included in whitelist and
challenger’s stakes will be given as rewards to the voters participated in the
challenger.
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KRATOS PLATFORM TOKEN
The KRATOS platform token (symbol: TOS) is:
o A utility token
o Built on Ethereum ERC-20
o To be used for Token Curation Registry (TCR) process
KRATOS Token is NOT:
o Fiat currency or any other kind of currency other than virtual currency
o Equity (e.g. shares) or similar
o A debt instrument (e.g. a bond, debenture or loan)
o A right, option or derivative under a contract for differences
o A unit or interest in a collective investment scheme or business trust
o A hybrid instrument (such as a convertible note or preferential share)
o Any other regulated investment product
As KRATOS platform user base increases, more tokens will be required for TCR
process. To make KRATOS token available for users we have already started listing
process with different exchanges to list KRATOS Token for secondary trading.
INITIAL COIN OFFERING (ICO)
We will be issuing KRATOS Tokens, so participants have the ability to use a product
with a promising future. We would like you to consider participating in and taking
advantage of the KRATOS platform by being a part of our KRATOS ICO.
A total of 300 Million KRATOS Tokens will be produced, of which around 55% (i.e. 165
Million) will be available for sale during the Pre-ICO Period & the ICO Period. The
tokens can be purchased using Ethereum. The purchase price per KRATOS Token
during the ICO Period is equivalent to 0.001 ETH. In other words, 1000 KRATOS Token
will be given in exchange for 1 ETH.
During the Pre-ICO Period, we will sell a maximum of 80 Million KRATOS Tokens. The
KRATOS Tokens will be sold at a 20% discount during the Pre-ICO Period.
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Token information
Token Symbol TOS
Decimals 18
Token Value (Pre-ICO
Period)
1000 KRATOS = 1 ETH less 20% (Pre-ICO Period
discount)
Token Value (ICO-Period) 1000 KRATOS = 1 ETH
Total Supply 300,000,000
Pre-ICO Period 80,000,000
ICO Period Crowdsale 85,000,000
Hard Cap 55 Million USD
Token Type Ethereum ERC- 20
Allocation Type Lock-up Period
Pre-ICO 6 Months
ICO None
Advisors 12 Months
Ecosystem Participants 24 Months
Founders 24 Months
Team 24 Months
Exchange listing None
Bounty 6 Months
Reserve 24 Months
55%
4%5%
20%
4%1%
11%
Token Distribution
Pre-ICO & ICO
Advisors
Ecosystem Participants
Founders & Team
Exchange Listing
Bounty
Reserve
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20
Pre ICO KRATOS Tokens will be sold during the Pre-ICO Period at a 20% discount. For
example, 100 KRATOS Token would cost a user 0.08 ETH during the Pre-ICO Period
and 0.1 ETH during the ICO-Period. Investors buying KRATOS Token during the Pre-
ICO Period will have a lock-up period of 6 months from the date the KRATOS
platform goes live for public use, being the date from which the KRATOS Tokens will
be able to be used. Any unsold tokens will be carried out into crowd-sale during the
ICO Period.
Pre-ICO Price 1000 KRATOS = 1 ETH less 20%
(Pre-ICO discount)
Pre-ICO Participation Via cryptocurrency
Unsold Pre-ICO tokens Will be sold during ICO Period
ICO
Unsold Pre-ICO Period KRATOS Token will be used during the ICO Period for the
crowdsale.
ICO Price 1000 KRATOS = 1 ETH
Unsold ICO tokens Will be burned post ICO Period*
ICO Participation Via cryptocurrency
* At the end of the ICO Period, all unsold KRATOS Tokens will be burned.
Funds raised
The Funds raised from the crowd-sale token will be used by ARKRATOS in:
1. Platform Development: Development of different modules such as Risk &
Compliance Management, Insurance, Logistics (Ground, Sea & Air) and
other module enhancements. More details of platform development can be
found in technology paper.
2. Sales and Marketing: Global sales and marketing to on-board customers and
increase the number of players on the platform
3. Risk & Compliance: Risk & compliance management team to handle each
of the activities
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4. Legal & Audit: Legal team and auditors for better transparency in the system
5. Operations: Proper support, infrastructure & security in place to make the
system more robust
A budget has been outlined below:
BLOCKCHAIN TECHNOLOGY
A blockchain is a ledger of transactions stored on thousands of computers globally.
Blockchain is practically incorruptible and is also an immutable ledger of
transactions that can be widely used.
Blockchain and its value add to commodities trading
As a result of its peer-to-peer and decentralized network architecture, blockchain
offers outstanding enhanced trade transaction transparency, network and data
security, as well as data immutability. The following elements are enhanced:
o Verification: The identities of trade participants are KYC’ed. Coupled with
Blockchain, every change made by the users can be easily tracked.
o Cryptography: Cryptography coupled with Proof-of-Work makes it
economically infeasible for malicious actors to alter blockchain
o Singularity: Participants can neither successfully forge nor double-spend
digital assets.
o Perpetuation: Fraudulent activity is notably reduced due to the inability to
revise or replicate trade transactions.
50%
18%
6%
21%
5%
ICO Proceeds
Platform Development
Sales & Marketing
Risk & Compliance
Operations
Legal & Audit
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o Validity: Due to continuous user data and request validation performed by
servers, there is no requirement for participants to involve middlemen, such
as brokers.
o Automation: Wait periods for administrative trading processes and
decisions are significantly reduced by blockchain’s adjudication as a
service and the automatic execution of smart contracts in the trade flow.
The key areas where the KRATOS platform excels are:
o It addresses the entire spectrum of international commodities trading
rather than just a specific problem or phase. As explained earlier, our
Target State Architecture encompasses the entire trade lifecycle, from
producer to consumer. Currently the blockchain technologies in
development generally deal with subsets of the trade lifecycle such as
shipping or bills of lading.
o It has a flexible platform architecture that allows various technologies from
existing industry players to integrate and participate.
Regulation
The regulatory and legal aspects of the KRATOS platform are very important to the
overall vision and ARKRATOS will comply with all applicable laws and regulations.
Because ARKRATOS is based in Singapore, a gateway for international commodities
trading, it will actively seek regulatory approval from Singapore authorities as and
where applicable.
Currently, it has not yet been determined whether regulatory approval will be
required in other markets where traders will be located. In view of the regulatory
uncertainty to date, our roadmap plans to seek green light or approval from
regulatory authorities, progressively over time, as and when required.
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A NEW ECOSYSTEM TO SOLVE OLD PROBLEMS
As explained above, we are creating an end to end commodity trading process on
our blockchain platform as shown in the pictures below.
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PROOF OF CONCEPT (POC) FLOW
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KRATOS PLATFORM TECHNICAL OVERVIEW
The ARKRATOS team has significant experience in delivering large scale global
service platforms in the areas of Commodities Trading, Finance and Technology.
The have proven track record of managing and delivering services for some of the
world’s largest mobile network operators and architecting numerous application
solutions, security and anti-fraud models for financial services. Further information on
the team biography is available later in this document.
The KRATOS platform has been developed in partnership with experts from
international commodity trading utilizing the latest blockchain technologies. It is an
enterprise grade level PaaS solution, which gives the trade industry a defined and
relevant platform to the use cases needed within this industry. Examples of the
provided use cases are AML and KYC checks, quality checks, Bill of Lading
verifications, Letters of Credit issuances, and trust and certification validation.
The KRATOS platform model of core data and trust is developed on the public
Ethereum Blockchain and uses Solidity as the main programming language for
smart contracts. This gives ARKRATOS the ability to build direct, immutable, and
tamper- proof records between the ecosystem players on the KRATOS platform.
This results in a truly trusted environment which, before blockchain technology, was
not possible to achieve with centralised systems.
The KRATOS platform's blockchain enabler interface reduces complexity of the
workflows from the different transactions and smart contract logic. This enabler can
be agnostic to the underlying blockchain protocol making it future proof and also
potentially interoperable with other ecosystem consortia. The development also
becomes less complex as it abstracts the overlying use case to the underlying
protocol of the smart contract or transaction interface.
Database and Storage Systems are managed in a way that have an off-chain
element. The current blockchain protocols have limitations in their architecture,
which do not make them a good solution for storing data. We in fact don’t believe
that these protocols should be used as such. We are using the blockchain protocols
only for the transaction data of the KRATOS platform and ecosystem calls. All other
data is managed securely and off-chain. This also allows us to manage the
transaction speeds of the database calls we make.
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KRATOS Off-Chain Components
The off-chain platform architecture is managed in a secure cloud AWS environment
with security layers, firewalls and segregated environments between the frontend,
backend, and different databases.
Currently, the transaction cost of using the blockchain can become prohibitive due
to the “Gas” fees that are needed to facilitate the transactions being initiated. In
order to keep the KRATOS platform’s use of blockchain technology as low cost and
efficient as possible, we only store trade transactional data on blockchain. This
significantly increases our platform transaction processing throughput. Any other
data required is stored off-chain. Data storage includes common relational
databases and cloud storage solutions.
The off-chain relational database holds the entity definitions and relationships. It
stores information such as:
o Trader entity and company details
o Logistics and shipper information
o Commodity certification and specification
The advantage of such a hybrid on- and off-chain model is that for non-
transactional data we can benefit from the traditional off-chain solutions. Some
benefits include:
o Processing data heavy data structures faster
o Faster reporting
o Queuing and transaction management
o Scaling the solution
Our API services manage the on-chain and off-chain interactions of the platform
enabler with the blockchain adaptors and the wider ecosystem. This allows data to
be permissioned according to the entities interacting.
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We can expose APIs that can be utilized by various partners to integrate into their
platforms.
KRATOS platform Components
The KRATOS platform core components have been developed in such a way to
make the platform fully modular and flexible. It is developed with a classic tiered
architecture where the platform components have clear separation of
responsibilities. These components include:
o Web presentation and services
o Application services layer
o Database layer
o Security and encryption services
o Blockchain adaptors layer
o API services
KRATOS platform
The KRATOS platform has a front-end user interface that allows users to register and
login. This is a web application that has a fully responsive web design.
Backend Services
The KRATOS platform is hosted in a cloud environment with a high security layer,
which allows us to scale the platform as needed depending on demand and loads.
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Application Services Layer
The application services layer communicates with the web services application
layer through the following methods:
o API Integrations
o Tightly coupled with Web Tier
Database Layer
The KRATOS platform uses a highly available, scalable persistence database. This is
a dedicated secure database with no other applications allowed to access it. The
database layer stores data for facilitating the workflows and requests and keeps all
the data created as part of the process. The database also serves as a
‘guaranteed delivery’ queue into the blockchain adaptors layer and handles any
exception errors in such a way that no data is lost due to errors at any level.
Security and Encryption Services
Security was the first element we designed in our architecture and development of
the KRATOS platform. The KRATOS platform is hosted in a cloud environment with a
high security layer, which allows us to scale the platform as needed depending on
demand and loads. We also use Cloudflare services, one of the top internet security
companies, to protect and maintain security of our applications and domains
against attacks of known threats. Cloudfare helps protect our platform from any
DDoS attack and prevents customer data breach. We manage the set of private
keys that are needed to allow interaction between parties on top of the smart
contracts in the blockchain integration layer and adaptors.
Blockchain Adaptors Layer
The KRATOS platform's blockchain adaptors layer exposes the logic of the
underlying blockchain protocols and standardises the way our system workflow
runs. It abstracts the system communication with the blockchain, making
development faster and modular. The adaptor layer is a set of predefined functions
that execute specific business processes or rules. We predefine the functions via
several parameters that allow the system output to always remain the same and be
independent of the blockchain protocol being used.
API Services
The KRATOS platform is an ecosystem enabler for the trade industry. As such, we
have developed an API integration environment that can accept and also provide
APIs to partners and consortiums as needed to develop the ecosystem whilst still
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protecting our core platform features. To support our partners and any future third
parties, we manage a number of dedicated and industry grade interfaces to
provide a best in class service:
o Logistics partners interfaces
o Banking partners interfaces
o Insurance interfaces
o Blockchain services
Our APIs are implemented as a set of stateless RESTful web services, using standard
HTTP and HTTPS methods as needed. The APIs are broken down according to the
system or module with which they are communicating:
o Web APIs to communicate between our system and web apps
o Partner API services used by any third-party providers, building their
solutions on top of the KRATOS platform
o External system feeds for data from trusted third parties
o Blockchain API adaptors communicating with the blockchain smart
contracts
o Database APIs retrieving and storing data in our databases
The data format for our APIs is JSON, but we can support other data formats like
XML as needed. The APIs are secured using API keys, which fits well with our stateless
services architecture and enables high throughput and scale. API requests are
handled asynchronously, which improves the responsiveness of the whole system.
KYC and AML
We are fully committed to ensure the trust and integrity of our system. The KRATOS
platform will carry out real time KYC and AML checks on the ecosystem members
that we are on-boarding. We maintain the “KYC Status” for the duration of that
entity being a part of our ecosystem. We also provide an API for this service, so our
partners can also make real time checks. Our system checks will include:
o Sanction screening
o Warnings and regulatory enforcement screening
o PEP screening
o Adverse media coverage screening
Document Authentication & Enhanced Security
The KRATOS platform aim to digitalize the current paper-based document
transaction of a trade flow. This will be facilitated using dLoc® system which is
combination of the security of blockchain and the convenience of Near Field
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Communication (NFC), allows any document to be stored, shared and verified in
real-time using an NFC-enabled mobile device.
To provide an effective verification process, this solution will come with a memory
chip that attaches to the document and stores all the relevant data in encrypted
format. Reading the data off the chip and verifying the integrity and authenticity of
the document through a robust blockchain application can be carried out quickly
and easily using tools that are widely available today: smartphones.
KRATOS platform Functions
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KRATOS platform Technology Overview
Future enhancement to the KRATOS platform The KRATOS platform is in an advanced stage of development and is expected to
be rolled out to the early adopters in the near future. The enhancement roadmap
for the product is as follows:
o TCR and Risk Management module by October 2018.
o Finance module by December 2018.
o Human Resources & Administration module by March 2019
o Logistics (Ground, Air & Sea) module June 2019.
Once all planned enhancements are completed, the product will have achieved
its Target State Architecture.
EARLY ADOPTERS
Rhodium Resources Pte Ltd Longview Resources Group
Singapore Hong Kong
http://www.rhodiumresources.com/ http://www.longviewresources.com/ Rhodium’s core business specialises in physical trading
of commodities and trade logistics. All assets and
investments are directed towards complementing
and enhancing these activities, while staying true to
the axiom of Pure Trade. As a global entity, Rhodium is
managed through a network of companies with
central hubs and regional offices.
Longview Resources Group ("Longview") is a Hong
Kong based and headquartered Group that is the
product of a recent amalgamation of four formerly
separate International Commodities Trading
Companies.
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MILESTONES
MVP 1.0 Jun 2018
ICO Sep 2018
TCR &
Risk Management module Oct 2018
Seed Funding Aug 2017
KRATOS Proof of Concept (POC) Feb 2018
Dec 2018
Human Resources & Administration module
Sep 2019
Finance module
Mar 2019
Logistics module
KRATOS ERP Dec 2019
Jul & Aug 2018 Pre-ICO
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ARKRATOS TEAM
Founding team
SRINIVAS KONERU
Anchor Investor
MARK FUNG
Director
ASHISH SRIVASTAVA
Senior Vice President
Srinivas has founded several successful
companies, positively turning around
sick companies and creating new lines
of business with innovative solutions. He
has over 35 years of diversified industry
experience such as IT, manufacturing,
trading, etc.
Mark is a Postgraduate from Saint
Louis University, Baguio City with over
35 years of experience in
international commodity trading &
banking. His deep understanding of
the physical commodity business has
given an insight to solve the real
trade problems.
IT graduate & MBA with
specialization in IT, Ashish comes
with 12+ years of IT business
experience, starting from
identification technologies to
blockchain solutions. Currently as a
Senior Vice President, he heads IT
innovation and new initiatives for
Triterras and group companies.
SUE KAH YONG
Blockchain Architect
ASHISH CHOPRA
VP- Industry Specialist
JAGADEESH (JAY) M.
Functional Trade Expert
Sue Kah is technologically inclined,
having gained exposure to personal
computer and programming at a very
young age. Combining curiosity and a
hands-on attitude has led to a wide
appreciation for different platforms,
OSes and hardware’s. He has a keen
eye for trend developments that makes
sense and is always on the lookout to
improve quality of life with technologies.
With over two decades of
experience in various emerging
markets, Ashish has experience in
multiple sectors (including
commodities, telecom, technology
and renewable energy) across wide
geographies (Myanmar, Laos, Sri
Lanka, India, Taiwan etc.). He is an
expert in commodities market
specially for investment into
upstream agriculture & alternate
energy. Holds a Master of Applied
Finance from Singapore
Management University and a
Master of Science in Communication
Engineering from Nanyang
Technological University.
Jay graduated with a BA in
Economics from New York
University. He started off his career
on Wall Street at Citigroup and
finished out his professional career
at JP Morgan. Jay has worked on
trading platforms for both risk and
execution. Jay worked at
Deutsche Bank and JP Morgan
rolling out their in-house risk
management systems for foreign
exchange, commodities and
interest rate derivatives. He is
currently pursuing his passion and
interest in blockchain and crypto
investing.
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AYASKANTA JEE
Talent Manager SUMIT NARANG
Sr Blockchain Developer STANLEY SY
Sr. Blockchain Developer
Ayaskanta is a highly experienced
global Human Resources professional
with over 20 years of experience in the
service industry. He has handled the
entire spectrum of Human Resources
issues and has led several strategic
initiatives. He is committed towards
nurturing a productive team
environment while maintaining positive
relationships at all levels of the
organization.
Sumit has 11+ years of core software
development experience. He is a
computer science graduate with
hands on experience with PHP,
Laravel Framework, Python, Django
Framework, JavaScript, MySQL and
Android Native. He has worked on
multiple end-to-end portal
developments by practicing agile
methodologies.
With 11.5+ years of experience in
developing web-based
applications, Stanley is expert in
PHP, Codelgniter3 MVC
framework, Wordpress CMS
framework, HTML, CSS, jQuery,
javascript and MySQL in Unix and
Windows OS platform. He was
graduated with bachelor’s Degree
in Computer Engineering with
Honors cum laude.
ADITI SEN
Product Marketing
APARAJITA M.
Business Analyst / PMO
SHWETA GUPTA
Marketing Specialist
With 8+ years’ work experience,
Marketing has been an enduring interest
and a theme cutting across Aditi's
career. She has wide range of
experience in venture capital firms and
leading technology firms (Dimension
Data, Dell, TCS, Wipro) in Asia Pacific
and Middle East- in the field of B2B
marketing strategy, business
development, client relationships,
channel marketing, product
management, content marketing and
communications roles. She holds an
MBA from Top 20 Forbes Ranked Business
School globally.
Aparajita is a Management
graduate with over 7 years of
consulting experience in business
analytics across IT, manufacturing,
and FMCG industries. She has a rich
experience in account
management, gathering
requirements, creating use cases,
and communicating the
requirements to the delivery team.
With 5 years of experience in
integrated marketing for Internet
based products and delivering
multiple successful 360-degree
campaigns, Shweta has won
Effie’s – India and Digital
Innovation Award, Campaign
India with her previous
organizations. She has experience
across BFSI, online classified and
eCommerce industries.
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YAZID YACOB
UI/UX Designer
PARUL SINGH
Blockchain Developer
MOUPIYA SAWOO
Marketing & Communication
Diploma graduate with 5+ years’
experience in Visual / UX / CX design.
Experienced with the user-centred
design (UCD) process, has worked on
most of the design software and rapid
prototyping tools like Adobe, Sketch,
Axure etc. Handled multiple projects
with diversified frameworks such as Agile
and Design Sprints.
Post graduate in Computer
Application (MCA) holding
experience of 5+years in web
development. Highly skilled in
backend technologies of PHP MVC
frameworks like CodeIgniter2,
Laravel5 & CMS-Drupal7, having
knowledge of frontend skills like HTML,
JS, CSS, Jquery, bootstrap as well.
Experience of working in projects
with Agile & Waterfall methodology.
Hands on experience in subversion
control tools like git, bitbuket, also
tools like Jira.
Postgraduate in linguistics with a
bachelor’s Degree in English,
Moupiya has over 4 years of
experience in web content writing.
She has worked as a content
strategist, writer, curator and editor
for Search Engine Optimization
and Social Media Marketing. She
also has experience in managing
and leading a small team of
content writers in her previous
company.
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Advisors
CHEAM HING LEE
MD & CEO
Rhodium Resources
ROLF HOEFER
Founder
Rhetorical Crypto Capital
HENRY C. MYTTON-MILLS
Managing Director
Aries Shipbroking (Asia) Pte Ltd
Cheam has transformed Rhodium from
a small enterprise into one of
Singapore’s leading independent
commodity traders, with four product
lines, a footprint in 20 geographies,
and offices not just in Singapore, but
also in Hong Kong, China and Dubai –
all within the short span of four years.
He is driven by a passion for people
and trade.
Rolf is the founder of Rhetorical Crypto
Fund and an INSEAD PhD. With deep
critical thinking, qualitative and
quantitative skills Rolf spends love to
analyse start-ups, particularly start-ups
based on blockchains and crypto
assets. He spends his time working on
crypto economics.
Henry is the founder and CEO of Aries
Maritime Holdings Group of Companies. He
is the Managing Director of Aries
Shipbroking and Chairman of the SPI Marine
Group headquartered in Singapore. Henry is
also a Director of Precious Shipping
(Singapore) Pte Ltd. He started his career as
a Cadet with the China Navigation
Company 40 years ago. He has extensive
specialist experience in all aspects of Ship
Sale & Purchase as well as wide-ranging
experience in chartering and shipowning.
SUDARMO TASMIN
Deputy President Director, PT
Tunas Baru Lampung (TBLA)
ANDREAS TSINDOS
Blockchain Technology Advisor NICHOLLE LINDNER
APAC Financial Services Industry
Leader, Unisys
Mr. Tasmin joined Sungai Budi Group in
1984 and was appointed as director in
1986. Mr. Tasmin was put in charge as
Deputy President Director of TBLA, a
subsidiary, in 1999. Sungai Budi Group
is one of Indonesia’s largest
manufacturers & distributors of
agricultural based consumer products
that has assisted in the development
of the country. TBLA's business activities
include manufacturing & distribution of
vegetable oil, Tapioca Flour, Crude oil,
Palm oil, Soap, Sugar and other
processed products to domestic &
international markets.
Andreas is a Fintech,
telecommunication, and blockchain
professional with over 20 years of
experience. Andreas has worked for
large multinational companies such as
Vodafone, News Corporation
International, and Siemens
Communications. In the last 3 years, he
has been involved in and developed
solutions on top of the decentralised
blockchain protocols. He has also
spoken at several industry events to
date.
Nicholle is an experienced senior financial
services executive with just under 20 years
working in major financial institutions and
consultancy. Her expertise across financial
services includes banking and payments,
FinTech, RegTech, IT strategy, data
analytics, cyber security & risk
management, digital transformation, AI-
driven automation and design thinking. This
expertise has been gained from working in
major banks such as Merrill Lynch, CBA,
NAB, Westpac / St George and senior
advisory and consultancy roles at AT
Kearney / EDS and leading global Fintech
Incubators such as Stone & Chalk, Level39
and Lattice80 in Sydney, London and
Singapore.
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ROY WONG
Director
7O Ships Pte Ltd
NG XINWEI
CEO
Agritrade Resources Limited
AMI MANDEL
PR and Marketing Advisor
Roy started his career in 2003 with GFI
educating and developing clients on
tanker FFA’s. In 2008, he joined another
global brokerage to start the naphtha
product desk, subsequently setting up
the physical tanker desk. In 2010, he
joined global operating outfit as a
freight trader in charge of FFA trading,
bunker swaps trading, cargo
acquisitions, and time chartering of
vessels. With the acquired experiences,
he decided to set up his own venture
7oships in 2015. Roy majored in finance
and economics, focused subjects in his
studies includes options pricing,
derivatives, econometrics and
statistics.
NG Xinwei is the CEO of Agritrade
Resources Limited with strong business
expertise in crude palm oil, coal
trading, shipping logistic management
and commodities investments. With
market capitalization of HK$7.85B as
on April 12, 2018, Agritrade Resources
is and integrated energy provider. It is
a coal producer, marketer and energy
logistics provider in SEA as well as
sustainable renewable energy
producer with BioDiesel plant
Arkansas, United States. Agritrade
Resources, through our shipping arm
Sea Oriental Line, is the preferred one-
stop partner for maritime
transportation and storage solutions. It
owns a fleet of vessels and provides
Ship Management services also.
A Strategic Marketer with 15 years of
progressive experience in strategy and
planning marketing campaigns, business
development and technology solution
consultancy. He is also Manager of ICO
Launch Group - Marketing, PR, token
development & community building.
GIANNANDREA GIAMMANCO
Founder
FVTURA
BENJAMIN S. PADILLA
Senior Manager
Bernhard Schulte
PASCAL PERRUCHOUD
Partners
Optimum-MFS S.A.
With 10 Years’ experience in the
financial area, Giann is an active
entrepreneur, who likes to get involved
in technology, algorithms and
machine learning projects. With an
end goal of creating value, he has
established a VC firm which focusses
on developing and nurturing start-ups
in automation technologies.
Ben originates from Buenos Aires,
Argentina and graduated from
Middlebury College (USA) with a
Bachelor of Arts (Political Science) in
2006. Ben has been employed in
various capacities by the Schulte
Group since 2008 in Latin America,
Europe and most recently Singapore.
With 130 years of shipping experience,
the Schulte Group employs about
16,000 seafarers and about 1,500
people onshore, owns more than 100
vessels and manages more than 650
vessels.
Partner of an insurance broker company in
Geneva, affiliated to one of top three
insurance brokers in France. Started his
career in Marine Transport in 1978 where he
worked in Geneva for 10 years in various
trade/commodity companies. Later, he
joined a top French insurance broker to
open an office in Geneva and to develop
all Insurance Marine activities. Today he is
agreed as Lloyd’s broker with the Swiss
authorities as well as licensed with FINMA.
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RAY FERGUSON
Founder
Caber Partners
OJAS DOSHI
Managing Director
Rhodium Investments Pte Ltd
HAN XIAOLI
Managing Director Lobb Heng Pte.
Ltd.
Renowned international banker,
investor and board level leader with 20
years of Chairman and CEO
experience across Asia, Middle East,
Americas with Standard Chartered
Bank, and Bank ABC. Listed in Prestige
Asia's Power List 100 of Singapore's
Most Influential People. Formerly
Regional CEO, South East Asia and
CEO of Standard Chartered Bank, EVP
and Group Chief Banking Officer, Arab
Banking Corp, Bahrain. In 2017
founded Caber Partners a Singapore
capital markets licensed fund
manager and financial advisor,
investing in and advising innovative
companies seeking to disrupt the
financial industry, in fintech verticals.
Currently Chairman of Singapore Life,
a start-up direct life insurance
company in Singapore which raised
$50m in Series A in 2017 and received
the first new life licence from the MAS
in 40 years.
Ojas brings with him over 20 years of
working experience in the trading and
maritime industry and holds a master’s
degree (MSc) in Shipping, Trade &
Finance from CASS Business School in
London and a bachelor’s degree from
Warwick University (UK). Ojas has been
chartering vessels for hard and soft
commodities for the past 20 years and
has in-depth knowledge of chartering,
operational, legal and financial
aspects of shipping. His experience in
the S&P (sale and purchase) aspects
of shipping were proven with him
leading Rhodium’s efforts to buy and
operate vessels.
Han Xiaoli is the Managing Director of Lobb
Heng which was founded in 1993 and
business includes industrial material
purchase and supply, international trading
of industrial commodities such as copper,
aluminium, zinc, lead, logistics and
machinery warehousing management in
Free Trade Zone in China, Forex and Futures
trading at exchanges in London, Shanghai,
and New York.
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IMPORTANT NOTES
Disclaimer of liability
To the maximum extent permitted by the applicable laws, regulations and rules, ARKRATOS shall not
be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort,
contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use
or data), arising out of or in connection with any acceptance of or reliance on this Whitepaper or
any part thereof by you.
No representations and warranties
ARKRATOS does not make or purport to make, and hereby disclaims, any representation, warranty or
undertaking in any form whatsoever to any entity or person, including any representation, warranty
or undertaking in relation to the truth, accuracy and completeness of any of the information set out
in this Whitepaper.
Each of the Early Adopters, the ARKRATOS Team and the Advisors has given and has not withdrawn
its written consent to the issue of this Whitepaper with the references to its name and related details
included herein in the form and context in which they are respectively included. However, the Early
Adopters, the ARKRATOS Team and the Advisors do not make any warranties about the
completeness, reliability and accuracy of this Whitepaper and they do not accept any responsibility
or liability for the provision and accuracy of any information included in this Whitepaper.
Save for ARKRATOS, the Early Adopters (see p. [31]), the ARKRATOS Team (see p. [33]), the Advisors
(see p. [36]) and their respective directors, executive officers and employees, no person has
provided his or her consent to the inclusion of his or her name and/or other information attributed or
perceived to be attributed to such person in connection therewith in this Whitepaper and no
representation, warranty or undertaking is or is purported to be provided as to the accuracy or
completeness of such information by such person and such persons shall not be obliged to provide
any updates on the same.
Representations and warranties by you
By accessing and/or accepting possession of any information in this Whitepaper or such part thereof
(as the case may be), you represent and warrant to ARKRATOS as follows:
(a) you agree and acknowledge that the KRATOS Tokens do not constitute securities or any
other regulated products in any form in any jurisdiction;
(b) you agree and acknowledge that this Whitepaper does not constitute a prospectus or
offer document of any sort and is not intended to constitute an offer of securities or any
other regulated products in any jurisdiction or a recommendation or solicitation for
investment in securities or any other regulated products and you are not bound to enter
into any contract or binding legal commitment and no cryptocurrency or other form of
payment is to be accepted on the basis of this Whitepaper;
(c) you agree and acknowledge that no regulatory authority has examined or approved of
the information set out in this Whitepaper, no action has been or will be taken under the
laws, regulatory requirements or rules of any jurisdiction and the publication, distribution or
dissemination of this Whitepaper to you does not imply that the applicable laws, regulatory
requirements or rules have been complied with;
(d) you agree and acknowledge that this Whitepaper, the undertaking and/or the completion
of the KRATOS Initial Coin Offering, or future trading of the KRATOS Tokens on any
cryptocurrency exchange, shall not be construed, interpreted or deemed by you as an
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indication of the merits of ARKRATOS, the KRATOS platform, the KRATOS Tokens or the
KRATOS Initial Coin Offering;
(e) the distribution or dissemination of this Whitepaper, any part thereof or any copy thereof, or
acceptance of the same by you, is not prohibited or restricted by the applicable laws,
regulations or rules in your jurisdiction, and where any restrictions in relation to possession
are applicable, you have observed and complied with all such restrictions at your own
expense and without liability to ARKRATOS;
(f) you agree and acknowledge that in the case where you wish to purchase any KRATOS
Tokens, the KRATOS Tokens are not to be construed, interpreted, classified or treated as:
i. any kind of currency other than cryptocurrency;
ii. debentures, stocks or shares issued by any person or entity, including ARKRATOS;
iii. rights, options or derivatives in respect of such debentures, stocks or shares;
iv. rights under a contract for differences or under any other contract the purpose or
pretended purpose of which is to secure a profit or avoid a loss;
v. units or interests in a collective investment scheme;
vi. units in a business trust;
vii. derivatives of units in a business trust; or
viii. any other security or class of securities;
(g) you are fully aware of and understand that you are not eligible to purchase any KRATOS
Tokens if you fall into one of the Restricted Categories (see p. [3]);
(h) you have a basic degree of understanding of the operation, functionality, usage, storage,
transmission mechanisms and other material characteristics of cryptocurrencies,
blockchain-based software systems, blockchain technology and smart contract
technology;
(i) you are fully aware and understand that in the case where you wish to purchase any
KRATOS Tokens, there are risks associated with ARKRATOS and its business and operations,
the KRATOS platform, the KRATOS Tokens and the KRATOS Initial Coin Offering;
(j) you agree and acknowledge that ARKRATOS will not be liable for any indirect, special,
incidental, consequential or other losses of any kind, in tort, contract or otherwise (including
but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or
in connection with any acceptance of or reliance on this Whitepaper or any part thereof
by you, including in relation to:
i. any failure by ARKRATOS or its affiliated entities to deliver or realise all or any part of
the KRATOS platform or the KRATOS Token features described in this Whitepaper;
ii. your use or inability to use at any time the services or the products of the KRATOS
platform or KRATOS Tokens;
iii. any failure to provide a secondary trading platform for KRATOS Tokens or a lack of
liquidity on other secondary trading platforms for KRATOS Tokens;
iv. any security risk or security breach or security threat or security attack or any theft or
loss of data including but not limited to hacker attacks, losses of passwords, private
keys;
v. your failure to properly secure any private key to a wallet containing tokens; and
(k) all of the above representations and warranties are true, complete, accurate and not
misleading from the time of your access to and/or acceptance of possession this
Whitepaper or such part thereof (as the case may be).
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Cautionary note on forward-looking statements
All statements contained in this Whitepaper, statements made in press releases or in any place
accessible by the public and oral statements that may be made by ARKRATOS or its directors,
executive officers or employees acting on behalf of ARKRATOS, that are not statements of historical
fact, constitute “forward looking statements”. Some of these statements can be identified by
forward-looking terms such as “aim”, “target”, “anticipate”, “believe”, “could”, “estimate”,
“expect”, “if”, “intend”, “may”, “plan”, “possible”, “probable”, “project”, “should”, “would”, “will” or
other similar terms.
However, these terms are not the exclusive means of identifying forward-looking statements. All
statements regarding ARKRATOS’ financial position, business strategies, plans and prospects
(including in respect of the KRATOS platform) and the future prospects of the industry which
ARKRATOS is in are forward-looking statements. These forward-looking statements, including (but not
limited) to statements as to ARKRATOS’s revenue and profitability, prospects, future plans, other
expected industry trends and other matters discussed in this Whitepaper regarding ARKRATOS are
matters that are not historic facts, but only predictions. These forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause the actual future results,
performance or achievements of ARKRATOS to be materially different from any future results,
performance or achievements expected, expressed or implied by such forward-looking statements.
These factors include, amongst others:
(a) changes in political, social, economic and stock or cryptocurrency market conditions, and
the regulatory environment in the countries in which ARKRATOS conducts its businesses and
operations;
(b) the risk that ARKRATOS may be unable or execute or implement its business strategies and
future plans;
(c) changes in the anticipated growth strategies and expected internal growth of ARKRATOS;
(d) changes in the availability and salaries of employees who are required by ARKRATOS to
operate its businesses and operations;
(e) changes in competitive conditions under which ARKRATOS operates, and the ability of
ARKRATOS to compete under such conditions, including the launch of any other similar
blockchain platforms or projects, or changes in the commodities markets which affect the
viability of ARKRATOS' business strategy;
(f) changes in the future capital needs of ARKRATOS and the availability of financing and
capital to fund such needs;
(g) war or acts of international or domestic terrorism;
(h) occurrences of catastrophic events, natural disasters and acts of God that affect the
businesses and/or operations of ARKRATOS;
(i) other factors beyond the control of ARKRATOS; and
(j) any risk and uncertainties associated with ARKRATOS and its businesses and operations, the
KRATOS platform, the KRATOS Tokens or the KRATOS Initial Coin Offering.
All forward-looking statements made by or attributable to ARKRATOS or persons acting on behalf of
ARKRATOS are expressly qualified in their entirety by such factors. Given that risks and uncertainties
that may cause the actual future results, performance or achievements of ARKRATOS to be
materially different from that expected, expressed or implied by the forward-looking statements in
this Whitepaper, undue reliance must not be placed on these statements. These forward-looking
statements are applicable only as of the date of this Whitepaper.
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Neither ARKRATOS nor any other person represents, warrants and/or undertakes that the actual
future results, performance or achievements of ARKRATOS will be as discussed in those forward-
looking statements. The actual results, performance or achievements of ARKRATOS may differ
materially from those anticipated in these forward-looking statements.
Nothing contained in this Whitepaper is or may be relied upon as a promise, representation or
undertaking as to the future performance or policies of ARKRATOS.
Further, ARKRATOS disclaims any responsibility to update any of those forward-looking statements or
publicly announce any revisions to those forward-looking statements to reflect future developments,
events or circumstances, even if new information becomes available or other events occur in the
future.
Market and industry information
This Whitepaper includes market and industry information and forecasts that have been obtained
from internal surveys, reports and studies, where appropriate, as well as market research, publicly
available information and industry publications. Such surveys, reports, studies, market research,
publicly available information and publications generally state that the information that they
contain has been obtained from sources believed to be reliable, but there can be no assurance as
to the accuracy or completeness of such included information.
While ARKRATOS has taken reasonable actions to ensure that the information is extracted accurately
and in its proper context, ARKRATOS has not conducted any independent review of the information
extracted from third party sources, verified the accuracy or completeness of such information or
ascertained the underlying economic assumptions relied upon therein. Consequently, neither
ARKRATOS, nor its directors, executive officers and employees acting on their behalf makes any
representation or warranty as to the accuracy or completeness of such information and shall not be
obliged to provide any updates on the same.
Terms used
To facilitate a better understanding of the KRATOS Tokens being offered for purchase, and the
businesses and operations of ARKRATOS, certain technical terms and abbreviations, as well as, in
certain instances, their descriptions, have been used in this Whitepaper. These descriptions and
assigned meanings should not be treated as being definitive of their meanings and may not
correspond to standard industry meanings or usage.
Words importing the singular shall, where applicable, include the plural and vice versa and words
importing the masculine gender shall, where applicable, include the feminine and neuter genders
and vice versa. References to persons shall include corporations.
No advice
No information in this Whitepaper should be considered to be business, legal, financial or tax advice
regarding ARKRATOS, the KRATOS platform, the KRATOS Tokens or the KRATOS Initial Coin Offering.
You should consult your own legal, financial, tax or other professional adviser regarding ARKRATOS
and its businesses and operations, the KRATOS platform, the KRATOS Tokens and the KRATOS Initial
Coin Offering. You should be aware that you may be required to bear the financial risk of any
purchase of KRATOS Tokens for an indefinite period of time.
No further information or update
No person has been or is authorised to give any information or representation not contained in this
Whitepaper in connection with ARKRATOS and its businesses and operations, the KRATOS platform,
the KRATOS Tokens or the KRATOS Initial Coin Offering and, if given, such information or
representation must not be relied upon as having been authorised by or on behalf of ARKRATOS. The
KRATOS Initial Coin Offering shall not, under any circumstances, constitute a continuing
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representation or create any suggestion or implication that there has been no change, or
development reasonably likely to involve a material change in the affairs, conditions and prospects
of ARKRATOS or in any statement of fact or information contained in this Whitepaper since the date
hereof.
Restrictions on distribution and dissemination
The distribution or dissemination of this Whitepaper or any part thereof may be prohibited or
restricted by the laws, regulatory requirements and rules of any jurisdiction. In the case where any
restriction applies, you are to inform yourself about, and to observe, any restrictions which are
applicable to your possession of this Whitepaper or such part thereof (as the case may be) at your
own expense and without liability to ARKRATOS. Persons to whom a copy of this Whitepaper has
been distributed or disseminated, provided access to or who otherwise have the Whitepaper in their
possession shall not circulate it to any other persons, reproduce or otherwise distribute this
Whitepaper or any information contained herein for any purpose whatsoever nor permit or cause
the same to occur.
Risks and uncertainties
Prospective purchasers of KRATOS Tokens should carefully consider and evaluate all risks and
uncertainties associated with ARKRATOS, and its businesses and operations, the KRATOS platform,
the KRATOS Tokens and the KRATOS Initial Coin Offering, all information set out in this Whitepaper
and the T&Cs prior to any purchase of KRATOS Tokens.
THERE IS NO GUARANTEE THAT THE UTILITY OF THE KRATOS TOKENS, OR THAT THE KRATOS PLATFORM
WILL BE DELIVERED OR REALISED. IF ANY OF SUCH RISKS AND UNCERTAINTIES DEVELOPS INTO ACTUAL
EVENTS, THE BUSINESS, FINANCIAL CONDITION, RESULTS OF OPERATIONS AND PROSPECTS OF
ARKRATOS COULD BE MATERIALLY AND ADVERSELY AFFECTED. IN SUCH CASES, YOU MAY NOT BE ABLE
TO USE ALL OR PART OF YOUR KRATOS TOKENS. IN THE EVENT THAT YOU HAVE PURCHASED KRATOS
TOKENS, YOUR PURCHASE CANNOT BE REFUNDED OR EXCHANGED.
IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL,
FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S).