wise investment solutions · 2021. 1. 2. · wise investment solutions . whitepaper . version 1. 6...

Wise Investment Solutions

Whitepaper

Version 1.7 Updated 24/02/2021

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1. Introduction 3

2. Praem Capital Ecosystem 4

2.1. Mission and Goals 4

2.2. Issues and Solutions 4

2.3. Company History 5

2.4. Praem Investment Markets 7

Forex 7

Cryptocurrencies 7

Stock Market 7

Real Estate 8

Venture Capital Investments 8

2.5. Praem Technologies 8

Trading Bots 9

Scalping Bots 9

Trend Bots 10

Arbitrage Bots 10

Artificial Intelligence 10

Synchronizing bots and AI on a Private Blockchain 13

Blockchain and Cross-Niche Trading 14

2.6. Investment Insurance 14

Secure Investment Concept 14

Anti-Drawdown Strategy and the Insurance of Capital 15

2.7. Platform Advantages 17

Competitor Analysis 18

Target Audience 18

SWOT Analysis 19

2.9. Business Model 20

Investor Profit 20

Praem Capital Profit 20

Hedge Fund Profit 21

Fund Partnership and Investing for Ecosystem Completion 22

2.10. Affiliate Partner Program 23

Ranking System 24

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Partner Benefits 24

3. About the Token Sales 26

3.1. Token Sales Goals 26

3.2. General Provisions 26

3.3. Token General Information 27

PRM Token Emission and Distribution 27

PRM Token Function 27

3.4. Token Sales Stages 28

First Stage - Private Sale 28

Second Stage – Pre-Sale 28

Third Stage – Public Token Sales 28

3.5. Investor Plans 28

Investor Plan Upgrade 30

3.6. Investors Fund Distribution 31

Implementation of Investor Plan Launch 31

Withdrawal of Funds at the Token Sales Stage 32

3.7. Budget Allocation 32

Soft Cap 32

Hard Cap 33

4. General Legal Provisions, Risks and Limitation of Liability 33

5. Roadmap 40

6. Ecosystem Launch 45

Ecosystem Improvement Plan 45

Investor Terms and Conditions 45

Tariffs 46

7. Opportunities and Development of Praem Capital 46

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1. Introduction Rising unemployment, the instability of the global economy, and widespread panic caused by the unknown are just a small part of the pandemic's impact, which has affected millions of lives. Today, more and more people have begun to realize that having a solid "financial cushion" can provide security in difficult life situations. Despite understanding the importance of investing and building a cash reserve, many people still hesitate to take such risks, mainly due to a large number of myths and a lack of investment experience. The deficiency of existing trading tools prompted a team of developers and analysts to create Praem, an investment ecosystem, the mechanism of which allows capital to be kept under control. Modern technologies help achieve this goal by changing traditional investment models' formats, turning all accompanying trading processes into automated ones. "The most significant feature of our company is that each investor has the possibility of earning money. It doesn't matter if you have several million dollars to invest or $ 100 at your disposal. Many people often ask me how to make money with minimum capital. My answer to them is my mission – Praem Capital. It helps people feel optimistic about the future and to not worry about creating a "financial cushion." The risks of investing in Praem are reduced to minimum thanks to our revolutionary mechanism and our security concept. Someone once said: "Be the change you want to see," and they followed through by changing the world as we knew it. What if each of us could do the same by accessing financial freedom without working for somebody. Everybody wants to be free, but we're still working because we want to build a better world that's worth living in. I intend to do exactly that, leading by example — the very reason why Praem Capital was created. The future is now. Welcome!"

Nicolas Durr PhD, Founder & CEO of Praem Capital and Entro.py

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2. Praem Capital Ecosystem

Praem Capital is a Swiss fintech company based on the concept of risk resilience. Praem combines technological solutions to generate profit in five different markets, has a unique economic model, and partnerships that open up investor capital insurance opportunities. Since 2017, our team has been working on creating and improving technical solutions in the field of investment. Praem's activities are aimed at intelligent investment, which is realized through technology that uses AI and trading bots. Each component of our ecosystem is integrated into a common mechanism, due to which it is possible to achieve a holistic and error-free operation of the company's technologies. Praem Capital is a distinctive and one-of-a-kind platform providing a comprehensive solution to meet all modern investors' needs.

2.1. Mission and Goals Praem Capital’s integrated solutions and unique developments make it possible to hedge risks and minimize the number of mistakes in trading. The result is even more profit for investors. Our mission is to revolutionize investment by integrating the Praem ecosystem into global businesses and institutions. Praem Capital's goal is to create an ecosystem that will simplify the process of using investment products, making them accessible to everyone. Achieving this goal allows the company to revolutionize the financial sector. Every investor will have the opportunity to secure their capital from unforeseen changes in financial markets.

2.2. Issues and Solutions Praem Capital solves the most serious issues facing the modern investor. Issue: Money incorrectly invested in only one niche. Solution: Thoughtful portfolio diversification. Issue: Lack of experience and knowledge in trading, limited human resources. Solution: Trading bots independently perform trading operations according to specified algorithms and parameters without stopping. Issue: Rapid change of events, the complexity of processing incoming volumes of information. Solution: AI and private blockchain process thousands of operations per second, taking into account all the details.

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Issue: Risks, drawdowns, and losses. Solution: Hedge - Fund partnership In case of a high dip, investors' trading balances will be topped up with 50-100% of the funds in order to continue carrying out profitable orders. Issue: Lack of opportunity to invest large sums. Solution: even small start-up capital has the potential for growth and profit at the Token Sales stage due to the capitalization of the token and financial instruments' operation.

2.3. Company History

The story of Praem Capital begins with a man who introduced an innovative perspective on investment. Nicolas Durr, Ph.D. from Switzerland, is a renowned entrepreneur with many years of experience in various business areas - founder and CEO of Praem Capital, Entro.py, and Grow Back. He has worked in Europe and Australia, leading multi-million-dollar projects and holding leading positions in the BMS industry. Every year he expanded the geography of presence of his companies and mastered new markets. In 2017, while working on the start-up company Grow Back, he created Praem, using accumulated experience and knowledge. As an executive at Entro.py, Nicolas immersed himself in Data Science and Machine learning. With the help of Big Data, he managed to reduce energy costs in commercial buildings. Having managed to earn and lose money on cryptocurrency, he understood the available solutions' apparent shortcomings on the market. This led to the creation of an innovative approach to investing that solves any novice or experienced investor's critical problems. He implemented this approach in a new company – Praem Capital. The first development of the company was creating algorithms for automated trading on cryptocurrency exchanges. The algorithms' task was to minimize the risks of volatility of cryptocurrencies at a given rate of growth in profitability. In March 2017, the first crypto scalping bot appeared. Seeing high-performance indicators of these bots – 10-12% per month, and not stopping at what had been achieved, the Praem Capital team continued to scale the project to the largest foreign exchange market – Forex. Algorithms showed high results in this niche too – 10-12% per month. In the summer of 2017, the Bitcoin uptrend gave our team new opportunities to create the Trending Algorithm. In September, in the ascending market, our algorithm was able to achieve an efficiency of 16-20%, excluding the growth of the currency itself. Bitcoin's explosive growth had opened up many opportunities for arbitrage trading between cryptocurrency exchanges. This was because intense market volatility created an imbalance between different exchanges. In order not to miss the right moment for the development of the project, the Praem Capital team accumulated all its experience and knowledge with one goal: to find the best solution for the implementation of arbitration transactions. Arbitrage bots have become the optimal solution. An arbitrage bot is a program that buys and sells the same currency pair, earning on the difference in rates between exchanges. An arbitrage bot connects different exchanges using an API for fast

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transactions. The key to this algorithm's success is the speed of transactions and the identification of a currency pair with arbitrage opportunities. With large trading volumes from 2017 to 2018*, the arbitrage algorithm showed an average of 8-10% of monthly profit. *With the onset of the market downturn in 2018, this algorithm lost its profitability, since arbitrage trading with large amounts became impossible due to insufficient volumes for making trade transactions between exchanges. In November 2017, the available algorithms for the Forex market were tested in the stock market. At the start of the work, the algorithms could not show high profitability since they were tuned to the foreign exchange market, which has more volatility than the stock market. Despite this, we managed to maintain a high level of capital safety. In addition to creating bots, Praem Capital has improved trading strategies based on in-depth data analysis. AI development began in 2018. Specialists in machine learning and fundamental financial analysis were hired to design the learning algorithms. The processed data on all past transactions of bots were used to provide AI with a learning process. The bots started working based on AI investment recommendations, which affected the overall performance and reduced the risk of losing funds - the average drawdown level was 1,050 for every 15,000 (~ 7%). The combination of our trading technologies and smart solutions maintained a high level of security and increased the profitability of the algorithms compared to previous versions. In 2019, due to data from our AI, algorithms received new opportunities for making more profitable trades. In the Forex market and the cryptocurrency market, Scalp and Trend bots have maintained a high-security level and showed a final profitability (compared to previous versions) by 15-20% per month. The profitability of the Trend bot in the stock market was 5-7% per month. In 2020, due to the increased volatility due to sharp changes in the markets, bots were even able to achieve results of 30% per month. In 2019, Praem Capital formed the final concept of its product – an investment ecosystem that combines Trading Bots and AI. To eliminate human resources and fully automate the work, a unified protocol for synchronizing all system elements will be introduced – a Private Blockchain. The implementation of a Private Blockchain will allow us to create the most efficient and low-risk investment model. The arbitrage algorithm created the cross-niche trading concept, which works according to a similar logic, but in different financial markets. In the coming months, the Praem Capital project team plans to complete the private blockchain development. This will provide an opportunity to make revolutionary cross-niche deals and move on to the next stage – the launch of the ecosystem. For this, Praem Capital decided to conduct a public token sale.

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2.4. Praem Investment Markets

The Praem team analysed the most extensive investment markets, determining which financial instruments and methods can provide the investor with great profit. Praem Capital generates profits by investing in five leading economic markets simultaneously. The distribution of the investment portfolio allows you to minimize risks in unforeseen circumstances and makes it possible to build a strategy in the market in which the highest profit is predicted. This approach increases the likelihood of achieving a result – each market is selected based on implementing unique trading strategies and financial instruments developed by Praem Capital. Forex Forex, the international global currency market with a daily turnover of about 5.1 trillion USD (2019), has one of the highest liquidities. Liquidity provides the market with lower dynamics and a slower reaction to changes in the economic situation. This allows the application of trading strategies related to predicting price changes based on the leading financial markets' dynamics. Also, among the advantages of Forex are the minimal spread, the absence of market regulators, the availability of margin trading, and the high intensity of changes in the trading situation, making it possible to practice both intraday trading and scalping. Cryptocurrencies With the right trading strategy, high volatility allows you to generate super-profits. There are thousands of cryptocurrencies out there, and only a competent analyst (or AI) will be able to identify the most promising for investment. Because information about cryptocurrencies is transparent, it can be found in the public domain on GitHub, websites of issuers, as well as Whitepapers of these currencies, etc. In order to make money on crypto, two main tactics are used, which can also be combined: buying and holding currency to expect a rise in value and trading cryptocurrency on an exchange (or between different exchanges) to make money on the difference in the rate. Stock Market The stock market is a global instrument that regulates securities' circulation with a massive selection of tools. Its total capitalization for 2019 is 17 trillion USD. The stock market is unique due to a large selection of investment instruments - stocks, bonds, futures, options, receiving dividends. This provides ample opportunities for drawing up an investment portfolio and developing a trading strategy to buy and sell securities. Long-term investment strategies in the stock market can give high returns with the right choice of issuing companies.

https://www.statista.com/statistics/247328/activity-per-trading-day-on-the-global-currency-market/https://www.statista.com/statistics/247328/activity-per-trading-day-on-the-global-currency-market/https://www.coinspeaker.com/17-trillion-stock-markets-2020/

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Real Estate The real estate investment market had a market cap of USD 9.6 trillion in 2019. Real estate investments provide low-risk returns. The market provides ample opportunities for building highly profitable investment strategies based on comprehensive fundamental and technical analyses and selecting the most promising projects. Cooperation with REIT-companies (Real estate investment trusts) allows the capital of numerous investors to be pooled as a result of which individual investors become co-owners of properties and receive maximum income. Venture Capital Investments Venture capital investments were designed to finance new or growing companies. Nearly 300 billion USD was invested in start-ups in 2019. The venture capital market allows for ultra-high profits. Venture capital investments are the highest yielding and riskiest investments in the world – the top 2% of venture capital funds generate 95% of returns. The success of making money on venture capital investments depends on the scrupulous work of analysts and strategists: a thorough study of all data about the company, comprehensive fundamental analysis, as well as diversification of the investment portfolio among start-ups that show the best profit forecasts.

2.5. Praem Technologies Risk minimization is ensured by eliminating human resources through the automated operation of trading bots developed by Praem Capital and receiving investment decisions from Artificial Intelligence. The introduction of the Private Blockchain into the ecosystem, scheduled for its opening, ensures the complete synchronization of financial instruments' operation. Combining the work of bots and Artificial Intelligence provides the implementation of Praem Capital's innovative idea - the idea of cross-niche trading, which allows you to generate super-profits. Today, individual technologies do not allow us to solve the problems of investment security completely. Praem Capital brings together modern investment solutions for high profit and low-risk trading:

1. Praem Trading Bots 2. Artificial Intelligence (AI) 3. Synchronization of Trading Bots and AI on a private blockchain

To minimize risks during trading, the Praem Capital team took care of additional insurance to operate our instruments. This is necessary to prevent loss of funds due to unlikely but possible technical errors and to ensure your investment's complete financial security.

https://prodapp.epra.com/media/EPRA_Total_Markets_Table_-_Q3-2019_1571313457840.pdfhttps://techstartups.com/2019/12/28/global-investments-tech-startups-top-293-billion-2019/https://techstartups.com/2019/12/28/global-investments-tech-startups-top-293-billion-2019/

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Trading Bots A trading bot is a program that is configured to perform repetitive actions. Bots are designed to trade automatically according to a predefined set of criteria. Trading bots make decisions for the user based on current orders, price movements in the markets, market volume, and other additional parameters configured to cause the bot to be more versatile. Praem Capital trading bots reduce risks to a minimum, allowing you to extract maximum profit from the market. Besides, they: 1. Cover more transactions; 2. Process transactions at high speeds; 3. Free trading from subjective factors; 4. Ensure smooth operation. Praem trading bots are designed to trade the Forex, cryptocurrency, and stock markets smoothly. The main disadvantage of the technology is that a trading bot is not artificial intelligence. The bot will not identify the best strategies and tune itself to achieve the markets' most extraordinary profits. A trading bot will be as effective as it is configured to be. Bots perform well and repeat algorithms, but nothing more. This is why it is essential to use advanced AI in addition to a trading bot. The bot's main task is to implement many transactions in a short time, identify the direction of trend changes in the markets, determine the most favorable time to complete transactions, and generate profits from the difference in purchase and sale. Scalping Bots

Scalping bots are distinguished because when working on Forex and crypto markets, they execute many transactions at once in a short period (positions are opened for no more than a day). In March 2017, the Praem Capital team developed the first crypto scalping bot. The first version of the scalping bot demonstrated high profitability rates – 10-12% per month, which prompted the Praem Capital team to continue developing in this direction. In May 2017, a new algorithm was created for the largest trading platform – Forex. The collapse in the cryptocurrency market in 2018 led to an update of existing algorithms, after which the bot showed only 20% less profit than during the 2017 uptrend. The use of innovative Artificial Intelligence technology has provided Praem Capital with new opportunities to modify existing algorithms, resulting in an increase up to 15-20% profits per month compared to previous quarters.

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Trend Bots With the price of bitcoin rising, our development team focused on updating the algorithms. We demonstrated a completely new Trend Bot, which maximized profits during these volatile times in the market. Trend bots work in the longer term in the Forex, crypto, and stock markets. The basic principle of their work is to identify trend changes in the markets and make transactions at the most favorable time. As a result of using the new bot, the profit increased by 40% compared to the previous version. At the end of 2017, the Praem Capital team decided to test Forex algorithms in the stock market, which led to a 65% decrease in profits than in the Forex market. During the “cryptocurrency crisis” of 2018, the trend bot algorithms were updated, due to which the bot showed only 20% less profit than during the 2017 uptrend. In April 2018, our developers refined the algorithms for the stock market, which led to increased profitability and increased security levels. The bots showed improved results, a 25% increase in profitability compared to the previous version. Strong market growth in July 2019 and bot updates contributed to a 5-7% monthly increase in profits.

Arbitrage Bots The arbitrage bot operates on several crypto trading platforms, generating profit on the exchange rate difference when buying and selling it on these platforms. This algorithm served until 2019 and became the basis for the emergence of a cross-niche concept.

Experienced developers and talented mathematicians created Praem's scalping, trend, and arbitrage bots. Bots operate according to explicit algorithms and never make mistakes by themselves. However, even though the algorithms are error-free, an error can occur due to a sudden change in the market situation.

Unforeseen circumstances or force majeure situations (COVID-19 pandemic, stock market crash, etc.) lead to a sharp change in the market's direction because the bot can enter into a losing deal.

To avoid such risks and to keep up with the changing market, the Praem Capital team has implemented several essential tools for severe analytical support for bots. One such tool is Praem Artificial Intelligence.

Artificial Intelligence The birth of the Praem AI concept began in January 2018, when volatile market conditions prompted the Praem Capital team to find a way out of this situation. The result was developing a unique technology capable of analysing big data for successful bot trading and for automating algorithm changes. It was necessary to create a complex of intelligent algorithms: technical and fundamental market analysis, a decision-making algorithm, and an algorithm for semantic data analysis. AI technology was chosen because humans cannot process information and make decisions as quickly as artificial intelligence.

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The development of AI began with preparing Big data and providing the initial data for further classification and launching deep machine learning. In February 2018, the Praem Capital team began working on Neuro-linguistic programming (NLP) technology, thanks to which AI learned to extract meaning and information from texts. Already at the end of 2018, Praem Artificial Intelligence was distinguished by its efficiency and high performance, which made it possible to identify the most favorable conditions for investment. By analysing the trading operations of trading bots and Big Data, AI significantly reduces risks and implements the idea of safe trading. Any detail can influence the outcome of the investment decision. The world has 33 zettabytes of data, and there are 30 times more financial instruments today than a decade ago. Human resources cannot analyse this data; therefore, Artificial Intelligence in trading and investing is snowballing. The artificial intelligence of Praem Capital was created and trained to improve how trading bots work and has become an indispensable part of the ecosystem. It uses an integrated approach to analyse social, economic, and political data, and then makes decisions and provides valuable recommendations for trading bots. The likelihood of errors decreases since solutions to complex investment problems are based on the study of previous records of transactions and a set of algorithms for their execution. AI continually improves itself, reacts in time to changes in significant trading conditions, and monitors various factors. The primary function of using AI is analysing Big Data, the data provided (reports of the operation of Trading Bots), generating market forecasts, and investment strategies for each instrument in each niche. Transfer Learning Technology In 2018, the Praem Capital team concluded that the most significant role of using AI is to expand the potential of the field of Business Intelligence and find answers to the questions "What is happening in the markets?", "How to quickly adapt the system?" and "How can we do it better?" While solving these problems, an accelerated teaching method was proposed - transfer learning technology. This technology is based on already processed data from one AI, using it to train another AI. To create a quality information field, the Praem Capital development team took their databases of previous deals and ran them through the Wolfram Mathematica platform. As a result, the group received training datasets that already contained some patterns. Also, the initial data of the work of bots became available, according to which artificial intelligence training began. As a result, the algorithm learned to predict changes in one market when changes in another occurred and started to predict changes in companies' value of shares. The next step was creating cognitive computing (CC), part of which was our machine learning (ML) and the following AI algorithms:

1. Creation of the Artificial Narrow Intelligence algorithm for technical analysis and forecasting;

2. Creation of the Artificial Narrow Intelligence NLP algorithm for text analysis (social networks, online media outlets, etc.);

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3. Cognitive computing for the best possible solution given context and evidence.

Each algorithm has a different task to perform and learns to perform it errorlessly. For fundamental and technical analysis, there is ANI (Artificial Narrow Intelligence), which conducts a technical and fundamental analysis of the Crypto and Forex markets. For semantic analysis, we have a separate Natural Language Processing ANI algorithm. It is needed to analyze social networks, tweets, or short messages, news feeds, etc. When parsing longer news texts, there are problems with the correct extraction of its meaning. We limit the amount of text for analysis or break it down into separate parts. This way, we get distinct phrases, which we can analyze again. This reduces the risk that AI will misinterpret the meaning of a large text. This is a difficult task, and there is no universal method for solving the analysis of large texts yet.

Praem Capital AI Capabilities:

● Analysis of data on transactions carried out by trading bots in the principal investment markets, search for causal factors regarding their results to find similar patterns in the future;

● Technical analysis of the cryptocurrency market, as well as technical and fundamental research in the stock market and Forex;

● Fundamental analysis of real estate, taking into account all the factors affecting objects for investment.

fig 1. How artificial intelligence works

The integration of AI and Trading Bots is carried out manually by a team of Praem Capital specialists who receive data from AI and introduce additional settings into Bots. In the next stage of ecosystem development with the Private Blockchain's advent, this process will occur almost automatically.

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When fully integrated, Praem bots operate smoothly and independently, even without AI. If suddenly a connection with the AI would be lost, the bots would keep working using their current parameters. In this "independent" mode, they can keep making deals on their own until the AI's connection is restored. Our risk management team carefully considers such sporadic cases, and these fail-safe mechanisms ensure the system's smooth operation.

Synchronizing bots and AI on a Private Blockchain In November 2018, after two months of testing the Narrow Artificial Intelligence (ANI) mechanism with trading bots, our team developed the concept of an ecosystem with a private blockchain, which allows the data processing and synchronization of financial instruments to be fully automated. It uses a decentralized database (blockchain) to create a unified data exchange and standardize the data structure within blocks to synchronize all Praem tools. A private blockchain provides distributed storage of information and fully automates all elements of the ecosystem: it synchronizes the technical skills of bots and the vast knowledge of AI, bringing to life the idea of highly profitable cross-niche trading across five different markets. Thanks to the blockchain, AI instantly communicates information to bots and can create cascading interconnected transactions.

fig. 2 How the financial instruments work on a private blockchain

Based on their logic, bots and algorithms create blocks in a chain where data about a specific position is located. AI analyses and verifies blocks with deals, connecting them in chains to synchronize all data. Without a Blockchain, bots and algorithms make decisions based on the given market parameters without synchronizing with each other. But thanks to the full synchronization of tools and the distribution of data on the Blockchain, bots and algorithms will receive instant recommendations from AI, continually improving their work.

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Blockchain and Cross-Niche Trading Synchronizing the work of bots and Artificial Intelligence using Blockchain will ensure Praem Capital's innovative idea - cross-niche trading. The idea is to find profitable trade entries and execute them in several different markets simultaneously. A Cross-Niche Trading Case Example

There is a lot located on the Blockchain for the purchase of Real Estate in Turkey. Considering all the facts that the market is at a very low point - the recent elections, the government's new economic policy, and the rate of TRY on Forex to USD, our AI predicts economic growth in Turkey for the next year. The real estate growth forecast outperforms regular transactions' profitability for this period in the Forex and crypto markets. Besides, another persecution of miners begins in China, which will lead to a decrease in Bitcoin value. To avoid a Bitcoin drawdown, the AI forms a block in the Blockchain that instructs the crypto bot to exchange BTC for USD. AI also forms a block for a Trend bot on the Forex market, indicating a deal to exchange USD for TRY at a particular time, subject to an increase in the dollar rate, which is caused by the rise in stock indices in the United States. After that, the transaction is made to buy real estate in Turkey. As a result:

1. By the time real estate improves, and Bitcoin is at a low rate, the profit of a real estate transaction will be 37%, while the average gain for the real estate market is only 8-11%. 2. When selling this property during the projected growth of Bitcoin, the yield will be 120% relative to the position for which bitcoin was exchanged initially.

2.6. Investment Insurance

Secure Investment Concept Technology increases profitability and minimizes risks, but sufficient capital is required to smooth the operation of financial instruments. A mutually beneficial arrangement with our partner gives us this guarantee, allowing us to demonstrate the potential of technology 100%. Praem Capital has entered into a partnership with the Luxembourg Hedge Fund. The agreement reached provides balance insurance in risky situations that do not have universal technical solutions, which excludes the possibility of capital loss and allows you to solve the problem with benefits for all parties. According to the terms of partnership, the Fund compensates the balance to continue its execution in accumulating unclosed orders with drawdowns. The work on making a profit continues and the possibility of a loss of funds is excluded. Under these conditions, the probability of a high (40%+) drawdown is no more than 0.25-0.35% for every 10,000 transactions.

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Example:

In the course of marginal Robo-trading on foreign exchanges or cryptocurrency markets, a high drawdown is formed. The Fund allocates additional funding to refill the investor's balance, thereby covering the drawdown and reducing the degree of risk from "above average" to “moderate" or "below average" (at the drawdown level of 50%, the Fund adds funds, thereby preventing the risk from rising to high and reducing it to ").

fig. 3 How deposit insurance works

Technology is at the forefront of Praem Capital and minimizes risks, while insurance provides additional control over investor capital safety. A hedge fund guarantees a return on investment by protecting the deposit while trading. Anti-Drawdown Strategy and the Insurance of Capital Every technology in the Praem Capital ecosystem is essential to the progress of risk mitigation. On the cryptocurrency, stock, and Forex markets, drawdowns can occur – risky situations that do not have a universal technical solution. A drawdown (DD) is a loss on a deposit opened for trading on exchanges. The amount of drawdown is usually estimated as a percentage of the maximum reached or initial amount. 100% DD is a complete loss of funds in the account.

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fig. 4 Drawdown formation diagram

Historical data provides sufficient insight into the consequences of using different financial instruments. Investors look not only at the possible drawdown but also at the value that the asset must add at least in order to compensate the previous amount:

● If the value loses 1%, it takes a little – 1.01% to restore the initial parity; ● A drawdown of 20% already requires 25% movement in the opposite direction; ● A 50% drawdown looks catastrophic and needs a capital increase to restore its position.

Drawdowns are caused by inaccurate bot operation. For example, due to force majeure interventions, the bot can determine the wrong trend and open an order in the wrong direction. In this situation, additional funds only gain a little time, but do not prevent a critical condition. To exclude the possibility of such situations, we have implemented an anti-drawdown strategy, which includes a separate algorithm for high-frequency trading on a currency pair. The high-frequency trading bot operates in aggressive settings, and the other fund balance provides room for trading manoeuvres. When the trend recovers and the primary algorithm's orders begin to be executed, the anti-drawdown bot is disabled. After that, profits are made from transactions, and the usual activity of algorithms is established.

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2.7. Platform Advantages Innovation Technologies Praem technologies minimize risks and human participation in Forex, cryptocurrency, and stock market trading.

fig. 5 Scheme as technologies allow to optimize human resources

Profitability

High return on real estate investments and reduced risk in venture capital.

fig. 6 Scheme as technologies allow to increase profitability and reduce risks

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Competitor Analysis

Praem Capital never understates the importance of competitor analysis, because it’s how you determine how we will fit in. We never look at our competitors as rivals; instead of figuring out how we’re going to be like them, we take the route of figuring out how we’re going to be different. Praem Capital is a transparent company, always ready to learn and to share our knowledge. We have prepared a thorough competitor analysis that is publicly available and compares many crucial factors.

Target Audience Praem Capital's financial instruments have been developed with professionals' active participation from the trading and investment industries to combat challenges. That is why the Praem team believes that future users of the company's products will become participants in the Token Sales, namely: 1. Professional investors engaged in investments both in the online sphere and traditional investment groups

a. Our products will provide an online investor with ample opportunities to diversify their investments with minimal risks and a high-profit percentage. The possibilities for diversifying investments will be comparable because an investor would hire 1-2 personal, highly professional advisors.

b. Traditional investors from the real sector of the economy, with the help of Praem Capital's tools, will be able to minimize risks when entering the online investment market, without plunging headlong into a new investment area. 2. Traders in Forex, cryptocurrencies, securities, or other exchange-traded assets

a. A novice trader will find Praem Capital to be a reliable guide to the world of profitable trading in five markets at once: Forex, cryptocurrencies, securities, real estate, and venture investments. Simultaneously, our products' functionality compensates for a possible lack of knowledge and will help you to start even with a small deposit.

b. Thanks to our tools, an experienced trader will significantly reduce their labor costs and optimize the staff of assistants. Praem Capital products (cross-niche trading) will give the professional trader a colossal competitive advantage in the market. 3. People seeking to create and increase personal passive income

a. Praem Capital will open an easy path to making a profit with extremely low risks and a low

entry threshold for those who want to create a source of passive income. For such clients, revenue will be guaranteed through a partnership with a hedge fund, which ensures the operation of the financial instruments.

b. Users who already have passive income will be able to diversify income sources, increase

the amount of profit, and scale the channel for reinvestment and augmentation of their funds. 4. Regular users looking for new sources of income with a minimum threshold of entry both from financial and necessary knowledge.

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It's no secret that there is an overabundance of low-quality offers for this target audience in the online environment, which only causes them to lose their investments. Praem Capital will allow such users to create a stable income source, regardless of any negative global situation. In general, Praem Capital's products will be relevant to anyone interested in earning income in the five leading investment markets (Forex, cryptocurrencies, stock market, real estate, venture capital) with minimal risks and a low entry threshold. SWOT Analysis The SWOT analysis is based on assessing internal and external characteristics and the company's current and future potential. Actual data on the platform's conceptual, technological, and ecosystem features were taken as variables for the analysis.

STRENGTHS WEAKNESSES 1. High diversification of the investment portfolio based on the offered products for trading in the leading global investment markets 2. Full automation of trading and the use of trading robots allows you to eliminate the "human factor" and maximize profits 3. Regular modernization of algorithms using artificial intelligence Allows for trading strategies to be improved 4. Unique technology of cross-niche transactions, allowing for multi-level cascading transactions to be made between different investment niches 5. Maximum safety of deposits and risks of investment loss. Guaranteed trading dip insurance coverage from 50 to 100% of the capital through a partnership with a hedge fund 6. Guarantee of security, speed, and transparency of transactions through the use of a distributed data storage registry, which automates the process and allows you to make cross-niche transactions 7. High profitability and low entry threshold. Large selection of investment plans: - deposits from $ 50 to $ 3000 - profitability from 8% -18% per month

1. Difficult to predict investments in real estate and VC, a long period of profitability, which will be compensated by cross-niche trading in high-yield markets 2. The lack of the possibility of "manual" trading and the limitation of the upper level of profitability may not be interesting for a wide range of professional investors 3. Lack of popular trading strategies such as Step Sell, Smart Cover, Grid bots 4. Lack of direct investor access to exchanges and the use of particular bots for Binance Futures, BitMEX, ByBit, and FTX futures 5. Lack of investor profiling to form a personalized investment profile and user goals, as well as the ability to set a unique trading strategy and auto-balancing of investment portfolios 6. Some competitors provide a lower entry threshold for investors, for example, from $ 10 7. Some competitors offer expanded access to investment markets, such as precious metals markets, IEO, and IPO

OPPORTUNITIES THREATS 1. Entering highly profitable markets for trading with a vast turnover 2. Impact on the investment market as a whole due to the revolutionary technology of cross-niche deals 3. Transition of customers from competing platforms by providing more technological solutions

1. Current legislative restrictions on investments in cryptocurrency projects and work with crypto-assets in several countries, possible further tightening of legislation in this area 2. The presence of strong competitors in specific market niches, such as cryptocurrency trading 3. Long access to exchanges and a complicated

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4. The ability to quickly enter promising niches with a low number of competitors, such as Stock / Real Estate / VC 5. Three-level referral system with a rank structure and a high level of remuneration depending on the amount of investment 6. Engaging a wide range of non-professional investors by providing understandable and straightforward investment products

procedure for connecting to providers of investment products 4. Decrease in user interest in blockchain projects due to a large number of fraudulent projects.

2.9. Business Model Praem Capital assumes excellent growth potential, the measure of which is the PRM token. Capitalization, and the token value, is based on the profitability of financial instruments and the growing market value of Artificial Intelligence. Praem Capital has planned to launch the ecosystem in June of 2021. The most critical stage in this process is attracting individuals, who will generate their income from the profit of financial instruments and become holders of the growing Praem Capital assets – PRM tokens. Furthermore, based on the increase in capitalization, the growth of the token is formed. The value of artificial intelligence is an essential factor in the company's capitalization. Within two months, AI will "gain experience" by constantly analysing a large number of diverse transactions during the Token Sales period. Accordingly, as soon as the cost of artificial intelligence goes up, the capitalization of the entire platform will rise, and the token will increase in value. Although the PRM token's price chart is almost continually moving up, there may be minor price fluctuations. It is the operation of financial instruments that affects a small fluctuation in the rate. The growth, however, is associated with excess profits, whereas the decline is associated with trading dips. Investor Profit With Praem Capital, token holders receive income due to the potential growth in the value of the PRM token and interest income from the profit of transactions in the investment markets. The money collected during the Crowdsale is launched into the operation of Praem Capital's financial instruments. Equity generates fixed income for investors in three markets. 1) The first source of profit will be the guaranteed interest income, which depends on the purchased plan - the larger the plan, the higher the profitability rate. 2) The second source of income is the token rate's growth, which depends on the excess gain received by the Praem Capital platform from financial instruments and the market value of AI. Praem Capital Profit Praem's capitalization consists of profit and AI costs. Also, the contribution of profit is about 40% of the total capitalization, and the cost of AI is about 60%. Percentages in this case can be changed,

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but both of these factors depend on an increase in the number of financial transactions, which, in addition to generating profitability, provide data for AI analysis, improving its knowledge, algorithms, and increasing cost. The token price depends on the total capitalization of Praem, which is made up of excess profits from transactions and the market value of AI. The more transactions bots make, the more training data AI receives. As its IQ level rises, it rises in value. Praem's profit consists of the super-profits received from the deals made (everything higher than the guaranteed interest income of investors) divided equally between Praem Capital and the Hedge Fund. As such, Praem forms a budget based on 50% of the excess profits from financial instruments. For instance:

The investor has acquired an $50 investment plan, in which at the investment stage, they receive a profit of 8% per month. When a 12% profit is reached in transactions where the investor's capital participated, the investor himself receives a profit – 8% shall be his profit, and 4% of the excess profit is divided between the Hedge Fund and Praem in half, so, Praem gets 2% of this profit. Hedge Fund Profit Profit for the Fund is provided by:

● Super-profitability from the operation of financial instruments (50% of the super-profitability is received by Praem Capital, 50% - by the Hedge Fund);

● Asset ownership of PRM tokens, which are a measure of the company's growth as a whole.

At the Token Sales stage, the Fund becomes the owner of 30% of the issued PRM tokens (6 million in total, of which 2 million will be used for the financial instrument guarantees), which it uses to reimburse its funds invested in trading dip insurance cases. In the event of an insured event (drawdown and the topping-up of balances for the algorithm's smooth operation), the Fund sells the equivalent of tokens to new users, covering its costs.

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fig. 7 How the business model works

Fund Partnership and Investing for Ecosystem Completion The Hedge Fund provides funds for the completion of the private blockchain and the Praem Capital ecosystem: for each plan bought by an investor, it allocates an equivalent for the completion of the private blockchain ecosystem, marketing, etc. Before licensing the Praem ecosystem, the Hedge Fund operates on a confidential basis. Anonymity is associated with signing an NDA (Non-Disclosure Agreement) between parties until the license acquisition process is done. Licensing will be carried out by the state body – the Swiss Financial Markets Authority (FINMA). For the investor to assess the benefits of the future ecosystem at the Token Sales stage, Praem Capital, in partnership with the Hedge Fund, applied a unique, balanced project financing system. Investors' money is immediately directed to the operation of financial instruments, and the Fund finances the completion of the ecosystem in proportion to the amount of each purchased plan. For example, an investor purchased an investment plan worth $500. His funds are directed to the operation of financial instruments to form a stable interest income. The Fund, in turn, directs $500 to the Praem Capital budget for further development and marketing. The success of Praem Capital is guaranteed by the growth in the number of users who have become investors on the platform, which in turn shows the demand for the company's technologies.

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2.10. Affiliate Partner Program By using the allocated budget, Praem can also provide a profitable affiliate program. By recommending the highly profitable and low-risk venture Praem Capital, users receive generous rewards every time they purchase a plan. The terms of the affiliate program are clear and straightforward. Everyone can take part in it. By becoming a token holder and purchasing a plan, the user automatically becomes a member of the programme. Another feature is the presence of a ranking system. By buying plans during the Token Sales, the user invites active partners, earning up to $ 445K thanks to their structure's total turnover. Praem Capital's three-tiered referral system rewards partners contributing to the ecosystem by attracting new users and offers generous rewards that can be earned from the value of purchasing plans by your referrals. Such a profitable affiliate program is made possible by a large budget for marketing and customer acquisition (see budget allocation). The allocated budget for these purposes is 30% of the total funding.

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Ranking System Purchase investment plans at the very beginning of the Token Sales, invite active partners and receive up to $ 445K due to your referrals' total turnover.

Total turnover of all1st and 2nd levelreferrals

Mandatory condition:the referrer must have two 1st level referrals,the turnover of each of which is as follows:

Amount paidto the referrer

$ 500 $ 15

$ 1000 $ 500 $ 25

$ 3000 $ 1000 $ 60

$ 10000 $ 3000 $ 150

$ 50 000 $ 10 000 $ 500

$ 100 000 $ 50 000 $ 1000

$ 300 000 $ 100 000 $ 3000

$ 500 000 $ 300 000 $ 10 000

$ 1 000 000 $ 500 000 $ 30 000

$ 3 000 000 $ 1 000 000 $ 100 000

$ 10 000 000 $ 3 000 000 $ 300 000 Partner Benefits Working with Praem Capital is laidback and comfortable. We create truly unique products and provide them with broad coverage of the target audience. Reliability

Praem Capital is registered in Switzerland and operates under Swiss jurisdiction. The company operates openly and transparently. More on this below (About the Token Sales). Individual Marketing

The marketing packaging of Praem Capital products is at the highest level. We are ready to provide our partners with the necessary marketing materials for successful promotion.

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Top-Media Placements

Materials about Praem Capital have been published in top publications of the crypto and financial industry: Forbes, Yahoo Finance, Cryptonews, Ambcrypto, NewsBTC, and well-known YouTube vloggers. Wide Target Audience Coverage

Praem Capital tracks your referrals according to the principle of first cookie wins - that is, if a referral came to us from you, did not make a purchase, we attract him back by retargeting and he remains with you. Active CEO

Nicolas Durr, CEO of Praem Capital, is an active participant in the project's community, conducting open webinars and Q&A sessions for the audience, which increases the trust of potential clients.

https://forbes.mc/article/how-altruism-and-technical-solutions-led-to-the-creation-of-profitable-and-safe-investment-modelshttps://finance.yahoo.com/news/praem-capital-chapter-investing-043052294.html?guccounter=1https://cryptonews.com.au/story/wise-investment-solutions-138437https://eng.ambcrypto.com/praem-capital-the-new-chapter-of-investing/https://www.newsbtc.com/all/wise-investment-solutions/https://www.youtube.com/watch?v=dqP4g1hN7hs&t=18shttps://www.youtube.com/watch?v=dqP4g1hN7hs&t=18s

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3. About the Token Sales The PRM token is a Utility token. A BVI company is the token issuer and the token seller. An asset management company in Switzerland is developing the Praem ecosystem. This is a group of related legal entities by beneficiary. The PRM token gives access to the ecosystem and access to the Praem trading instruments. The company at the BVI will act as the agent for the Swiss company. Praem Capital GmbH, registered in Switzerland, located at Sonnhalde 12, 8121 Benglen, Switzerland (CHE-162.293.975). Token sales will be carried out using Praem Capital Ltd investment website https://praemcapital.io/.

This Token Sales's conduct determines the volume, nature, and other essential conditions of legal relations arising between persons purchasing PRM tokens by filling out forms and performing actions on the company's website.

At the ecosystem launch stage, PRM tokens' sale will comply with KYC (Know Your Customer) and AML (Anti Money Laundering) rules to comply with documentation requirements. To participate in the Crowdsale, follow the instructions on the official website of the project at https://praem.capital/. Detailed terms and conditions for the Token Sales will be posted on the company's website.

3.1. Token Sales Goals

The Token Sales allows Praem to achieve two important goals:

1. Raise funds of at least 3 million USD (Soft Cap) to finance our final product: an ecosystem that combines AI and modern financial instruments based on a private blockchain.

Afterward, raise our Hard Cap of 30 million USD for further global integration of the product into commercial and institutional organizations.

2. Provide participants with the opportunity to use the technologies already created by Praem Capital to make a profit already at the Token Sales stage.

Such exceptional conditions for Praem users were achieved through agreements with our partner – the Luxembourg Hedge Fund, which allocates funds to finance the project in proportion to the attracted amounts of funds during the Crowdsale stages. The fund allocates the same amount of money to us for revision and further integration.

3.2. General Provisions Token symbol / ticker: PRM Total number of tokens: 20 million Number of tokens distributed through public Token Sales: 4 million Additional issue of tokens: not possible Fundraising (Soft Cap): USD 3 million Fundraising (Hard Cap): USD 30 million Methods of payment for tokens at the Token Sales stage: ETH, USDT, BTC Payment methods after the launch of the ecosystem: BTC, ETH, LTC, BCH, USDT, USDC, XRP, BNB, TRX, DASH

https://praemcapital.io/https://praem.capital/

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3.3. Token General Information The PRM token is an ERC20 standard utility token. Before starting the Token Sales, the source code of the token and smart contracts will be published on GitHub so that every token holder can make sure that the company's obligations are fulfilled. The Praem ecosystem targets high growth potential, and the PRM token is the measure of this growth. The PRM token will allow its holders to enjoy platform privileges and receive income from the growth of the value of the token and the operation of financial instruments. After the PRM token is listed on exchanges, token holders will have the opportunity to sell it. PRM Token Emission and Distribution The Praem Token (PRM) is the company's primary asset, and all rights to it belong to Praem Capital. Total supply: 20 000 000 PRM tokens, which are distributed in the following order:

● 10M – Praem o 6M – an internal reserve of the

company o 4M – a budget for sale to achieve

Hard Cap

● 4M – Public Sale ● 6M – Hedge Fund

o 4M – at the expense of allocating funds for revision;

o 2M – for insurance of the operation of financial instruments;

The token issue is limited and is associated with Praem Capital's initial capitalisation and the possibility for the fund to insure 100% of investors trading balances. Upon completion of the Token Sales stage, the token holder has the opportunity to:

● exchange tokens with the help of the Fund and fix profit for further work in the ecosystem; ● independently implement the token on the exchange; ● use your accumulated balance from the operation of financial instruments to withdraw or

reinvest in the ecosystem. PRM Token Function

● Utility token: it can be used to purchase services, extra’s, and privileges in the Praem ecosystem. PRM tokens will also be available for sale on exchanges (after the PRM token is released on exchanges).

https://github.com/praemcapital/Praem-Capital-Tokenhttps://github.com/praemcapital/Praem-Capital-Token

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PRM tokens can be used as means of payment both at the Token Sales stage (for example, purchasing upgrades for investment plans) and at the ecosystem stage (for example, paying for subscriptions to investment plans). Since PRM are utility tokens, they are necessary to use any of the Praem tools or functionality.

3.4. Token Sales Stages The Token Sales will be held in three stages: First Stage - Private Sale

● Number of tokens for sale: 100,000 ● Token value: $ 0.50 ● From November 9, 2020

Only private buyers have access to this stage. Second Stage – Pre-Sale The Pre-Sale consists of two rounds, for which the registration with the opportunity to book an investment plan for purchase will open the day before the start. Pre-Sale Round 1

● Number of tokens for sale 200,000 ● Token value: $ 0.70 ● From November 16, 2020

Pre-Sale Round 2

● Number of tokens for sale: 200,000 ● Token value: $ 0.90 ● From November 21, 2020

At both Pre-Sale Rounds, an essential rule applies – if the user does not have time to redeem the reserved tokens in 15 minutes, the token reserve is canceled, and the tokens are released to other buyers. Third Stage – Public Token Sales

● Number of tokens for sale: 3,500,000 ● Token value: from $ 1.0 ● Duration: from November 24, 2020 to May 24, 2021

3.5. Investor Plans Investors who join our project at the Token Sales stage will be able to feel the first profit immediately. By purchasing a plan, you become a holder of a PRM token at its value at the time of the transaction.

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Investors' funds are not being invested in completing the Praem Capital ecosystem; their funds are being sent to the operation of financial instruments to generate them a fixed profit. Your investments will work from the first day. The received interest income and additional growth in the token value guarantees you additional capital to upgrade the size of the investment plan and acquire great privileges after the ecosystem's launch. Investment plans will be available only at the Token Sales stage. Investors will be offered six investment plans with guaranteed income and deposit insurance. Each provides for specific investment markets (niches), some of which will be available already at the Token Sales stage, and some after the ecosystem's opening. At this stage of the Token Sales, investors will have access to operations with financial instruments in 3 markets – Forex, Crypto, and the Stock Market. Therefore, we recommend that you carefully read the offers and choose the most suitable option. The larger the plan purchased, the more privileges they receive:

● Higher monthly % interest from financial instruments ● More choice of niches for investment, which means more interest income ● Greater investment insurance coverage ● More opportunities in a growing ecosystem

Investors’ interest received from financial instruments during the Token Sales:

$50 $100 $250 $500 $1000 $3000 Monthly interest

8%

Monthly interest

10%

Monthly interest 12%




Trading DipInsurance

50%


50%


75%


75%


100%


100%

We do not limit our investors to a number of purchased tokens, but there is a minimum entrance fee of 50 USD and a maximum of 9999 USD. Each investor can buy an arbitrary number of tokens. You can deposit more than the plan's part, but you will receive the current plan (for example, for a plan of $ 99, you will receive 8% / month and 50% of the trading dip insurance).

We appreciate those who are with us from the very beginning and grant them privileges. Each investor, purchasing an investment plan, receives an unlimited right to use the future ecosystem without additional fees and subscriptions after its full launch.

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Investor Plan Upgrade

At the Token Sales stage, investors will have the opportunity to renew (upgrade) their plans within two months using the increased capital and gain access to great investment opportunities. Upgrade plans are great to get more profit from financial instruments due to:

● New investment niches ● Greater monthly percentage profit ● The possibility of choosing niches ● The ability to regulate and distribute your capital in different percentages, by niche and

subcategory.

$50 $100 $250 $500 $1000 $3000 Monthly interest rates

Forex: Scalping Bot 6-8% 6-8% 6-8% 6-8% 6-8% 6-8%

Forex: Trend Bot - - 8-14% 12-15% 12-18% 14-18%

Crypto: Scalping Bot 8-10% 8-10% 8-10% 8-12% 8-12% 8-12%

Crypto: Trend Bot - - - 10-15% 12-18% 14-20%

Annual interest rates

Stock Market: Portfolio + Trend Bot - - 10-30% 20-40% 40-60% 50-80%

Real Estate: Commercial - - - 8-12% 8-12% 8-12%

Real Estate: Private 10-30% 10-30% 10-30% 10-30% 10-30% 10-30%

Venture (interest rate after 1-2 years) - - - - 50-2500% 50-2500%

Trading deposits insurance 50% 50% 75% 75% 100% 100% Possibility of capital distribution

among financial instruments - - partial partial full full

Upgrading plans is possible due to:

● Writing off funds from the increased balance (from the principal or partner wallet) ● Adding new funds from external wallets

Users can purchase upgrades only according to the increase in investment plans: 50 $ → 100 $ → 250 $ → 500 $ → 1000 $ → 3000 $. A downgrade plan is not provided. Upon completing the Token Sales stage, the sale of investment plans is terminated, and upgrade plans will not be available. After the ecosystem's launch, investors get access to their investment plan with an already increased balance of funds. They can reinvest their augmented capital and distribute it across the instruments and niches available on their plan, or withdraw their capital. Additional privileges will be available at the ecosystem stage, new investors will be able to access the platform and its privileges through a paid subscription to one of the tariff plans.

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3.6. Investors Fund Distribution The process of allocating investors' funds to the operation of financial instruments consists of several stages:

1. The funds received are collected in pools for further cash-in-transit and distribution in the process of trading algorithms. To ensure safety and the specifics of work during the Token Sales, Praem Capital directs funds into trading algorithms daily for the uninterrupted formation of investors' profits.

2. Collection and redistribution of funds occur with a frequency of two times in 24 hours due to the need to cover all time zones and investors' activity at different times of the day.

3. Investment niches distribute the withdrawn funds through the following intermediaries:

● for trading in the cryptocurrency market - Binance, Bitmex ● for trading on the foreign exchange market - Forex4you, Roboforex. ● for stock market trading - Interactive Brokers.

The process of distributing investors' funds by investment niches takes 24 hours from the moment of purchasing an investment plan. Important: Trading in Forex and the Stock Market does not occur on weekends, as opposed to the cryptocurrency market, where trading takes place 24/7.

4. All three markets are mainly leveraged on margin trading to maximize the return to investors. Our partner - Hedge Fund, fully insures all risks associated with trade balance drawdowns. Profit is accrued to investors at the end of each week. The profit percentage depends on the purchased plan - the larger the investment plan, the higher the profit percentage. Implementation of Investor Plan Launch The demo version of the ecosystem will allow investors to visualize the system’s interface in addition to a calculator needed in order to estimate their potential profit over time, a handy tool that will give our investors a clear understanding of the possibilities of plans, financial instruments, and niches included in them. This tool will be presented as a partial version of the final ecosystem with blocked functionality. In the future, the calculator will become an investment tool. It will have a section for calculating profits from the capabilities of the plan and calculation parameters, consisting of:

● Personal plan with options 50, 100, 250, 500, 1000, 3000. ● PRM growth in % or $ with options from 10% to 2000% or from $ 1 to $ 50 ● Period/duration of work with options from 1 month to 12 months. ● Niches - Crypto, Forex, RE, Equities, Venture Investments. Each of the niches, depending on

the user's plan, has its financial instruments and/or profitability restrictions.

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Withdrawal of Funds at the Token Sales Stage Praem Capital users are not limited to withdrawing funds from the platform from both the primary and partner wallets. Each investor can withdraw their funds at any time without taking into account the accrued capital if the withdrawal occurs at the Token Sales stage. In the first 24 hours after receiving funds, the withdrawal is subject to a minimum transaction fee - 1-2%. After 24 hours, the funds are sent to the work of financial instruments and come into operation, so we are forced to introduce some restrictions. Limitations on the withdrawal of investments during the Token Sales happen because the outflow of funds from the system will upset the balance of transactions, disrupt the operation of trading bots, and may be associated with working drawdowns of algorithms, which sometimes can reach up to 30% before the onset of the top-up of funds (insured event). At the Token Sales stage, to withdraw funds from financial instruments put into operation, the user will have to pay a 30% commission on their initial investment, excluding the accrued capital. Funds will be frozen for two months of the Crowdsale:

- The funds received from the crowdsale (token sale) will be allocated to the work of Financial instruments, headstarting the process of capital growth.

- The Hedge Fund provides Praem with funding (1/1 ratio) which is being immediately

used to pay for the services of developers, marketing and in other expenses.

N.B: Any action related to the preliminary withdrawal of funds by investors interferes with the development of the platform and is associated with certain losses that the investor is accountable for.

3.7. Budget Allocation As mentioned earlier, one of the goals of the Token Sales is to raise funds to finalize the ecosystem and launch it. We provide two options for implementing the ecosystem, depending on the number of funds allocated. Soft Cap Soft Cap Achievement of 3 million USD and subsequent launch of our ecosystem on a Private Blockchain.

Upon reaching the Soft Cap, the work of the ecosystem will be fully automated; there will be an opportunity for cross-niche trading due to our private Blockchain's development. Investment plan sales are stopped. Now investors can distribute their grown capital among niches and use the ecosystem without time limits. New users will be able to buy a subscription for any period.

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Investor funds are devoted to financial instruments as early as at the Token Sales stage, while the Fund covers Soft Cap for ecosystem enhancement, proportionally to the amount of every plan purchased. Allocation of Hedge Fund Financing

● Engineering & Development 40% ● Marketing & User acquisition 30% ● Security & Compliance 10% ● Operational & Administrative 8% ● Unexpected expenses 7% ● Legal & Advisory 5%

Hard Cap Hard Cap Achievement of 30 million USD and subsequent Global Integration.

The Hard Cap enables the company to revolutionize the financial sector with a unique product, the Praem Mechanism. It includes AI-powered bots synchronized on a private blockchain. Each buyer will be able to generate their profits more securely. Global integration will make it possible to spread interest in our platform among private investors and commercial and institutional organizations (insurance companies, investment funds, pension funds, banks, and others). The finished working product will help to start preparing the documentation for the IPO in a short time, together with entering the crypto exchange.

4. General Legal Provisions, Risks and Limitation of Liability

THIS SECTION OF THE WHITEPAPER DESCRIBES THE LEGAL NUANCES OF PRM TOKENS. THIS SECTION ALSO IDENTIFIES ASSOCIATED LEGAL RISKS. PLEASE READ THE INFORMATION BELOW CAREFULLY.

PRM tokens (PRM) is an ERC20 standard utility token. The token can be used to purchase services, extras, and privileges in the Praem Capital ecosystem. PRM tokens can be used as a means of payment both at the Token Sales stage (for example, purchasing upgrades for investment plans) and at the ecosystem stage (for example, paying for subscriptions to tariff plans). Since PRM are utility tokens, they are necessary to use any of the Praem tools or functionality.

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The concept of PRM is similar to the concept of Ethereum. Like Ethereum, the PRM uses smart contracts in the blockchain protocol as one of the essential functions for implementing transactions. Thus, the presented description of the concept of PRM allows us to draw general conclusions about the legal nature of the token and possible risks for participants of the PRM community. The PRM accounting unit is designed to perform the same functions as the Bitcoin and Ethereum accounting units. At the same time, during the Praem Capital project implementation, the PRM can also perform other functions and tasks following the official position of Praem Capital. However, the legal nature and primary purpose of the PRM token will be unchanged and similar to those of Bitcoin and Ethereum. The accrual of PRM token is carried out in accordance with the information (rules) given in other sections of this Whitepaper and the official announcements of the project team. Any tokens/coins, as well as the use of blockchain technology, carries certain risks. Users should understand that Praem Capital team is not responsible for any adverse consequences of using blockchain technology, including using any features of Bitcoin, Ethereum, or PRM tokens.

BY TAKING PART IN THE PROJECT IN ANY WAY POSSIBLE, YOU FULLY AGREE AND ACCEPT ALL RISKS DESCRIBED IN THIS SECTION OF THE WHITEPAPER. YOU FULLY ACCEPT AND AGREE TO THE FOLLOWING CONDITIONS:

· To participate in the PRM token and/or the Praem Capital project in any possible form and/or perform the registration procedure on the website (https://praem.capital), you should have full legal capacity in accordance with the law and the requirements of the jurisdiction of your residence.

· Your participation in the PRM in any possible form, must not violate any applicable laws, regulations, orders, judgments, decrees, guidance, or other legal authority, regarding subjects including, but not limited to, securities, commodities, money laundering, consumer protection, copyright or trademark laws, export control laws, or other laws in your jurisdiction. Your use of the PRM must not facilitate, support, or promote unlawful activities, including, but not limited to: fraud, drug trafficking, purchases on dark web markets, theft, illegal arms trafficking, human trafficking, abduction, extortion, embezzlement, corruption of public officials, acts of terrorism or terrorist financing, and intellectual property violations.

· You are responsible for making sure that your participation and/or use of the PRM tokens (and related tokens/coins) complies with all laws of your jurisdiction.

· Participating and/or using the PRM tokens is fraught with risks, and you should be prepared to bear possible losses, including financial ones. You should carry out a personal preliminary analysis of the feasibility of participating in any token sale.

· You should not be involved in the Praem Capital project if there are applicable legal restrictions in your country of residence. Participation in the Praem Capital project is not allowed to any citizens and/or residents (fiscal residents or other residents) of territories where such

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participation is forbidden and citizens and/or residents (fiscal residents or other residents) from any UN-sanctioned countries.

At the stage of preparation for the token sale and during the token sale and the implementation of the subsequent stages of the Praem Capital project development, users of the https://praem.capital website may perform the registration procedure. Also, to comply with AML/KYC regulatory requirements, a procedure for the corresponding verification of users of https://praem.capital must be provided. In case of establishment of the registration procedure, the current version of the Privacy Policy will be available at the corresponding section of the website (https://praem.capital). We reserve the right and may change the content of this section's provisions – «GENERAL LEGAL PROVISIONS, RISKS, AND LIMITATION OF LIABILITY,» as well as other sections of this Whitepaper. We strongly recommend that you regularly check out the current version of the Praem Capital project's Whitepaper, available on the website (https://praem.capital).

LIMITATION OF LIABILITY

We reserve the right to amend this Whitepaper and adjust the Praem Capital roadmap (if any) without warning participants and community members. We refuse any guarantees related to the proper functioning of the PRM token, the https://praem.capital website (hereinafter referred to as the Website) and/or the platform/technology based on which the planned PRM token sale takes place. THE PRAEM CAPITAL PROJECT, ALL RELATED MATERIALS (INCLUDING WEBSITE), TECHNOLOGIES, PLATFORMS, AND APPLICATIONS ARE PROVIDED "AS IS" WITHOUT ANY WARRANTIES. We make no representations or warranties in relation to the PRM token and the Website or their functionality. We also do not warrant that the PRM token and the Website fit your purpose, even if you have previously provided notice of your intended purpose, and do not warrant that the PRM token and the Website will operate with no mistakes and disruption. The PRM token and the Website's functionality, related materials and/or information are not guaranteed or represented to be complete, correct or up to date. These materials, content, and functionality may be changed from time to time without notice. You should also consider that any blockchain (blockchain-based system) is prone to periodic congestion during which transactions can be delayed or lost. Individuals may also intentionally spam the blockchain network to gain an advantage in obtaining cryptographic coins, tokens or their equivalents. CONSIDERING THE ABOVE MENTIONED, WE DO NOT MAKE AND EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED OR STATUTORY. PARTICIPATION IN THE PLANNED PRM TOKEN SALE AND/OR USE OF THE WEBSITE ARE NOT INTENDED FOR, AND SHOULDN'T BE USED BY PERSONS UNDER THE AGE OF FULL LEGAL

https://praem.capital/https://praem.capital/https://praem.capital/

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CAPACITY (IN ACCORDANCE WITH THE REQUIREMENTS OF THE LAW OF YOUR JURISDICTION) AND/OR PERSONS WHO DO NOT HAVE THE NECESSARY LEGAL CAPACITY.

NO CORPORATE OR FINANCIAL RIGHTS

The tokens carry no rights, express or implied, other than the right to use the Tokens as specified in Section 3 of this White Paper.

In particular, the PRM tokens:

A) do not provide the Buyer with rights, ownership or interest of any form with respect to the Company, or its revenues or assets, including any voting, distribution, redemption, liquidation, proprietary (including all forms of Intellectual property), or other financial or legal rights. For the avoidance of doubt the Buyer is not entitled to any guaranteed form of dividends, revenue distributions, and voting rights.

B) do not represent a loan or investment to the Company.

NO INVESTMENT PURPOSES

Although the Tokens may be tradable, they are not an investment, currency, security, commodity, a swap on a currency, security or commodity or any other kind of financial instrument. The Tokens are not intended to be marketed, offered for sale, purchased, sold or traded in any jurisdiction where they are prohibited by applicable laws or require further registration with any applicable governmental authorities.

The Tokens may be exchangeable on cryptographic token exchanges but with no warranties or representations from the Company or Company Parties that the Tokens will be exchangeable on such exchanges.

CHANGE OF TOKENS FUNCTIONALITY

The Company may at any time at its sole discretion decide to amend the intended functionality of the Tokens in order to ensure compliance with any legal or regulatory requirements to which the Tokens are subject. The Company shall publish a notice on the Website of any changes to the functionality of Tokens and it is the Buyer's responsibility to regularly check the Website for any such notices.

NOT AN OFFERING OF SECURITIES, COMMODITIES OR SWAPS

The sale of Tokens and Tokens themselves are not intended to be a “financial instrument” subject to the regulation in the EU under the EU Directive 2014/65/EU on Markets in Financial Instruments (“MiFID”), a “specified investment” subject to the regulation in the UK under the Financial Services and Markets Act 2000 (“FSMA”); a “security” subject to the regulation under the EU Prospectus Directive, “electronic money” subject to the regulation under Directive 2009/110/EC (“e-Money Directive”), or a “payment instrument” or “money remittance” or “payment transactions” subject to the regulation under Directive 2015/2366 (“Payment Services

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Directive No. 2”). Purchases and sales of Tokens are not subject to the protections of any Laws governing those types of financial instruments. The White Paper, do not constitute a prospectus or offering document, and are not an offer to sell, nor the solicitation of an offer to buy an investment, a security, commodity, or a swap on either a security or commodity or any other type of financial instrument.

RISKS ASSOCIATED WITH THE USE OF BLOCKCHAIN TECHNOLOGY, CRYPTOGRAPHIC TOKENS AND COINS, INCLUDING BITCOIN, ETHEREUM AND PRM:

Risk of losing access to cryptographic coins, tokens or their equivalents. A private key, or a combination of private keys, is necessary to control and dispose of tokens/coins stored in your digital wallet or vault. Accordingly, loss of your crucial private key (or keys) associated with your digital wallet or vault storing tokens/coins will result in loss of such tokens/coins. Moreover, any third party that gains access to such a private key (or keys), including by gaining access to login credentials of a hosted wallet service you use, may be able to misappropriate your tokens/coins.

Risk of hacking and security weaknesses. Hackers or other malicious groups or organizations may attempt to interfere with any blockchain platform in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing, and spoofing. Furthermore, because the PRM token is based on open-source software, there is a risk that a third party or a member of the community may intentionally or unintentionally introduce weaknesses into the core infrastructure of the blockchain platform. Hackers or other malicious organizations groups may also attempt to get access to private keys or other access credentials such as wallet, vault, or other storage mechanism used to receive and hold tokens/coins. As a result, any cryptographic tokens/coins may be lost forever.

Risks associated with uncertain regulations and enforcement actions. The regulatory status of cryptographic tokens/coins and distributed ledger technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether regulatory agencies may apply existing regulation concerning such technology and its applications. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement changes to law and regulation affecting distributed ledger technology and its applications, including Bitcoin, Ethereum and PRM tokens.

Risks arising from taxation. The tax characterization of tokens/coins is uncertain. You must seek your own tax advice in connection with purchasing any tokens/coins, which may result in adverse tax consequences to you, including withholding taxes, income taxes and tax reporting requirements.

Risks associated with the development and maintenance. The Praem Capital ecosystem is still under development and may undergo significant changes over time. This could create the risk that PRM tokens, as further developed and maintained, may not meet your expectations.

Other risks related to use of blockchain platforms, cryptographic tokens and coins: risk of an unfavorable fluctuation of ETH, BTC or other token/coin value; risk of insufficient interest in

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the blockchain platform or distributed applications; technology risks; unanticipated risks (cryptographic tokens/coins are a new and untested technology). In addition to the listed risks, there are other risks associated with your possession, and use of cryptographic tokens/coins, including unanticipated risks. Such risks may further materialize as unexpected variations or combinations of the risks discussed above.

LEGAL NATURE OF THE RM TOKEN

As stated above, the PRM token is an ERC20 standard utility token. PRM falls under the definition of cryptocurrency since it was intended to act as an alternative type of cryptocurrency asset with innovative features based on Ethereum’s open source code. The PRM token presents itself as an integral part of the Praem Capital ecosystem and cryptocurrency that can be used by any person (if there is no specific ban in accordance with international rules and/or the legal rules of your jurisdiction) with the proper legal capacity.

Thus, the legal nature of the PRM token is similar to Ether, as well as the legal consequences of using and/or participating in the PRM community are similar to those with respect to Ethereum.

The purchase of PRM Tokens subject to the following Conditions Precedent are met:

1. The Buyer has provided all the documents required to meet the AML/KYC requirements in accordance with Anti-Money Laundering and “Know Your Customer” Policy of the Company.

2. The Company has completed AML/KYC procedures to the due satisfaction of the Company.

3. The Buyer has established a user account with the Platform (the “Account”) and filled in all the data required to the due satisfaction of the Company.

4. The Buyer has provided an accurate External Wallet address to the Company for receipt of Tokens distributed to the Buyer. The Company reserves the right to prescribe additional guidance regarding specific wallet requirements.

5. The Buyer has made the payment for the Tokens.

6. The Buyer’s warranties remain true, accurate and not misleading.

Company reserves the right to refuse or reject the offers on acquisition of the Tokens at any time at Company's sole discretion, including cases when the information provided by the Buyer upon any requests is not sufficient, inaccurate or misleading.

PROHIBITED PERSONS, PROHIBITED TERRITORIES

No U.S. Buyers

The Tokens are not being offered to U.S. Persons. U.S. Persons are strictly prohibited and restricted from purchasing Tokens, and Company is not soliciting purchases by U.S. Persons in any way. If a U.S. Person purchases Tokens, such U.S. Person has done so and entered into the Agreement on an unlawful, unauthorized and fraudulent basis, and the Agreement is null and void.

No Prohibited Buyers

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The Tokens are not being offered to the Prohibited Persons. The Prohibited Persons are strictly prohibited and restricted from purchasing Tokens, and Company is not soliciting purchases by the Prohibited Persons in any way.

Any Prohibited Person purchasing the Tokens shall be solely liable for Damages caused to Company Parties and shall indemnify, defend and hold harmless Company Parties from any Damages, for, and shall indemnify, defend and hold harmless the Company and the Company Parties from any Damages, losses, liabilities, costs or expenses of any kind, whether direct or indirect, consequential, compensatory, incidental, actual, exemplary, punitive or special and including, without limitation, any loss of business, revenues, profits, data, use, goodwill or other intangible losses incurred by the Company Parties that arises from or is a result of such Prohibited Person’s unlawful, unauthorized or fraudulent receipt or purchase of Tokens.

No prohibited Territories

Company neither offer or distribute the Tokens nor carry on a business (activity) in People's Republic of China, in South Korea, or in other countries and territories where transactions in respect of, or with use of, digital tokens fall under the restrictive regulations or require from the Company to be registered or licensed with any applicable governmental authorities.

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5. Roadmap

Date Activity Description

January 2017 Praem’s First Activity

Thanks to his experience in the sphere of Big Data analysis & AI integration, Nicolas Durr sees a lot of great opportunities and decides to switch to a crypto market, he meets with algorithm developers as they start development.

March 2017 Praem Crypto Bot V1 Praem’s First working algorithms & Testing

May 2017 Praem Forex Bot V1 Following the success of Praem’s crypto bot, our team developed a brand-new algorithm for the largest trading market - Forex

September 2017 Praem Crypto Bot V2 With Bitcoin trending upwards, our developer's team focused on updating algorithms and showcasing the brand-new Trend bot, allowing them to generate maximum profit during these uncertain times on the market. (Results +40% of profit compared to the previous version)

November 2017 Praem Stock Market Bot (Fail) Praem's team decided to test Forex's algorithms on the stock market, which resulted in 65% less profit than on Forex's market, although security levels were maintained.

December 2017 Stock Market Research Praem's team began to analyse various strategies to make the stock market bot more profitable and, at the same time, maintain a high level of security.

January 2018 Praem Ai Concept Volatile market conditions prompted Praem's team to come up with a solution. The result was the development of additional technology capable of supporting the bots with the analysis of Big Data and to increase the automation of algorithm changes.

The task is to create a complex of intelligent algorithms: technical and fundamental analysis of markets; de

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