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Key Information Document

 
Last updated on September 26th, 2018

Attention! This investment falls outside AFM Supervision.
No license and no prospectus required for this activity.


This document provides you with key information about this product. It is not marketing material. The information is to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it to other products.
concerning the token sale by
V-ID B.V.
with respect to 50.000.000 VIDT tokens

You are about to purchase a product that is not simple and may be difficult to understand.

Offeror:
V-ID B.V., a private company (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands, having its statutory seat and registered offices in (3331 LL) Zwijndrecht, the Netherlands at the address of Stationsplein 4, registered with the Dutch Chamber of Commerce under file number 72551410 (hereinafter referred to as: "V-ID").

Why this sale?
V-ID envisages to launch a decentralised blockchain service which makes fraud with digital files impossible (the “V-ID Service”). The details of (the deployment of) the V-ID Service are set out in the whitepaper “Whitepaper v 1.24 Sep 2018”, published on the V-ID Website at the following URL: https://token.v-id.org/page/v-id-business-white-paper.php.

For the purpose of financing the further development and maintenance of the V-ID Service, V-ID wishes to raise funds through a public token sale (the “Token Sale”) consisting of US Dollar, Euro or the following cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH).

What is this product?
V-ID tokens are digital, cryptographic tokens. A token can be considered as a transferable transaction output registered on a blockchain. The cryptographic tokens of the V-ID Service are called “VIDT”. A VIDT token is to be considered as a ‘utility token’, which means that the token generates a right to use a service and/or enter onto a network with an application. A VIDT token enables the holder thereof to use the V-ID Service, with the functionality as set out under the header “Return” below.

The maximum number of VIDT tokens generated and included under the V-ID Service in total is 100.000.000. 50.000.000 of these tokens will be released upon the occurrence of the Token Sale and divided over V-ID wallets which can be used for the V-ID Service soon after the release thereof. Having a predetermined maximum amount of VIDT tokens included in the blockchain provides security and transparency for all parties involved.

The 100.000.000 VIDT tokens released following the Token Sale will be divided over different wallets as follows:
  • 50% towards purchasers of VIDT tokens under the Token Sale;
  • 12% towards purchasers of VIDT tokens under a private sale;
  • 25% will be put into a wallet held by V-ID for ongoing validation purposes, which means that these VIDT tokens will be sold to and used by existing customers of V-ID that already use the V-ID Service;
  • 3% will be put into a wallet held by V-ID for the V-ID team and founders. These VIDT tokens are locked and will be vested in five yearly equal portions;
  • 2% will be put into a wallet held by V-ID for remuneration of advisors; and
  • 8% will be put into a wallet held by V-ID for the marketing campaign to create awareness and to stimulate adoption of the V-ID Service.

What are the risks and what could I get in return?

Risks:
No security: A VIDT token does not constitute any monetary payment obligation (for dividends, repayments or any return in any form whatsoever) of V-ID towards the holder of the VIDT token. Furthermore, the VIDT token does not grant the holder thereof any form of control or voting rights with respect to the company of V-ID. A holder of a VIDT token cannot claim any (re-)payment of its purchase amount from V-ID and V-ID will therefore never pay out any amount whatsoever on a VIDT token.

No fiat money value and/or market demand: A VIDT token has the functionalities as set out under the header “Return” below. Therefore, it is not and it has no fiat currency money value such as EUR or USD in itself. VIDT tokens will only have a value as a means of exchange, to the extent there is a market demand for VIDT tokens. VIDT tokens are merely designed for functionalities as set out under the header “Return” and is not designed as a cryptocurrency such as Bitcoin.

No (functional) V-ID Service: VIDT tokens will only be useful as set out under “Return” below, within the V-ID Service. To the extent that the V-ID Service will not be realised, the VIDT tokens will not have the functionalities as set out under the header “Return” below.

Application of funds: holders of VIDT tokens do not in any way control the application and use of the funds received by V-ID in consideration for the VIDT tokens.

Cybercrime: As VIDT tokens are digital cryptographic tokens, these tokens may be subject to cybercrime to the extent that the digital ‘keys’ to these tokens are not stored safely. Once the VIDT tokens have been transferred by V-ID to you and other participants like you, they are only accessible via a digital V-ID wallet. The wallet requires the means to store and access your private key safely. If either your private key or wallet is compromised this can result in the unrecoverable and permanent loss of the VIDT tokens which are held in that wallet.

Blockchain: Blockchain and the (underlying) software(products) are currently in an early development-stage and have not been proven to be without error. Therefore, V-ID cannot give any warranties regarding the errorless and hack-free functioning and performance of the blockchain and related thereto, the V-ID Service.

Also, blockchain is a new and largely unregulated form of interaction and doing business. Many jurisdictions have not yet adopted their legal systems to this up and coming application of technology. As a result of this, upcoming changes in legal systems and/or other circumstances may result in substantial changes in the blockchain application and/or the (execution of the) V-ID Service, which in turn may lead to (the complete) loss of (the value of) the VIDT tokens.

Regulatory framework: at the time of writing, it is unlikely that a VIDT token is qualified as a security or other financial instrument in accordance with Dutch law. However, qualification of products or services as regulated products or services is subject to market perceptions and developments and (interpretation of) legislation may change over time. The Dutch Authority for Financial Markets (AFM) and the Dutch Central Bank (DNB) may therefore interpret current regulations in view of such market developments and/or take enforcement measures based on subsequent legislation in the near future. This could lead to the AFM taking measures in response to offences (qualified with hindsight) against regulations. From this respect, no absolute certainty can be obtained about the applicable regulatory framework to the sale of VIDT tokens by V-ID the trading of VIDT tokens by holders thereof.

Return:
The V-ID Service has yet to be developed, constructed and implemented. Therefore, as long as the V-ID Service is not yet fully completed, VIDT tokens cannot be used for features of the V-ID Service as that service (functionality) is not yet in place.

Functionality of the V-ID Service Functionality of the VIDT token
The V-ID Service is a service that uses blockchain technology and intends to make fraud with digital files impossible. Users of the V-ID Service can be divided into two groups: creators and receivers. Once a creator registers a file in V-ID, this file’s authenticity can then be verified by the recipient. The validation process of the V-ID Service is meant to make sure that the person registering the file actually represents the organization issuing the file.

The VIDT token is an ERC20 utility token that is used to identify wallet addresses (for issuers / validating parties) and is used in exchange of using the V-ID Service

What are the costs?
The VIDT tokens can be obtained in exchange for US Dollar, Euro, Bitcoin or Ethereum for the equivalent price of $ 0.40 (zero point four zero US Dollar (USD), fourty US Dollar cents), or any other amount exclusively determined by V-ID, during the Token Sale. After obtaining a VIDT token, no costs are due by a holder of a VIDT token towards V-ID.

How long should I hold it and can I take money out early?
As a VIDT token does not constitute any monetary payment obligation (for dividends, repayments or any return in any form whatsoever) of V-ID towards the holder of the VIDT token, the (early) take out of money is not applicable. VIDT tokens are meant to be used in exchange for the V-ID Service. VIDT tokens may become of value on external cryptocurrency exchange platforms; V-ID does not in any way advise to hold or sell VIDT tokens at any time. Furthermore, V-ID does not in any way give financial, investment and/or tax advice.

How can I complain?
After the realisation of the V-ID Service, there is no ‘legal owner’ as this open source service exists between all participants of the service. However, V-ID is aware that as creator, originator and (primary) maintainer of the V-ID Service, she may be perceived as the owner of the service. Therefore, V-ID will answer questions and handle complaints with respect to the V-ID Service. Questions and complaints can be send by e-mail to: service@v-id.org, or by regular mail to: Stationsplein 4, (3331 LL) Zwijndrecht, The Netherlands.

Other relevant information:
Designated purchasers or participants: anyone who has a digital wallet from any of the aforementioned cryptocurrencies from any part of the world can participate in the Token Sale, except for persons located in: Canada, Democratic People's Republic of Korea (DPRK, North Korea), Ethiopia, Iran, Iraq, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, United States of America (USA), Vanuatu, Venezuela, Cayman Island, Somalia and Yemen.

VIDT tokens are intended for persons who have a genuine interest in (the use of) the V-ID Service. As participants may have difficulties understanding the nature of VIDT tokens, purchasing a VIDT token requires due consideration. Although an VIDT token is not considered to be a security or other financial instrument in accordance with Dutch law and can therefore not be compared against such instruments, V-ID strongly recommends consulting an external investment advisor and/or cryptographic specialist to the extent that the nature and risks of a VIDT token may be unclear. A VIDT token should not be considered as an investment in a cryptocurrency for speculative purposes, although such speculation may well arise and V-ID cannot control any secondary trading with respect to VIDT tokens. V-ID is under no obligation to verify the interest of participants.

The official V-ID Token smart contract is located at 
https://etherscan.io/token/ 0x445f51299ef3307dbd75036dd896565f5b4bf7a5

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