This “Whitepaper” document presents the information, references, structure, rationale, legitimation, purpose and mechanisms of the digital asset Prodomos Utility Token. Read this entire document carefully, noting that the content of this Whitepaper does not constitute legal, financial, accounting, commercial, tax or tax advice, so for this purpose(s), the user must seek professionals in the respective area.

Prodomos Utility Token, through its owner and administrator, will not assume responsibility for any kind of damage or loss, directly or indirectly, that the user may suffer in relation to the access of this Whitepaper, as well as to the use and negotiation of Prodomos Utility Token.

According to the Brazilian Securities and Exchange Commission (CVM/Brazil), companies working with the decentralized market are not regulated by the CVM or the Central Bank of Brazil (BC), as they offer trading, post-trading and custody services of virtual assets that are not characterized as securities.

Moreover, for the Federal Revenue Service of Brazil (RF), cryptoactive is a financial asset that must be declared in the asset stoken, according to Normative Instruction 1888 of 2019. Indeed, according to bacen’s view, cryptoassets are different from the currencies of sovereign governments.

In this sense, cvm listed some considerations for the user/acquirer to be heeded when using cryptoactives, being: risk of fraud; vulnerability to cyber attacks; risks of money laundering and tax evasion operations; market manipulation; lack of mechanisms aimed at investor protection. Furthermore, cvm promoted guidelines for the user to follow when trading their cryptoassets, which are: verify if the base software is free and open source or closed; verify that the technology is public, transparent, accessible and verifiable by any user; and the trading liquidity of the cryptoasset.

Furthermore, what is meant by securities is defined in securities laws. Regarding Brazilian legislation, in Article 2 of Law No. 6,385/1976 (Securities Law), what is securities are regulated. Therefore, as cryptocurrencies (virtual assets) are not present in that article, it cannot be considered a securities.

In that tuning, the CVM understood that digital assets have the nature of financial assets, for this reason they are not regulated by the laws and bodies that control the furniture market. For elucidation purposes, the shares, debentures and contracts of investment funds are characterized as securities, so that their issuers necessarily need to be registered with the CVM, as well as are subject to the legislation and regulation of securities. In turn, digital assets cannot be considered securities as: (I) are not included in the Securities Laws; (II) its issuance and distribution is carried out by private companies, in a decentralized way, through blockchain technology.

There is also the forecast of the United States Securities and Exchange Commission (SEC), which brings some definitions to its investors. Among them, the definition of assets that can be considered securities, such as: “Investments with similar characteristics. The top three asset classes are stocks, bonds and cash.”

In the same vein, the SEC has also presented some guidance to crypto market investors, which are:

• Technological risks – there are risks to the protection of rapidly changing digital assets and assets in the market that are not present in other agreements to protect assets for third parties;

• Legal risks – due to the unique characteristics of the assets and the lack of legal precedent, there are significant legal questions about how such agreements would be handled in a lawsuit arising from an adverse event (e.g., fraud, loss, theft or bankruptcy); and

• Regulatory risks – Compared to many common agreements to protect assets for third parties, there are significantly fewer regulatory requirements to maintain cryptoactives for users or platform entities that may not comply with applicable regulatory requirements, resulting in greater risks for investors in those entities.

Thus, the supervisory bodies around the world are attentive to the technological innovations of the decentralized financial market. In this day, the UAE Securities Authority (SCA) concerned about the issue, promoted the following regulations regarding companies that issue and operate digital assets: “institutions must establish an approved and documented governance structure for decision-making and proper management and control of risks arising from the use of LtD.” Furthermore, it continues to reinforce that cryptoasset owners should create “public and private key management; and consensus protocol.

Information about using the token

The use and destination of PRODOMOS UTILITY TOKEN outside its ecosystem is subject to the express consent and acceptance of the user, without interference from the PRODOMOS UTILITY TOKEN team. PRODOMOS UTILITY TOKEN does not guarantee the return of the amounts undertaken in the trading of tokens, as well as does not guarantee and does not promise appreciation of its virtual assets, as well as does not guarantee gains, profits and dividends. Furthermore, PRODOMOS UTILITY TOKEN does not guarantee equity interests, securities or partnerships related to companies, businesses or securities, privilege, prerogative or any kind of preference.

In view of the natural volatility of the digital asset market, any gains and remunerations that the acquirer of PRODOMOS UTILITY TOKEN will receive by trading tokens in the “Peer-to-Peer” (secondary market) or exchanges is not the responsibility of PRODOMOS UTILITY TOKEN, being such responsibility of the acquirers themselves in their trades, in light of the ability to analyze market volatility under the principle of supply and demand.

The PRODOMOS UTILITY TOKEN platform is available on the internet, so anyone with internet access can access it. In this sense, any user, with full capacity to practice acts of civil life (see e.g. art. 2nd of the Brazilian Civil Code) can acquire tokens, and use them in the manner provided for in the terms of use, and avail themselves of the products and benefits arranged.’

Prodomos UTILITY TOKEN cannot be considered a security, for the reasons already set out above. However, PRODOMOS UTILITY TOKEN anticipates that, if, and eventually, the token will have a characteristic of securities, its legal, financial and economic teams will work in accordance with the dictates of the supervisory and regulatory bodies – of the applicable jurisdiction – in order to ensure the development of the token in a healthy and legalized manner. Finally, it is emphasized that Prodomos Utility Token will act with transparency, leaving open to dialogue and communication with the competent agencies and with their acquirers, users and partners, and can be contacted through its communication channels.

Business information

The traditional concept of owner is one who can own, use, enjoy and avail himself of the rights linked to a certain good. In addition, there is the kind of multiproperty, in which there are several owners of the same good, which can dispose of the good in alternating and predetermined periods. Thus, it is noted the update that the concept of property has been suffering.

A possible new form of ownership, in turn, tokenization can be: (I) fractionate the property into assets that represent the fractions of this asset (that is, in tokens), and when acquiring the token, the user owns an asset that represents a piece of a given property; (II) offer of tokens to enable the construction of a given well(s). In both modalities, the user can exchange/exchange their tokens for the entirety of the good, for daily / monthly use of the good or other services, when it has a quantity of tokens that equates to the value of the good, daily / monthly or service.

It should be noted that the “rights” that fall on tokens are to divest, donate, exchange them for services, benefits, currencies of Sovereign States, give them in guarantee and even exchange them for the entirety of the property.

Moreover, in the tokenization of goods, the good does not lose its characteristics and does not lose its value. While the user exchanges the tokens for the full value of the property, he now has the right to property on this property, being able to validate the property with the public deed in a real estate registry.

The motivation of tokenization lies in the ease of acquiring portions of the property and that at a given time the tokens acquired by the user may be worth the entirety of the property. At this point the property is transferred to the user. In the same area of ease and agility, it is emphasized that the acquisition of tokens is independent of third party validators in order to confirm the security of transactions since tokenization is only possible through blockchain technology.

Information About IEO:

A priori, the term “IEO” means Initial Exchange Offer of digital assets, that is, they are offers of tokens in the release phase, which are available on the IEO Starten Platform.

Access to the platform allows the user to have access to the prodomos utility token offer packages and can choose the form of payment in fiduciary or crypto cash.

It should be noted that the platform is operated by “Starten Tech”, which is licensed by The Dubai Multi Commodities Centre (DMCC) to negotiate digital asset acquisitions. To this end, Starten Tech is subject to the laws and regulations of Dubai – United Arab Emirates.