Information Memorandum — Alphabit Digital Currency Fund

Information Memorandum — Alphabit Digital Currency Fund Opportunity to invest in a Cryptocurrency Fund September, 2017 5 BIT EFTA00797613 Offering Overview EFTA00797614 About the Fund Alphabit Digital Currency fund is an actively managed cryptocurrency fund aimed at professional investors OUR MISSION To be the best performing asset manager in the Digital Currency space 'MI OUR INVESTMENT OBJECTIVE jr To deliver consistent capital appreciation over a short - medium term horizon through actively managing a portfolio of Digital Currency O a OUR INVESTMENT STRATEGY To outperform Bitcoin with considerably less risk, by generating higher returns with lower volatility than Bitcoin -0 2 EFTA00797615 Alphabit Digital Currency Fund Terms The fund is domiciled in the Cayman Islands, and is registered with the Cayman Islands Monetary Authority. The fund has been added to Dalma Capitals Alternative Investment Management Global Platform (AIM9P), with Alphabit acting as discretionary investment advisors to the fund FUND STRUCTURE Dalma Capital Management Limited Administrator Apex Fund Services (Dubai) Ltd. Participating Shares (.$ 100.000 investor) 4Fund 5at DIGITAL CURRENCY FUND ALPHABIT Auditors Investment Advisor Alphabit Ltd Grant Thornton Cayman Islands Legal Advisers Walkers (Dubai) LLP (mailers of Cayman Islands law only) KEY FACTS Registered Office Cayman Corporate Centre. 27 Hospital Road. George Town. Grand Cayman KY1-9008 Type of fund Open Ended Authorized Share Capital $50.000 divided into 4.999.900 Participating share par value $0.01 each & 100 Management shares par value $0.01 each Minimum Initial Subscription $100000 per investor ($100*1000) Target Fund Size $300Mn Investment Strategy To deliver consistent capital appreciation through actively managing a portfolio of Digital Currency NAV Pricing Daily Fee Structure Management Fee: 2.5% of NAV Performance Fee: 45% . of the relative outperformance of the Fund Directors Andrew Ivison Liam Robertson Saeed Al Darmaki Regulation Fund memorandum is not subject to any form of regulation or approval by DFSA. However the Fund Administrator & Fund Manager are regulated by DFSA 3 EFTA00797616 Alphabit Digital Currency Fund Partner Directory O b A 17 P HA B, I T Dalma Capital co ALPHASITid AY N A MA KS III WALKERS Alphabit Digital Currency Fund Dalma Capital Management Limited Alphabit Ltd. Apex Fund Services (Dubai) Ltd Moody's Analytics Knowledge Services Walkers (Dubai) LLP The Fund Address: Walkers Corporate Limited, Cayman Corporate Centre, 27 Hospital Road. George Town, Grand Cayman KY1-9008. Cayman Islands Investment Manager Address: Gate Village 5. Level 1 Dubai International Financial Centre. PO Box 9361. Dubai. United Arab Emirates Investment Advisor Address: Walkers Corporate Limited. Cayman Corporate Centre, 27 Hospital Road. George Town, Grand Cayman KY1-9008. Cayman Islands Administrator Address: 101. Level 1. Gate Village, Building 5, Dubai International Financial Centre. PO Box 506534, Dubai, United Arab Emirates Outsourced 3rd Party Research Services Provider Address: 267, Udyog Vihar Phase-II. Gurgaon 122015. India Legal Advisers (as to matters of Cayman Islands law only) Address: Filth Floor. The Exchange Building. Dubai International Financial Centre. PO Box 506513, Dubai, United Arab Emirates 0 GrantThornton Grant Thornton Cayman Islands Auditors Address: 5th Floor Bermuda House, Dr Roy% Drive, PO Box 1044, Grand Cayman. KY1-1102 , Cayman Islands EFTA00797617 Investment Techniques Adopted to Implement Fund Strategy Up to 50% of the Funds assets may be allocated into (or retained as) cash. so when Bitcoin is on a bearish spiral the Fund will outperform relative to a falling Bitcoin price Fund has (or will) deployed 3rd party automated traders. & manual traders who trade alternative digital currencies Both can shun all aspects of any market they are involved in at any time, offering downside protection INITIAL COIN OFFERINGS Fund has taken part (or will) in specific initial coin offerings ("ICOC) at very early stages As the coins float. the Fund intends to either exit at a very healthy retum or hold on to the coins. depending on the economic viewpoint held by the Fund and/or the Investment Advisor of the relevant coins Manual trading Trading bitcoin against both USD and other liquid cryptocurrencies to I capitalize on buy low / sell high opportunities Utilization of exchange lending facilities to loan coins to margin traders and generate lending fees A manual trading team who manage portfolios of smaller cap alternative coins I • • • • • I I I Through. partner Elation Capital. fund deploys an automated strategy programmed around volatility & inertia, and operating on escrowed th bitcoin denominated accounts on the IG platform IThe bitcoin on this platform trades only EUR/LISD (the most liquid and - volatile fiat pair) with 1000x leverage Fund also uses fiat denominated algorithmic strategies which trade contracts-for-difference (CFD's) on bitcoin. using up to 7.5x leverage • • • • • Ta • • The fund generates broad exposure to the market by holding long only positions that the investment team deem to be critical to outperforming bitcoin when looking at a longer time horizon EFTA00797618 Investments Restrictions No more than 50% of NAV of the Fund can be invested at any time in ICOs No more than 20% of NAV of the Fund can be invested at any time in any one ICO Other than cash. the Fund shall hold assets of no asset class other than the following: Digital Currency based investments: Blockchain Protocols: Base Layer Services; and Decentralised Services No more than 50% of NAV of the Fund can be invested at any time in any one Digital Currency, apart from investments by the Fund in Bitcoin, which shall not be subject to any such restrictions No more than 50% of NAV of the Fund can be invested at any time in Blockchain Protocols, Base Layer Services and/or Decentralised Services 6 EFTA00797619 Risk Management and Security O Asset Allocation Asset allocation is carefully managed to ensure that the fund is never over exposed to one particular product or asset within the sector The correlation between the different strategies is less than one which reduces the overall volatility of the fund when blended together Secure Exchanges All of the exchanges used for the trading of blockchain assets are extremely security driven The systems are constantly upgraded and tested to ensure they exceed industry standards Accounts are protected by multiple layers of authentication Bank-Grade Digital Vaults • When not being actively traded. all blockchain assets are held using bank-grade digital vaults • The vaults, together with other specialist security solutions and intelligence services, are subject to rigorous testing by world leading security experts on continual basis Assets spread Across Multiple Exchanges • To further mitigate risk to the assets of the portfolio, all assets are spread across a wide range of different accounts and exchanges EFTA00797620 Alphabit's Technology For Alphabit's algorithms, we work with a London based company called Elation Capital. They specialize in low-risk algorithmic trading strategies, which are then applied to a variety of asset classes 2..Clients are provided with login details to a customized web portal which enables them to keep track of their investments whenever they choose k• e -- • AT %- <re- • . • :9•eess.r5:71,14. We harness the power of proprietary deep-learning and artificial intelligence systems to aid in pattern recognition as market dynamics change )rf • *444.4•79.0r7 fytrstc_. S;.7 The systems and performance are updated in real-time to our clients. a model which promotes transparency and encourages trust .; 7,;6c,.•-c ....ii -Z cr-\443..--1 -•-•,;•,::,:a ..--. -. _•-••=,.. 4-.:....-":-aar_f -",;:.....• y i t 4 .11/4 ••.0 • I "4: - 3f CI, • -.rt... — ••“: ---c, se-4.; • ..- 4 . -1,--t• 4 • Zee 8 EFTA00797621 What are Cryptocurrencies? EFTA00797622 Cryptocurrencies are set to Revolutionize Financial Transactions... Cryptocurrency is an encrypted and decentralized digital medium of exchange that has eliminated the need of intermediaries such as banks & financial institutions for facilitating and verifying financial transactions WHAT is it? TRADITIONAL CURRENCY Issued by Government Low Cross Border Portability Unlimited Supply; Government can produce as needed Centralized: controlled & regulated by government Value determined by the Demand, Supply & Govt Regulation 0 to • rrr 411 CRYPTOCURRENCY Produced by Technical System based on cryptographic algorithm High Cross Border Portability Controlled Supply: dictated by coded schedule KEY FACTS Launched in 2009, BITCOIN was the first cryptocurrency, currently there are >1,000 CRYPTOCURRENCIES WORLDWIDE Cryptocurrencies use a mechanism called BLOCKCHAIN — which is a public ledger of all transactions across P2P network that is TRUSTED, SECURED & SHARED Total Market Cap of all Cryptocurrencies: -$156Bn(I) (on Aug 27, 2017) (0 - Total No. of transactions processed: —250MD(3) O (till Aug 27. 2017) a Transactions processed per day: 262KM (on Aug 27, 2017) Decentralized no central control, no central point of failure - Total bitcoin mining revenues in 2016: $563MD( 2) Value is determined by Demand & Supply Employs —1,876(2) people full-time in the cryptocurrency space Sources: (I) Coinmarkeicap: (2) Global Crypiocurrency Benchmarking Study by Cambridge Centre for Alternative Finance as of April 2017: (3) Blockchain.into EFTA00797623 ..And Have Gained Wide Acceptance due to their Unique Features Cryptocurrencies are designed in such a manner that they are encrypted. controlled by code and rely on peer-to-peer networks. with no single entity capable of manipulating the value of the currency — features that have attracted investor attention in the financial industry • IRREVERSIBLE Digital currency transaction cannot be reversed after a transaction has been confirmed • SECURE The funds are stored in a public key cryptography system accessible by only the owner of the private key • DECENTRALISED Currency supply and value is controlled by the activities of users and highly complex protocols built into the currency codes rather than any banks or other regulatory authorities • PSEUDONYMOUS In crypto market. owners identification is stored in an encrypted address controlled by them- it is not attached to a person's identity FAST AND GLOBAL Transactions are propagated nearly instantly in the network and are confirmed in a couple of minutes • CONTROLLED SUPPLY A cryptocurrency's supply is controlled by a schedule written in the code. allowing estimation of supply at any point in the future • I I EFTA00797624 Blockchain - The Technology behind Cryptocurrencies Blockchain is an open distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way; It has potential to disrupt a wide variety of transactions processing systems WHAT IS IT9 • HOW IT 9 WORKS • Blockchain - is a public ledger of all transactions across a P2P network that no individual or company owns or controls. Primary Benefits: Immutability 2. Elimination of Intermediaries 3. Ease in verification of transactions 0-0 a 'Vs Transaction Requested Users with wallets request transactions Wallets are files with access to multiple bitcoin addresses that are in the form of alphanumeric characters New Transaction Block Miners bundle transactions within a fixed time interval into new blocks. E.g.. in the case of Bitcoin past 10 min transactions are bundled into one block Addition to Blockchain The new block is then added to the existing blockchain For addition of each new block a miner is rewarded 12.5 Bitcoins Transaction Complete •• Once the new block is added to the Blockchain the transaction is complete 4. Improved security 5. Transparency with lower costs 6. Decentralization Authentication The network of nodes operated by miners validate the transaction using cryptographic hash functions Verified Transaction Verified transaction can involve cryptocurrency. contracts, records, or other information 0 • EFTA00797625 From its Launch in 2009, Cryptocurrency Market has Evolved Considerably The speed of development and adoption of cryptocurrency technology has been phenomenal, dispelling concerns over its legitimacy and at the same time resulting in the sector becoming mainstream • • • • • • • Oct-2006: Oct-2009: Nov-2010: Jun-2011: Nov-2012: Nov-2013: Dec-2014: Aug-2015: Apr-2017 A pseudonymous First Bitcoin Sitcom Market Wkisaks begins Wordpress Bitcoin price Microsoft begins Barclays Sitcom value rises figure or grow Exchange New Cap crosses accepting accepts bilcoin reaches $1000 to accept Bitccin announces that over $1Bn as called Satoshi Ubeny Standard $1Mn mark anonymous they would Japan. Russia Nakamoto launched. Wh an Bitcoin donations Jun-2012: Oct-2013: JS-2014: become the test mare to legitimize publishes the initial exchange Jul-2010: Coinbase. a FBI shuts down Founded by Vitalik UK high street cryptocurrency Bacon white rate of 1.309.03 The MtOak Bitccin Feb-2011: bilcoin wallet and Silkroad Buren Ethereum bank to start paper 13TC to $1 currency Bitcoin reaches platform. is Foca-dation raises accepting titcoin Mar-2017 exchange market is established parity with US claw founded in San Francisco. California Apr-2013: Sitcom price reaches $100 around 31.500 Bitcoin through pre sale of 60Mn ETH 30 banks, tech giants. and other organizations — including Jan-2009: Very first Bitcan transaction Jan-2011: Feb-2010: between Satoshi Silkroad. the Morgan Chase. Mar-2013: Apr-2014: and Hal Finney. a First real world infamous drugs Microsoft. and developer and titcoin transaction marketplace Sitcom market The first ICC was Intel kern cryptographic takes place when begins operating capitalization held by Enterprise activist a programmer pays 10.000 Bitcoins for a pizza worth $25 reaches 318n Karmacoin lor Karmashares project Ethereum Alliance 2008 2009 2010 2011 2012 2013 2014 2015 BTC LTC xnp 0 0 DASH MIR 2016 2017 ETC NEO SWAT IOTA BCH NEAT ETH 13 EFTA00797626 Cryptocurrency Regulatory Landscape Large scale adoption of cryptocurrencies and blockchain technology is forcing countries worldwide to do away with their restrictive stance and draw up regulations allowing trade and use of cryptocurrencies Global Cryptocurrency Standpoint c • of Countries by Stance A S Hosiiie: Contentious i Permissive: Ia —. Unknown: 4.1 2015 - The Commcdily Futures Trading Commission classified bitcoin as a commodity IRS considers virtual currency as properly for federal taxation 2017 - SEC ruled that ICOs and Token Sales are Sale of Securities & participants will be subject to federal securities law Panel tasked to examine & regulate the cryptocurrency framework, submitted its typal in Aug 2017 China banned ICOs in Sep 2017 in an effort to regulate the ICO market in the mainland that was rife with scams In Apr 2017 Japan recognized cryptocurrencies including Elkton as a legal method of payment & not a legally.recognized currency For tax purposes Sitcoin is treated as an asset Exchanges will also be subject to - capital requirements. cybersecurity and operational stipulations. AML & KYC requirements. annual audits etc. 0 Euro ean Union In Jun 2017. European Union changed laws regulating cryptocurrencies, allowing only NYC approved users to transact and hold cryptocurrencies Each counhy in the EU has different laws pertaining to the treatment of cryptocurrencies Sources: Bitlegalio 1,1 EFTA00797627 Overview of the Cryptocurrency Market EFTA00797628 Crypto Market Cap Reached $156Bn, Representing a 10x Growth since Jan'17 Driven by strong positive sentiment around Cryptocurrencies, market capitalization crossed $100Bn mark in June'17, though the market saw a correction in mid July'17, the pace of growth has again picked up, dismissing concerns by analysts upon its existence in the long term Cryptocurrency Market Capitalization ($Bn) 494 $0.8 552 $13 578 683) Jan•15 Jul-15 Jan-16 Jul-16 Jan-17 a Bitcoin Other Cryptocurrencies Total Market Cap ($Bn) WI No. of Currencies $89 L$156 1 981 3 (1028j $84 Jul-17 Aug-170/ Since Jan 2015 the no. of cryptocun'encies in the market has grown >2x from 494 in the beginning of the period to 1028 as on Aug 27n, 2017 Growth (2) 2 Year Growth 22x 8x 5x 132x 38x 42x 39x 14x 10x V.041 Growth r YID Growth Sources: Commarkelcap 16 Note:11) Alt data as of Aug 27. 2017, (2) Grath YTD : Joni]. Aug '17. Y.o.Y: Aug'16 — Aug'17, 2 year growth: Aug'15— Aug17 EFTA00797629 Driven by Rising Popularity & Adoption of Cryptocurrencies Leading cryptocurrencies have garnered significant interest from individuals and institutions alike, a fact validated by increasing number of transactions, unique addresses, wallets & active users of these wallets Transactions per Month (000's) sk ai 7.7659 Unique Addresses Growth (000's) Jan-09 Apr-10 Jul-11 Oct-12 Jan-14 Apr-15 Jul-16 Aug 17 Jan.09 Apr-10 Jul-11 Oct-12 Jan-14 Apr-15 Jul-16 Aug-17 9k Jul-15 Dec-15 Y-o-Y Growth 4110 May-16 Ocl-16 P./Car-17 Aug-17 Total Cryptocurrency Wallets (2016) 34.3mn(1) 1 Active Cryptocurrency Wallets (2016) 5.8 - 11 .5mn(1) 9k O Jul-15 Dec-15 May-16 Yro-Y Growth Cc! 16 • Mar-17 Aug-17 I) Unique Active 9 Cryptocurrency Wallet Users (2016) 2.9 - 5.8mn(1) saw,Holders of Bitcoin as of Dec, 2016 1 OMn(2) Sources: (1) 'Global Cryptocurrency Benchmarking Study by Cambridge Center for Alternative Finance: (2) *Bi coin: Ringing The Bell for a New Asset Class' by Ark Invest and Coinbase; Bbckchain.info. Etherscam.io I7 EFTA00797630 There are -1,000 Cryptocurrencies Circulating Worldwide Currently As of Aug 27, 2017 the top 12 cryptocurrencies represented -89% of the total Cryptocurrency Market Capitalization with Bitcoin (oldest cryptocurrencies) alone accounting for -46% followed by Ethereum with 20% market capitalization bitcoin et h er eu m [0] Bitcoin Cash 4 ripple Founded Year: 2009 Founded Year: 2015 Founded Year: 2017 Founded Year 2012 Price: $4382.9 (A y-o-y 7.74 Price: $347.9 (A y-o-y 31.2x) Price: $620.9 (a since launch()) 1.54 Price: $0.203(A y-o-y 344 Current Market Cap: $71.809Mn Current Market Cap: $31.518Mn Current Market Cap: $10.357Mn Current Market Cap: $8.153Mn 24-hr Volume: $1.537Mn 24-hr Volume: $ 633 Mn 24-hr Volume: $403Mn 24-hr Volume: $194Mn Founded Year: 2011 Price: $61.2 (a y-o-y 21.3x) Current Market Cap: $2.727Mn 24-hr Volume: $891Mn MONERO Founded Year: 2014 Price: $130.7 (A y-o-y 24.7x) Current Market Cap: $2.058Mn 24-hr Volume: $93Mn nemg' Founded Year: 2015 Price: $0.275 y-o-y 48.1x) Current Market Cap: $2.435Mn 24-hr Volume: $8.2Mn r classic Founded Year: 2015 Price: $16.02 y-o-y 5.74 Current Market Cap: $1,450Mn 24-hr Volume: $151Mn Founded Year: 2014 Price: $362.9 (a y-o-y 28.9x) Current Market Cap: $3.010Mn 24-hr Volume: $122Mn Founded Year: 2016 Price: $40.09 (A since leunchisi 71.8x Current Market Cap: $1,929Mn 24-hr Volume: $51Mn IOTA Founded Year 2017 Price: $0.920 (A since launchf2) 1.6x) Current Market Cap: $2.674Mn 24-hr Volume: $18Mn omiseao O Founded Year: 2017 Price: $8.33 (A since launchi4' 14.3x) Current Market Cap: $815Mn 24-hr Volume: S23Mn Note: Price. Cunenl Market Cap and 24-hr Volume as of Aug 27. 2017 Launch Dates: (1) Bilcoin Cash: Jul 23. 2017: (2) IOTA: Jun 13. 2017: (3) NEO: Sep 09. 2016: (4) OmiseGo: Jul 14. 2017 18 EFTA00797631 The Market has Evolved Away from Being Dominated by Bitcoin Towards Alt Coins The dip in Bitcoin's market share can be attributed to growing efficiencies and uniqueness of New Alt Currencies rather than the former's inefficiencies; Alphabit is capitalizing on these new and growing opportunities in the Cryptocurrency Market Share of Market Cap — Major Currencies (/o) Total Market Capitalization Aug-13 92", Aug-14 Aug-15 Aug-16 Aug-17 ea 46% 20% 4% 3% 2% 2% ■ 2% 3% 6% 8% 2% 2% 1% • Allrefe Oitoccrl 2% 2% 5% 11 D1751-1 4 IV* Other Currencies $1.5Bn $7.1Bn $4.0Bn $11.3Bn $156.4Bn Sources: Coinmarketcap 19 Note: All data as of Week 4 of August, i.e. Aug 25.2013: Aug 31, 2014:Aug 30. 2015:Aug 28. 2018: Aug 27. 2017 EFTA00797632 Alt Coins have Witnessed a Tremendous Surge in Prices vis-à-vis Bitcoin New alt currencies have come a long way from being mere clones of bitcoin and now have more to offer with concepts such as governance platforms, pure proof-of-stake, newer anonymity methods and smart contracts which has in turn resulted in a steady growth in price and usage A Since Jan 2016 $4.383 .\ Since Jan 2017 $434 909% 339% Jamie Aug-17 36,596% 4,158% I Aug-17 set 1,642% 1,256% Aup-17 $363 10,636% 3,131% I Aug 17 $0.203 S0.CC6 3,309% 3,088% O Jr '6 Aur,17 Sources: Coinmarketcap 20 All latest data is as of Aug 27. 2017 EFTA00797633 Bitcoin Emerging as a New Asset Class EFTA00797634 Bitcoin has Delivered Exceptional Absolute Returns vis-à-vis Other Asset Classes Cryptocurrencies provide a highly lucrative investment avenue to investors with returns significantly higher than conventional high yield asset classes Growth of Assumed $10,000 Investment in Major Asset Classes from Jan-17 to Jun-17 $30K 525K 520K 515K 510K 55K Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 —Bitcoin U.S. Equities —Emerging Market Equities —U.S. Bonds —Oil —Gold YTD Returns Historical Returns Bitcoin vs. Major Asset Classes (1) 3.68x III 1.15x 1.22x 0.97x 0.95x 0.94x 9.43x Ill 1.17x 1.18x 1.01x 1.06x 0.77x 3.88x III 1.24x 1.18x 1.00x 0.44x 0.94x 28.18x 1.50x I.33x 1.02x 0.99x 0.47x 1 Year Return 2 Year Return 3 Year Return 4 Year Return • Bitcoin • U.S.Equities • Emerging Market Equities • U.S. Bonds •Oil •Gold Current ()At All returns are as of Jun 30. 2017 Note: (1)=500 has been taken as oxy for US Equites. Bovespa for Emerging Market Equities. iShares Barclays Aggregate Bond ETF (AGG) for US Bonds. Sources: Coinmsuketcap. EFTA00797635 Also Provides Substantial Portfolio Diversification Benefit By virtue of low correlation with major asset classes, Bitcoin has the potential to significantly reduce the risk of a portfolio; Based on last 2 year data, Bitcoins average 6 month rolling correlation with other asset classes is less than 0.5 Correlation ('): Bitcoin vs. Major Asset Classes (2) Ns./ 0.64 ■ 0.02 0.08 Emerging U.S. Fixed Gold Markel Income Equities 0.37 ■ Oil 0.46 Bitcoin ,••••••N w 0.64 0.23 U.S. Equities U.S. Fixed Income 0.32 Gold 0.43 1 Oil 0.20 ■ Bitcoin Oil C 4 3 0.37 1 -0.03 0.10 -0.12 U.S.Equities Emerging U.S. Fixed Gold Bitcoin Market Income Equities Aer.MIr.".‘ 0.86 023 0.02 0.03 U.S. Equities Emerging Gold Oil Market Equities .0.01 Bitcoin 0.08 0.32 ■ 1 -0.12 =MI U.S. Equities Emerging U.S. Fixed Oil Markel Income Equities 0.05 attain Sources: Coinmsuketcap. Note: (1) Correlation has been calculated on a 6-month rolling basis over a period of 2 yews. (2) 500 has been taken as proxy for US Ectutes. Bovespa for Emerging Market Equities. iShares Barclays Aggregate Band ETF (AGG) for US Bonds 23 EFTA00797636 Bitcoin's Volatility, although decreasing, is still high compared to other assets Alphabit's strategies enable their trading teams to benefit directly from this volatility and generate Alpha during turbulent price movements Bitcoin Price Volatility (%) 13% is Jun-13 Dec-13 Jun-14 8% Dec-14 Jun•15 5% 4% Dec.15 Jun-16 Dec-16 Jun 17 30•Day BTCIUSD Volatility —60.Day BTC/USD Volatility Volatility of Weekly Returns Bitcoin vs. Major Asset Classes (%) I' 21 8.5% 6.9% 6.5%6.5% Bitcoin 1.5% lill 1.5% 1.5% ■ ne 3.1% 3.0% j 3.0% I 2.3% 0.5% 0.5% 0.5%1 O.4% 1. U.S. Equities Emerging Market U.S. Bonds Equities 4.7% 4.2% 4.1% 3.7%. I I Oil • Last 4 Years • Last 3 Years • Last 2 Years • One Year 1.9% 1.7% 2.0%1 I .9%.6 I Gold The decline in bitcoin's volatility has been a result of: More stable and liquid spot exchanges Greater regulatory clarity Broader ownership • Increasingly reliable price discovery data. Note: (1) Weekly volatility has been calculated on a 4-week rolling basis and averaged over respective time periods. (2) I. SOO has been taken as proxy for US Equities. Bovespa for Emerging Market Equities. ishares 24 Barclays Aggregate Bond ETF A r US Bonds. Sources: Coinmarketcap. EFTA00797637 However it still Offers Superior Risk Adjusted Returns Bitcoin's high volatility has been compensated by even higher returns resulting in superior return per unit of volatility (as expressed by Sharpe Ratio) when compared to other asset classes Sharpe Ratio: Bitcoin vs. Other Asset Classes 3.35 2.83 I 2 32 1.37 1.09 2.39 I uI 10.56 0.48 I I Bilcoin U.S. Equities 0.79 1.24 1.00 I0.45 0.42 0.40 0.26 0.28 I EMI . 0.19 m 0.01 I .0.31.0.35 -0.18 -0.07.0,131 I I 0.17 • . - -0.51 0.62 -0.60 -1.05 -1.23 Emerging Market Equities U.S. Bonds Oil Gold • YTD • 1 Year • 2 Year • 3 Year s 4 Yew Current Data as of June 30th. 2017 (1).500 has been taken as proxy for US Equities. Bovespa for Emerging Market Equities. Shares Barclays Aggregate Bond ETF (AGG) for US Bonds. EFTA00797638 Initial Coin Offering EFTA00797639 Introduction to ICOs Initial Coin Offering is a popular way to raise money for a new cryptocurrency project by distributing a percentage of the initial coin supply among the early supporters and backers via a crowdfunding campaign. What are ICOs? IS) A fundraising medium that allows Blockchain based startups to raise money for project development by issuing & selling their exclusive cryptocoins (tokens) to the public in exchange for a liquid cryptocurrency Key Characteristics DInvestor Documents + Early Mover arka Peer-to-Peer Advantage 414 No Regulations Includes a webpage. a ICOs are conducted Barry investors are ICOs are highs), whitepaper and some entirely P2P on the offered a better price unregulated with no inremet forum posts Blockchain than later investors government backing How ICOs Work? The project gets started once the ICO Is over. The token or crypto Is listed on major exchanges and trading begins. The market cap of the currency fluctuates on the basis of investor confidence in the prospects of the project ICOs are powered on smart contracts that execute the transactions automatically when certain inbuilt targets are met. If the minimum funding target is not met. the investors immediately get back their money. Most smart contracts are also smart Eaenough to stop deploying or return investors' money once the maximum funding target is reached ICO Is announced on the Bitcoin forum when sufficient hype has been created about the project. Information regarding the ICO is dissipated to the attention of early investors. Information includes ICO timelines, token supply available for sale, nbudgets. the currencies accepted. etc. The project announces itself on the Bitcoin talk forum. Information such as the official website. the whitepaper. their roadmap. development and marketing teams, experience. etc. is revealed EFTA00797640 ICOs have Emerged as the Preferred Funding Route for Early Stage Blockchain Startups ICOs started to gain popularity in 2016 & witnessed explosive growth in 2017, overshadowing traditional venture capital funding for Blockchain startups Number of ICOs Total Amount Raised (SMN) 18x growth since 2016 01 6 7 9 1 3 2 2 1 3 4 01'14 0214 0314 0414 0115 0215 0315 04'15 0116 0216 Q3'16 27 I i 04'16 0117 02'17 03'17' ' 70 56 2017 YTD ICO 148 Ethereum $18.5Mn 0 87 73 247 6 01'14 0214 03'14 r - ICO: 79x growth since 2016 O1 VC: 2x prowth since 2016 C11 135 91 83 99 80 72 41 11 1, 30 1 • 6 20 12 47 3423 ,c, 2j 42 a .. 04'14 01'15 0215 0215 04'15 01'16 0216 0216 0,V16 0117 0217 0217' 944 I 535' 215 106' 2017 YTD ICO 31.5Bn • ICOs • Early Stage VC for Blockchain Startups Just midway through 2017, there have already been 3x more ICOs (148) than in complete 2016 (48) 150 + ICOs expected in the rest of 2017 1COs raised more than 3x as much capital for Blockchain projects in Q2'17 compared to early stage VC Source: Crypiocompare. kobazaar. Coindesk 'Data as of Aug IT". 2017 Note: The data for DAO sale is not included since the entire amount was refunded 28 EFTA00797641 Blockchain Startups Funding through ICOs has Increased Substantially in 2017 Unlike crowdfunding, where investors typically only have an incentive to invite others to enjoy the product, investors that participate in an ICO have the additional incentive of a gain on the value of their asset. ICOs have thus created a platform that allows raising millions in a few minutes. • Number of ICOs Till date 200+% lconoml $10.7Mn Return: 27x Ethereum $18.5Mn Return: 974x StorjCoin $462k Return: 236x Notable ICOs spa MaidSate Coin Bitshares $6.4Mn $3.6Mn Return: 34x Return: 12x Io CounterParty $1.7Mn Return: 26x 4 O Augur Neucoin $5.1Mn $630k Return: 35x Return: NA 1rnaleit 1 Factom $540k Return: 183x • .4...4: Iota Synereo $440k $128k Return: 1.6x Return: 35x Golem Network Token Usk NEO BitConect Coin $8.6Mn $6.4Mn $3.8Mn $2.4Mn Return: 26x Return: 46x Return: 116x Return: 163x 13 . fp 4 4 _ 0 0 0 Tezos Status Network Token MobileGo Basic Attention Token OmiseGo $232Mn $102Mn $53Mn $36Mn $25Mn Return: 1.9x Return: 1.5x Return: 1.4x Return: 5.7x Return: 31x A ARK Stratls $1Mn $590k Return: 156x Return: 809x Alphabit Investments Metal Blocktiz $9Mn $7Mn Return: 20x Return: 3.3x Source: Cryptocompare. Icobanar. Coindesk 'Data as of Aug Ir. 2017 Note: The data for DAO sale is not included since the entire amount was refunded 29 EFTA00797642 Alphabit's Checklist for ICO Selection Alphabit leverages its strong position in the crypto-community to get real insight into new projects and select the ones that show the most potential in adding value to the sector ALPHABIT The fund tends to participate through private placement in the ICOs through tokens as well as equity and implements an advisor to ensure the project can be completed This allows the firm to get a real insight into the cutting-edge technology behind the newly formed start-ups, and make informed decisions at a very early stage on the viability of the project and whether or not it provides "value add" to the sector The Fund Assesses & Analyzes: The Fund initially looks at the concept of the project to assess whether it has a valid use case. and furthermore. has the potential to be adopted by the wider public and gain market penetration Development Team The Fund assesses the development team, looking at their core skills, and also their support team, gaging whether they have the ability to successfully bring the product to market. The Whitepaper is then critically analysed by our own team of developers to ensure the tech and language stacks up as to its purpose of the project EFTA00797643 Road Ahead for Cryptocurrencies EFTA00797644 Cryptocurrencies have a Range of Possible Future Scenarios Adoption across industries and geographies is the key factor that will determine the future of cryptocurrencies. It would be interesting to see whether cryptocurrencies revolutionizes industries and interaction systems globally or fizzles out Probable Future Scenarios Notable Currencies Grows into a fad Remains a niche payment Instrument 0 Blockchain technology adopted: currencies discarded 0 u Currencies adopted: blockchain technology discarded The Game Changer Revolutionizes the interaction systems and value exchange instruments across the globe to V V Cryptocurrencies fail to generate mass adoption as technology acts as a handicap and is unable to garner public (rust Used only by enthusiasts and technology evangelists Strict regulations that reduces the scope of use Used by organizations for 828 and institutional transactions J Regulations squeeze out prospects for use as currency Blockchain by virtue of its numerous use cases is adopted across industries for maintaining records & supplementing automated decision making systems Need for a bordorless currency drives mass adoption across the globe Concept of decentralized currency outgrows Blockchain and is processed on traditional systems Becomes the de facto standard for all financial transactions (payments. accounts. securities) Kills message based systems & undermines central banks Becomes the 'global anchor' currency EFTA00797645 A Cryptocurrency's Success would be Determined by the Number of Use Cases its Blockchain supports Cryptocurrency utility and value is directly proportional to an increase Blockchain usage; Given its innumerable use cases, blockchain technology shows huge promise in replacing the current legacy systems III 1111;11Thgl T T Workplace Supermarket Bank Logistics Automated Efficient Elimination of Replace Increased rent collection maintenance. the counterfeit message based product and tax accessibility market via communication transparency payments & validation supply chain resulting in across supply of HR tracking shorter chain Smart records settlement time contracts • Smart Automated could ensure Smart contracts Transform management of maintenance contracts will could promote records inventory, raw & new allow localized maintenance materials. invoice contracts are productivity consumption systems. improve generation & awarded to based through use of efficiency & settlement. companies remuneration differential reduce admin resulting in with requisite structures & pricing. costs increased experience salary thereby efficiency remittance for reducing Ease out cross micro periods carbon emissions border remittance process d . ,,,, _ki. T Services Manufacturing Power Generation Help providers to predict requirements. identify & solve problem cases based on user interaction patterns on the block chain Allow consumers to automate regular requirements or set conditions that automatically trigger requests Supply chain tracking to allow improved control over product quality Post production & sale tracking to help manufacturers get insights on usage patterns. allowing them to modify product design to suit different sets of customers Facilitate P2P energy trading. reducing transmission losses increase efficiency of existing processes. "smart grid" management systems that automatically diagnose network emergencies & reconfigure them Smart contracts can ensure that appropriate parties are notified of noncompliant events in real time Help patients determine out-of- pocket costs before they select providers or undergo treatments Government Regulations would play a major role on the speed of blockchain and cryptocurrency adoption; In recent years a growing number of countries have realized that limited regulation of the use of cryptocurrencies is beneficial in the long run over extreme bans on its use 33 EFTA00797646 Fund Manager Overview — Dalma Capital Management EFTA00797647 Dalma Capital Management Limited The experienced fund management team at Dalma offers funds with tailor-made services that help them achieve high returns through clear and concise strategy • Dalma Capital FUND MANAGER Dalma Capital Management Ltd incorporated in the Dubai International Financial Center in 2013. is engaged in the business of managing investment funds: the company is regulated by the Dubai Financial Services Authority ('DFSA") and holds a Category 3C license Utilizing a combined 80 plus years of Asset Management experience, Dalma Capital has refined the process of fund creation by shortening the time and reducing complexity and costs for clients The company offers "The Alternative Investment Management Global Platform"(AIMP) that permits portfolio managers to take advantage of the benefits of the DIFC with an institutional operational, financial. IT, investor relations and compliance infrastructure Dalma works in close partnership with Funds to help them focus their efforts and resources on their investments while Dalma's experienced team provides the infrastructure needed to achieve success FUND PORTFOLIO Bushvelt Dalma Scarce Species Conservation Fund Asset Type: 1.500 hectares of intensive breeding system in Bushvelt Limpopo province Target IRR: 25% Maximum size of fund: $50Mn Term: 5 Years Fund Strategy: To capture value by breeding and sale of high quality scarce herbivore species indigenous to Southern Africa within an industry that now exceeds $1Bn in annual value Dalma Shipping Fund Asset Type: Shipping Assets Maximum size of Fund: $50Mn Term: 6 Years Fund Strategy: To create value by profitable operating performance and expansion of a fleet through selective second hand distressed acquisitions and subsequent trading and timely disposal of ships Dalma Unified Return Fund Asset Type: Liquid Instruments Target return: 5 - 7% Term: Open Ended Sharpe Ratio: 1 0 . Annualized Vol: 7-9%, Max Monthly Drawdown: 4% Fund Strategy: To capture value for institutional investors by investing in forward looking discretionary & high conviction trades, with a high focus on liquid and transparent markets EFTA00797648 Fund Administrator Overview — Apex Fund Services (Dubai) Ltd. EFTA00797649 Apex Fund Services (Dubai) Ltd. Apex Fund Services has a network of 32 offices across 26 countries and domiciles, giving it a unique ability to provide cross-jurisdictional solutions and expertise A APEX FUND ADMINISTRATOR Founded in 2003, Apex Dubai is part of the Apex Fund Services Group which specializes in fund administration and middle office support solutions Apex Fund Services provides a full suite of products and services surrounding its core fund accounting services, from regulatory solutions to middle office services, covering the full value chain for its clients Based in Hamilton. Bermuda. the company has 600 employees and administers $50Bn in assets under management. GEOGRAPHICAL PRESENCE KEY SERVICES Fund Accounting Fund Setup FX Services Regulatory Services Global Platforms Performance Reporting Risk Reporting Corporate Secretarial Directorship Services Apex247 Online Report ng) Metrosoft Fund Recs Middle Office Services PFS-PAXUS Switching Administrator Portfolio Valuation E-front Smart pension Daily Administration Support Velocity trade (fx) Fund Liquidation EFTA00797650 Partner Profiles EFTA00797651 Alphabit Management Team— Operations Management (1/3) Liam Robertson (Chief Executive Officer & Head of Investments) • Liam is a Chartered Financial Analyst (CFA) and Chartered Alternative Investment Analyst (CAIA) Previously, he served as portfolio manager for UK-based IFA company and as analyst at a London-based Fund of Investment Trusts He holds a degree in Economics from the University of Newcastle -Upon-Tyne and a Masters in Finance from the University of Durham Saeed Al Darmaki (Managing Director) • Saeed has a proven record in financial analysis, along with portfolio and cash management He has 7 years of experience at the Abu Dhabi Investment Authority (ADIA) working in the Fixed Income and Treasury Department, and Operations and 6 years of work experience in customer services, sales and mortgage administration in the United Kingdom He holds a BSc Degree in Statistics with Business Management from Kingston University and a professional certificate from the Business Continuity Institute Andrew Ivison (Chief Operations Officer) • Andrew has closely monitored and traded in the cryptocurrency markets, gaining a depth of knowledge of market functioning and technology Previously, he served at various positions for Wood Group Kenny and Gardiner & Theobald LLP gaining extensive experience of providing cost and schedule control for multimillion dollar projects He holds a Bachelors Degree in Engineering 39 EFTA00797652 Alphabit Management Team— Strategic Management & Business Development (2/3) 141 Herman Liu (Chief Strategy Officer) • .> Herman has 25 years extensive experience in blue chip corporations and financial services industry— including investment banking. E-Commerce. global project and risk management. regulatory compliance and e-Trading ,> Previously, he has held various senior management positions at JP Morgan. Chase Manhattan and Crowe Clark Whitehill along with several successful E-Commerce businesses He is a Chartered Accountant of UK ICAEW and has studied Computer Science at the University of East Anglia. UK. Michael Terpin (Chief Marketing Officer and Special Advisor) Terpin is considered as the top marketer in the digital currency sector. having worked with more than 100 blockchain companies and coins as an advisor and/or through his agency, Transform Group Currently. he also serves at various managerial and senior level positions at BitAngels; Transform group: Marketeeria; bCommerce Labs; CommPro Global and Terpin Communications He holds a MFA in creative writing from University at Buffalo and a BA Degree (dual) in Journalism and English Literature from Syracuse University Chris Kitze (Chairman) • Chris is a serial entrepreneur who has created companies with over $7Bn of market capitalization during his 25-year career Has been art of the Lycos' IPO team, was founder and CEO of (IPO: 1998), and was CEO of NBCi formed by the merger of and . in addition to other companies in digital media and payments, such as and Unseen. He is currently working on several blockchain related projects. safe.cash and flashcoin.io. He holds a Bachelors in Chemical Engineering from University of Colorado Boulder 40 EFTA00797653 Alphabit Management Team— Trading Team (3/3) an Itt Anandaprabu Rajendran (Head of Trading) Anandaprabhu has enjoyed tremendous success with both the mining and trading of cryptocurrencies, and is the provider of liquidity for many of India's Bitcoin exchanges He is also a Co-founder of two bitcoin related companies including Coinsburg He holds a graduate degree in commerce Brad Mills (Fund Strategist) • Brad is a well known personality in the digital currency space and has developed many quantitative algorithmic trading strategies for traditional markets and cryptocurrency trading along with his partners Currently. he serves as an advisor to the ICO portfolio team, himself holding more than 100 different currencies. Prior to this. he was a pioneer in the social gaming space. managing virtual economies for Facebook. and OS games with millions of users He holds a degree in creative writing from Humber College Jason King (Asst. Fund Manager & Head of Game Assets) 111 Jason will be managing a DigitaVGame Assets portfolio for the fund as well as a portfolio of small cap cryptocurrencies that has seen 50x ROI in the past two years An expert of investing in cryptocurrencies and working in security projects, he is an early adopter of the cryptocurrency. Monero and is highly regarded in cryptocurrency community for being one of the first MAIDSAFE evangelists and investors in Silicon Valley He is a Certified Bitcoin Professional ni EFTA00797654 Appendix: Currency Profiles EFTA00797655 Currency Snapshot - Bitcoin Historical Price (S). Volume 24hr.(SMn) and Market Capitalization (SBn) Key Facts $4.382.9 Date of Launch: 2009 Founder(s): Satoshi Nakamoto Use Case: Peer-to-peer electronic cash 52.48 system $1.537.5 Forked From: Written From Scratch $963. $754.0 $639.8 $673.3 $860.3 O- $320.2 $263.1 $430.6 Consensus Mechanism: Proof-of-Work $20.9 $46.4 $13.9 $46.0 $139.0 $99.1 31-Dec-13 30-Jun.14 31-Dec-14 30-Jun-16 31-Dec-15 30-Jun.16 31-Dec-16 30 Jun 17 27 Au 17 Volume ($Mn) 0 Market Cap ($8n) —o—Price ($) Transaction Time (s) 600 Block Reward 12.5 AMax Coins 21 Mn ti) Transactions -tv.. per day 189k Sources: Coinmzuketcap. crypiocompare.cc. bbckchain.info EFTA00797656 Currency Snapshot - Ethereum Historical Price ($), Volume 24hr.(SMn) and Market Capitalization ($Bn) Key Facts $1.0 $12.0 $9.1 $295.0 011.8 $347.9 S633.4 Date of Launch: 2015 Founder(s): Vitalik Buterin, Mihai Alisie, Anthony Di lorio, and Charles Hoskinson Use Case: Decentralized platform for applications Forked From: Written From Scratch Consensus Mechanism: Proof-of-Work $0.7 $15.8 31-Dec-15 30-Jun-16 31-Dec-16 30-Jun-17 27-Aug-17 (to migrate to Proof-of-stake) Volume ($Mn) 0 Market Cap ($Bn) —O—Price ($) X) Transaction Time (s) 17 44 Block V Reward 5 Max Coins (Every Year) 18Mn 174) Transactions per day 281k Sources: CoMmarketcap. cryptocompare.cc. etherscanio 11 EFTA00797657 Currency Snapshot - Ripple Historical Price (S), Volume 24hr.($Mn) and Market Capitalization ($Bn) $67.8 $0.1 $0.0 $0.6 $1.0 $0.4 $1.0 $0.3 31-Dec-13 30-Jun-14 31-Dec-14 30-Jun-15 31-Dec-15 30-Jun-16 31-Dec-16 30-Jun-17 27-Aug-17 Volume ($Mn) 0 Market Cap ($8n) —O—Price ($) Xxi Transaction Time (s) 4 etBlock Reward NA Key Facts Date of Launch: 2012 Founder(s): Arthur Britto, David Schwartz, Ryan Fugger Use Case: International payments by banks and financial institutions Forked From: Written From Scratch Consensus Mechanism: Proof-of-Work Max Coins 100Bn to Transactions ‘sfs+ per day NA Sources: CoMmarketcap. cryptocompare.cc EFTA00797658 Currency Snapshot - Litecoin Historical Price ($), Volume 24hr.(SMn) and Market Capitalization (SBn) $24.4 $9.0 $7.4 $4.3 $1.6 $15.4 $2.7 $2.7 $4.1 $3.5 $4.2 $4. $2512 $2.9 $9.2 $61.0 $891.0 31-Dec-13 30-Jun-14 31-Dec-14 30-Jun-15 31-Dec-15 30-Jun-16 31-Dec-16 30-Jun-17 27-Aug-17 Volume ($Mn) 0 Market Cap ($8n) —o— Price ($) Key Facts I I -JOTransaction Time (s) 150 Block Reward 25 Date of Launch: 2011 Founder(s): Charlie Lee Use Case: Smaller Faster Transactions Forked From: Bitcoin Consensus Mechanism: Proof-of-Work Max Coins 84Mn «tg, Transactions 4 per day 19k Sources: Coinmsuketcap. cryptocompare.oc 46 EFTA00797659 Currency Snapshot - DASH Historical Price (S). Volume 24hr.(SMn) and Market Capitalization (SBn) 30-Jun-14 31-Dec-14 30-Jun-15 31-Dec-15 30-Jun-I6 31 -Dec-16 30-Jun-17 Volume ($Mn) 0 Market Cap ($8n) —o—Price ($) $362.9 27-Aug-17 -JOTransaction Time (s) 120 Block Reward 1.8 AMax Coins 22Mn Key Facts Date of Launch: 2014 Founder(s): Evan Duffield Use Case: Privacy-centric Digital Transactions Forked From: Litecoin Consensus Mechanism: Proof-of-Work ♦ Transactions ~.r► per day 5.3k Sources: Coinmsuketcap. cryptocompare.oc EFTA00797660 Currency Snapshot - Metal Historical Price (S), Volume 24hr.(SMn) and Market Capitalization ($Bn) 9.91 9-Jul-17 16-Jul-17 30-Jul-1 7 6 Aug 17 13-Aug. 7 20-Aug-17 27-Aug-17 Volume ($Mn) 0 Market Cap ($8n) —0— Price ($) —ix) Transaction Time (s) NA Transaction Reward 5% Key Facts Date of Launch: 2017 Founder(s): Marshal Hayner Use Case: Payments - based Cryptocurrency and Incentivization Network Forked From: Built on Ethereum Blockchain Consensus Mechanism: Proof-of- Processed Payments Max Coins 66.5Mn trim Transactions .'* per day 160 Sources: Coinmsuketcap. cryptocompare.oc 43 EFTA00797661