White Paper MSRise

White Paper

MSRise

White Paper [PDF]

INTRODUCTION

The first mining farms appeared in 2012, since understanding the Bitcoin cryptocurrency formation algorithm, and bringing the software of personal computers for mining this cryptocurrency to the theoretical limit, the first enthusiasts decided to create a specialized Bitcoin mining device from the existing components on the market. This device combines a standard chipset for a personal computer and a large number of parallel working video cards with specialized mining software and was named a mining farm.

It's been many years since then. The time of enthusiasts has passed - the giants of the IT industry have entered the market, which were able to solve optimization tasks not only for software, but also for mining equipment. Specialized chipsets and specialized processors for mining have emerged. And today the mining farm looks a little like an ordinary personal computer. Now it can only provide the mining cryptocurrency and nothing else. At the same time, mining farms outperform top personal computers by more than an order of magnitude at the comparable price in terms of computational power for mining.

Contrary to the first ones, collected by enthusiasts, mining farms, the current ones still have the main “patrimonial issue” - high energy consumption. Farm productivity is usually estimated in special units of measure - hashes per second (H / s), where the hash is the solution of a typical mathematical problem of cryptocurrency mining.

At the beginning of 2018, farms with a capacity of 1 pentahesh per second (1012 H / s) required about 100 MW of electrical power. This figure included the cost of production of calculations, the cost of heat rejection, as well as on related services (lighting, purification of air and water for cooling systems, etc.). And the lower the performance of the farm, the higher its specific electric power consumption.

Researches have shown that in 2017, mining farms that extract Bitcoin around the world acquired 1.2 terawatt-hours (TW) of electricity per month. For example, such an amount of electricity is comparable with the energy consumption of entire countries, for example, Slovakia, Serbia, Ireland or Azerbaijan. Besides, the whole Baltic consumes less electrical power, than a single Bitcoin network. But there are also networks for the extraction of alternative cryptocurrency.

It would seem, everything that could be done to reduce the power consumption of mining farms has already been done. The equipment is specialized and designed specifically for mining cryptocurrency. The software is calibrated and optimized as much as possible. And now the only way to completely reduce power consumption is the transition to the use of new construction materials and to new technological solutions in the production of mining equipment. And before it becomes available we can only wait. And what will it be? Mining farms on superconductors or quantum computers?

The way out was found by the Singapore company MSRise. We present you the invention of our innovative company - high-productive, low power consumption mining farm had built out of standard elements.

Yes, all the elements in it are standard. The standard chipset, the standard ASIC processor. The only difference is the availability of an additional power management board. The mining farm, which, use well-known physical laws, allows you to completely reduce power consumption without reducing the electrical power consumed of the mining farm equipment. The unique MSRise board reduces power consumption for a standard farm by more than 4 times without losing performance.

This unique development is currently at the design stage, but already in the early summer of 2019 the first industrial design will be prepared.

After the full-scale tests, the board will be put into serial production.

Now mining farms are closed, as the production cost of mining cryptocurrency, which consists of equipment depreciation, the cost of renting specialized rooms (almost all the electricity consumed by mining equipment, turns into heat, which must be removed) and the expenses of purchasing electricity today is higher than the market value of mining cryptocurrency.

The new MSRise board will allow stop this process, to make cryptocurrency mining again profitable not only due to the reduction of electricity costs, but also due to the reduction of rental costs - since the mining farm will no longer heat the air in the room where it is installed.

Moreover, non-renewable resources are being spent on electricity production - coal, oil, gas. Electricity production pollutes the atmosphere. Only to maintain the Bitcoin network, 22 million tons of greenhouse gases per year are emitted into the atmosphere.

So, when our board will reach the series production, our project will become the “greenest” project in the human history!

Project Goals

The project involves the further development and production of equipment that rapidly reduces the energy consumption of mining farms for the extraction of cryptocurrency. The project has the following objectives:

1) To reduce the negative impact of mining cryptocurrency on the environment;
2) To reduce the level of monopolization of the mining equipment market by proposing a new competitive solution, and therefore indirectly contribute to decrease in prices for equipment and to increase the efficiency of mining activities;
3) For the reason of falling prices for cryptocurrency assets, to maintain the efficiency of mining cryptocurrency above zero.

To achieve these goals, it is supposed to consistently solve the following tasks:

1) To finalize the solution of project – to create design documentation for new equipment;
2) To organize the production and testing of the first industrial design of our unique equipment;
3) To start an advertising campaign of the project and to collect pre-orders for our equipment;
4) To establish the manufacture of our equipment at the existing facilities of the project partners;
5) To create a network of sales and service organizations to promote of sales and to provide the repair of our equipment.

To accomplish these tasks, we plan to attract funds from cryptocurrency investors by holding ICO.

Brief description of the project

The problem of improving the energy efficiency of mining has already matured in 2015, becoming by the 2019 an acute problem of the industry, which cast doubt on any prospects for further development. The share of mining cryptocurrency in global power consumption by 2019 represents a percentage of the global power consumption.

Mining went on the standard way to improve energy efficiency:

1) The energy efficiency of individual components of standard technical solutions used for mining has been improved as much as possible;
2) Specialized mining solutions (ASIC) were developed, in which the loss of energy on unproductive equipment operation is minimized;
3) The evolution of specialized solutions has begun in the direction of using more and more energy-efficient technologies (mainly towards maximizing the sealing of semiconductors in crystals). So, in 2019, the industry moves to the technological standard for the manufacturing of 7 nanometer microcircuits;
4) Around the world, the teams began to be created that are looking for breakthrough solutions to drastically improve energy efficiency by using of other physical principles for mining.

Exactly that way the MSRise development team went, creating a fundamentally new technical solution that can be used to radically increase the energy efficiency of computing. The board developed by the company takes over control all components of the power consumption of the computing system, which allows with the same power of the computing equipment, to consume substantially less energy, cutting off a significant part of the energy consumption aimed at heating the equipment.

Today, MSRise invention is in the form of drawings and a scientific rationale for future performance indicators of equipment. All these intangible assets are on the balance of MSRise and are protected by trade secrets.

Further work of the project is logically divided into 3 stages:

Stage 1

To bring the invention to the industrial design is necessary the development of design documentation. It will take about 180 thousand dollars. Another 300 thousand are needed for the production and testing of industrial designs. According to the test results, the invention will be patented and the rights to it will be protected in accordance with the principles of the Geneva Convention.

The production of industrial design is planned for June 01, 2019. Negotiations have already been held with a potential equipment manufacturer. The test program has already been formed. As expected, the testing of the sample will be completed by the end of July 2019.

According to the results of testing, the design documentation for the equipment will be finalized.

The total investment requirement at stage 1 is up to 1 million USD, and the duration of the stage will be about 4 months.

Stage 2

At the end of testing and after confirming the declared characteristics of the, MSRise will conduct an advertising campaign and collect pre-orders for new equipment. Depending on the volume of the pre-order portfolio, the specific plant will be selected, where our equipment will be manufactured.

In parallel, an industrial design will be developed for both the device itself and its package.

To prevent leakages of the company's know-how, the market will be offered not a separate, patent-protected fee, but a ready-assembled miner installed in a non-separable case. It is currently being planned that 3 modifications of miners will be released, with a capacity of 33, 35 and 39 TH / s, consuming 550, 650 and 800 watts accordingly.

The satisfaction of the first pre-orders will be about 3 months. For holding advertising campaign and placing an order it will take about $ 1 million.

Stage 3

At the third stage, it is planned to organize a sustainable release of mining equipment, as well as the creation of a network of service centers where this equipment will be serviced.

The locations of service centers will be determined in accordance with the geography of sales of equipment. If the release of mining equipment in this period will be self-supporting, the creation of service centers will require additional investments of up to 500 thousand dollars. The amount will depend on the volume of pre-orders and the geography of these orders.

Why our project?

Our main advantage is that MSRise is not connected in any way with the leaders of the modern mining equipment market. The appearance of a new player in this market will have a positive influence on the entire market. Thanks to the release of our new equipment:

- the reduction of prices for mining equipment will be ensured (whether we like it or not, but competition will force both us and the market leaders to reduce prices);

- the risk of capturing control of cryptocurrency blockchains from the leaders of the mining equipment market will be significantly reduced (it is not a secret that more than half of the market for the hashrate belongs to BitMain, in the equipment of which such software have already been found that allow conducting a 51% attack on any cryptocurrency operating on the ProofOfWork principle ).

By the way, we are the only ones in the world who have experience in creating power management boards that reduce power consumption by third-party devices while maintaining their connected power.

And, finally, selling our equipment, we transfer to our users the full rights to the results of this equipment. Unlike the main competitors, who automatically take up to 20% of the tokens extracted by the equipment, we leave all the tokens to the user.

We do not compete with our users.

Market Review

Energy consumption in the mining industry cryptocurrency

Mining cryptocurrency is the central part of the work and the existence of the blockchain for such currencies as Bitcoin and similar to it. These networks are decentralized, do not have a single point of control and are controlled by all users of the system. To store cryptoactive assets and to conduct operations, wallets are used with them and have a specific address belonging to the owner`s wallet in the blockchain. Theoretically, in the absence of centralized control over transactions, there are risks of security, falsification of data, etc. - but the mining process serves to prevent them. Confirmation of transactions takes place by performing complex calculations, when they are completed, the transaction falls into the blockchain and can no longer be changed, forged or otherwise modified. Calculations take place on client’s devices: in exchange for the “rent” of computing power for the needs of the network, their owner after writing a block into a chain receives some reward in cryptocurrency - a fee. This principle is called the Proof of Work algorithm – an evidence of performance of the work.

Calculations require the enormous energy costs. In 2018, only the BitCoin mining network for cryptocurrencies consumed about 46 terawatt-hours of electricity per year, which is comparable to the energy consumption of such country as Iraq in 2017.

In total by 2018 the equipment was connected to the BitCoin network with a total capacity of 64 PH/s (pentahesh per second). By the beginning of 2019, a significant part of the equipment was turned off due to a decrease in mining efficiency. At the beginning of 2019, the total capacity is 44 PH/s.

The average specific electrical power consumption of the BitCoin network was 0.122 Watts per 1000 H/s (hash per second).

In order to produce mining in 2018, 23 million tons of greenhouse gases were emitted into the atmosphere.

But in addition to the Bitcoin network, there are other cryptocurrencies. Which consume no less energy.

The assurances of some companies realizing mining cryptocurrency, that they use the energy of hydro or nuclear power plants, and therefore do not have a harmful impact on the environment - just marketing gimmicks. After all, the energy from these sources did not go to other consumers who were forced to purchase electricity from thermal power plants.

Description of the mining farms market

Mining cryptocurrency in 2019 is a highly concentrated business. 65% of all used mining capacities share 6 consortiums.

At the same time, more than half of all capacities belong to 3 Chinese pools. This is not surprising:

China has cheap labor, and thanks to the rapid growth of installed capacity of power plants (primarily hydroelectric power plants), is one of the lowest electricity prices in the world. Furthermore, all mining equipment is manufactured in China today, and the presence of several competing manufacturers of specialized processors for mining (ASIC, BitFury) keeps prices for this equipment at minimal levels.

Besides in China is much less demanding to the quality of jobs on mining farms. The willingness of farm employees to live in unpretentious living conditions, even in utility rooms has become the norm.

In China, non-Chinese companies are also striving to locate their facilities. In the middle of 2018, more than half of the entire hashrate for mining of all cryptocurrencies was concentrated there.

Only 35% of the capacity is distributed between miners outside the top consortiums. What proportion places their facilities in China is unknown. But it is known that they leave the market massively. At the beginning of 2018, their number reached to 45%, and at the beginning of 2019 it decreased to 35%. With the fact that large mining consortiums have reduced their capacities since the end of 2018, the departure of small miners from the market can be considered as an escape.

At the end of 2018 there was a crisis in the mining industry. As a result, mining has ceased to be profitable in almost all the world, every month from the mining output was up to 10% of the hashrate. Data on the geographical distribution of the hashrate, for the beginning of 2019 is not yet available, but it is possible that at this growth rate, China’s share in the total mining volume has increased to higher values and is already about 3/4.

So, due to losses in early January, the large mining company of the USA Giga Watt closed all its mining capacities. At the same time, Bitmain’s largest mining farm stopped working in Texas. In early 2019, it became known that Bitmain was leaving not only from the USA, but also from Europe. In the near future, the European office of the company will be closed.

If at the beginning of September 2018, the total bitcoin network hashrate was over 60 million TH/s, then at the beginning of 2019 it fell to 35 million TH / s, although by the end of January it was close to 44 TH/s.

Mining efficiency

The Diar analytical report states that, compared to January 2018, in December of the same year, the income of the miners of cryptocurrency decreased by 83%.

In 2018, Bitcoin miners received an income of $ 5.8 billion from their operations. In January last year, income from BTC production amounted to $ 1.2 billion, but by December this figure fell to $ 210 million per month.

At the beginning of last year, the share of Bitmain consortiums in Bitcoin hashrate, including its controlled viaBTC and BTC.com, was 53%. In early 2019, this figure fell to 39%. Probably is not bad for decentralization and reducing the risk of a potential "51% attack" on Bitcoin.

The network hashrate of the first cryptocurrency peaked at the beginning of the second half of 2018, and then there was a significant decline, which lasted until the end of last year.

Some hashrate growth began in the second decade of January after Bitcoin pushed off from the annual minimum at the $ 3,200 mark. In Diar it is suggest that after this some miners turned on some of the temporarily unused equipment.

On the other hand, the researchers note, bitcoin mining is still unavailable for small miners, since for most of them the break-even point is around $ 5,000 for bitcoin.

Competition

The market is currently divided between the three main manufacturers. The largest manufacturer with a share of 75% is the Chinese company Bitmain.

The Chinese company Bitmain Technologies - the main manufacturer of ASIC in the world. According to the Sanford C. Bernstein & Co report, Bitmain accounts for more than 75% in this market. The company was founded in 2013 by Jihan Vu and Mikri Jean - they planned to make the device on the world market for Bitcoin mining using ASIC chips. The company later expanded to open offices in Shenzhen, Shanghai, Chengdu, Hong Kong, Fuzhou, the United States, Israel, the Netherlands and Switzerland. According to the financial documents of the company, the income for 2017 amounted to $ 2.5 billion.

Bitmain has several brands: Antminer, Antpool and Hashnest. The company started with the production of Antminer S1, but soon the complexity of mining Bitcoin continued to grow. In May 2016, Bitmain released Antminer S9, the world's first consumer bitcoin miner based on a 16-nanometer ASIC chip. According to Forbes, the latest S9j model from Bitmain with a hashing rate of 14.5 terahashes per second can extract 0.00056 Bitcoins per month.

Bitmain also offers Wi-Fi routers with a cryptocurrency mining function, these are the models Antrouter R3-DASH and Antrouter R3-SIA. They are intended for mining Dash and Siacoin (SC) cryptocurrency, accordingly, they are very similar in capabilities and are based on the Bitmain R3 series. In addition to manufacturing equipment, the company also manages the largest mining consortiums around the world, including Antpool.com, BTC.com and connectBTC.com, as well as the leading cloud mining platform hashnest.com.

One of Bitmain’s biggest competitors is Canaan Creative, or simply Cannan, also headquartered in Beijing.

Chinese company Canaan Creative was founded in 2013 by Ying Ji-Yong and produces blockchain servers, as well as designs microprocessors ASIC. According to the Sanford C. Bernstein & Co report, Canaan has about 15% of the global market for bitcoin chips and other mining equipment. In 2017, the company reported for income of $ 203 million. In 2017, Canaan sold nearly 300 Avalon mining computers, with the United States and Sweden becoming the largest overseas markets. Ying Ji Yong was the first to invent microchips designed specifically for mining, implementing a software algorithm on an FPGA device, and created two brands, Icarus and Lancelot. The success of the products inspired him to create a Canaan company and an ASIC chipset for mining, Avalon.

Ebang (Zhejiang Ebang Communication) is another major Chinese chip maker.

The Chinese company Ebang was founded in 2010 in the Chinese city of Hangzhou, where its headquarters is located, first produced equipment for the telecommunications industry, and only in 2016 came to the cryptocurrency market, competing with Bitmain and Cannan Creative and launching its own Ebit miner series . According to Smartkarma, Ebang miners use ASIC chips produced by a 10-nanometer process technology, which provides a higher hash rate than the 16-nanometer chips used by Bitmain and Canaan.

According to the list compiled by the Shanghai Research Institute of Khurun, all three firms - Bitmain, Canaan and Ebang - joined the list of unicorns for the first time, that is, private companies worth more than $ 1 billion. With an estimated $ 10.3 billion, Bitmain ranks 13th on the list, and Canaan and Ebang are estimated at about $ 3 billion, accordingly, taking 32 and 53 places on the list.

Project Description

The project involves further development and launch into mass production with the subsequent sale of energy-efficient mining equipment.

The concept of improving the energy efficiency of mining equipment is currently being developed. Negotiations with potential equipment manufacturers. In the near future, an industrial design will be prepared and presented, which will be tested for compliance with the theoretically grounded characteristics of energy efficiency.

It is expected that our mining equipment will be at least than 3 times more effectively by the criterion of TH / s per 1 kWh of consumed electrical energy than the best existing samples from Halong Mining, today`s leader in energy efficiency of mining.

Relevance of the project

The project is relevant today. Due to low energy efficiency, the use of mining farms has become drastically reduced since November 2018. Only the Bitcoin network has lost more than 40% of its hashrate since November 2018. A similar pattern is observed for the remaining altcoins. At the same time, the fact that even the farms associated with power producers are closing is particularly depressing today. So, the mining farm Giga Watt, associated with a hydroelectric power station, which gives, in fact, almost free electricity, has just recently closed. Close and farm associated with nuclear power plants.

As a result, today up to 80% of the hashrate of the main cryptocurrencies are concentrated, in fact, in three Chinese pools that are associated with manufacturers of mining equipment.

This situation poses a threat to the entire mining industry, cryptocurrency, giving the Chinese pools the opportunity at any time to seize control of the blockchain, making a “51% attack”.

Therefore, our project is super-actual and long overdue.

Our employees will do everything to save the industry, in a short time creating and bringing to the market equipment with drastically reduced power consumption, which will ensure the possibility of the return to life of independent mining companies.

Key project risks

MSRise Solution

Project Products

The project aims are the development and organization of production of a line of 3 types of the most highly efficient miners (as of the end of 2018):

For comparison, the main competing models of miners have the following characteristics of energy efficiency:

As the market analysis shows, among home miners, MSRise miners demonstrate the highest energy efficiency among competitors, almost double the number of Eb ++ miner from Ebang Communication.

And if you look at the market structure dominated by miners from BitMain’s Antminer series today, the owner of the miner MSRise will receive a three-fold energy efficiency advantage over the average miner.

With the entry of our miner to the market, the world will have the opportunity to radically reduce power consumption for mining cryptocurrency.

And even the capture of a small market share will already have a huge impact on the environment throughout the world, which is the main goal of developers.

That is why we do not plan to inflate prices for our equipment. Our miners will be sold at the same prices as miners of competitors with a similar hashrate.

And we believe that buyers will be able to make the right choice in favor of preserving the environment.

Project Business Model

The business model of the project is as follows:

Project initiator - MSRise remains the balance holder of all project assets for the entire life of the project.

In May 2019, the company begins to raise funds as part of Pre-ICO, attracting funds to complete the process of creating design documentation, creating and testing an industrial design.

By the beginning of summer, the company carries out independently a set of measures for the collected funds, which ends with the invention of the invention, which becomes an intangible asset of the company.

After that, in the fall of 2019, the company conducts an ICO, the purpose of which is to raise funds for organizing a preliminary appointment and launching a new miner into mass production. The proceeds in excess of this money will be spent on creating a network of company service and sales centers.

As part of pre-ICO and ICO, the company distributes MSRise tokens to investors. These tokens are not analogous to a company's security. The owner of the tokens has the opportunity after launching miners in development to mass production to purchase these miners for project tokens at their nominal value, at a price 20% lower than the selling price of MSRise. Miners are delivered to project investors earlier than those who formed a pre-order, without acquiring project tokens.

In addition, investors who do not want to acquire mining equipment can pay for project tokens other MSRise services at a discount of up to 20%, including but not limited to:

- MSRise hardware cryptocurrency wallets;
- Services of the MSRise proprietary payment system, which provides for converting cryptocurrencies into fiat funds with the possibility of cash withdrawal at ATMs throughout the world.

If necessary (for example, in case pre-orders for mining equipment turn out to be significantly higher than expected), the company will not issue additional tokens, but will attract borrowed funds to maximize the capacity utilization.

Mining equipment will be made in China. Capacities of those productions with which the Project Initiator signed a Memorandum on joint activities for the production of mining equipment should be sufficient for any conceivable production volume.

In this case, the manufacturer will not receive the intellectual property rights of the Project Initiator and will not be able to independently produce and sell energy efficient miners on its own behalf.

ICO details

Principal differences from competitors

The majority of ICO in mining today is related to the development of IT solutions. It is no secret that a well-written and well-compiled program can improve mining performance. But, by now, we are already talking about the percentage increase in productivity to the detriment of universality. These percentages are knocked out by developers by tight binding to a specific hardware, with an emphasis on maximizing the load on its computational power. But the load percentage is growing - heat generation and power consumption are also growing during the mining process.

Mining equipment manufacturers rarely go for ICO. The three largest equipment manufacturers are preparing for the initial public offering. And small manufacturers are buying up mining consortiums, not bringing to the primary placement of tokens. We are too small to place shares on the stock exchange. And we value our independence. Therefore, we are entering ICO, offering investor utility tokens that do not give investors the right to manage our project. Even if our ICO is completely redeemed by mining pools, we will retain control over our developments and will not allow one consortiums to constantly gain an advantage over others due to the fact that they have invested in our project. Yes, our investors will receive the equipment before their competitors and somewhat cheaper than competitors. But only within the sum of their investments. In the future, the chances of consortiums to get our equipment will be equal.

We consider our project as an environmental project. It will be established that the need for industry will be less. Even if we can occupy 1% of the market, this will reduce greenhouse gas emissions by 2 million tons per year.

In case of our success, it will be the most GREEN ICO in the entire history.

Project roadmap

2017 - design ideas

2018 - the creation of the company and the transfer of intangible assets of the project to it

2019
- May-July - Pre-ICO
- June - release of an industrial design of a new miner
- September-November - holding ICO
- October - opening pre-order collection
- December - the launch of mass production of new miners

2020
- January - production output at a design capacity of 1,000 miners per week
- May - creation of a network of service centers in Southeast Asian countries
- July - opening of representative offices in Europe, the CIS and the USA

In the future, the company also plans to enter adjacent markets. So in 2020, using its own computer security technology, the company plans to release its own hardware cryptocurrency wallet. Negotiations are also underway with MasterCard to jointly issue credit cards with a built-in cryptocurrency wallet for withdrawing cash from cryptocurrency accounts at ATMs around the world.

ICO Description

ICO objectives

ICO is conducted with the following objectives:

- The attraction investor’s funds to refine and organize the production of innovative mining equipment;

- The assistance for the MSRise advertising campaign, which collects pre-orders for the equipment being created.

Token Description

The project token is issued directly by the Singapore company MSRise in accordance with Singapore law.

The name of the MSRiseToken (MSRT) token.

The token is based on the Etherium blockchain (ERC-20).

The type of issue is a limited Mintable Token.

The total amount of emission is 50,000,000 (fifty million) tokens

The nominal value of the token is 0.05 euro.

There is no token freezing function until the end of ICO.

There is no suspend token function.

The restart function CrowdSale is missing.

The token can be used to pay for goods and services of MSRise 6 months from the date of purchase.

At the same time, MSRise’s goods and services in case of full payment by project tokens are provided with a discount of 20% of the selling price.

Until payment by the project tokens of goods and services of MSRise, project tokens can be transferred and sold by their current owners without any restrictions.

After paying for tokens of goods and services of MSRise, project tokens are destroyed and are not returned to the open market in the future.

Tokenomics

The total emission is 50 million MSRise tokens. The following distribution of project tokens is assumed.

10% of the issue is reserved for the emergence of large institutional investors.

2% of the issue is reserved for marketing activities (Bounty-program).

Thus, 44 million tokens are proposed for distribution among investors.

Placement of tokens is carried out in 2 stages.

At the first stage (Pre-ICO) investors are invited to purchase from 10 (SoftCap) - 20 (HardCap) million tokens.

As part of Pre-ICO, tokens will be sold at a discount depending on the date of purchase of tokens.

In total it is supposed to collect in the framework of Pre-ICO from 550 thousand to 1050 thousand euros.

The funds collected under Pre-ICO will be distributed as follows:

The amount of testing that is to be performed will depend on the volume of attraction to Pre-ICO.

In case the project does not collect SoftCap, the invested funds are returned to investors. If it is not possible to distribute the HardCap at this stage, then the non-distributed tokens are supposed to be distributed within the ICO.

Within the framework of ICO, 28 (SoftCap) -38 (HardCap) million tokens will be offered to investors.

As part of ICO, tokens will be sold at a discount depending on the date of purchase of tokens.

In total it is supposed to collect in the framework of the ICO from 1400 thousand to 2000 thousand euros.

Funds raised as part of ICO will be distributed as follows:

The speed of creation and the capacity of the established service and sales centers of MSRise will depend on the volume of attraction to ICO.

In case the project does not collect SoftCap at ICO, the Project Initiator seeks other sources of borrowed funds to finance the missing part of the project. Funds are not returned to investors, but are used in the project, despite the fact that SoftCap is not distributed.

It is also possible to conduct 2 rounds of ICO for the allocation of funds.

A WARNING

Purchase of MSRise tokens (hereinafter referred to as project tokens) is a final and irreversible action. Project tokens are not shares, and do not give their holder the right to participate in general meetings of MSRise and other companies established within the project. Buyers of project tokens understand that they are not subject to legislation concerning securities, according to which any operations related to their acquisition require careful inspection by the financial regulator.

Each buyer of the project tokens (Investor) agrees that he (she) has carefully read this document and fully accepts all the risks, costs and benefits associated with the acquisition of project tokens.

The buyer of the project tokens agrees with the fact that he (she) has a sufficient amount of knowledge in the field of cryptocurrency, blockchain and related technologies, and also recognizes all the risks associated with the collective fundraising procedure and further storage of cryptocurrency.

MSRise shall not be liable in the event of the loss of project tokens, as well as in the event of the impossibility of their use as a result of incorrect or erroneous actions of the Investor, as well as as a result of hacking of theft or theft, or hacker attacks.

Risks

Acquiring and storing project tokens is associated with certain risks, in particular the risk that the MSRise team may not be able to launch the project and implement the project. That is why, before buying tokens, each Investor user should carefully study all the risks, costs and benefits of using and purchasing project tokens, and use the services of independent consultants if necessary. Any user interested in acquiring project tokens, but not aware of, or not accepting the risks associated with such actions, as well as other risks indicated in this document, should refuse to purchase project tokens.

It is necessary to take into account that the use of the ERC20 standard token implies a dependence on the load on the Ethereum blockchain network and the associated possible increases in the cost and time of transactions.

In addition, the Project Initiator informs the user about the following risks that the project may face.

- The risk of not collecting the amount required to run a project.
- The risk of market trends: project tokens can be significantly influenced by trends in the digital currency market, and the market value of project tokens can vary greatly due to events unrelated to MSRise.
- Regulatory / legislation risk: MSRise tokens market may fall under global or local regulation / legislation that may make MSRise impossible, and / or may limit the use of tokens as a payment method, and / or limit, prevent and / or authorize the sale and resale of project tokens. The operation of the MSRise and project token may be affected by one or more regulatory requests or actions, including but not limited to restrictions on the use or ownership of digital assets, such as a token, which may interfere with or limit the calculations for the project.
- The risk of high volatility: digital assets are very volatile. Variations in the market value of a token over time can be frequent and significant.
- The risk of taxation: owners of tokens Investors may be subject to tax legislation, which will significantly reduce the return on investment
- Low liquidity risk. Project tokens may not be able to create the necessary momentum and gain recognition, which may lead to low liquidity and a reduction in the number of transactions.
- The risk of hacker attack and theft: It is known that tokens and ICO sales are subject to malicious attacks by hackers and criminal groups. Theft of tokens can affect the market value of tokens.
- Data leakage risk: advances in cryptography or technical advances, such as the development of quantum computers, can pose risks to cryptocurrencies and project tokens, which can lead to theft or loss of tokens. It is known that sales of tokens and ICO are subject to malicious attacks by hackers and criminal parties, which leads to the theft of tokens and huge losses for buyers and companies.
- High risk of purchase: there is no guarantee that the token that you buy will increase in value. Moreover, it is possible to reduce its market value, since it is de facto tied to the cost of mining equipment, the market value of which may decline over a long period of time.
- The risk of uninsured losses: unlike bank accounts or accounts in some other financial institutions, digital assets, as a rule, cannot be insured. In the event of theft or loss of value, no state or private insurer can offer the buyer the right to recover their losses.
- The risk of termination of MSRise activities: It is possible that for a number of reasons, including, but not limited to, denial of business relations or intellectual property requirements, this company may be recognized as a non-viable business and may be eliminated. It is also possible that the company will not be able to start activities at all.

Denial of responsibility

This document is not under any circumstances an investment recommendation. In addition, it is not an offer for the purchase of securities regardless of jurisdiction. This document does not contain information that can be used as a recommendation or basis for deciding whether to invest.

MSRise tokens are utilitarian tokens that can only be used to purchase MSRise products and services.

None of the project team members and MSRise is a financial, legal or tax advisor under any circumstances.

Any information presented in this document is for informational purposes, and MSRise and none of the project team members provide warranties and representations regarding the accuracy and completeness of the information provided.

Acquisition of project tokens does not give their holder any rights to participate in the activities of MSRise, its subsidiaries and affiliates, and also does not allow making decisions determining the operation of the company and / or its subsidiaries and affiliates.

It is worth noting that financial regulators around the world are carefully studying all operations and companies related to the world of cryptocurrencies. That is why any innovations, changes and legal regulations may affect the activities of MSRise companies, which may lead to a complete cessation of activities in the future. Any person who wants to acquire project tokens should carefully study the business model presented in this document as well as follow its changes that may occur in accordance with the requirements of the legislation and about which the Tokens Issuer will notify the tokens owners through their Personal Account. Considering the above, buyers of project tokens understand and acknowledge the fact that neither MSRise, nor its subsidiaries and affiliates, nor its partners will be liable for any losses incurred as a result of such changes.

The project team will do everything possible to launch and implement the project in the scope specified in this document and in the business plan of the project. However, any person who wants to acquire project tokens understands and acknowledges that the project team does not give any guarantees that all goals will be achieved. Such users understand and acknowledge that the project team and MSRise employees and its subsidiaries and affiliates do not bear any responsibility for any losses incurred as a result of the inability to use project tokens, except in cases of improper performance of duties, and the deliberate disregard of the legitimate requirements of tokens owners Initiator of the project.

Statements and guarantees

Taking part in the initial distribution of project tokens, the buyer accepts all the provisions of this document and also agrees with the following statements:

- the buyer has carefully read this document and its annexes, and fully accepts and undertakes to comply with all of their provisions;
- the buyer has the right to purchase project tokens in accordance with the laws of his country;
- the buyer lives in the territory of the country whose legislation allows MSRise to sell MSRise tokens using the ICO mechanism, without the need for prior authorization;
- the buyer has a complete understanding of the legislation of his country governing the acquisition and use of cryptocurrency bonds, while operations such as the acquisition and circulation of cryptocurrency bonds in his country are not prohibited;
- the buyer will not use the ICO procedure, as well as acquired project tokens for illegal activities, including (but not limited to) money laundering, support for terrorism, human trafficking, drug trafficking;
- the buyer has sufficient knowledge of cryptocurrency tokens, and has sufficient experience in using them, and also understands all the subtleties of using tokens, cryptocurrencies, and systems built on the basis of the blockchain.