MAKE IT SIMPLE

Whitepaper

AC C E S S A N D PAYM E NT S
ON ANY WEBSITE IN
TWO CLICKS

Version 1.1, last updated 13 March 2018

info@safein.com www.safein.com
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 TA B L E O F C O N T E N T S

Disclaimer 1

Executive summary 3

1. Background: Problems in e-commerce 5

1.1 Problem: poor user experience - poor e-commerce 5

1.2 Problem: lack of transparency in how user data is managed 7

1.3 Problem: Threats to online security 9

1.4 Problem: barriers for regulated business 10

1.5 Problem: absence of universal e-wallet 11

2. Solution: Safein single sign-on digital wallet 12

2.1 Combining the best of two worlds 12

2.2 Safein architecture 13

2.3 Digital wallet and payments 14

2.4 Single sign-on 15

2.5 User data protection 16

2.6 Multi-factor authentication mechanism and 17

digital identity managment

2.7 KYC procedure engine 18

2.8 Buyer protection mechanism 18

2.9 MVP 19

3. Safein benefits and application 20

3.1 Benefits of Safein 20

3.2 Application and possible markets 21

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4. Token model 22

4.1 Token distribution 23

4.2 Merchant and user benefits 23

4.3 User base growth 25

4.3.1 Registration Pool 25

4.3.2 Login pool 25

4.3.3 Referral Progam 27

4.3.4 Airdrop Program 27

4.4 Pre-ICO 27

4.4.1 ICO 28

4.5 Token value and further development 29

5. Business plan 30

5.1 Growth strategy 30

5.2 Target audience 31

5.3 Regulatory considerations 32

5.4 Corporate structure 33

5.5 Financial projections 33

5.5.1 Top line 34

5.5.2 Expenses 36

5.5.3 Bottom-line cash flow 36

6. Team, partnerships, endorsements 37

6.1 The team 37

7. Roadmap 42

References 43

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 Disclaimer

IMPORTANT NOTICE

PLEASE READ THIS ENTIRE SECTION AND DO NOT TAKE ANY ACTIONS UNTIL YOU FINISH IT.
THIS WHITE PAPER IS A SUMMARY OF SAFEIN BUSINESS MODEL, TECHNOLOGY AND A BRIEF
INTRODUCTION TO SAFEIN FUNDRAISER’S PRINCIPLES. SAFEIN FUNDRAISER IS CONSIDERED TO
BE A CROWDFUNDING CAMPAIGN. DETAILED TERMS AND CONDITIONS OF THE CAMPAIGN ARE
PUBLISHED ON SAFEIN WEB PAGE.

IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR
LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S) AND IMMEDIATELY NAVIGATE
AWAY FROM SAFEIN WEBSITE AND DO NOT CONTRIBUTE TO THE DEVELOPMENT OF SAFEIN.

This whitepaper, information provided on Safein web page and any fundraiser’s terms and
conditions published by Safein do not constitute a prospectus or offer document of any sort and
is not intended to constitute an offer of securities or a solicitation for investment in securities in
any jurisdiction. The tokens to be issued by Safein are not intended to constitute securities and/or
collective investment units in any jurisdiction. If you decide to contribute to Safein development,
please note that your contribution to Safein does not involve the exchange of cryptocurrencies
for any form of securities, investment units and/or shares in Safein or any other company, Safein
token holder does not receive any form of voting rights, dividend or other revenue right that is
guaranteed or participates in profit sharing scheme.

Due to legal and regulatory uncertainty in the United States of America, the citizens and green
card holders of and persons residing in the United States of America are not allowed to provide
contributions and obtain Safein tokens. Citizens and green card holders of and persons residing in
the United States of America that participate in the fundraiser by providing false information about
their citizenship, residency and nationality will breach fundraiser’s terms and conditions and will
entitle Safein to request such persons to compensate any damages and/or losses suffered due
to this violation. The whitepaper, information provided on the Safein website, and any fundraiser’s
terms and conditions published by Safein or any part thereof and any copy thereof must not be
taken or transmitted to any country where distribution or dissemination of these documents/
information is prohibited or restricted.

No regulatory authority has examined or approved any of the information set out in the whitepaper.
No such action has been or will be taken under the laws, regulatory requirements or rules of any
jurisdiction. The publication, distribution or dissemination of the whitepaper does not imply that
the applicable laws, regulatory requirements or rules have been complied with.

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To the maximum extent permitted by the applicable laws, regulations and rules, Safein, its founders,
team members and any third party involved in the Safein project shall not be liable for any indirect,
special, incidental, consequential or other losses of any kind, in tort, contract or otherwise
(including, but not limited to, loss of revenue, income or profits and loss of use or data), arising out
of or in connection with any acceptance of or reliance on this whitepaper or any part thereof and/
or information provided on Safein web page by you.

All statements contained in this whitepaper and the Safein website, statements made in press
releases or in any place accessible by the public, and oral statements that may be made by Safein,
its founders, team members and any third party involved in Safein project and acting on behalf
of Safein, that are not statements of historical fact, constitute “forward-looking statements”. All
statements regarding Safein, financial position, business strategies, plans and prospects and the
future prospects of the industry which Safein is in are forward-looking statements. Neither Safein, its
founders, team members, any third party involved in Safein project nor any other person represents,
warrants and/or undertakes that the actual future results, performance or achievements of Safein
will be as discussed in these forward-looking statements.

This whitepaper includes market and industry information and forecasts that have been obtained
from internal surveys, reports and studies, where appropriate, as well as market research, publicly
available information and industry publications. Such surveys, reports, studies, market research,
publicly available information and publications generally state that the information that they contain
has the information from sources believed to be reliable, but there can be no assurance as to the
accuracy or completeness of such included information.

No information in this whitepaper should be considered to be business, legal, financial or tax advice
regarding contribution to the development of Safein. You should be aware that you may be required
to bear the financial risk of any obtained Safein tokens for an indefinite period of time.

Safein does not make or purport to make, and hereby disclaims, any representation, warranty or
undertaking in any form whatsoever to any entity or person, including any representation, warranty
or undertaking in relation to the truth, accuracy, and completeness of any of the information set
out in this whitepaper.

The information contained on the Safein web page and whitepaper is of descriptive nature only
and not binding – unless explicitly referred to in fundraiser’s terms and conditions. No part of
this whitepaper is to be reproduced, distributed or disseminated without including this section
“Important Notice”.

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 Executive summary

Inefficiencies in e-commerce are staggering. Even though the industry itself is full of prom-
ise, the technology behind it is not. Namely, the way we identify ourselves online as well as
transfer our data and money is outdated and thus ripe for improvement. Without it, we’re
stuck with never ending registrations, redundant verifications, delays, limited utility of cryp-
to payments, constant infringements of data protection legislation as well as the generally
worrisome state of cyber security.

With all this in mind, Safein offers a single sign-on digital wallet enabling users to quickly,
safely and conveniently conduct their activities online through a one-stop-shop for all on-
line authentications and payments. With our platform, digital customers can easily demon-
strate their true identities with no lengthy registrations or verifications, maintain instant
access to various online shops and payments as well as control the extent of personal data
shared with service providers. Moreover, Safein allows its users to go beyond fragmented
identity system born in the last millennium and exercise proper control of their profiles in
a secure and modern manner.

Our platform is uniquely beneficial for both users and merchants. First, users will undoubt-
edly appreciate the end of repeat registrations, KYCs and password recoveries, replaced
by instant access granted by our multi-factor authentication solution. Furthermore, not
having redundant accounts provides greater security and data protection, both of which
are valuable to any consumer. Finally, the ability to easily conduct payments in any chosen
medium has long been desired by the market - Safein will also satisfy this need to allow a
fully seamless payment experience for all its users and merchants.

Merchants also benefit with our platform as Safein significantly reduces merchant costs
for user onboarding and verification. Furthermore, Safein reduces transaction fees and
can remove the problem of having to manage lost passwords for the customer support.
Merchants also get easy access to crypto payments at one of the lowest commission fees
in the market with a completely free identity verification tool. Moreover, merchants who
possess Safein tokens in their wallet will be able to process payments with no commission.
Our platform will also help them increase trust and user conversion rates as well as protect
them from accidental breaches of increasingly complex data protection regulations and
processes.

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Admittedly, building a universal gateway for e-commerce requires scale and wide product
adoption by the target audiences. Accordingly, our growth strategy is primarily focused on
rapid scaling of our user base and initially introducing the platform to the communities our
team has best access to - gaming and crypto-assets. In order to achieve these goals, we
will employ similar incentivization tactics as used by PayPal or Airbnb and reward the first
adopters of our platform with Safein tokens. Across 3 market verticals we will enter, total
number of merchants and user wallets by end of 36th month in operation are estimated to
reach 3,600 and 1,7 million, respectively. Cumulative monthly growth rate in value of trans-
actions is estimated to be 18-20% and net commission revenue will grow in line. Operational
breakeven is expected to be achieved in approx. 20 months after launch of revenue gen-
erating activities.

Work on our vision is already in progress and users will soon be able to try out a fully func-
tional MVP on our website and sites of our partnering websites. Beyond further develop-
ment of the platform itself, our team is currently working hard on expanding the company’s
network of partners, names of which will be announced in due course. The process of
obtaining an electronic money license in the EU is also in progress.

The Safein ICO starts on 25th of April 2018. At this time 30% of the Safein tokens will be
issued with the remaining pool will be used for user and merchant incentivization, remuner-
ation and further development of the platform.

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 Background: Problems
in e-commerce

Rapid growth of e-commerce remains unstoppable. However, the industry itself is still ripe
for improvements as growing concerns mount over data protection, cybersecurity, mon-
ey laundering and monopolization of numerous sectors. Moreover, shopping online is not
only troublesome, it’s also redundantly complicated. Think, for example, of all the repeat
registrations, verifications and password recoveries trailing the daily online customer ex-
perience.

We believe that outdated technology is to blame for almost all of these problems. Accord-
ingly, we think it’s about time to fix this by embracing a modern way of managing your online
identity and the shopping experience.

1.1. PROBLEM: POOR USER EXPERIENCE –

POOR E-COMMERCE

One could argue that the internet was designed around the groundbreaking discovery of
public database – the website – thus making it the very core of Web 1.0 but subsequently
leaving user engagement somewhat secondary. However, as the internet evolved and grew
in popularity, personalized online user interaction standards emerged as standard for the
protocol. Hence keeping track of “who’s who” became crucial for the online community.

Unfortunately, the internet was created without an identity layer, thus online merchants,
forums and other stakeholders had to develop this layer from scratch. Instead of join-
ing forces for this endeavor, each website decided to solve this problem internally which
consequently gave rise to the well-known horror of “signing up” and creating different ac-
counts for every single website we visit.

It’s worth noting that, in its infancy, “signing up” wasn’t really that bad. First, there were only
so many websites that asked us to register, and setting up your user account brought the
joy of creation to many. However, this perception swiftly changed once our modern lives
became dependent on the internet and shopping online turned mainstream. Naturally, with
ever-growing Web 2.0 interactions still relying on stagnant user onboarding procedures,
we had to “sign up” and “sign in” more and more. Subsequently, irritation with providing

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the same data, already submitted numer-
ous times before, grew to the point where
at least 22% of current online shoppers 22%
simply choose to abandon their carts if
completing the purchase required cre-
ation of a new user account1.

Anti-Money Laundering (AML) and general Know Your Customer (KYC) procedures did not
take long to become ubiquitous. In turn, this made customer onboarding even more prob-
lematic as using financial or other regulated services online in most cases required submit-
ting personal documents for manual review and waiting for them to be verified. Since we
live in the age where time is perceived as precious commodity, this delay between account
creation and verification (sometime lasting more than a month2) naturally persuades many
potential customers to stick with the regulated service provider (e.g., inferior bank) they
already work with or forego buying something online altogether. All this just to avoid the
hassle of printing, signing, scanning and submitting their passports or utility bills once again.

And it’s no better from the merchant perspective. Market re-

search shows that onboarding new users can cost an online
service provider up to 20 USD per new customer3 with a to-
tal annual bill for identity assurance exceeding 3,5 billion EUR in
the UK alone4. Worse, another fortune is required to properly
20$ collect, manage and store the personal data collected.

Small armies of KYC specialists need to be available in each

company so that legal requirements are not breached and ex-
orbitant fines—like the one received by Paddy Power for fail-
ure to verify just 3 customers—can be avoided5. Moreover, no
matter how good, KYC departments usually fail to deliver their
service within 24 hours. Naturally, this deters potential custom-
ers who need your services promptly (e.g., access to financial
markets) or not at all (think of buying stocks on the last hours
before quarterly results for example).

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 Finally, multiple accounts and different passwords are
not easy to manage for either users or merchants. This is
perfectly illustrated by the fact that 30-40% of support
center call volume is related to something as stupid as
password and account recovery6.

This is the magnitude of user time and merchant resourc-

es that could easily be saved for better purposes with
an advanced Identity 2.07 solution. Additionally, wide-
spread adoption of Identity 2.0 could also diminish the
above-mentioned obstacles to fair competition, enable
greater consumer mobility, maximize product utility, and
supercharge the total growth of e-commerce. Lastly, we
live in the age where generations Y and Z tend to reject
walls on the internet, and jump between the growing num-
ber of platforms with no sentimental attachment. In this
new reality, the old way does not work anymore.

1 . 2 . P RO B L E M : L AC K O F TR A N S PA RE N CY I N H O W
U S E R DATA I S M A N AG E D

The need for online merchants to identify their customers through “login” functionality rose
from shortcomings of the internet itself and was quite justifiable at the dawn of e-com-
merce. However, as the World Wide Web evolved, this feature remained unchanged. Two
factors are to blame for this shortcoming. First, moving from site-centered Identity 1.0 to
user-centered Identity 2.0 required significant investment by site owners, and broad con-
sensus of the online community, neither of which is easy to attain. Second, businesses
discovered over time that user registration wasn’t just draining their resources, it was also
giving them precious piles of data on users’ geography, demography, contacts, and pref-
erences for further sales. Naturally, it didn’t take long for businesses to discover that such
databases could easily be packaged and sold to the highest bidder, enabling the digital ad-
vertising industry that’s currently worth more than 220 billion USD8 a year.

In this environment, merchants became eager to mine more

and more data on their site users, thus giving rise to a soci-
ety where 76% of all online users claim that information
76%
requested of them during the registration procedure is
intrusive and unnecessary9.

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Furthermore, since extensive profiling was not really welcomed by the community, almost
60% of internet dwellers started retaliating with increasing numbers of fake email address-
es and other false data being submitted during registration10. To date, this problem has got-
ten so big that, on average, 10% of any online community user database is likely to be false11.

And that’s completely understandable, as most of us try to avoid unwelcome data mining
or spamming operations. Excessive and intrusive questioning also impacts commerce. Many
survey respondents list privacy and security issues among the key factors of shopping cart
abandonment12. Moreover, we normally treasure our right to privacy as a basic human right13
that we expect to be protected. Governments do try to do this, and data protection is no
longer at the sidelines of political agendas (think GDPR14 for example). But forcing e-com-
merce incumbents to stop collecting and storing valuable data they don’t really need is
no easy feat, and legal enforcement is struggling to overcome the “Agree with everything”
checkbox we ticked during the last registration. Accordingly, instead of waiting for the world
to fix itself, Identity 2.0 could step up and lead the way.

A new era of online identity recognition could not only mean increased trust in e-commerce
through greater protection and control of our personal data. It could also enable the online
shopper to do something our physical selves take for granted – i.e. remain anonymous at
the counter. This does not mean that we imagine a world with no age or country restrictions
– these checks are there for a reason and shouldn’t be removed without proper debate.
However, just like a vendor not even looking at you when you buy something simple and
only inspecting your ID when you ask for some liquor or medicine at a physical store, online
merchants do not need to know your name, age, gender or email. They just need to
know that you qualify for the purchase you came for. All this can be done without separate
accounts, spam emails and tiresome verifications. We just need to embrace the change
that’s long overdue.

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 1 . 3 . P RO B L E M : T H RE AT S TO O N L I N E S E C U RI T Y

The rise of online shopping, digital marketing and loyalty schemes resulted in merchants
storing more and more consumer data that is of value to cyber criminals. Not surprisingly,
breaches involving loss of client data from hacking or online leakage doubled in one year
from 2015/16 to 2016/1715. Accordingly, we’re currently at a place where 60% of consumers
believe online merchants aren’t doing enough to protect their personal information. 34%
of respondents even go as far as to avoid buying online altogether16.

This fear is not without merit. In 2016 we saw 1.1 bil-

lion identities exposed in data breaches17 and 2017
hasn’t been any better–Equifax alone exposed 143
million accounts in the first half of the year18. And
we should not forget that this is super sensitive per-
sonal data that’s likely to remain accessible to fraud-
sters indefinitely. Naturally, this is frightening.

In light of all these problems, it is no wonder that over 69% of consumers look for web-
sites displaying trust symbols provided by Bizrate, Customer Certified, TRUSTe and others19.
Properly posting these symbols on your website is neither easy, nor cheap. Accordingly,
they’re usually not present on new and exciting websites such as startups struggling to raise
capital, deliver goods and further develop products. Such merchants need to prioritize cy-
ber security and data protection, but the costs tend to prevent this.

Established merchants, however, do have the resources to improve security, but they fall
victim to fraudsters with talent and determination to steal the valuable treasure chests of
merchant data. Fewer and fewer merchants have the resources and capability to withstand
the constant cyberattack, and that results in fewer and fewer trusted merchants online.
Over time, consumers opt for these few trusted merchants, but using just a few sites for ev-
erything is far from ideal. Competition 101 tells us that rising barriers for entry and effective
discrimination of startups inevitably leads to fewer choices, slower innovation, oligopolies
and, ultimately, higher prices. None of this is good for the consumer.

Distortions to competition, e-commerce and privacy brought about by the rise of cyber-
crime are too great to ignore. Something needs to be done. Therefore, we believe that
Identity 2.0 could be a huge step in the right direction.

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 1.4.PROBLEM: BARRIERS FOR
RE G U L AT E D B U S I N E S S E S

Obviously, having your business online does not shield you from most of the requirements
imposed on brick & mortar merchants. Regulations intended for consumer or data protec-
tion as well as tax collection work for the cyber and real worlds almost identically. However,
not all commerce is the same and some of it is subject to extra scrutiny. We speak here of
licensed businesses such as pharmacies, financial brokers, beverage stores, casinos, etc.
These are the businesses that, if run badly, could hurt the society we live in. Hence, they
are required to adhere to higher standards in order to protect both consumers and com-
munities.

Probably the most popular way to protect the young is ban them from using some goods or
services until their adulthood at the age of 16-18 or 21. However, whereas in the real world
establishing your age isn’t that hard, and being asked for ID in some bar at the age of 40 is
almost unheard of, buying liquor online is a completely different story. Online merchants
are unable to actually see their customers and judge their age on appearance. Accordingly,
they need to solve this problem in some other way. And the way chosen by most is online
ID verification.

This verification is quite unsecure, costly and—for the user,irritating – especially when you
have to do this repeatedly. Moreover, with numerous different IDs across the globe, popu-
lations with no IDs and stolen IDs bought for a few dollars, one should wonder, how capable
are the merchants of really establishing true identity and age of their shoppers? And, how
much do the customer support armies employed for this task cost them?

Even if your true identity online can be discerned, this is usually not enough. Although in-
ternet has no borders, domiciles of its users do. Accordingly, applicable laws differ for users
from the Netherlands and India. To put it simply, whereas something is legal for a Dutch of
23, the same thing can still be banned for an Indian of 70. The same can be said about tax-
es – VAT in Denmark is 25 percent whereas in Malta it’s only 18. Online merchants need to
know and account this properly, but we believe that few merchants do. With the wide use
of VPNs online, users tend to “cherry pick” the jurisdictions that suit them best or have the
lowest taxes. Of course, consumers will always take the path of least resistance, and that’s
understandable – because it’s really the merchant that’s going to be blamed, fined and
prosecuted if something goes wrong. Nobody should want this.

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 1.5. PROBLEM: ABSENCE
OF A UNIVERSAL E-WALLET

Whereas the inefficiencies of “signing up” and “signing in” are widely debated, we believe
that this debate is still missing one core issue; the outdated way we pay for the goods or
services acquired online. Traditionally there’s actually more than one “signing in” in the on-
line process of buying. First, you sign in to the store itself and then you do it again to access
your payment provider. Naturally, this means two accounts and two passwords. Surely that
redundancy could be optimized.

While the above scenario is already far from ideal, we believe that the most common alter-
native is not actually better. We mean here regulated merchants like currency exchanges,
betting houses, etc., all of which usually require users to deposit funds upfront to get the
services they came for. This is flawed in the way that it makes customers wait from 3 to 72
hours before being served (by which time we might lose our interest altogether), with less
established businesses it can be many times worse.

Many of us at least once felt this fear of transferring a balance to some new exchange or
online casino where we weren’t actually sure that the transferred amount would be added
to our balance. This is quite common; the market is rich with stories of fraudulent websites
and disappearing accounts. Even if your balance gets added to your account, you cannot
yet be sure that you’ll be able to withdraw it later.

Due to the above problems, we believe that a significant part of e-commerce is lost on the
part of new entrants. Commerce needs trust, and while it’s easy to establish it with simply
opening your wallet in the physical world, online shopping is different. Accordingly, forgoing
the old-fashioned ways and conducting all payments from a single account could greatly
benefit e-commerce, development and competition alike.

Finally, with regard to the use of a cryptocurrency and blockchain systems, we feel the
technology is strongly applicable, but needs enhanced stability to better serve ecommerce.
The Bitcoin idea was born almost 10 years ago. The whole cryptocurrency market is worth
well over $500bn and crypto payments are still not widely used. The general reasons for
that is volatility of cryptocurrency rates, which frightens merchants, and limits blockchain
technology. The world needs a one-stop payment solution for both, traditional payment
methods and cryptocurrencies, with ability to instantly convert payments to the currency
that merchant feels safe with.

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 Solution:
Safein single sign-on digital wallet

2.1.COMBINING THE BEST OF TWO WORLDS

Data shows that modern internet users have a

strong preference for single sign-on solutions
like Facebook identity or Google accounts. In
fact, some 88% of all online customers use
these gateways from time to time to sign into
websites they visit20. On the other hand, nei- 88%
ther Facebook nor Google can grant an account
that’s verified or capable of payments, which
significantly limits user convenience and growth.
Accordingly, there’s a huge market that’s ripe for
the taking.

In view of all this, as well as the cyber world problems mentioned in previous sections, the
Safein team has set out to create a single sign-on and payment solution that can be used
universally on all websites. By doing so we will eradicate the traditional way of creating ac-
counts on numerous websites we shop on, and we will enable the world to adopt Identity
2.0. This profound leap in technology can easily eliminate the inefficiencies of never-ending
KYC procedures and finally grant the community a default customer gateway for all e-com-
merce activities.

Equally important is our ambition to finally enable our customers to properly secure the
personal data used for e-commerce, and shop anonymously wherever possible. We strong-
ly believe that instant access to payment for services, with no delays for KYCs or depos-
it transfers, will undoubtedly lead to greater competition, increased conversion rates and
booming e-commerce. In tandem, merchants will benefit from a significant cut in their cost
of regulatory compliance, data protection, KYC and user onboarding, cyber security, as well
as reduction in need for significant portion of customer support handling trivial matters like
password recovery.

Here’s how we will achieve our goals.

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 2.2.SAFEIN ARCHITECTURE

Safein will allow users to store their identity, as well as crypto and fiat currencies in accounts
opened on our platform. Safein will go into various business areas where combination of
possessing all of the above gives benefit to its users online and offline. The main priority of
Safein is to eliminate redundant registrations and KYC procedures.

STA N DA RD PAT H

Think of a
Click “Register” Enter email address
new password

Enter your personal Verify your Open your

information email address email account

Choose payment Login to payment

Click checkout
method account

Confirm payment

S A F E I N PAT H

Approve the payment

Sign-in with Safein Checkout with Safein
on a mobile device.

At the same time, Safein will standardize crypto payments on all e-commerce websites.
Currently, there is no single large-scale Payment Service Provider (PSP) which accepts both,
fiat and crypto payments. Safein shall resolve this by allowing its users to pay for their goods
directly using their Safein wallet regardless of the currency held in the account (cryptocur-
rency or fiat money). Transactions will be automatically converted to the currency required
by the merchant. Conversions will be executed at the best available rate in the market with
only 0.5% markup on top by Safein. This is a unique solution in the market which will allow
crypto payments to reach global scale, eliminating current crypto payment disadvantages
for merchants, high network fees, the need to convert to fiat manually, and huge conver-
sion rate fluctuations.

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 2 . 3 . D I G I TA L WA L L E T A N D PAY M E N T S

Safein is planning to be a fully licenced EU electronic money institution with the ability to
receive and process payments in full compliance with the law. Users will be able to hold
their crypto and fiat currency in a single wallet as well as convert them from one to anoth-
er. Major crypto currencies, including Bitcoin, Ethereum ERC20 tokens, and other popular
cryptocurrencies will be supported. Currency exchange functionality, for crypto and fiat,
will be standard for all currencies with 0.5% markup from the best available rate in the
market. Having an EU electronic money institution (EMI) licence will allow Safein to connect
to the SEPA network and give IBAN codes to all of our users. Having that available, Safein
will be one step closer to becoming a standard instrument for daily use. Additionally, Safein
plans to have payment cards linked to users’ accounts, so users will be able to use their
Safein accounts daily both online and offline.

CRYPTO CURRENCIES

STA N DA RT C U RRE N C I E S

Standard Safein e-commerce commission for merchants will be 1%. Merchants who pos-
sess Safein tokens will be able to receive part of their payments free of any commission,
and users who pay with Safein tokens will receive 0.25% cashback on every purchase. More
on these Safein token benefits can be found in the “Token model” Section.

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 2.4. SINGLE SIGN-ON

Safein provides a unique solution for both users and merchants. Users will be able to login
into websites directly with no registrations. The Safein account will at the same time pro-
vide merchants with the information necessary for client acceptance and service provision.
For example, if a user is signing in to a forum, the forum usually only needs to know user’s
display name or some unique identifier enabling it to separate the user from others. In this
case, Safein would not disclose data like user’s full name, address, etc. Instead, it will only
provide the forum with the required username. On the other hand, should the same user
be buying a physical book, additionally, the merchant would be provided with user’s full
name and address for shipping. Despite this, the user will have full control of his data at all
times, always seeing what information is being requested by the merchant and giving a clear
consent to such transfer up front.

LOGIN WITH SAFEIN

Before integrating Safein, a merchant will have

to choose what user data is essential and
must be acquired, and what data is optional
and could be omitted. Our team will monitor
this process and advise merchants on wheth-
er their choices on data to be collected com-
plies with applicable data protection regimes.
Moreover, the user will be able to choose
whether to pass or decline passing optional
data to the merchant. Safein will try to grow a
generation of users who value their personal
data and do not share it with everybody by
default. The same applies to merchants, as we
will try to do what we can, without losing our
competitive advantages, to limit merchant re-
quests for data and convince them to accept
anonymous users where possible.

15
 2 . 5 . U S E R DATA P ROT E CT I O N

Primary focus of many online merchants is business expansion. Given limited resources
available to most companies (especially the smaller ones), businesses tend to focus on
core functions; areas like proper user data collection and management don’t get enough
attention. This is where Safein steps in.

In particular, it’s no secret that even though many online shops conduct their business
globally, most of them are not experts in different rules of data protection in every market.
Many don’t even know all the details of the laws applicable in their own jurisdiction. We
believe that this is one of the core reasons for excess data mining and general non-compli-
ance with data protection legislation online.

With all this in mind, Safein’s architecture is built in a way that solves most of these prob-
lems automatically. First, as required by recent developments in the EU21, our users will
always be presented with a full and clear information on what personal data is being passed
on to relevant websites. No such transfer shall take place without clear consent of the
user. Moreover, once the user agrees to give her specific data to a merchant on the first
login, the merchant will be able to access this data on our platform anytime before this
relationship is terminated by the user. Accordingly, such merchant will have little reasons to
store this information on his own server and thus be able to significantly decrease his and
his user’s exposure to hacking operations and data theft (as well as save some expenditure
related to counter measures to such threats).

We argue that such measures will not only help merchants comply with the EU General
Data Protection Regulation (“GDPR”), coming into force as of 25th of May 2018, and also be
beneficial for customer trust in general. As compliance with GDPR becomes increasingly
important, Safein will dedicate significant resources to educating the merchants on appli-
cable requirements and guiding them when deciding on which customer data should and
should not be collected by specific merchants. In short, we’ll strive to pass only the “need
to know” information to merchants and maintain our users anonymity where possible.

Furthermore, the platform will also solve the problem of personal data updates with dif-
ferent service providers as all relevant merchants will receive information on updated ad-
dresses, surnames, etc. automatically as soon as such changes are submitted to our plat-
form.

Finally, the Safein platform will enable our users to truly exercise their rights of personal
data management and terminate any previous sharing of data with specific merchant.

16
Even more importantly, we will also let our users to properly exercise Art. 17 of GDPR (“the
right to be forgotten”) in the EU and request any merchant to delete specific user data from
their archives immediately upon receipt of a relevant notice. All this shall be done without
leaving the boundaries of our platform as the user will simply be required to click a couple
of buttons and let our platform take care of further communication with the merchant on
behalf of the user.

We believe that all the above features will be greatly beneficial for both users and mer-
chants and should be appreciated by educated and law abiding online community in gen-
eral. Moreover, as Safein will closely monitor its partnering websites and share no informa-
tion with entities of uncertain reputation, our services should also help in growing trust in
e-commerce thereby increasing the conversion rates.

2 . 6 . M U LT I - FA C TO R A U T H E N T I C AT I O N M E C H A N I S M
A N D D I G I TA L I D E N T I T Y M A N AG E M E N T

Security must be a primary focus while managing your identity

and wallet online. Safein will have a multi-factor authentication
mechanism implemented from the very beginning. While integrat-
ing Safein, each merchant will be able to choose a minimum secu-
rity level that he requires from its users. For example, merchants
can ask that all logins to the merchant’s website and all payments
must be confirmed by user on his mobile device - i.e. (i) a push
notification shows up, (ii) user must identify himself via pin code
or fingerprint on his mobile Safein app and (iii) approve login or
purchase. User (in his panel) can also enhance general security
levels for each website individually. For example, even if a specific
website does not require mobile device confirmation for website
login, a user can always enhance his security level by enabling that
requirement himself.

With Safein, users will not only be able to fully control their logins
and actions, but track and manage them as well. Users will be able
to see their full activity history, including logins and payments,
track their used devices, manage current active login sessions and
cancel them at any time. Users will also be able to easily check
which website has access to certain data. Most of the functional-
ity related to identity management is already available in the MVP.

17
 2.7. KYC PROCEDURE ENGINE

Safein team is currently in talks with the world’s leading automated ID verification service
provider to provide exceptionally accurate results using its AI powered document checking
algorithm. Such checks, where users will only need to scan their IDs with their cameras and
take selfies, will be sufficient for most uses. Some advanced verifications, where users need
to comply with very specific regulations (for example, some cryptocurrency exchanges),
will be done manually by the Safein team. It could take up to few minutes, but compared
to current waiting periods of weeks for some exchanges, it is still a radical improvement,
especially keeping in mind that users will only need to do it once.

2.8. BUYER PROTECTION MECHANISM

Most of the merchants are well aware of the issues that arise from credit card chargebacks
and fraud. One of the biggest advantages of crypto payments is that they are irreversible. In
standard e-commerce the merchant is considered to be a more trusted party, hence the
buyer needs to send the payment first. Chargeback and dispute resolution mechanisms
were invented to help the buyers recover funds from merchants who failed to deliver the
goods or delivered them in unsatisfactory fashion. However, recently those mechanisms
are being abused by fraudsters and scammers in quite the opposite way than intended.

Crypto payments without buyer protection mechanisms rob customers of a money back
guarantee in case of failure to deliver. Hence, Safein will provide a buyer protection mech-
anism for crypto payments in its platform. The mechanism shall only be initiated if the
goods are not duly received by the buyer or if they are not as described. Safein will provide
all the tools to the buyers to protect their accounts, hence, merchants will be able to feel
safe as there will be no chargebacks or fraud cases. If buyers and sellers are not able to
resolve disputes themselves, a well-trained Safein support team will intervene and resolve
the outcome of these disputes.

18
 2.9. MVP

The Safein MVP now allows users to create an account on the Safein platform and connect
it to a mobile device. Safein is currently integrated in a demo website where users can login
with Safein without registering, adjust their security levels for different websites, track their
login activity from their mobile devices and close active login sessions at any time. This web-
site can be found at: www.curonian.com. Additional features are coming soon.

19
 3. Safein benefits
and application

3.1. BENEFITS OF SAFEIN

We believe that our services will be desirable by both merchants and users.
By employing our services, users would benefit by/from:

Being able to skip multiple time-con- Comfort that the company collecting
suming registration,s and gain access their personal data (i.e. Safein) is trust-
to any services immediately with no worthy and will be able to protect it;
delays for identity verification or trans-
fer of deposits; Significantly lower transaction fees
as well as an ultra-convenient way to
The end of management and recovery make payments in both fiat and cryp-
of numerous user accounts with dif- tocurrencies;
ferent passwords;
Increased anonymity, and protection
Ability to buy from a merchant offer- from unwelcomed data mining and
ing the best prices or products rather spamming activities;
than from the one user already has a
verified account with; Ability to instruct chosen networks to
cease collection of respective user’s
Convenient one-stop shop for both, data as well as delete the data collect-
easy online access and payments; ed on the user;

Full and clear disclosure of what cus- Cashback as well as further rewards
tomer data is being passed on to web- for loyalty and use of our services.
sites;

Increased cybersecurity of their per-

sonal data;

Merchants and services providers will appreciate:

20 20
 Increased conversion rates due to re- Access to our growing group of users,
duced loss of customers shunning any who are incentivized to use the services
new registration; provided by our partners;

Reduced costs of user verification pro- Ability to accept payments from users
cedures (as we would provide such paying in both, fiat and crypto;
verified users free of charge) as well as
significant savings in account/password Lower transaction fees;
recovery department.
Single plug-in integration;
Diminished need to worry about com-
pliance with GDPR and data protection Ability to properly establish user’s loca-
regulations in other countries; tion and applicable legal regime;

Reduced risk of cyber leaks of customer Commission discounts and further re-
data; wards for using our tokens and services.

3 . 2 . A P P L I C AT I O N A N D P O S S I B L E M A RK E T S

Any online website which requires any sort of user identification or payments could greatly
benefit from our service. Our services could be utilized by:

Crypto exchanges and other ICOs; Social networks;

Digital goods markets where fraud and Regional polls (utilizing our ability to give
chargeback rates are extremely high; access to users from certain jurisdic-
tions only);
eShops, benefiting from extremely low
payment fees, access to crypto pay- Smart contracts (users could feed their
ments and verified users; data directly into smart-contracts by us-
ing our databases);
Online financial or legal gambling ser-
vice providers (which could easily use E-signature and merchants in need of
our platform to verify user’s age and ap- immediate verification of the data pre-
plicable legal regime as well as accept sented to them in person (our users
payments from the user with no further would be able to prove credibility of
registration process); their claims by supporting such claims
with verified data on our website);
Car-sharing and other rent service pro-
viders; Brick and mortar retail shops of at later
project stages.
Investment and trading platforms;
21 21
 4. Token Model

The idea of having a single account for everything you do online is simply brilliant,
but it requires large scale. Developing Safein is the same as trying to solve the
chicken and egg problem - you need a lot of users to attract merchants, and vice
versa. Without merchants you cannot acquire new users. Safein will leverage its
tokens to grow its user base and acquire merchants. Use of the Safein platform
will reward both users and merchants for using innovative payments and identity
management solutions created by our team.

22
 4.1 TOKEN DISTRIBUTION

Safein Login Pool Safein Airdrop program

1%
Pre-ICO 2,25% Safein Referral Program

Safein Registration Pool

5% 5%

10%

Safein team and advisors with

10% 6-24 months lock period.

ICO 30%

36,75%

TOTA L S U P P LY - 1 , 0 0 0 , 0 0 0 , 0 0 0 S F N TO K E N S

4 . 2 . M E R C H A N T A N D U S E R B E N E F I T S

Merchants using Safein will be able to reduce their transaction fees by holding SFN tokens.
Each SFN token held entitles a a merchant to process a specific amount of payments per
month with no commission fees. The initial multiplier, right after payments launch, will be
10, i.e. each SFN token will let merchant receive 10 SFN tokens worth of payments with no
commission that month. The multiplier will gradually decrease within 5 years starting from
the date when the payments are launched. This will lead to a very high token demand from
the very beginning, and merchants who buy tokens during the ICO will benefit the most as
they will be able to buy them for the lowest starting price - 1 ETH = 9,000 SFN.

23
For example, right after the payment functionality launch, if merchant has 10,000 SFN to-
kens, he will be able to receive 100,000 SFN worth (at market price) of payments for his
goods or services with no commission fee in any currency each month. After he receives
100,000 SFN, or equivalent amount in other currency, that month, he will be charged a
standard 1% commission fee for the remaining part of the month. Doing some simple math
shows that, if a merchant buys $1,000 worth of SFN tokens during the ICO and the token
price doesn’t change, that will save him $1,140 of Safein commission per year (1% commis-
sion on total transaction volume) and more than $2,000 yearly compared to other pay-
ment service providers charging commission and fees more than twice as large as Safein.
Accordingly, this should allow us to incentivize merchants to promote payments with SFN
tokens even more, as this would allow them to store the tokens received from customers
and minimize their commision fees further.

A 10,000 SFN allows to receive 100,000 SFN per month for free.

$1,000 worth SFN tokens saves $2,000 yearly compared to other

B
payment service providers.

Users paying with SFN tokens will receive 0.25% cashback for all of their purchases. Mer-
chants will only be charged 1%, no matter what payment method is chosen by the user.
No other crypto payments solution currently has an active cashback bonus system for its
payments.

24
 4.3. USER BASE GROWTH

4 . 3 . 1 . RE G I ST R AT I O N P O O L

The Safein Registration Pool is to be distributed among 5,000,000 users of Safein that are
first to complete full account verification after the launch of Registration Pool. The Regis-
tration Pool shall be distributed in “decreasing reward” fashion following this model:

MILLIONS OF USERS

1st 2nd 3rd 4th 5th

50 26 14 6 4
SFN SFN SFN SFN SFN

per user per user per user per user

100M
5M
SFN
for users
tokens

We expect the Registration Pool to be launched within few months following the conclusion
of the ICO.

4.3.2. LOGIN POOL

Login pool will be distributed as a reward for loyalty to:

users who use Safein login; websites who have Safein login implemented.

25
The Login Pool will have 5% of the overall issued tokens. They will be distributed over the
first 24 months as of the launch of Login Pool, which we expect to happen within a few
months following the conclusion of the ICO.

At the end of each month, the system will count qualifying logins for each user and each
participating website (qualifying - one unique login per user per site per day, i.e. if a user
logs into the same site three times per day, only one login counts). If total amount of quali-
fying logins is X, the total amount of SFN tokens in the pool dedicated to users that month is
Y, then each qualifying login is awarded with Y/X tokens. Users and websites can claim their
tokens in their panel on Safein website.

Users split ¾ of the pool; Websites split ¼ of the pool.

Unclaimed tokens will stay in the pool for the next month. Tokens are distributed by last-in-
first-out principle, those tokens not withdrawn from the pool for longer than 3 months will
be transferred to Safein company reserve.

4.3.3. REFERRAL PROGRAM

Safein allocates 5% of its total token supply for its Referral Program. Users who invite their
friends to register on Safein will be rewarded the same amount of Safein tokens that the
new user is rewarded from the Registration Pool. For more details please see the Regis-
tration Pool section. Referred users will only entitle their friends to referral bonuses if they
fulfill all of the below within 90 days from registration:

Fully verified account and identity;

At least $10 worth of crypto or fiat currency deposited;

At least $10 spent on goods or services.

Not many people know that PayPal’s referral program was a key factor to its success. PayPal
has spent about $60,000,000 on their referral program and achieved 7-10% daily growth in
the early 2000s. Its referral program was a key to their user base growth to 100 million us-
ers. Safein will use the same strategy and grow its community faster than any other crypto
project.

The Safein Referral Program is planned to be launched within 6 months of completion of

the ICO, however, not before the launch of payments.

26
 4.3.4. AIRDROP PROGRAM

Safein allocates 1% of its total token supply for its Airdrop Program. By subscribing to Safein
social media platforms each user will be eligible to receive 500 SFN tokens.
For more information on how to participate in the airdrop please visit www.safein.com

4.4. PRE-ICO

The Safein ICO will be raising a total of 2,000 ETH in a public Pre-ICO in order to cover
costs of MVP development as well as marketing, administrative and legal expenses.
Pre-ICO will be run on a smart contract and tokens will be distributed right after the ICO
ends.

STA RT END
R AT E
DAT E DAT E

First 1,000 ETH:

1 ETH = 12,000 SFN tokens.
1,001 - 2,000 ETH:
1 ETH = 10,500 SFN tokens. April 3rd April 16th

27
 4.4.1 ICO

ICO will be run on a smart contract and tokens will be distributed right after the ICO ends.

R AT E

STA RT SOFT HARD

First 4,000 ETH: DAT E CAP CAP
1 ETH = 9,000 SFN tokens.
4,001 - 12,000 ETH:
1 ETH = 8,500 SFN tokens.
12,001 - 22,000 ETH:
1 ETH = 8,000 SFN tokens. April 25th
6,000 ETH 40,000 ETH
22,001 - 30,000 ETH: 13:00 (UTC)
1 ETH = 7,500 SFN tokens.
30,001 - 38,000 ETH:
1 ETH = 7,000 SFN tokens.

Should any part of the tokens allocated to ICO not be distributed during the ICO, such to-
kens will be returned to the company and added to its reserve for further development. In
case of failure to reach Soft cap, all contributions will be returned to their original owners.

N.B.: all values indicated in ETH in this chapter are subject to change before the start of the
ICO in case of large fluctuations in market price of ETH.

The Safein ICO will be distributing 30% of the total token supply to cover the below costs:

Further development of our product;

Crypto payments functionality;

Smart Contracts for Login Pool;

Safein payment solution with internal transaction processing system;

Acquiring EMI licence;

Onboarding at least 500 merchants;

ICO expenses and marketing.

28
All of the above should be done by Q4 2018 (obtaining the EMI license may take a bit longer).
After all of these goals are met, Safein will slowly distribute its tokens in the market to get the
funds needed to continue project development, mostly for B2B sales (i.e. onboarding new
merchants, acquiring more users, launching payment cards if community supports it, and
going into NFC mobile payments).

4 . 5 . TO KEN VALUE AN D F URTH ER D E V ELO P M ENT

In the short term it is expected that token value will grow due to the growing user base and
expanding list of partnering merchants. Users will be incentivized to use SFN tokens for
their payments due to cashback bonus, merchants will be buying SFN to receive commis-
sion free payments. Due to merchants holding the tokens and users buying them to receive
the cashback bonus, demand will be going up, supply will be going down and token price
should therefore go up. Section 4.2 goes into more details on how beneficial it is for the
merchants to save on commission by possessing SFN tokens.

N.B.: Since the company shall be working in an extremely fast changing environment and
is still under rapid development itself, some features envisioned for the company’s token
model, commision size, Referral Program as well as the Registration and Login Pools might
become redundant or subject to change in the future. Accordingly, the company reserves
the right to change and revise these features, bonuses and incentivization programs as
such need materialises and is recognized as such by the management of the company.

29 29
 5. Bussines plan

5 . 1 .G RO W T H ST R AT E GY

Safein’s success is based on rapid growth of the user and merchant base. Safein won’t be
successful if it’s not widely used. Given that imperative, one of the key project priorities
is adapting every part of the project (including token model, marketing strategy, business
strategy and technical development) for rapid growth of user and merchant base. Safein’s
token model is designed to incentivize users and merchants to use Safein as much as pos-
sible.

The rise of the cryptocurrency market allows us to approach growth from a very different
angle. Until now all business strategies had their growth projections built around a bottom
line concept of “cost to acquire single user.” Our solution is to adopt the same strategies
that the fastest growing companies did, but use them with modifications from the decen-
tralized cryptocurrency world in tandem with extremely low payment commissions for mer-
chants.

The Safein team will use different strategies tailored for users and merchants. Our user
base growth strategy initially relies on the Referral Program. This strategy was actively used
by PayPal, Airbnb, Dropbox and other companies which managed to achieve viral growth.
Initial user base will be achieved by signing-up users during our ICO and then launching
our referral campaign. 5% of the generated Safein tokens will be allocated to the Referral
Program. With an initial critical mass of users registered during our ICO, our user base will
grow exponentially. Starting active marketing campaigns in certain industries, as mentioned
in previous sections, will allow us to demonstrate user benefit of having one single login for
most popular websites. Similar example can be seen in the gaming industry, where Steam
login is already extremely popular when it comes to websites where users don’t need to
show their true identity or pay for goods.

30
Acquiring merchants in crypto and gaming spaces is easier with a very large user base and
Safein’s benefits for both industries:

CRYPTO GAMING

free outsourced identity verification; reduced fraudulent payments due to

verified identities;
no network fees due to payments mov-
ing internally in Safein wallet; buyer protection mechanism;

instant payments; access to crypto payments;

ability to receive payments in any cryp- only 1% transaction fee;

tocurrency;
free KYC procedures for large volume in-
extremely cheap currency conversions. game item traders.

All of the above solves real current issues for both markets. For example, Steam stopped
accepting Bitcoin on December 2017 due to extremely high network fees (more than $40
at the time). Merchants accepting Safein payments will be able to process those payments
completely free by having Safein tokens in their wallet.

With all of the mentioned benefits and large user base, merchants from crypto and gaming
sectors will be very easy to approach not only due to direct benefits but due to increased
conversion rates as well; users won’t need to register or remember different passwords to
purchase goods immediately.

5 . 1 . TA RG E T A U D I E N C E

Safein will start its user acquisition from two different verticals: the crypto audience and the
online computer games market. Both of these sectors have tech savvy user bases already
using or at least aware of cryptocurrencies. Users in these sectors often face repetitive
registrations, KYC procedures and identity verification.

31
The gaming industry is also suffering from fraudulent payments. Safein would be able to
eliminate this problem. Global revenue for online games related industries passed $100bn
in 2017 , making it a very attractive sector to start Safein user acquisition, especially as the
founding team has great experience and connections in this market. After establishing in
the gaming industry it’s logical to go to all markets surrounding it.

Crypto markets are suffering from delayed registrations to exchanges, and ICOs due to very
slow identity verification processes. Safein is currently securing partnerships with crypto
market players to save their time and costs on KYC processes and to improve user expe-
rience allowing to sign-in to websites passing KYC documents from Safein account. This
would be completely free of charge for users and businesses, with only a very small com-
mission for payments going through Safein platform.

5 . 3 . R E G U L ATO RY C O N S I D E R AT I O N S

Since payment services are envisioned to form the core of our operations, these services
shall fall under increased governmental scrutiny and thus be subject to licensing in most
markets. On the other hand, we should note that Safein plans to allow payments in both
fiat money and cryptocurrencies. Accordingly, at least for the foreseeable future, most ju-
risdictions will treat these types of payments differently and different considerations are
therefore relevant for these payment methods.

First, Safein plans to initially focus its expansion in the European Union. Accordingly, EU
E-Money Directive (2009/110/EC) establishing universal guidelines for regulation of Elec-
tronic Money Institutions (EMI) across the EU is the primary focus of our legal consider-
ations. In view of this, as well as numerous discussions with various regulators and other
legal professionals, Safein acknowledges this EMI license as necessary for successful de-
velopment and continuous expansion of our business. In view of the above, obtaining this
license for payment operations, e-money issuance, SEPA transfers and IBAN account cre-
ations will be a top priority as of the first days following the ICO. It should also be noted,
that, once received, this license will enable us to enjoy the so called “passporting” right and
conduct our operations in all 28 EU member states.

On the other hand, it should not be forgotten that most leading jurisdictions still lack clarity
in respect to regulations applicable to cryptocurrencies. Accordingly, at the time of writing,
this usually means that such payments do not fall under the scope of already existing reg-
ulatory regimes and, hence, are not subject to licensing. Even though this might seem con-
venient at first, we see this lack of established rules more as a threat than an opportunity.
In view of this, Safein is determined to place all our payment activities under due regulatory

32
scrutiny as soon as possible, and to obtain the above mentioned EMI license for payments
not only in fiat money, but in cryptos as well. Accordingly, our present aim is to seek this
license in Luxembourg, currently the only EU jurisdiction fully catering to our needs. We
should note, however, that the process of obtaining this license in Luxembourg is quite
lengthy and can take more than a year, thus crypto payments functionality might be provid-
ed to Safein users even before the license is obtained. In that event, these services will only
be provided in countries where such license for crypto payments is not yet mandatory and
will remain unlicensed only until the respective license covering both methods of payments
is received. Furthermore, we continue to actively monitor the regulatory developments in
other EU countries and will strive to take advantage of them in case a more optimal licensing
procedure becomes available.

Finally, it should be noted that the EMI license grants limited powers outside the EU and is
not a global solution to all regulatory inquiries. Accordingly, our regulatory efforts will not be
limited to EU only and further regulatory considerations will also be duly made before any
expansion outside the EU.

5 . 4 . C O RP O R AT E ST RU CT U RE

Since regulatory regimes, financial logic and accepted business practices often dictate di-
vision of project operations among separate legal entities, companies implementing the
Safein project shall also be organized in a company group composed of several separate
legal entities. Accordingly, initially the ICO company shall be established in Estonia. Most of
the operations will be performed by a company in Lithuania whereas payment operations
shall be conducted through an entity or entities established in jurisdictions providing the
applicable legal framework for these operations. Further developments of this company
group might also be possible in the future as the need for such changes arises.

5.5.FINANCIAL PROJECTIONS

The Safein team has prepared a preliminary financial model for the first 36 months of op-
erations after ICO. The profit and loss statement has been developed bottom-up, building
from the initial quotations we have received after discussions with regulators, third-party
solutions providers, as well as benchmarking with industry peers. Top-line (merchant and
user base growth, monetization) has been modelled as a result of investing resources into
proactive initiatives, such as registration and login pool, our own referral campaign, as well
as paid marketing and business development efforts.

33
 In the following sections we present key estimated figures. We believe that even if some of
the assumptions are proven wrong as we go along, having a structured model allows us to
understand fundamental relationships between key operational and financial KPIs providing
great value and allowing a transparent and pragmatic view of the business’ viability.

More detailed financial projections are available upon request on an exclusive basis. The
SafeIn team has the full right to refuse to present financial projections based on their own
criteria.

5.5.1.TOP LINE

Safein’s business model is based on growing the merchant base and number of active user
wallets. For each of the verticals we will be working on in the first 36 months, we estimate
different growth models.

Number of total merchants and total user wallets are estimated to reach 3,600 and 1,7 mil-
lion respectively by the end of the 36th month.

NUMBER OF MID TO LARGE SIZE MERCHANTS ON-BOARDED

4.000
3.500
3.000
2.500
2.000
1.500
1.000

500

1 35 79 11 13 15 17 19 21 23 25 27 29 31 33 35

Crypto Gaming E-commerce

34
 NUMBER OF ACTIVE USER WALLETS

1.800.000
1.600.000
1.400.000
1.200.000
1.000.000
800.000
600.000
400.000
200.000

1 35 79 11 13 15 17 19 21 23 25 27 29 31 33 35

Crypto Gaming E-commerce

The number and value of transactions through Safein is expected to grow in line with the
launch of crypto and fiat payment functionality. Our business model is based on an 18-20%
cumulative monthly growth rate, which we believe is a conservative projection. The mon-
etization scheme is based on a flat commission rate, hence, Net Commission Revenue will
grow in direct relationship with to the value of transactions.

TOTA L VA LU E O F T R A N S ACT I O N S

35
 5.5.2. EXPENSES

At the initial stages, significant development costs will be incurred. It implies that the first
year’s business cost structure will be biased towards product development and cyber-secu-
rity infrastructure development expenses. Significant one-off costs will be incurred around
the time when it is expected to receive EMI license.

Cost of revenue will appear as we launch crypto and fiat currency payments. Safein will
need to participate in the financial system, hence, it will incur payment processing costs.
Despite of the obvious competitive advantages against currently existing payment providers
at the start, we also understand competitive pressures will arise as we go. As a result, we are
determined to keep superior cost structure and be as lean as possible.

5.5.3. BOTTOM-LINE AND CASH FLOW

Launching a product on blockchain and using a token-based incentivization scheme allows

us to achieve a very competitive cost structure which in turn improves profitability and
decreases pressure on cash flow. That is of great importance atr the inception of the com-
pany.

At currently estimated transaction levels (scenario: conservative), the company is expected

to reach monthly operational breakeven at months 30-36 after the crowdsale and approx-
imately 20 months after launch of revenue generating activities.

36
 6. Team, partnerships,
endorsements

6.1 THE TEAM

The team behind Safein is composed of successful repeat entrepreneurs and various indus-
try experts giving Safein the experience necessary for building and growing Safein platform.

VLADAS JURKEVIČIUS
Business | Co-founder

Vladas has more than 5 years of experience in developing fast

growing e-commerce companies where he was able to uti-
lize his expertise in online projects by putting together and
managing top talent teams and establishing key partnerships.
After founding and exiting a few highly successful esports and
online games related projects he is now building a unique
identity and payments management solution.

LUKAS DEKSNYS
Operations | Co-founder

Lukas has worked as an actuary for one of the largest UK in-

surers, Liverpool Victoria, and was a member of Institute and
Faculty of Actuaries. His areas of expertise include finance,
risk management and advanced statistical modelling. Now his
interests have shifted to blockchain technologies and start-
ups.

AUDRIUS SLAŽINSKAS
Legal | Co-founder

Audrius is an attorney-at-law specializing in the fields of

e-commerce, gaming, corporate, M&A, finance and data pro-
tection. Legal experience and industry knowledge allows Au-
drius to spot market inefficiencies caused by the changing en-
vironment and quickly address them with practical solutions.

37
JOSEPH STEINBERG
Cybersecurity

Steinberg has led businesses and divisions within the infor-

mation-security industry for nearly two decades, has been
calculated to be one of the top 3 cybersecurity influenc-
ers worldwide, and has written the official study guide from
which many CISOs study for their certification exams. He is
also one of only 28 people worldwide to hold the suite of
advanced information security certifications, CISSP, ISSAP,
ISSMP, and CSSLP, indicating that he possesses a rare, ro-
bust knowledge of information security that is both broad
and deep; his information-security-related inventions are
cited in over 100 US patent filings.

M U S H EG H TOV M A SYA N
FinTech
Mushegh Tovmasyan is a FinTech entrepreneur and a vet-
eran of the online trading industry. His senior management
experience in FX and CFD space spans regulated companies
in USA, UK, UAE, Germany, Switzerland, San Marino, Cyprus,
Armenia, Japan and New Zealand including advisory roles
on various successful ICOs. A serial entrepreneur at heart,
Mushegh is a shrewd negotiator and has a good eye spotting
individual talent and untapped opportunities in the market.
A strong technology background mixed with hands-on man-
agement experience across various global jurisdictions has
influenced Mushegh to excel in leadership roles pushing all
his ventures to the forefront of the modern Fintech era.

ARTHUR ZUBKOFF
Marketing and growth

Arthur is a fintech and marketing consultant with a back-

ground in technology, design, business, and banking at the
Standard Chartered Bank. He holds a Master’s degree in
Management from the University of St Andrews and a First
Class Honours degree in Computer Science from the New-
castle University. Arthur’s passion and enthusiasm for block-
chain and startups has led him to invest in various crypto-
currencies and companies like TenX and BrewDog.

38
PIERRE ROBERGE
Cyber Security

Pierre is an 11-year veteran of the Communication Security

Establishment Canada (CSEC), Pierre led advanced techni-
cal teams tasked with protecting Canada’s national inter-
ests in cyberspace. While the majority of Pierre’s projects
remain classified, Pierre established a strong reputation
among ‘5- Eyes’ nations as a leading expert and innovator
in cyber intelligence operations. His declassified awards in-
clude the CSEC Excellency Award and the Chief of the De-
fence Staff Commendation. While working alongside Brit-
ish and American counterparts, Pierre lead teams of 100+
members to combat the most advanced cyber threats
originating from both state and non-state actors.

JONAS TIREVIČIUS
Senior IT Project Manager

Jonas has more then 10 years’s experience in software de-

velopment business. He first started as an IT project man-
ager in one of the Swedish capital bank. Later he has been
mainly focused on software development business and for
the last 8 years has contributed to various large scale proj-
ects in transport, retail, ecommerce and sports analysis
industries. Also Jonas is a co-owner, board member and
advisor in some other businesses;

B O G DA N KU ŠTA N
Senior Development Team Lead

Bogdan has 10 years’ experience of software programming.

He has contributed to many different projects of various
scope and fields. Currently he is mainly involved in ecom-
merce and custom software development solutions in
transport, retail, sports analysis industries. For the last 3
years he has been working as CTO in a software develop-
ment companies.

39
I LYA T E R E S H I N
Senior Ethereum Blockchain developer

- 2 years of experience with Smart Contract development

technological stack (Solidity, Node.js, Web3, Truffle)
- Smart Contracts unit-testing
- Experience with different Ethereum Nodes (Geth, Parity)
- Golang knowledge
- Experience with Ethereum libraries (P101, Whisper, Swarm)
- P2P technological stack (node discovery)
- More than 20 Smart Contracts with complicated logics for
ICO prepared by me (smartmesh.io, narocoin.com, jibrel.
network, status.im and others)
- Experience with customising open-source solutions
- A documentation-oriented person who is very careful with
details

DR. VILIUS BENETIS

Cyber Security

Dr. Vilius is a digital security professional with focus on se-

curing digital environments. On the side he is an industry
professor in Cyber Security at Kaunas University of Technol-
ogy (KTU), as well contributing to many different national and
international cybersecurity practices as well as publishing
via ISACA, Center for Internet Security, and other establish-
ments;

VILIUS SEMĖNAS
Business Development

Vilius is the Chief Commercial at CoinGate, one of the larg-

est payment processors in the area of blockchain and cryp-
tocurrencies. With his focus on business development, sales
strategy and customer excellence, Vilius has helped the
company grow its merchant base to over 1,000 clients that
produce a sales volume of over $30 million per month.

40
JOSEPH BORG
Regulatory

Dr. Joseph F. Borg is an advocate, acting currently a Se-

nior Advisor to WH Partners, practicing mainly on Gaming,
Blockchain, Esports, Corporate, IT, Telecoms and Intellec-
tual Property Law. He also lectures Gaming Law at the Uni-
versity of Malta. Joe occupied the role of Secretary Gen-
eral of the Malta IT Law Association (MITLA) for over 3 years
and is currently the Vice-President and Co-Founder of
Bitmalta, which is a non-profit organisation with a mission
to promoting and stimulating discussion about blockchain
technology and cryptocurrencies in Malta. Before joining
WH Partners he occupied the post of Chief Regulatory Of-
ficer of the Lotteries and Gaming Authority - Malta.

MARIUS MIŠKINIS
Finance

Marius spent most of his career in fast-pace environments:

in management consulting - delivering complex strategic,
operational and change management projects for corpo-
rate and startup clients in CEE, EMEA, USA, etc.; in finance
- acting as CFO for international group of companies; and
in private equity - working on deal sourcing and execution,
as well as monitoring portfolio companies. Marius advices
Safein team on financial planning questions

J U STA S B R A Z A U S K A S
UX/UI/Data

Justas is a Web Specialist with more than 5 years of expe-

rience in developing and managing of e-commerce proj-
ects and data analysis. With rapid growth of the blockchain
technology his interests turned towards it.

41
 7. Solution
roadmap

2017 Q2 2017 Q4 2018 Q1

MVP with login Whitepaper and ICO

Safein idea is born
functionality campaign launch

2018 Q2 2018 Q1 2018 Q1

Login Pool Full ID

ICO launch
launch vertification

2018 Q3 2018 Q3 2019 Q1

Crypto payments Registration Pool and EMI licence

and wallet launch Referral Program launch obtained

2019 Q2

Fiat payment
launch

42
 REFERENCES :

1
Data provided by Statista in 2016 survey covering primary reasons for digital buyers to
abandon their carts in the United States as of 2015;
2
For example, Thomson Reuters 2016 Know Your Customer Surveys reveal that the time to
onboard new corporate customers for financial institutions exceeds two months at least
30% of the time. Of course, such lengthy periods to satisfy the regulator are most apparent
in the financial sector, yet the regulations and their effects are quickly spilling over to other
industries, including e-commerce;
3
https://thefinanser.com/2014/04/theres-a-big-difference-between-kyc-and-knowing-
your-customer.html;
4
CTRL-Shift research: Economics of Identity;
5
Fined £280,000 in 2016 for this offence;
6
2011 HDI Support Center Practices and Salary Report;
7
A method for identity verification using user-centric technologies;
8
https://www.statista.com/statistics/237974/online-advertising-spending-worldwide;
9
https://www.marketingweek.com/2015/07/08/consumers-are-dirtying-databas-
es-with-false-details;
10
Ibid;
11
https://www.telesign.com/fake-user-impact-report/;
12
http://angelineclose.com/wp-content/uploads/2011/02/Determinants-of-E-Shop-
ping-Cart-Abandonment.pdf
13
Article 8 of European Convention on Human Rights;
14
EU General Data Protection Regulation to come into effect as of 25th of May 2018;
15
http://www.telegraph.co.uk/news/2017/08/13/cyber-attacks-online-retailers-double-
year-hackers-try-steal;
16
https://www.digitalcommerce360.com/2015/02/03/online-shoppers-hesitate-buy-be-
cause-security-concerns;
17
http://www.livemint.com/Industry/mCSJiFfZrxk8USJ0Rxh8lI/11-billion-identities-ex-
posed-in-data-breaches-in-2016-say.html;
18
http://www.wired.co.uk/article/hacks-data-breaches-2017;
19
https://www.digitalcommerce360.com/2015/02/03/online-shoppers-hesitate-buy-be-
cause-security-concerns/;
20
LoginRadius report on Customer Identity Preference Trends 2016;
21
Namely, adoption of General Data Protection Regulation (EU) 2016/679.
22
Mary Meeker’s Internet Trends 2017.

43