AVARTA

WHITEPAPER
Version 1.0
CONTENTS
Forward Statement 3 Third-party integration 15
Crypto key manager 15
Abstract 4
Official digital ID 16
Background 6 Recovery in case of emergency 16
Logging in: if only it were 6
Business Model 17
that easy
Revenue model 17
Overcollateralization: draining 7
Use cases 17
DeFi appeal
8 Detailed use case: Peer-to-peer 18
Increased Regulation
Opportunity 8 Blockchain lending 19

Solution 10 Token Sale 20

Military grade security 11 Roadmap 22

Passwordless authentication 13
Team & Advisors 23
Single sign-on 13
13 Disclaimers 25
Safekeeping of crypto assets
DeFi integration 13 The Tokens 25

Cross-chain yield optimization 14 Avarta Platform 28

NFT storage 14 Definitive Documentation 28

Transaction history 14 Indemnity and Limitation of 29

Liability
Future Statements 29
Risk Disclosures 30
 FORWARD STATEMENT
FROM THE CHAIRMAN
To all valued members of the blockchain community,

The blockchain world has seen an exponential growth in participation

and its users since 2017. As an ecosystem, it has provided cutting edge
technology and user cases that can help the wider public. Recent
innovations such as Decentralized Finance (“DeFi”) and Automated
Market Makers (“AMMs”), if adopted in the right manner, can provide
great utility and positive change to traditional banking and capital
markets.

The growth of blockchain and its associated technologies must be augmented by better
security to protect both blockchain’s users and its communities. To achieve critical mass
adoption amongst the wider public, there must be a balance between regulators, privacy
preservation and the ease of use to achieve such security. As of the end of June’21, the total
market capitalization of the cryptocurrency market stands at close to US$ 1 Trillion; this is 10
times the size of the market compared to 4 years ago which stands at close to US$100 Billion.
With so much more capital and liquidity in the market, authentication in a decentralized
manner takes on increasing importance for all participants.

This is one of our main motivations for launching the Avarta blockchain project. We aim to
create a leading project that serves to help improve current issues around whitelisting,
collateralization on DeFi lending and authentication for major blockchain participants. As
such, our project can provide a fundamental security layer for Level 1 (“L1”) infrastructure
protocol layers, DeFi lending platforms and Centralized Exchanges. By working with end
consumers and blockchain’s major players, I am of the firm belief that we can make the
blockchain world a better place.

All successful projects start with a strong purpose to solve problems for society, and it takes
an equally strong team to bring the vision to life. With Avarta, we hope to add significant value
on the security and authentication front, especially so in the blockchain world.

Yours Sincerely,

Prince Abdul Qawi

Office of His Royal Highness Pengiran Muda Abdul Qawi of Brunei Darussalam

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 ABSTRACT
Avarta addresses authentication and identification challenges that pervade both traditional and
blockchain applications. As blockchain matures and cryptocurrency projects are looking for
identity solutions, they find themselves stuck with either pseudonymous solutions or centralized
customer identification programs. Powered by patents, Avarta is a 4-in-1 solution for DeFi and
blockchain whereby your face is your private key to multiple blockchains.

OUR CORE FEATURES ARE:

1. Biometrically-secured, multi- 3. Multi-signature wallet for
chain blockchain wallet corporations and legacy planning

2. Anti-bot mechanism for public 4. Multi-chain, decentralized

DEX listing identity management with risk
based scoring mechanism

Avarta provides crypto companies and the blockchain industry established standards of
authentication and proof of identity that serve the industry, rather than adopting outdated
standards from centralized institutions.

Avarta provides a military-grade security enabled identity wallet that allows people to control
their private keys conveniently. Avarta’s cross-chain support means that cryptocurrency users can
consolidate all of their cryptographic keys in one wallet that requires no passwords, no seed
phrases and no need to write down the keys in a safe (or not-so-safe) location. Using a
combination of biometrics and device data, Avarta is able to create a trust score with a military-
grade level of authentication assurance, creating a completely secure wallet for users.

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 The Avarta system is designed to be used for Decentralized Finance (DeFi) applications. One of the
drawbacks of blockchain’s trustless nature is that a person doesn’t retain a reputation or credit
rating. On top of that, the fluctuations in the priceof cryptocurrency represent a risk when it
comes to lending or investing against a cryptoasset. As a result, DeFi applications often need to
overcollateralize to compensate for fluctuations and for the fact that there is no identification of
the investor or borrower.

By creating a unique, secure identity, as well as a way to store a person’s full transaction history,
Avarta allows an individual to prove they are a reliable investor, lender, or borrower, giving them
access to services based on trust—similar to a credit rating. Unlike centralized credit ratings,
however, Avarta gives full control to the user. The user can determine when and how to expose
their information, and they can remain anonymous if that is allowed by the platforms they use.

Avarta's mission is to create a secure, private and user-controlled authentication layer that puts
the full power of the web into users’ hands.

WITH AVARTA, YOUR BIOMETRICS ARE YOUR OWN

PRIVATE KEYS.

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 BACKGROUND
LOGGING IN: IF ONLY IT WERE THAT EASY
Password fatigue has been an issue for years, but in the crypto world, the problem is compounded
by complex private keys, seed phrases, and non-custodial wallets that put 100% of the
responsibility for remembering those phrases on the user. While this takes control from banks and
puts it in the hands of users, the downside is the loss of funds. It is estimated that approximately
20% of Bitcoin, or approximately $140 billion, is inaccessible due to the loss of cryptographic keys
by users. [1]

Privacy and control are some of the main advantages of using cryptocurrency, so people don’t
want to use centralized exchanges or custodial wallets. But even non-custodial wallets are
susceptible to attacks such as reverse proxy phishing, cryptojacking, dusting, and clipping. [2]
[2As
cryptocurrency gains momentum, the need for user-friendly and highly-secure authentication
methods is growing. Blockchain wallets are poorly protected. Metamask, the most common
Ethereum wallet in DeFi, uses a simple password login and is vulnerable to a variety of attack.[3]
[3]

Cybercrime accounted for more than $3 billion in losses in the crypto market, with the most
lucrative target being cryptocurrency wallets, with an average of $112 million per wallet hacking
event compared to about $10 million per attack on Ethereum apps or exchanges. [4]
[ With the
amount of money at stake growing rapidly, making wallets safe is a huge priority for the industry.

Passwords have long been a security risk and inconvenience. For increased security and better
user experience, the industry is moving to biometrically-powered authentication. Gartner predicts
that by 2022, 60% of large and global enterprises and 90% of midsize enterprises will implement
biometrically-powered methods in more than 50% of use cases. [5]

1. 20% of All Bitcoin Is Lost, Unrecoverable, Study Shows, Nathan Reiff, Investopedia, June 2019. Cryptocurrency
2. Attacks to Be Aware of in 2021, Photon Research Team, digital shadows.
3. 6 Ways a Site Can Attack Your Metamask, Shannon Wu, Bloom, February 2018.
4. Cryptocurrency Hackers Steal $3.8 Billion in 2020, Will Neal, Organized Crime and Corruption Reporting Project, January 2021.
5. Embrace a Passwordless Approach to Improve Security, Gloria Omale, Gartner Group, January 2019.

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 Truly biometrically-powered authentication does not require the user to remember any type of
password. Keys can be stored on people’s mobile devices and unlocked with biometrics. The most
commonly used biometrics are facial scans, retina scans, and fingerprint scans, but today’s
technologies can also record people’s unique heart rate patterns, gait, and other types of
biometrics identified by wearables. Interactive Voice Recognition (IVR) and call recording systems
have been using voice recognition for years so that as someone is giving their identifying
information over the phone, the systems simultaneously match their voice patterns and flag
suspicious activity. Mass adoption of biometrics and the almost complete disappearance of
[6]
security concerns among consumers have eliminated the barriers to implementation.

Avarta provides the solution to this with our military-grade solution that is patented both in the
USA (United States Patent: No.10,277,603) and in South East Asia (Malaysia Patent: No. MY-176069-A)
covering the ability to authenticate a transaction in a multi-faceted manner.

OVERCOLLATERALIZATION: DRAINING DEFI APPEAL

DeFi lending has been one of the exciting applications of blockchain technology. The ability to
take out middlemen such as bankers has provided opportunities for borrowers and lenders alike.
However, using cryptocurrency to collateralize these loans exposes the lenders to the risk
associated with cryptocurrency volatility. As a result, lenders require additional collateralization.
For example, MakerDAO requires 150% collateralization and Compound also requires extra
collateralization. In many platforms, if the collateral loses value too quickly, the loan can
automatically be called by the smart contract.

Overcollateralization creates inefficiency, with cryptocurrency being tied up in these loans when it
could be invested elsewhere. One of the potential solutions would be to create some kind of
credit score for the participants in DeFi vehicles. However, investors who prefer anonymity or use
pseudonymous cryptographic addresses simply have no way to build up a credit score or
reputation as reliable traders. Traditional credit ratings don’t have direct applications in the
crypto and blockchain world, and there are yet to be any established standards or best practices
for crypto assets.

6. Login Preferences Among Older Adults, Hypr.

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 INCREASED REGULATION
In an attempt to limit the pervasiveness of cryptocurrency use to launder money, the Financial
Action Task Force (FATF) extended its definition of the Travel Rule to cover Virtual Asset Service
Providers (VASPs)[7],
[7] which include cryptocurrency exchanges and other financial cryptoasset

service providers. The Travel Rule is a product of FinCEN, the U.S. regulatory agency responsible
for enforcing the Bank Secrecy Act. It was created in 1995 and requires that financial institutions
transmit certain information on certain funds transfers and transmittals to other institutions. In
2019, FATF, a global money laundering and terrorist financing watchdog, extended the mandate to
cover cryptocurrency transactions – the implications of which have yet to be fully understood. It is
possible that platforms that were thought to be previously exempt are now being recognized as
potential violators of this rule, including decentralized exchanges (DEXs) and DeFi projects.

Because of the way such protocols and programs interact with individuals, they are unable to
record the information necessary to fulfill the language of the Travel Rule. Without substantial
changes to the way they do business, they may find themselves operating in violation of
international laws. Thus, a wallet solution that can help solve this issue could have added
significant value and pave the way for decentralized financial service providers to continue to
operate in compliance with international money laundering laws.

OPPORTUNITY
The DeFi industry is growing rapidly and as it matures, solutions are required for developing
trusted systems for authentication and reputation. While the “trustless” slogan has been touted
for blockchain, the idea behind it is that trust is designed into the system so that people don’t
have to know the person on the other end of the transaction.

7. FATF: Most countries have yet to implement anti-terrorism crypto ‘travel rule’, M Lim, June 2021, Forkast,

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 To build that trust, the following elements will become fundamental in DeFi:

RELIABLE AND SECURE TWO-WAY AUTHENTICATION AND

AUTHENTICATION. TRANSACTION VERIFICATION.
Trusted wallets need to secure people’s In today’s blockchain systems, people
information and identities. Users need simply send money from one wallet to
seamless and biometrically-powered another. There’s no way to send a
authentication that reaches the same confirmation signal to accept funds or
security levels as banking and other other type of handshake between
financial systems. Without a centralized people to make sure they are really
banker that insures funds, the security sending to the right person and the
needs to be even better. right wallet.

CRYPTO CREDIT RATINGS OR KYC FOR NON-PERFORMING

BACKGROUND CHECKS. LOSS (NPL).
Unlike centralized credit ratings Asset tracking and appropriate
authorities, the DeFi model of credit measures for tax and compliance
scoring will be based more on purposes need to be implemented so
transparency of interactions, the ability that people can maintain their
of individuals to check one another’s accountability to their jurisdictions.
credit worthiness, and certifying bodies. Financial institutions will increasingly
Creating aggregate wallets that allow be picking up on the DeFi trend and
users to store transactions over multiple requiring additional services in order to
chains can enable this kind of secure their transactions.
decentralized credit ratings. [8]

Security is key for this industry. Blockchain is rapidly expanding beyond the $2 Trillion mark,
and many predict that DeFi will overtake traditional banking. Tooling for the industry must
include security and data privacy solutions.

The combination of biometrically-powered technology, blockchain, and regulations protecting

investors is enabling a new wave of applications that provide the security and infrastructure for
a new financial system.

8. DeFi’s Critical Missing Piece: Credit Scores, Rafael Cosman, CoinTelegraph, April 2021.

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 SOLUTION
Avarta leverages data already collected by people’s mobile devices to create a seamless,
biometrically-powered, multi-chain wallet that stores people’s cryptographic keys and transaction
histories, eliminating cryptocurrency loss due to security breaches, cryptographic key loss, or
forgetting of seed phrases. The storage and control of transaction by the user enables
cryptocurrency traders and investors to develop credit histories that increase efficiencies across
the DeFi space.

Avarta is based on a decentralized blockchain devoted to identity and privacy solutions. The
Avarta protocol includes:

PATENTED BIOMETRICALLY-POWERED AUTHENTICATION

Avarta combines biometrics and device data to create an authentication score that ensures that
only the actual wallet holder can access their information.

ENTERPRISE / MILITARY GRADE SECURITY

The security provided is strong enough to be trusted with financial accounts and personal data.

MULTI-CHAIN PROFILING
Single-sign-on (SSO) capabilities enable users to hold one wallet and be able to manage their
cryptographic keys across multiple blockchains and dApps. The ability to facilitate transactions
over multiple blockchains will allow the consolidation of transaction history to a cohesive credit
score that can be ported across different DeFi apps.

LOCAL AND AVARTA STORAGE

Keys and data are stored locally with the user and with Avarta storage. Only a successful
authentication can allow a transaction by the authenticated Avarta user.

PASSWORD MANAGEMENT
Multiple cryptographic keys are seamlessly and securely stored in one place.

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 TRANSACTION HISTORY
Maintaining the transaction history of the user is core to the future of DeFi capabilities to work
across applications and blockchains. By understanding a user’s total net worth, trading income,
lending and borrowing history, and trust history, DeFi applications can compose trust assessments
and provide services to individuals tailored for their capacity for making trades, taking loans,
lending to others, etc.

Avarta holds all of the person’s blockchain private keys for a single-sign-on (SSO) experience for
all cryptocurrency applications. Because it can only be unlocked through recognizing the specific
person, device and behaviors, the Avarta wallet is completely secure and the user never has to
remember complicated passwords or answer security questions.

KEY FEATURES OF THE AVARTA WALLET:

Decentralized multi-chain user- Tracking of all DeFi applications

controlled wallet DeFi Integration
Free to use Cross-chain yield optimization
Earn rewards and yields for use NFT storage
Biometrically accessible Enterprise-grade
Multi-factor authentication Insurance coverage
Military-grade security Compliance-ready
Anti-bot mechanism for IDOs
Passwordless sign-in
Multi-signature capability
Single sign on
Risk- based scoring
Safekeeping of cryptoassets

MILITARY GRADE SECURITY

The patented biometrics solution is at the core of the Avarta technology. Avarta has developed
technology that identifies people as well as—or better than—humans identifying one another. By
combining a multitude of factors that are collected through an individual’s device, Avarta provides
authentication that simply cannot be reproduced by anyone but the individual who owns the
wallet.

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 Mobile devices carry a tremendous amount of information on everyone including voice patterns,
gait, the way someone holds the phone, taps and swipes, etc. In addition to the personal
information, the device itself is unique in terms of the model, battery life patterns, location,
storage, etc. Combining information on the phone plus the individual is enough to create an
extremely high level of confirmation that a person is who they say they are. Not only that, but a
facial scan or fingerprint set can be compared to databases of other biometrics and confirm that
the person is unique and not using anyone else’s data. Such databases are now used regularly for
border control. People’s privacy is preserved because biometric scans are not stored as raw data
but rather as hashed patterns, called templates, that represent a unique person’s print. Because
the hash is always performed the same way, matching hashes indicate a print is the same person.

The Avarta Score generated is a unique composite score calculated by the AI-powered synthesis of
authenticating each user by multiple means. Avarta can also be used to create a unique user
template based on industry standards for biometric templates and compare identities to make
sure that someone does not have duplicate identities.

AVARTA USES A COMBINATION OF BIOMETRIC AND DEVICE

SPECIFIC DATA, INCLUDING:

Facial Recognition user, battery life, geolocation, etc.

Device analytics, such as the specific Sudden or multiple changes in the
device model, internal components, devices attributed to a particular user.
installed apps, speed, etc. User-device behaviors, such as speed
Device usage behaviors, such as the of swipe, weight of tap, usage patterns
number of contacts, the regular of the applications etc.
movement patterns of the particular

Through the Avarta Platform, users create an "Avarta" of themselves with their wallet address and
can choose which information forms part of their digital identity. Users are required to choose a
minimum amount of data for a secure score, and some information is built into the device itself.
For obvious reasons, this whitepaper does not reveal the exact combination of inputs that Avarta
uses to authenticate.

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 PASSWORDLESS AUTHENTICATION
The key to making the Avarta useful, seamless and secure lies in multi-factor authentication.
Through Avarta, users log in without any password, private key, security questions, or seed
phrases. Avarta will be combining more than a dozen factors for every single authentication,
making it virtually impossible to fake someone else’s identification.

SINGLE SIGN-ON
As described within the previous features, Avarta knows who the user is at any given time. The
Avarta app operates as an agent to log in to any dApp or exchange where the user is registered.
Avarta maintains a secure registry of the keys, provides the authentication, and logs in on their
behalf.

Single sign-on (SSO) means that users do not need to spend any time finding their passwords—
they can work seamlessly with no interruption and Avarta makes sure everything simply works.

SAFEKEEPING OF CRYPTO ASSETS

The biometrically-powered and extremely high-security authentication capabilities of Avarta make
it the application of choice for the safekeeping of cryptoassets. Anyone with the Avarta wallet can
feel confident that all of their cryptoassets are fully protected when they use the Avarta interface
for the storage of their private keys. Avarta eliminates any concerns about the potential for loss of
cryptographic keys and assets. Avarta provides the best security available in digital format but
recognizes that some people would like to have a physical backup for disaster recovery.

DEFI INTEGRATION
In addition to the Avarta wallet, Avarta’s authentication service is available as an SDK for
integration with blockchain, DeFi and other types of applications that require single-sign-on,
identity, or biometrically-powered authentication. Avarta provides tools for developers to
integrate this technology into their dApps to replace less secure or difficult-to-use login
capabilities.

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 CROSS-CHAIN YIELD OPTIMIZATION
By providing a single wallet with multiple chain logins, Avarta enables cross-chain asset
optimization through DeFi exchanges. Investors can leverage the cross-chain capabilities of Avarta
to assess and optimize cross-chain yield farming, staking, and other investment opportunities.
Third parties can create a variety of apps to leverage these cross-exchange and cross-chain
visibility capabilities.

NFT STORAGE
The Avarta wallet allows the holding and tracking of NFTs being held by the user. Avarta holds the
private keys and the logins to marketplaces for NFTs, allowing the Avarta users to access, display,
trade and prove ownership of their NFTs, artworks, collectibles and assets.

Non-fungible tokens are growing in importance in terms of their value, not just as art objects but
also as proof of ownership of real-life objects. [9] NFT holdings indicate the value of people’s
portfolios, and therefore are a key part of creating credit ratings and investor profiles.

TRANSACTION HISTORY
Transaction history is the foundation for the creation of credit scores and determining if someone
is credit-worthy. These transactions which are utilized to credit score include:

THESE TRANSACTIONS WHICH ARE UTILIZED TO CALCULATE

THE PROPRIETARY CREDIT SCORE INCLUDE:

Purchase and sale of cryptocurrency NFT holdings and other crypt-asset

Staking rewards on crypto holdings
Lending and borrowing of crypto Gains and losses on investments
Repayment history Current portfolio
Collateralization and Outstanding collateralization
collateralization history

9. Mattereum: Enabling NFTs for Physical Assets.

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 As Avarta creates the data layer to allow the risk-based scoring to be performed, the wallet
enables the users to preserve their transaction history and to send it to any third party. In a
decentralized environment, different independent certification agencies can emerge, creating
different types of credit ratings or ranking on people’s reliability as lenders, borrowers and
traders. The Avarta system will provide ways for people to export their trading history to other
authorities, either in part or whole. For example, if someone wants to prove their holdings in just
one currency, or show all of the collateralization current on the portfolio, they could expose just
that information. Credit rating agencies could require full or partial history, depending on the
types of transactions.

THIRD-PARTY INTEGRATION
Through integration with various third-party information, Avarta can provide a range of DeFi
services that can leverage the information that users collect on their own transactions to give
them a crypto-based identity and reputation.

SERVICES THAT COULD BE PROVIDED BASED ON THE

INTEGRATION INCLUDE:

Unique identity services (based Integration with Web 2 and other

on templates that can be services
compared to other individuals Wallet risk scores and counterparty
in a database) transaction risk assessment
Know Your Customer Trader rankings and success scores
integrations to other services

Users can choose the information they release to trusted parties, gaining access to specific
services, whitelisting, and acquiring favorable interest rates.

CRYPTO KEY MANAGER

Avarta handles cryptographic keys for dApps and wallets. The biometrically-powered login can be
integrated with third-party wallets or simply used inside the Avarta wallet to provide a convenient
way for people to manage all of their crypto seed phrases and keys.

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 OFFICIAL DIGITAL ID
Digital wallets like Avarta can be integrated with official documentation such as company
credentials, driver’s licenses, professional certifications, university degrees, etc. Already, many
countries use biometric identifications and are able to combine these data with apps. The Avarta
protocol is designed for integration with these types of certification and identification systems.

RECOVERY IN CASE OF EMERGENCY

Because the Avarta system is heavily dependent on biometrics and there is no custodial operation
to recover data or keys held under Avarta wallets, it’s necessary to implement a recovery
methodology that is verifiable in the case that someone has incurred an injury that would prevent
them from opening the wallet. The person can designate up to seven other people who have
Avartaprofiles and who would be able to open the wallet, either as individuals or by agreement (a
minimum of 3 of five people for example) in case of the person’s death or injury. The person could
set a minimum amount of time between their final login with their own credentials and the release
of the keys to custodians. For example, if someone suffers a stroke and is unable to log in because
their facial, voice and physical attributes were significantly altered, there could be a 30 or 60 day
minimum wait time before the people they designated as custodians would be able to open the
wallet.

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 BUSINESS MODEL
REVENUE MODEL

AVARTA IMPLEMENTS TWO BASIC BUSINESS MODELS:

Transaction fees for transactions on Integration and third-party

the platform (DeFi exchanges and licensing fees (CeFi exchanges and
service providers) financial providers)

USE CASES

POTENTIAL USE CASES FOR THIRD PARTIES INTEGRATING

AVARTA INCLUDE:

Regulatory compliance for dApps Two-sided transaction validation

Prevention of bots and automated Escrow
attacks on exchanges Secure money transfer
Secure Zero-Knowledge-Proofs Delegation of accounts
Self-sovereign identity and privacy Proof of transaction for taxation
protection purposes, including proof of no
Data protection transaction
Multi-wallet consolidation

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 DETAILED USE CASE:
PEER-TO-PEER BLOCKCHAIN LENDING
Peer-to-peer loans have been one of the longest-standing use cases discussed in the
cryptocurrency industry. Peer-to-peer loans can take a number of formats: collateralized and non-
collateralized loans. To date, only collateralized loans have been possible because of the lack of
credit ratings and true identities in the blockchain DeFi applications. Following is a case for a
collateralized crypto loan.

A crypto-backed loan is a collateralized loan that a user receives through a crypto exchange or
other crypto lending platform. DeFi collateralized loans have been extremely popular, allowing
people to make investments and increase their income.

Lending in DeFi most often uses tokenized pools to aggregate liquidity, which streamlines the
business process for borrowing. One does not have to source potential lenders or negotiate the
interest rate since there is a single entry point for all loans, and the interest rate is determined
algorithmically from market conditions. Some of the largest protocols include Compound, Aave,
dydx and MakerDAO.

Key characteristics of DeFi loans:

PERMISSIONLESS
Anyone can borrow cryptocurrencies without having to undergo KYC or get permission from a third
party.

AUTOMATED
Loans are automatically dispersed through smart contracts, with positions being liquidated if a
collateralization ratio falls below the predefined threshold.

NON-CUSTODIAL
With DeFi loans, there is no need to transfer ownership of the underlying collateral. All funds are
secured by smart contracts, with the borrower being responsible for maintaining that position.

SECURE
Major borrowing protocols have been rigorously audited, meaning that funds supplied to loans are
backed by the most robust code in the world.

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 DYNAMIC
The vast majority of borrowing in DeFi leverages variable interest rates which shift relative to the
utilization ratio of any given asset.

PERPETUAL
DeFi loans can be opened for any amount of time, so long as the debt is paid back and the
position is sufficiently collateralized

However, one unique feature for Defi is that it is usually overcollateralized which reduces the
lenders’ risk. However, this overcollateralization reduces the attractiveness of borrowing assets.

Source: Loanscan

One of the reasons for over-collateralization is that the borrower’s identity, credit history, and
other assets are hidden to the lender. However, with Avarta, a lender could ask for additional
information. For example, if the lender sees that the borrower has a valuable collection of NFTs,
they could make a loan based on basic collateral, and monitor the wallet on a regular basis, just
to make sure that the borrower still has a liquid position. The lender knows that the borrower is
“good for the money” even if there is a decrease in the value of the collateral. In case the
cryptocurrency rates drop and the borrower needs to put in more collateral, the lender can make
a request to the borrower and they can settle or have the loan cash out automatically. If the
borrower has a good borrowing history, this increases the lenders' assurance that they are taking
a reasonable risk.

The use case above discusses collateralized loans, but Avarta envisions that over time, with the
use of the Avarta scores and third-party applications, it will be possible to create decentralized
financial institutions that are able to take risks based on credit history, providing peer-to-peer
loans without collateral.

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 TOKEN SALES
AVARTA shall only be made available for purchase through its token sale or on the secondary
exchange market.

Avarta will create 200,000,000 (200 million) total AVARTA based on the following capital raise
structure:

SALES PERIOD TOKENS SOLD SELLING PRICE AMOUNT RAISED

Pre-Sale 6,000,000 USD 0.050 USD 300,000

Private Sale 16,000,000 USD 0.075 USD 1,200,000

Public 5,000,000 USD 0.10 USD 500,000

Total 27,000,000 AVARTA - USD 2,000,000

TOKEN BREAKDOWN

USD RAISED

TOKENS SOLD

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

PRE-SALE PRIVATE SALE PUBLIC SALE

LAUNCH ECONOMICS

Initial Circulating Supply Market Cap at Launch

4,020,000 USD 402,000

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 Tokens created by the contract will be distributed based on the following:

AVARTA TOKEN DISTRIBUTION VESTING

7% at listing. Linear
Pre-Sale vesting over 12 mo.
thereafter (Weekly
Vesting)

10% at listing
Linear vesting over 9
Private Sale
mo. thereafter (Weekly
Vesting)

40% at TGE
Public Sale Linear vesting over 1
mo. thereafter (Weekly
Vesting)

6 mo. cliff
Team Linear vesting over 18
mo thereafter
3% 8% 2.5%
PRE-SALE PRIVATE-SALE PUBLIC-SALES
6,000,000 AVARTA 16,000,000 AVARTA 5,000,000 AVARTA 6 month lockup
DEX Liquidity
18.5% 5% 11%
TEAM DEX LIQUIDITY (ETH) REWARDS & INCENTIVES
30,000,000 AVARTA 10,000,000 AVARTA 22,000,000 AVARTA
Incentives Released as per actual
15% 5% 5% and Rewards incentives given
STAKING REWARDS PARTNERSHIPS & ADVISORS
ECOSYSTEM
30,000,000 AVARTA 10,000,000 AVARTA
10,000,000 AVARTA
27% Staking Release as per actual
FOUNDATION
60,000,000 AVARTA
Rewards staking APRs

USE OF PROCEEDS Partnerships

2 mo. cliff
Released as per actual
and Ecosystem
incentives given

10% 30%
MARKETING OPERATIONS 6 mo. cliff
Advisors Linear vesting over 18
10% 5% mo thereafter
DEX LIQUIDITY LEGAL

1 mo. cliff
25% 20% Foundation
TECHNOLOGY RESERVE Equal vesting over 24
Reserve
mo. thereafter

Contributions received from the token sale will be used

according to the above breakdown. These percentages
are subject to change at any moment and provided as an
approximation.

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
21
 ROADMAP
2021’ Q2
Build out of Avarta multi-chain wallet on Testnet

2021’ Q3
Testing of Avarta Wallet on Testnet available

2021’ Q4
Launch of IDO. Mainnet for Avarta Wallet for
Ethereum, BSC and Solana.

2022’ Q2
Build out of data aggregation layer for wallet and
Whitelisting capabilities

2022’ Q3
Build out of anti-bots capabilities

2023’Q2
Testnet for Avarta proprietary credit scoring
capabilities

2023’ Q4
Mainnet for Avarta proprietary credit scoring
capabilities

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
22
 AVARTA TEAM

PRINCE ABDUL QAWI MATTHEW HONG LOON

OF BRUNEI AINSCOW GAN

Chairman Chief Executive Officer Chief Operation Officer

Technologist and Angel investor Serial Tech Entrepreneur Experienced Entrepreneur

Prince Abdul Qawi is the chairman of As an investor and experienced Hong Loon, CFA certified, is a serial
the National Insurance Co Bhd of investment professional, Matthew has had entrepreneur with a strong financial
Brunei. He has invested in multiple successful tech exits. He also holds patents in background. He has experience in Deutsche
projects previously in high profile listed biometric platforms and authentication. Bank, MUFG and a leading family office
and non-listed companies. advising governments and central banks.

YUKUN BELINDA PAVLOS

YIN LIM JOSEPH
Technical Lead Chief Marketing Officer Head of Partnerships

Blockchain Author

Yukun has a background working for a Belinda is the highly acclaimed Author of Pavlos has an extensive network in the
leading investment bank. He has "Blocklass". A five year veteran, she had world of blockchain and cryptocurrency.
developed several blockchain projects advised several blockchain startups. She is He is the leading advisor to Lydia-
including an identification system. His also a Certified Anti-Money Laundering capital, a blockchain VC that takes early
proficiency is in building big data models Specialist (CAMS). stage positions.
and neural networks.

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
23
 NJOKU ARTUR DANIEL
EMMANUEL NIKI TEWELDE

Blockchain Engineer Security Engineer Head of Community

Njoku is a blockchain and software Arthur is an experienced cyber security Daniel is a veteran blockchain advocate.
developer who has a wealth of experience specialist. He has previously worked with He has been instrumental in community
in building blockchain applications, several blockchain projects; achieving roles for projects including RSK and
having worked on projects such as compliance with local laws and developing Fantom.
MakerDao and XendFinance. secure approaches for business processes.

AVARTA ADVISORS
CHIA BARRY
HOCK LAI HERBST

CEO of Switchnovate Blockchain Aficionado & Investor

Hock Lai is the CEO of Switchnovate, co- Barry brings significant relationship-building
chairman of the Blockchain Association across a diverse and holistic global network.
Singapore. He is the former (founding) His experience as both a Blockchain
president of the Singapore Fintech Aficionado & Investor allows him to
Association. understand projects intimately from both a
strategic and technology standpoint.

VINSON LESTER
LEOW LIM

Founder of CRT Capital Founder of X21 Digital

Vinson is a veteran of advising blockchain Lester incubates and supports promising

projects. He brings a rich history of projects via his immense resources &

successful listings and community building connections in the blockchain ecosystem. He

as founder of Crypto Round Table as well as is also Advisor to Pinknode, Blank wallet,

his own entrepreneurial achievements. Polkafoundry, MahaDao, and many more.

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
24
 DISCLAIMER(S)
This Whitepaper provides a summary of the main features of Avarta, the tokens to be issued by
Avarta (the “Tokens”) and the Avarta platform. It contains general advice only and has been
prepared without taking into account any participant’s objectives, financial situation or needs.
Prospective participants should read the Whitepaper carefully and assess whether the
information is appropriate for them in respect of their objectives, financial situation and needs.
Any and all information as well as material provided in this Whitepaper are for informational
and discussion purposes only, and should not be relied upon, either wholly or partially, when
making any decision. Prospective participants should independently verify the information
and/or material contained in this Whitepaper and seek the professional advice of their
respective solicitor, professional accountant or other professional adviser.

This Whitepaper is distributed on a confidential basis to a limited number of recipients and may
therefore not be for use by or reproduced for any person other than the person to whom it is
distributed. The recipient, by its acceptance of this Whitepaper, agrees to keep permanently
confidential all information contained in the Whitepaper (and all accompanying documents),
and the recipient agrees not to disclose, distribute or permit to be communicated verbally,
directly or indirectly or otherwise, or to otherwise reproduce this Whitepaper or the contents
herein except with the prior written consent of Avarta. For the purposes of this
acknowledgement “recipient” includes, without limitation, any principal, director, shareholder,
employee or agent of the recipient.

The Tokens

Neither Avarta nor any Tokens have been approved or disapproved by any securities regulatory
authority anywhere in the world nor has any such securities regulatory authority passed upon
or endorsed the merits of the offering of the Tokens or the accuracy or adequacy of the
Whitepaper. Any representation to the contrary is a criminal offence.

The invitation contemplated in this Whitepaper is not, and shall not under any circumstances be
construed as, a public offering of the Tokens described in this Whitepaper. Neither does
anything in this Whitepaper constitute a recommendation or solicitation to use any Tokens, the
Avarta platform or any related products, services or technologies. This Whitepaper does not
constitute and may not be used as a prospectus or offering document, or is an offer or
invitation to buy Tokens, subscribe for securities or any other asset. This Whitepaper will not be
registered as a prospectus under any applicable securities legislation in any jurisdiction.

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
25
 The distribution of this Whitepaper in certain jurisdictions may be restricted and accordingly,
persons into whose possession this Whitepaper come are required to inform themselves about
and observe such restrictions including obtaining any requisite governmental or other consent
and observing any other formality prescribed in such territory. No action has been taken or will
be taken in any jurisdiction that would permit a public offering of the interests or possession or
distribution of the information set out in this Whitepaper in any jurisdiction where action for
that purpose is required.

FOR THE AVOIDANCE OF DOUBT,

(A) THIS WHITEPAPER AND THE TOKENS DESCRIBED IN THIS WHITEPAPER HAVE NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES
ACT); AND

(B) THIS WHITEPAPER AND ANY OTHER DOCUMENT OR MATERIAL ISSUED IN CONNECTION WITH
THE TOKENS DESCRIBED IN THIS WHITEPAPER HAVE NOT BEEN AND WILL NOT BE REGISTERED AS A
PROSPECTUS WITH THE MONETARY AUTHORITY OF SINGAPORE.

Unless expressly permitted, Tokens cannot be received, used, or held by, transferred or sold to,
a person which is (a) the subject of economic or financial sanctions or trade embargoes
administered or enforced by any country or government, including, but not limited to, those
administered by the United Nations Security Council, the European Union, Her Majesty’s
Treasury of the United Kingdom or Office of Foreign Assets Control of the United States or any
other applicable jurisdictions, (b) located, organised or resident in any country or territory that
is the subject of country-wide or territory-wide sanctions, (c) listed in any sanctions-related list
of sanctioned persons, including, but not limited to, those maintained by the United Nations
Security Council, the European Union, Her Majesty’s Treasury of the United Kingdom or Office of
Foreign Assets Control of the United States, (d) located, organised or resident in Australia,
Canada, Cuba, the Democratic People’s Republic of North Korea, Hong Kong SAR, the Islamic
Republic of Iran, Libya, the People's Republic of China, South Sudan, Sudan (North), Syria, the
Crimea, United States of America, any jurisdiction in which the acquisition and/or ownership of
Tokens is prohibited by applicable law, or (e) directly or indirectly owned or controlled by any
person or persons described above.

No warranties or representations of any kind are made with respect to the Tokens and all
warranties and/or representations, whether express or implied, relating to the Tokens are
disclaimed (including but without limitation any implied warranties as to merchantability,
fitness for a particular purpose, title and non-infringement.

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
26
 The Tokens shall be provided on an “as is” and “as available” basis. There is no guarantee that
the Tokens will perform as expected or hold any particular value or price. The Tokens may lose
some or all of their value. No promises, guarantees or undertakings are made with respect to
the Tokens, their price, value, supply amount, performance, etc. Avarta shall not influence the
price of such tokens or its performance, and assume no liability to any person for the Tokens,
their performance, value or loss in value, the use or inability to use the Tokens.

Any Token is not an investment, security, share or equity interest, debt or loan nor a derivative
instrument of any of the foregoing.

Unless otherwise specified, the Tokens do not have any rights, uses, purpose, attributes,
functionalities or features, express or implied, including, without limitation, any uses, purpose,
attributes, functionalities or features on the Avarta platform (including but not limited to any
voting, distribution, redemption, liquidation, proprietary or other financial or legal rights).

Participation in a token sale carries high risk; it is highly speculative and prospective
participants are strongly advised to seek professional advice. Please read the Risk Disclosures
below. The recipient, by its acceptance of this Whitepaper, accepts all the listed risks and agrees
that Avarta shall not be in any way liable for any losses, damages or costs incurred due to or in
connection with such risks The Avarta reserves the right to issue and/or risk disclosure
statements

Prospective participants should also note that the Whitepaper does not purport to identify, and
does not necessarily identify, all of the risk factors associated with the proposed participation
with the token sale. Accordingly, each prospective participant, prior to participating in the token
sale, must conduct and rely upon its own investigation of risk factors associated with the
proposed participation in the token sale.

The Whitepaper contains material provided to Avarta from various sources and any references
thereof do not imply our endorsement of the same. No representation or warranty is made or
should be implied as to the accuracy or completeness of the material contained herein and no
responsibility or liability will be accepted by Avarta for any loss or damage, howsoever arising,
which results from an action or reliance in whole or in part on such material. The information in
this Whitepaper is not complete and may be changed. Prospective participants should
independently verify the material contained in the Whitepaper. No person has been authorised
to give any information or to make any representations other than as contained in the
Whitepaper and any representation or information not contained herein must not be relied
upon as having been authorised by Avarta.

The information contained in this Whitepaper about the Tokens and the proposed business
opportunity is not intended to be the only information on which a decision is to be made and

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
27
 is not a substitute for a disclosure document, or any other notice that may be required under
law. Detailed information may be needed to make a token participation decision. In particular,
prospective participants should be aware that no established market exists for the trading of
any Tokens that may be offered.

This Whitepaper does not purport to be complete and does not necessarily contain all
information which a prospective participant would consider material. Accordingly, this
Whitepaper should not form the basis of any decision to participate in the proposed token sale.
In making any decision to participate in the the proposed token sale, prospective participants
should inform themselves as to (a) any possible tax consequences, (b) any legal requirements,
(c) any financial and other consequences of participating in the proposed token sale; and (d)
any foreign exchange restrictions or exchange control requirements which they might encounter
under the laws of the countries of their citizenship, residence, incorporation or domicile and
which might be relevant to the purchase, holding, or disposal of the Tokens. No representation
or warranty is made or implied as to the availability of taxation deductions or any other taxation
implications in relation to Avarta and the Tokens.

If you are in any doubt about the contents of this Whitepaper, you should consult your solicitor,
professional accountant or other professional adviser.

Avarta Platform

The Avarta platform is in beta stage and all related software is experimental. The Avarta
platform is provided on an “as is” and “as available” basis, without warranty of any kind, either
expressed or implied, including, without limitation, warranties that the Avarta platform is free of
defects, vulnerabilities, merchantable, fit for a particular purpose or non-infringing. Any use of
the Avarta platform shall be at your own risk. In no event shall we be held liable in connection
with or for any claims, losses, damages or other liabilities, whether in contract, tort or otherwise,
arising out of or in connection with the Avarta platform or its operation or use.

Definitive Documentation

Prospective participants should obtain copies of the relevant definitive documentation (the
“Definitive Documentation”) before making any binding commitments in respect of their
proposed participation in the token sale. Information in the Whitepaper is qualified in its
entirety by reference to the detailed information in the Definitive Documentation. Only the
particular representations and warranties contained in such Definitive Documentation will have
any legal effect. To the extent that statements made in the Whitepaper summarise provisions of
any agreement, they are qualified in their entirety by such provisions.

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
28
 Although every effort has been taken to ensure the accuracy of the facts and matters stated in
the Whitepaper, in the event of any inconsistency between the information contained in the
Whitepaper and any Definitive Documentation, the relevant Definitive Documentation shall
prevail to the extent of such inconsistency. Prospective participants and their advisers should
carefully review and evaluate the Definitive Documentation.

Indemnity and Limitation of Liability

The recipient, by its acceptance of this Whitepaper, agrees, to the fullest extent permitted by
applicable laws and regulations, to indemnify, defend and hold Avarta, its directors, officers,
shareholders, employees, directors, consultants, representatives, agents and/or contractors
harmless from and against any and all loss, penalty, claim, damage, liability or expense
whatsoever (including reasonable legal fees and costs) due to or arising out of or based upon
(a) any inaccurate representation or warranty made by the recipient, or breach or failure by the
recipient to comply with any covenant or agreement made by the recipient or in any other
document furnished by the recipient to any of the foregoing persons in connection with the
Tokens or the Avarta platform, or (b) any action instituted by or on the recipient’s behalf against
any of the foregoing persons.

To the maximum extent permitted by applicable laws and regulations, in no event shall Avarta,
its directors, officers, shareholders, employees, directors, consultants, representatives, agents
and/or contractors be liable or responsible for any direct, indirect, special, punitive, exemplary,
incidental, or consequential damages or losses of any kind, nor shall they be liable for the loss
of goodwill, loss of profits (including expected), loss of data, diminution of value, and/or
business interruption arising out of or in connection with the use of the Tokens, the Avarta
platform or this Whitepaper or reliance thereon, any inaccuracy or omission in this Whitepaper,
whether based upon breach of warranty or contract, negligence, strict liability, tort, or any other
legal theory, regardless of whether Avarta or any of the foregoing persons have been advised of
the possibility of such damages or losses.

Future Statements

Except for historical information, there may be matters in this Whitepaper that are forward-
looking information. Such information are only predictions and are subject to inherent risks and
uncertainty. Forward-looking statements, which are based on qualifications, assumptions and
estimates (in each case whether or not identified herein) and are generally identifiable by the
use of the words ‘may’, ‘project’, ‘intend’, ‘should’, ‘continue’, ‘target’, ‘anticipate’, ‘will’, ‘believe’,
‘estimate’, ‘plan’, ‘expect’, ‘intend’, ‘seek’, the negatives thereof or similar expressions.
Participants are cautioned not to place undue reliance on forward-looking information. By its
nature, forward-looking information involves numerous assumptions, inherent risks and
uncertainties both general and specific that contribute to the possibility those predictions,

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
29
 forecasts, projections and other forward-looking statements will not occur. Those risks and
uncertainties include factors and risks specific to the industry in which Avarta operates as well
as general economic conditions. Forward-looking Information is provided for illustrative
purposes only and is not intended to serve as and must not be relied on by any participant as a
guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual
performance, events, results or outcomes may be materially different from those expressed or
implied in those statements.

All forward-looking information attributable to Avarta or persons acting on behalf of Avarta are
expressly qualified in their entirety by the cautionary statements in this section. Except as
expressly required by law, Avarta undertakes no obligation to publicly update or revise any
forward-looking information provided in this Whitepaper whether as a result of new
information, future events or otherwise, or the risks affecting this information.

None of Avarta, its officers or any person named in this Whitepaper with their consent, or any
person involved in the preparation of this Whitepaper, makes any representation or warranty
(express or implied) as to the accuracy or likelihood of fulfilment of any forward-looking
information except to the extent required by law. The forward-looking information reflect the
views held only as at the date of this Whitepaper.

Risk Disclosures

Risk of Software Weaknesses

Although Avarta shall make reasonable efforts to ensure that the Tokens, the Avarta platform
and related software adopt high-security standards, Avarta does not warrant or represent that
the Tokens, the Avarta platform or any such related software are secure or safe, or protected
from fishing, malware or other malicious attacks. Further, the Tokens, the Avarta platform and
related software may contain weaknesses, bugs, vulnerabilities, viruses or other defects which
may have a material adverse effect on the operation of the tokens to be issued by Avarta, the
Avarta platform or any such related software or may lead to losses and damages for users of the
tokens to be issued by Avarta, the Avarta platform or any such related software or third persons.

Risk Inherent in the Blockchain

The Tokens, the Avarta platform and related software are or will be deployed on blockchain
related networks. As a result, any malfunction, breakdown or abandonment of such
blockchain(s) may have a material adverse effect on the Tokens, the Avarta platform or such
related software. Moreover, advances in cryptography, or technical advances such as the
development of quantum computing, could present risks to the Tokens, Avarta platform, related
software, and related blockchain software by rendering ineffective the cryptographic consensus
mechanism that underpins the relevant blockchain network. The smart-contract concept, the
underlying software application and software platform are still in an early

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
30
 development stage and unproven. The blockchain, as well as any other blockchain, can be
attacked which may result in downtime, consensus split, long reorganization of the chain, 51
percent attack, or other adverse outcomes each of which may lead to complete loss of the
participant’s digital assets.

Risk of Flawed Logic of the Tokens, the Avarta Platform or Related Software

The underlying logic of the Tokens, the Avarta platform and their related software may be
flawed, defective or impaired, which can result in smart-contracts operating incorrectly or not as
expected, or transactions being executed in violation of logic which underpins the smart-
contracts, which can lead to partial or complete loss of digital assets used in the transaction.

Risk of Confusing User Interface

Certain user interface elements or design decisions may be confusing or mislead participants,
which may result in the execution of a different action or transaction than intended or desired,
or connection of a wrong wallet, account or network.

Risk of Legal Uncertainty

The intended activities of the Avarta platform are subject to various laws and regulations in the
countries where Avarta operates or intends to operate. Avarta may be obliged to obtain different
licenses or other permissive documents in some or all jurisdictions where it intends to operate
its business, therefore, its business in such jurisdictions shall always be subject to obtaining
such licenses or permissive documents, if so directed by applicable laws. There is a risk that
certain activities may be deemed in violation of any such law or regulation. Penalties for any
such potential violation may be unknown. Additionally, changes in applicable laws or
regulations or evolving interpretations of existing law could, in certain circumstances, result in
increased compliance costs or capital expenditures, which could affect Avarta’s ability to carry
on its business model.

Risk of Theft

There is no assurance that there will be no theft of the participant’s digital assets as a result of
hacks, sophisticated cyber-attacks, distributed denials of service or errors, double-spent attacks,
flash-loan attacks, vulnerabilities or defects of the Tokens, the Avarta platform, any related
software or otherwise. Such events may include, for example, flaws in programming or source
code leading to exploitation or abuse thereof. Any of the above may lead to partial or complete
theft or loss of digital assets used in transactions carried out in connection with the Tokens, the
Avarta platform or any related software.

Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.
31
 Value Risks

Tokens may drop substantially in value, or may remain illiquid for long periods of time or
indefinitely. Avarta cannot guarantee an active secondary market for the exchange of Tokens
purchased in the token sale. Not all disclosures or statements are being made in this disclaimer
section. Participants should review the Definitive Documentation in their entirety and seek the
professional advice of their respective solicitor, professional accountant or other professional
adviser.

The Tokens may change in value based on a number of factors that are outside Avarta’s control.
There is no guarantee or expectation that the Tokens will increase in value, provide a return, or
have sufficient adoption and liquidity on exchanges. Owning these Tokens does not constitute a
share of equity or ownership in Avarta. The token economy is new and exciting. Regulatory
circumstances may require that token mechanics be changed or altered.

Avarta.io
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32
 Avarta.io
Copyright © 2021 Avarta Foundation Ltd. All Rights Reserved.