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WHITE PAPER ICO

AI Crypto-assets Investment Technologies

Elpis is going to start a cutting-edge hybrid investment-management company that brings together digital and investment fund expertise with the fresh, game-changing approach of a

start-up.

Elpis is a company with a dream: shaping the future together with ambitious investors who believe that great ideas, innovation, transparency, and fairness are the keys to be successful

in the new era of investing.

We have created an AI-based investment system that provides trading strategies tailored to investors’ needs and goals with total transparency.

We use technology with a clear purpose: maximize profits, minimizing risks and costs.

.

info@elpisinvestments.com

Version: 25/01/18

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TABLE OF CONTENTS

DISCLAIMER 3

The Abstract 4

Executive Summary 5

How does Elpis work? 6

The Third Wave of Investing 7

Digital Assets Fundraising: ICO 8

Crypto Equity Token ICO 9

Targets and Valuations of a crypto-equity token 10

Distribution of the tokens 11

Pre-Sale 12

Public ICO 12

Token Escrow 13

Token Earning Mechanism 13

Traditional Assets Fundraising: AUM 14

Blockchain Auditing and applications 15

Use of Blockchain 15

Use of Blockchain for crypto investors 16

The Market 17

Traditional Asset Management market 18

Crypto trading 21

The Product: Elpis Platform 23

Artificial Intelligence Trading 25

Machine Learning Strategies 26

Swarm Intelligence Portfolio Optimization 26

Our Track Record 27

Marketing 29

Value Proposition 30

Competition 31

SWOT Analysis 32

Team 33

Employees 33

Recruitment program 34

Advisors 35

Partners 35

Mission and Milestones 36

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DISCLAIMER

PLEASE READ THIS DISCLAIMER SECTION CAREFULLY. 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).

The information set forth below may not be exhaustive and does not imply any elements of a contractual

relationship.

While we make every effort to ensure that any material in this White Paper is accurate and up to date, such material

in no way constitutes the provision of professional advice. The team of Elpis does not guarantee, and accepts no

legal liability whatsoever, arising from or connected to, the accuracy, reliability, currency, or completeness of any

material contained in this White Paper. Potential token holders should seek appropriate independent professional

advice prior to relying on, or entering into any commitment or transaction based on, material published in this

white paper, which material is purely published for reference purposes alone. Elpis tokens will not be intended to

constitute a guaranteed investment opportunity.

The content of this white paper has not been approved by an authorised person within the meaning of the Financial

Services and Markets Act 2000. Reliance on the white paper for the purpose of engaging in any investment activity

may expose an individual to a significant risk of losing all of the property or other assets invested.

Also, this document does not constitute a prospectus or offer document of any sort and it is not intended to

constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. Elpis does not

provide any opinion or any advice to purchase, sell, or otherwise transact with its tokens and the fact of presenting

this White Paper shall not form the basis of, or be relied upon in connection with, any contract or investment

decision. No person is bound to enter into any contract or binding legal commitment in relation to the sale and

purchase of tokens, and no cryptocurrency or other form of payment is to be accepted on the basis of this White

Paper.

The token itself does not on its own fail the Howey and Reeves tests since it does not have voting rights, claim to

asset and claim to revenue. We can argue that a token holder can redeem shares (based on the agreement that’s

stated below). If the token holder should pass "shareholder" criteria of local jurisdiction before he holds shares it

would be subject to security law. This argument of redemption (whose shares are not yet in existence at company

house) can one day be classified as a regulated activity (not explicitly today) so we’re not closing that possibility.

However, even a "utility" token poses some risks of being regulated either as money, cryptocurrency, and even as

a security because of the intention of "investing".

What sets crypto equity or elpis' model apart from normal ICO activity is that the token has real market

fundamentals behind the token itself. You want to invest on the team, the potential of product and market. With

the token price following the share price (where the token is emitted and share does not circulate) that it should in

theory reflect that value. It can be argued the token to be close to a derivative but the underlying still does not

exist. Anyway, due to these multiple possibilities, we highly recommend KYC and AML requirements should be

in place, and Elpis has adopted this before purchasing.

Finally, we specify that the company raising through ICO is a technology company, not the fund, hence you are

contributing to the realization of the technology. The technology company will then register the regulated entity

and commence the operations only once the ICO is being done.

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The Abstract

Before we proceed to explain what we are doing and want to do, let us state where we come from.

The project was conceived and developed by a group of Italian experts and has rapidly outgrown our

deepest expectations, leaving us with a bigger project that the one we expected. Big projects, in startup

terms, are equivalent to big risks. Nowadays Venture Capital is for sure an expression that everybody

likes to use, but for some countries, like Italy, the approach of Venture Capitalist is still very often

inadequate and unrealistic.

The risk approach of Italian investors to young and hungry entrepreneurs like we are is inadequate to

take the actions necessary to sustain projects like ours. Luckily, the technologies and the disruptive

innovation we are using allow us to find the funding required to keep on building a disruptive project

of the magnitude we imagine. Finance more than any market requires openness and transparency,

fairness and trust, and taking advantage of the new possibilities opened by technology is not only an

opportunity but a moral obligation.

A hedge fund for regular people is no longer an impossible dream to realize, but a realistic goal that we

want to pursue to make a real difference in this environment.

Why Elpis? Elpis means Hope in Ancient Greek. The etymology perfectly symbolizes our vision and goals: we

dream and strive to build something completely new and unknown, to follow our dreams and achieve

results that might seem unthinkable: we hope and work for great results despite all the obstacles. Elpis

in the Greek Pandora’s myth described by Hesiod, represents the personification and spirit of hope.

Once Pandora opened the jar the gods gave her, all the evils come out to the world: the only thing left

when the lid of the Pandora’s jar was closed was Elpis, hope.

“Only Hope was left within her unbreakable house, she remained under the lip

of the jar, and did not fly away. Before she could, Pandora replaced the lid of

the jar. This was the will of aegis-bearing Zeus the cloud gatherer.” (cit.

Hesiod’s Works and Days)

Elpis, after all the evils had come out, despite all the difficulties and obstacles, despite all the evil, past

and present, was still there: there will always be hope for the ones who want to take on the challenge of

thinking the unthinkable, of creating what does not currently exist. There is always Elpis, there is always

hope for the ones who wish to overcome every obstacle to realize their dreams.

This is Elpis: a team of passionate individuals and believers, dedicated to shape the future of investing

in addition to been strongly committed to build a solid business. To grow together with investors who

also hope in the possibility of creating a new investing landscape. Through great ideas and passion,

efficiency and real innovation, transparency and fairness: these are Elpis keys to thrive in the new wave

of investing. Because we hope and because we work hard to shape a different future. With our clients,

not at their expenses.

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Executive Summary

Elpis is a cutting-edge hybrid company that brings together digital and investment fund expertise with

the fresh, game-changing approach of a start-up. Through state-of-the-art AI technologies, we have a

completely automated technology-driven trading tech able to provide the market with tailored,

transparent and efficient investment strategies. We value our future investors’ needs and goals: we built

AI technologies able to secure wealth and maximize returns. Our system crunches large quantities of

data, analyzing and selecting the most useful information in order to instantaneously implement the

customized strategies. The clients of our future fund will not only understand what’s happening to their

assets at any time, but they can also constantly monitor and follow every decision and movement of

their money through the blockchain ledger. Elpis is committed to give the highest levels of transparency,

maximizing the returns at the lower rates, minimizing all the risks and costs inherent to all the human-

based investment management systems.

Elpis is not only a hybrid company that unites financial expertise with technological innovation, it’s a

hybrid company also because of our unique way of approaching new markets and new opportunities.

Thanks to our technology and our outstanding team, we are able to create technologies to invest

using the same AI-based system both in assets and in cryptocurrencies: this is why Elpis is unique

and it’s going to build the first crypto-assets investments fund in the world.

Traditional finance is slowly dying as a whole

and requires a deep change in terms of

transparency and in the definition of a new

business model.

The problems in the financial markets are:

- LOW TRUST

- NO TRANSPARENCY

- HIGH COMMISSIONS

- LOW PERFORMANCE

The Market Demands more Simplicity,

Transparency, and Efficiency. We will be able to

offer the power of AI to the market of

Professionals and also Retail or non-professional

investors under the same umbrella and with a

clear objective in mind: maximize profits,

minimize risks and costs, striving for total

transparency and openness, hence creating trust

and developing long-term and everlasting

relations.

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How does Elpis work?

The asset management market needs a revolution!

It starts with the ICO token holders who will buy our token giving us the amount required to register

the new management company. The company will be responsible for managing the digital assets

collected during the ICO, moving them into the main crypto-fund that will be created.

Only after the ICO, we will create the regulated fund and acquire customers with a clear prospectus.

The fund will directly manage through Artificial Intelligence the Assets deposited and then invests and

trade the Assets and the digital Assets on the stock exchange and on the crypto market.

Finally, the profits generated from the operations in the market will come back to the main company

that will buy back the token holders that have originally helped us build the fund..

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The Third Wave of Investing

Elpis team of experts built a unique trading system through an innovative application of the latest AI

technologies. We use technology with a purpose: successfully invest our clients’ money to secure their

wealth and grow their profits. Our investors’ goals are our goals. Unlike all the other available digital

management systems, Elpis actually has the power to instantly implement the data analysis into

customized investment strategy, getting rid of the bias, misinterpretations and costs inherent to human

investments management. Our investors will transparently monitor at any time every step of their

investments. The technologic systems are finally the core of the new wave of investing, the real

breakthrough that will be achieved with technology will generate a major and more positive impact in

the market. Technology will develop new relationships between financial services firms and clients,

more trust and integrity, and Elpis wants to be in fact on the front line of this major transformation.

Automated

A technology for the new era: our trading algorithms are totally AI driven. Machine learning and AI

are at the core of our business. Every decision our system makes is not affected by the biases and

misinterpretations typical of human-based management systems: your investment strategy is

automatically and constantly updated and re-balanced.

User Friendly

An online platform easy to use: you are just a click away from all you need. We will conceive the best

possible user experience for our investors, every tool is easy to understand and simple to use: through

an intuitive and comprehensive dashboard, you can efficiently manage your portfolio and follow your

investment strategy step by step. Our customer will be able to reach us whenever he wants: our team

is here for you whenever you need.

Transparent

We are investor-oriented: our goal is to maximize your profits in the most transparent and efficient

way. We guarantee the highest transparency on the market: We have a transparent fee plan, you will

have all the information you need before entrusting us with the responsibility of managing your

money.

Efficient

A technology-driven system built to eliminate mistakes, maximizing your profits. Our trading system

is completely technology-driven and automated: large volumes of data are processed at a pace and

with an accuracy that is simply unreachable to any human-based investment system and automatically

used to implement the best possible investment decisions, free from human mistakes and biases.

Fair Commission Policy

We want to be one of the most transparent digital investment companies on the market. Our investors

will receive all the financial information they need before entrusting us with their money

management. That is why our investors become our partners: we want to be paid only for

performances we can achieve alongside them, not at their expense. We will therefore not ask for any

kind of Management Fees, but we will propose a clear and fair policy to get paid on a Performance

base only.

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Digital Assets Fundraising: ICO

Revolutionary projects require revolutionary fundraising processes and high risks. The economics of

the market taught us that without risk there is no reward: without the ability of taking risks and without

great ventures, no progress will be possible in the investing landscape. Humankind, came out of the

caves by means of constant innovation: taking extraordinary risks and believing and investing in new

ideas, ideas that at first might have seem unthinkable by the masses. Risks and great goals are the engine

of change.

We are on the verge of a massive revolution made possible by pushing further innovation and

objectives: exceptional goals and purposes permeate every technology we are creating and using. New

technologies are opening to innovative ways to funding, especially in the case of start-up companies

like Elpis. Venture Capital is no longer the only viable possibility. Startups built on blockchain

technology – distributed ledgers that power cryptocurrencies like Bitcoin – are now looking into a novel,

viable option called ICO (Initial Coin Offering). In a classic ICO model, companies issue their own

tokens, auctioned in a crowd-sale. The token's proceeds are used to fund the team to build the finished

product and fund its operations. These tokens normally represent early product access.

The analogy to be made is to an initial public offering, when a company traditionally lists on a stock

exchange. The difference is that whereas IPOs are well defined and understood by governments, ICOs

are murkier. The U.S. Securities and Exchange Commission and other regulatory agencies are currently

investigating the practice, with no strong direction on how tokens are to be regulated. Today, tokens are

still not regulated as a security, but yet not illegal. However if they carry properties of shares, failing

the Howey and Reeves tests, these tokens run the risk of being regulated as a security. Further

requirements suffice such as more stringent KYC and AML. Just like Bitcoin and Ether, tokens that do

not carry properties of shares are operating in a grey area in most jurisdictions. Regulating these

cryptocurrencies and tokens that act as cryptocurrencies (those that do not carry share properties), is

something that is yet to be defined in terms of regulatory framework.

The fundraising tactic, which is a sort of crypto-financial twist on a Kickstarter campaign, has several

advantages over disadvantages. First and foremost, its nature is eminently liquid. Backers’ funds are

traditionally tied up in their bets until the company’s “exit,” going public or selling out. In this case,

investors can cash in and out whenever they like, converting tokens into Bitcoin, Ether, and fiat currency

at their leisure. No wait is necessary.

Beyond flexibility, technologists view ICOs as enabling new business models for open source projects.

Today, it’s not uncommon for developers to volunteer on various collaborative efforts, tinkering in vital

code repositories free of charge. With ICOs, coders have a means of generating value; the more

successful a project, the higher market participants may appraise it, the more rewards contributors may

reap (assuming they are token holders). In theory, it’s a virtuous cycle.

The approach has already produced early successes. The market capitalization of Ether, a digital

currency associated with the distributed computing network Ethereum, which you can read about in this

Fortune feature, has rocketed more than 500% in value since the beginning of the year. It’s no surprising

that other projects are looking into the prospects of an ICO too.

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Crypto Equity Token ICO

Elpis is fundraising through the means of a token offering called Crypto Equity, in partnership with a

Crypto Equity platform, CapchainX. Crypto Equity represents a more sustainable way of conducting

an ICO, in which tokens represent an indirect percentage of the Elpis company and are created on the

Ethereum Blockchain. Crypto Equity is backing cryptographic tokens with company’s equity as a

derivative. This means that each “coin” or token auctioned can be exchanged for real company share

certificates in the future, if redeemed by an “eligible qualified” token holder with more than 20 million

ELP tokens. The tokens, nevertheless, can be traded in a secondary market, offering a more liquid option

to token holders. Once share certificates are redeemed, the tokens are destroyed and the token holder

becomes a “shareholder.” Token holders will need to meet eligibility criteria to become “shareholders,”

meaning that they need to pass the security’s KYC/AML procedures.

Our crypto equity will be enabled through the Ethereum technology, the commitment from users to

generate support from the community, and the collective intelligence of our users.

After the creation of cryptocurrencies, we believe Crypto Equity represents the next frontier, in fact,

rewards give token holders a sense of ownership of the product, project and process. Crypto Equity via

ICO is the secret to unlocking innovation capital and is the bridge across the chasm between crowd-

funding and public market liquidity.

The ICO will allow us to create the first token with real economic fundamentals. Our Crypto Equity

will be an indirect investment in our company, creating a speculative system and market where our

investors will be rewarded with an interest in our equity, increasing the value of the token itself. And

also, being supported on the Ethereum technology, the value will increase equally to the value of the

cryptocurrency itself.

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Targets and Valuations of a crypto-equity token

Our objectives require a funding of 20.000.000 $ to be collected through the ICO.

Being a crypto-equity ICO, the token will distribute derivatives of 2.5% of the company equity, and

hence the valuation will be:

In the event of raising $ 20m for 2.5% of the company:

o Valuation Pre-money: $780 m

o Valuation Post-money: $800 m

The company could increase the equity% after the ICO to prevent over valuation

250,000,000 (two hundred fifty million) Elpis tokens (Elpis Coin) authorised can be exchanged for

2.5% company equity upon which, Elpis Coin can be exchanged for 2.5% of Equity before any company

dilution due to new founding rounds or share emissions. Equity distributed after dilution will be

proportional to the new number of existing shares. The % equity that can be redeemed will be reduced

(diluted) but the number of tokens in circulation will be the same.

Please notice that: on the money we raise will depend the realization of the fund.

IMPORTANT: The more DAUM Elpis will manage, once the fund has been built, better the rewards

will be for its token holders.

P.s.: Tokens, will have a vesting and cliff period:

Vesting: 2 years

Cliff: 1 year

Please note that: The vesting and cliff period only concerns accredited pre-sale investors and Team

Members.

Eligibility to exchange a token for a share

The Term sheet during the pre-sale will state that a single token holder with (20,000,000 twenty million)

tokens are able to redeem share certificates any time after May 1st, 2018 if criteria are met on a case by

case scenario. Upon which, tokens will be destroyed and share certificates will be issued and authorized

under Companies House only if:

A.) Token Holder falls under the criteria of an eligible shareholder.

B.) Token Holder passes necessary KYC/AML and other procedures to be an eligible shareholder under

local jurisdiction.

Otherwise, Elpis Coin token holder will not be eligible to be authorised and issued share certificates.

Token holder will remain as token holder.

Transferable securities are denominated in amounts of at least EUR 100,000 (or the equivalent), the

investor should be a qualified/accredited investor.

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Distribution of the tokens

The funding will be allocated as follows:

Public Allocation: 80% will be dedicated as Asset Under Management (AUM) to be invested in

realizing the fund that will invest in the stock market. It will constitute the assets managed in the fund

that will produce rewards through market and crypto trading.

○ CAP: Everything generated over the 20 million cap will be allocated in to the fund to

be invested hence to generating rewards. Elpis will not use the funding otherwise*

Team: 10% In order to pay the efforts of the entire team which is working on the project, 10% with:

○ CAP: $ 2.000.000.

HR: 4% dedicated to new hires in the fields of Engineering, Sales and Marketing.

○ CAP: $ 800.000.

One-off Costs: 1% is required to open officially our Fund and being regulated by the MiFID.

○ CAP: $ 200.000.

Operations: 2% to sustain costs related to Legal, Consulting and other general expenses.

○ CAP: $ 400.000.

Marketing: 3% dedicated to our marketing campaign.

○ CAP: $ 600.000.

The total number of tokens generated in Ether will be 250.000.000 and will be distributed for:

Public token sale 90% of them: 225.000.000 Ether tokens.

Team members will vest 10%: 25.000.000 Ether tokens.

Given the CAP of $ 20m and the tokens generated for 2.5% of the company, the value per token started

at:

$ 20m/250m tokens = $ 0.08 per Ether token as of November 2017 the price may vary

depending of the increase in value of the Ethereum crypto-currency.

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Pre-Sale

Starting from the pre-sale we will sell our tokens at a special discounted value. Tokens sold during this

phase will be seen as a preferred shares during an IPO, different from common token sold during the

Public ICO. The investors here will have the opportunity to buy a token with power of being exchanged

or redeemed for a real company equity if the token holder will meet criteria.

The price started at $ 0.08 per token as the market price of ETH, and follows the ETH price.

Customers already got the public discount during three tiers: November to December and now we are

applying:

January 1st to March with No Discount

Discounted for professional qualified/accredited investors.

The Pre-Sale will continue until all tokens are all sold if there is low demand or until March 1st.

Discount holders will receive their tokens with discounts applied to the prices determined by March 1st,

2018 at 11:59pm UK time.

How to participate

The pre-sale and sale will happen on the Elpis website. The process will be straight forward:

1. Basic KYC and AML will be required for the transfers

2. Orders will be taken through a transfer of Ethers to a wallet address

3. Ethers will be stored on an escrow

4. Prices will be determined after the end of the Pre-sale

5. Tokens will be distributed after the Pre-sale period starting March 2, 2018.

6. During the sale period, we will process your tokens during orders

Public ICO

During the Public ICO the whole interested audience will have the opportunity to get a real, valuable

token, which has a value as a negotiable instrument that, as gold for old banknotes, has an indirect

counterpart in the equity of our company. It will be, thanks to our partner CapchainX, the first of its

kind. It will give total transparency.

Start of Sale: March 2, 2018 12:00 am UK time.

End of Sale: April 30, 2018 by 11:59pm UK time.

The sale period will start from March 2nd, 2018 until tokens are all purchased. Otherwise, the end of

the sale will be April 30, 2018.

The price has started at $0.08/ token and might vary during the private sale following ETH price. This

price will apply to the remaining tokens from the pre-sale until there are 135m tokens remaining.

Thereafter, the sale price mechanics will take place. Information of the sale mechanics explained below.

Assuming 40% is purchased during the presale, the total supply remaining will be 135,000,000 tokens.

Denomination will be in Ethers. The exchange rate of dollars to ether will be set in the beginning of the

presale period. This value will be publicly available on the ELPIS Website.

Amount above $20,000,000 received will be added into the Elpis fund under Assets under management

(AUM) for investment.

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Token Escrow

All raised funds will be self-forced into dedicated wallets for each activity to be financed by the

company as advertised above on the paragraph “Distribution of the Token” and will not be used

otherwise. Undistributed coins will be returned to the contributors in the event of failure to meet the

minimum target of $ 1.000.000. Part of the CapchainX Terms and Service Elpis adhere to are the

following:

1. Emission of shares of mother company of 2.5% of equity

2. Exchange of redeemed tokens for share certificates

3. Destruction of tokens upon share redemption

This is agreed by the Elpis Board of Directors as a means of an Elpis Board of Director/Shareholder

Agreement to use the CapchainX tokenization platform.

Token Earning Mechanism

After the ICO, the fund successfully raised will become our Digital Assets Under Management

officialized by the registration of the fund and the creation of a prospectus and a regulated fund. Our

profits will give us the opportunity to buy back tokens from our ICO token holders increasing the value

of the Token itself. This activity will be constant and the token holder will be able to get rewards from

their investment on three sides:

The Exchange in real equity of the company if criteria are met,

The Activity of Buying Back tokens by the company with profits from trading,

The opportunity of selling the token to the market.

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Traditional Assets Fundraising: AUM

The asset management industry has been dominated, in an oligopolistic manner, by large banks or

financial institutions for ages. They have collected huge amounts of fees while delivering poor

performance. This has been done on the back of investors, whom are the real risk takers, and it is even

more true in a very low rates environment typical of the last decade. Consequently, they have started

being challenged by trading bots which are very cost effective. Over the years, algorithms will become

smarter and more efficient. They will reduce all these undue expensive management fees down to more

acceptable levels. From a broader perspective, quantitative strategies have gained exponential interests

for the last years. As an example, the graph below shows the growth in assets under management for

systematic strategies called Smart Beta (black plain line), which are strategies of relative low

intelligence, yet exponential interest by traditional investors:

Source: Morningstar, Wells Fargo Investment Institute Global Manager Research, May 2017

Global hedge fund growth has exploded in the past decade.

According to EurekaHedge (2012), global assets under

management ("AUM") in 2003 were $759.3 billion — by

comparison, assuming current Preqin estimates, the worldwide

AUM is $3.197 trillion. There is growing interest on smart beta

Funds and Alternative Investments like Artificial Intelligence

hedge funds is rapidly growing. We see the opportunity of making

an impact also in the traditional market especially thanks to our

value proposition of:

Performance fees only Business Model

Sustainable performance

Low Operational Risk

High Transparency over the investments

High Risk Management

Hybrid and Flexible (Diversified) structures

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Blockchain Auditing and applications

The development of the blockchain technology has the potential to redefine the operations and

economics of the financial services industry as a whole.

Despite significant technological gains in capital markets over the past 20 years, middle- and back-

office functions often remain antiquated, slow and inefficient because of overly complex processes

involving many counterparties, manual tasks and third-party service providers. Assets that trade

electronically in the blink of an eye can still take days to settle. Blockchain-enabled distributed ledgers

could change all of that.

Interest in and funding for this type of financial technology is growing exponentially. An estimated $75

million was invested in blockchain efforts specific to capital markets in 2015, up from $30 million in

2014. By 2019, that figure is expected to reach $400 million. Individual organizations, industry

consortiums and even major central banks are all jumping on board to see what blockchains can do.

And here comes the opportunity of using the blockchain technologies and the cryptocurrencies market

to enhance performances, exploiting short-term growth, with lower costs for higher opportunities.

Blockchain technologies have the power to impact massively the costs for asset managers:

In the context of capital markets, potential benefits include: Faster settlement times that are user-

optimized, lower collateral requirements and counterparty risk, improved contractual term

performances, greater transparency for regulatory reporting, better capital optimization, and security,

protecting against reorganization by one or more participants

Use of Blockchain

Blockchain provides its maximum value in operations, sales & marketing and IT, where on the other

side, it lies the cost for the traditional incumbents. In a market that grows at an average of 300% to

1000% per year, the blockchain can produce massive benefits in terms of cost savings, hence allowing

to keeping fees low and thus increasing the returns for both parties. Moreover, being new technologies

in a market where the usual investors are very often retail customers, blockchain and cryptocurrencies

can also intercept the new growing trend of Retail Investors in asset management that are now flooding

the market of robo-advisors.

Even more importantly, the power of the blockchain is also evident in the most crucial drivers of the

new socio-democratic trend: Security, Transparency, and Stability.

In fact, blockchain can offer key benefits in the regulatory compliance as well as in real-time control

and management over the operations, and more stability and security thanks to the application of the

smart contract technology that Elpis is also going to use, that is the Ethereum Smart Contracts

technology.

We set out a plan for the use of blockchain during these 3 years:

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1. In our first year, we will use blockchain to publicly show every trade to customers and

regulators, and then we will use it to store data of transaction sparing the costs of infrastructures.

We are going to use the blockchain to store every information from our buy/sell operations in

order to publicly audit the company for each transaction; we call it Blockchain Public Auditing

Ledger (BPAL). This technology will increase the degree of confidence in assets information

and thus will increase trust over the system and lower probability of attacks and cyber hacking.

2. We are also using blockchain to increase the level of security and track every investment from

investors’ wallet to our wallet, to better recognize where is the investment coming from, from

which investor, and how much, to better calculate the equity and the rewards.

3. In a third phase, we will use blockchain to open our company for the community of developers

and engineers around the world, associating the profits generated by the models of our

developers to the blockchain. With this innovation we will know exactly who built the

performing model and how much the company gained thanks to it. The reward, as a percentage

of the gain, will come straight to the developer, paid back with our token.

We are going to leverage the blockchain technology to put publicly available every operation we make

and every decision we take, so that we can build a more profitable and open relationship with our clients.

Distributed ledger and blockchain technology fundamentally change how data ara managed, moving

from a scenario where each organization maintains its own copy of a dataset, to one where everyone

has controlled access to a shared copy.

Use of Blockchain for crypto investors

Double-certified transaction contract from Investors’ wallet to Elpis wallet: Every transaction from

investors to Elpis will be certified on the blockchain to recognize precisely what was the money invested

and by whom holds the public ID wallet. With this technique will be easier and safer to track each

investors’ equity in the fund and obviously the rewards/interests coming from trading profits.

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The Market

During the past decade, the asset management industry was mostly occupied with regulatory changes

dictating costly compliance procedures. The increase in the regulatory burden, was mainly felt by small

asset management firms. In addition to increased regulatory costs, fee pressure has had a large impact

on the industry as well. In the coming years we believe these two forces will remain top-of- mind, but

they have different drivers now. Technology has entered the asset management industry. This will add

costs because asset managers have to live up to ever-increasing customer demands regarding

immediacy, connectivity and ubiquity. At the same time, this leads to an increase in fee pressure due

to growing transparency, comparability and competition from non-financial companies. We think the

asset management pie is still growing strongly, but not everyone is invited to take a slice. The asset

management industry is going to change substantially in the coming years. Regulatory and demographic

trends have already had a transformative impact on the sector.

In general, the direction of these two trends is clear and the pace of change is slow. However, the

technology dimension is putting speed into the transformation equation. Customers require immediacy,

connectivity and ubiquity in a simple and transparent service offering from a trusted company.

These requirements are more often being fulfilled by non-traditional players like robo-advisors, who

can guarantee lower fees at similar but always low performance. To incumbents, the control over the

customer relationship is at stake. They will have to make a strategic choice between spending on

technology to offer satisfactory services to their clients, and losing the customer relation to become the

very efficient infrastructure to the newcomers from the technology sector.

Page | 18

Traditional Asset Management market

Finance has benefited more than other industries from improvements in information technologies. But,

unlike in retail trade for instance, these improvements have not been passed on as lower costs to the end

users of financial services, because in reality these instruments are used below their real capacity. In the

figure below, from Reuters Reports, we see that even though the average expense ratio through the

years has diminished thanks to some efficiency in technologies, also diminished the returns mainly for

low market performance and for charging customers with high management fees.

Asset Managers and Incumbents really did not understand how the new technologies work, although

they understand that their current business model is at risk with the newly arrived FinTech startups.

Asset management services are still expensive, overall performance of the markets are low, exception

made for few emerging markets and banks generate large spreads on deposits. Finance could and should

be much cheaper and technologies could find better performing opportunities. The traditional Asset

Management market lives on low performance and high fees while implied costs of management are

reducing.

Another problem that is more specific to the finance industry is the degree to which incumbents rely on

leverage, which is embedded in many financial contracts and subsidized by several current regulations.

This gives the illusion that leverage is everywhere needed to operate an efficient financial system.

Conceptually, one can think of leverage today as partly a feature and partly a bug. It is a feature, for

instance, when it is needed to provide incentives, but it is a bug when it comes from bad design or

regulatory arbitrage (as in fixed face value money market funds), or when it corresponds to an old

feature that could be replaced by better technology. The issue, of course, is that it is difficult to

distinguish the leverage-bug from the leverage-feature. FinTech startups can therefore help to show

how far technology can go in providing low-leverage solutions with higher returns and less risk.

Page | 19

A paradigm shift within the asset management industry is at hand. Disappointing performance across

both traditional and alternative investment approaches has opened the door for change. The barriers

between traditional asset management and alternative asset management are rapidly blurring.

New products that marry the investment goals of traditional active investment mandates with the trading

strategies utilized by the best alternative managers are emerging, and institutional investors are taking

notice. This innovative hybrid approach seeks to solve the return conundrum created by the low return

environment brought on by years of easy monetary policy globally.

Active long-only asset management has performed poorly

in recent years, rattling investors’ confidence in their

traditional investment approach. The growth of the hedge

fund industry has ‘stolen’ some of the alpha once captured

by active long-only managers. As a result, passive

investments have taken significant market share from

what was once an active-only world. Nonetheless, for

most of 2016, hedge funds and funds of hedge funds have

come into the spotlight as their value proposition of either

better performance or diversified returns is being

challenged. Many managers have failed to deliver the

diversifying or ‘alternative’ performance that they had

asserted was possible.

In addition, clarity surrounding investment mandates, which is key to successfully measuring a

manager’s performance, is currently lacking within the industry, creating an identity crisis. Along with

these structural shifts, most institutional investors are failing to achieve their targeted investment

returns, creating the opportunity for change. One promising innovation will be investment approaches

that integrate hedge fund techniques into more traditional equity or fixed income mandates, thereby

redefining the world of active investing. By utilizing investment strategies heretofore used only in the

alternative arena, investment managers with the vision, skills and infrastructure to implement this

multidisciplinary investment process will be in a position to attract market shares from both the active

and passive segments of the traditional managers. Over the last two decades, a majority of active fixed

income and equity managers have failed to beat their benchmarks.

In the last 10 years alone, the S&P 500 outperformed 85% of all Large-Cap Equity funds, and that lead

widens to over 92% in the last five years. This index outperformance is even more substantial among

fixed income funds, where 96% of actively managed government long-only funds were outperformed

by the Barclays Long Government Index over 10 years and 98% were outperformed in the last five

years. For Investment-Grade Long Funds, even the best timeframe for active funds (one year) shows

that 94% of funds were outperformed by the index, and for High Yield that same time period shows

75% of funds underperformed their index. Meanwhile, since the mid-1990s, the hedge fund industry

has grown rapidly, with AUM increasing by over $2tn. Institutional buyers of alternative strategies are

generally looking to create a mixture of investment exposures that either diversify or leverage exposure

to their traditional benchmarks. Historically, hedge fund investors have been pleased with the

performance of their allocations, but recently many notable managers have seen performance decline,

Page | 20

causing some investors to question their allocation to the asset class. Part of the recent disappointment

comes from an identity crisis created by a lack of specific goals for alternative allocations. There is

uncertainty around whether or not strategies are supposed to diversify risk away from traditional asset

classes, or if they should provide higher performance than these traditional funds. Managers that have

diversified their portfolios are often criticized for failing to beat the market, while those that have sought

higher returns are then faulted for not being diversified and losing money when the markets fall. Again,

clarity in the mandate is essential to understanding whether or not value is being delivered.

We see an opportunity for those alternative investment managers that can successfully create

orthogonal, as opposed to leveraged, returns. These managers can integrate their strategies with those

of more traditional investment approaches. This allows for active hybrid strategies that have both the

market-based exposures pursued by traditional managers in combination with highly diversifying

exposures generally reserved for alternative investments.

Given then all these information and problem, the right question to ask is not why the innovation is

happening only now but more how is it even possible that customers keep leaving their money inside

these institutions?

Maybe, we think, is the problem of fear of not having anything and the lack of “understandable

substitutes”. Yes, it’s true that fintech products are creating more performance with even less costs but

sometimes the greatest performant means are difficult to understand from the everyday investor which

is typically not well informed on the innovation market and technologies. What would they need then

is easy to understand, a simple and intuitive instrument who gives you in few actions a total

understanding of what is going on with advantages, costs, and performance. The investor nowadays

wants more transparency and higher returns and currently the most performing activities nowadays are

made by Fintech Startups, Artificial Intelligence Asset Management and Digital Assets like crypto-

currencies.

One of our alternative investments, the hot topic in the investments landscape right now is the rise of

computer-driven investing in the Crypto Currencies market, which has really explosive opportunities

and much lower costs and higher returns.

Page | 21

Crypto trading

The global community is witnessing the rapid growth and proliferation of a new asset class: digital

assets, also known as cryptocurrencies (such as Bitcoin) or digital tokens (such as Augur). These digital

currencies operate independently of central banks, and use encryption techniques to regulate the

generation of units of currency and to verify the transfer of funds. This asset class benefits from the

security and transparency provided by the blockchain protocol, the protocol that was first introduced by

Bitcoin in 2009.

The blockchain allows for the secure transfer of value across the Internet in a strictly peer-to-peer

system, therefore obviating the need for intermediaries such as central banks and credit card companies.

This asset class had a combined worth of $1bn in 2013. To date, the market cap is over $105bn, and has

doubled over the last year. Projections put this asset class at a combined market cap of over $1 Trillion

by 2020.

Speculative investors are taking

full advantage of this high growth

phase, purchasing and trading

these digital assets on a myriad of

online exchanges. The enthusiasm

for cryptocurrencies keeps

growing with each passing day as

more people venture the space and

latch on to the various digital assets

or currencies available on the

market.

As digital coins proliferate and draw interest from professional investors, though, they become harder

for Wall Street trading desks to ignore. Bitcoin’s price has soared this year, from $969 to more than

$5,000 last month before pulling back. Ethereum, a rival, traded as high as $400 after ending 2016 at

$8. In all, nearly $150 billion of digital currencies are in circulation. With the recent developments of

this market, even great incumbents like Goldman Sachs are looking forward to the opportunity of

investing in this technology as the price of the cryptocurrencies market has now reached the S&P with

even greater expectations of returns.

Although the opportunity is the greatest of this century yet, it is difficult for the everyday investor to

wrap their heads around the high volatility of the prices. The challenges of investing in this market are

increasingly high because are moved by the emotions of the market, hence related to greater risks for

non experienced traders. The Demand for digital assets is characterized as any individual or

organization’s willingness and desire to acquire and/or hold on to a specific digital asset, hence prices

will be what people are willing to pay. How the price changes will depend on many factors, but above

all, future expectations. If the market expects improvements and increased users of cryptocurrencies,

the price is likely to increase. At the same time, there are external factors that affect the price. There is

a strong correlation between Bitcoin and other cryptocurrencies because they all are traded with Bitcoin.

The price can develop in the same direction or opposite to each other. However, because

cryptocurrencies are part of the same market, they usually trend together.

Page | 22

When all the media start writing about Bitcoin, the big mass notices the cryptocurrency. This increases

the buying pressure, the price increase continues, and the market becomes euphoric but also greedy. A

problem with all-time highs is that there are no support or resistance levels. Technical analysis becomes

more complicated because the price is in uncharted waters. Sooner or later, when the price drops for

some reason, you can expect powerful movements. The market takes the stairs up and the elevator

down. One old saying is “buy the rumor, sell the news.” When the news outlets begin to talk about

something, it’s a red flag on the market. Market psychology is a major part of trading, for this reason

the underlying market is difficult to predict for humans, but not for automatic trading machines. Traders

earn money on volatility and high risk, trading is a risky business which doesn’t fit everyone. It’s

important to understand the risks related with it, especially for this unregulated market. If we compare

the stock market to the crypto market, there are many advantages with the trading of cryptocurrencies:

Lower fees and smaller spreads — Transaction fees are significantly lower or close to zero.

Besides, the price difference between buying and selling is usually less, which reduces the

risk.

Absence of institutions and algo trading — Many institutions and major players in the

financial market are still outside the crypto market. This leads to a fairer and easier market for

trading.

More people with little market experience — Because there are many small savers within

cryptocurrencies, technical analysis works better. Trends and patterns are much easier to

analyze. Individuals without experience make many mistakes on the market.

Highest returns — ROI on a single digital asset long-only is greater than the combined of the

S&P or than any other asset in traditional markets.

Cryptocurrency trading is faster, cheaper and easier but is not easy: it requires expertise, data, and time.

Bitcoin trading never stops, unlike Wall Street it goes on 24/7, 365. So what can an everyday investor

or trader do to increase the efficiency of his portfolio of cryptocurrencies without using the majority of

its time and life? Similar to Wall Street and stock trading, Bitcoin and cryptocurrency trading are a form

of income. Due to the nature of the medium, however, many Bitcoin traders do it as a side project,

focusing their energy on a main job or alternate work.

But, to generate passive — or active — income in these industries, you must be paying attention to the

current market trends and activities. Market shifts happen so fast, you can lose a lot of money if you

don’t act soon enough, or don’t have time to trade when it’s opportune. That’s exactly why automatic

trading through Machine Learning technologies is the next best thing to reduce the inefficiency of the

market, while increasing the total returns over arbitrage opportunities.

Page | 23

The Product: Elpis Platform

The future is in what we found: using Machine Learning technologies from sorting and classifying

inputs (prices, volatility etc.), to making predictions and estimating probabilities of movements and

outcomes. Automatic Trading makes it possible to make money when the price varies. This is something

that is becoming increasingly popular with cryptocurrencies: Bitcoin is a natural fit for automated

trading. It is growing an army of professional traders using high-speed strategies, deployed by some of

the biggest Wall Street players as they see Bitcoin and cryptocurrencies as a new, exciting ground. The

future is transparent: we will give our customers total access to every information regarding their

portfolio. The future is also made up by innovative services around our shared values of Trust,

Transparency, Efficiency, and Fairness.

Our objective is to build a Fund able to manage both assets and digital assets through Artificial

Intelligence, herby creating a balanced portfolio based on the risk approach of our clients. Our clients

will be able to follow their investments, their portfolio and profits every day. Through the dashboard,

our clients will have direct access to their account info at any time: you will always know where your

money is.

Technology does not have to complicate things, but it has to ease them. Our Artificial Intelligence will

operate in the background, while our customers will be always able to have updates about their portfolio,

their investments and customized news related to the financial market. Here below you can get a

preview of our platform where our clients will be able to check at their investments daily.

Here below a UX of our future dashboard:

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Account Portfolio

Live Performance

Page | 25

Artificial Intelligence Trading

The financial markets are regarded as a leading indicator to the economy and when the markets begin

to contract, the population braces for a slowdown in the economy or possibly a recession. Conversely,

as the markets begin to expand the business cycle shifts and the economy starts to build forward

momentum. Given that the stock market is a leading indicator, making accurate predictions on its

movements becomes a difficult task. The forces that affect stock markets are abundant, highly correlated

and difficult to accurately measure. Given also the large amounts of data available from various sources

and what are potentially very complex relationships to model, the application of Artificial Intelligence

techniques seems to be appropriate. Financial giants such as Goldman Sachs and many of the biggest

hedge funds are all switching on AI-driven systems that can foresee market trends and make trades in

a better way than humans can. It’s been happening, drip by drip, for years now, but a torrent of AI is

about to wash through the industry, and high-earning traders are going to get unceremoniously dumped

like regular workers at a closing factory. AI trading software can suck up enormous amounts of data to

learn about the world and then make predictions about stocks, bonds, commodities and other financial

instruments. The machines can ingest books, tweets, news reports, financial data, earnings numbers,

international monetary policies and regulations, anything that might help the software in understanding

global trends. AI software can keep watching this information all the time, never tiring, always learning

and perfecting its predictions.

A report from Eurekahedge monitored 23 hedge funds utilizing AI and found they outperformed funds

relying on people. Quants, the Ph.D. mathematicians who design fancy statistical models, have been

the darlings of hedge funds for the past decade, yet they rely on crunching historical data to create

models that can anticipate market trends. AI can do that too, but AI can then watch up-to-the-instant

data and learn from it to continually improve its model. In that way, quant models are like a static

medical textbook, while AI learning machines are like a practicing doctor who keeps up with the latest

research. Human traders and hedge fund managers don’t stand a chance, in large part because they’re

human. “Humans have biases and sensitivities, conscious and unconscious," says Babak Hodjat. "It's

well-documented we humans make mistakes. For me, it's scarier to be relying on those human-based

intuitions and justifications than relying on purely what the data and statistics are telling you."

Goldman Sachs shows just how devastating automation can be to traders. In 2000, its U.S. cash equities

trading desk in New York employed 600 traders. Today, that operation has two equity traders, with

machines doing the rest. And this is before the full brunt of AI has come into play at Goldman. “In 10

years, Goldman Sachs will be significantly smaller by headcount than it is today,” Daniel Nadler, CEO

of Kensho, told The New York Times. Expect the same to happen on every trading floor at every major

financial company. The battle will be and already is on acquiring Artificial Intelligence talent:

“Some of these smart people will move into tech startups, or will help develop more AI platforms, or

autonomous cars, or energy technology,” Minevich says. “That could be really helpful right now, since

the tech industry is always fretting that it doesn’t have enough highly skilled pros and might be facing

a geek drought in the age of Trump travel bans. If the MBA elite leave Wall Street but stay in New York,

it might compete with Silicon Valley in tech.”

There is also, one other benefit to AI machines taking over finance. Ben Goertzel, chief scientist at

Aidyia, says his machine will never need human intervention. “If we all die, it would keep trading”.

Page | 26

Machine Learning Strategies

We have organized and planned the evolution of our technology in different stages. For our first year

of trading, we will use Machine Learning as it is nowadays the best way to have positive returns with

lower risks. The process of Machine Learning is similar to that of data mining. Both systems search

through data to look for patterns. However, instead of extracting data for human comprehension,

Machine Learning uses that information to detect patterns in data and adjust program actions

accordingly through algorithms that are often categorized as being supervised or unsupervised. Machine

Learning can be applied to many aspects of trading: from sorting and classifying inputs (prices,

volatility etc.), to making predictions and estimating probabilities of movements and outcomes.

One of the most common tasks is to fit a “model” to a set of training data, so as to be able to make

reliable predictions on general untrained data. There is the risk of overfitting tough. In overfitting a

statistical model describes random errors or noise instead of the underlying relationships. Overfitting

occurs when a model is excessively complex, such as having too many parameters relative to the number

of observations. A model that has been overfit has a poor predictive performance, as it overreacts to

minor fluctuations in the training data. The possibility of overfitting exists because the criterion used

for training the model is not the same as the criterion used to judge the efficacy of the model. In

particular, a model is typically trained by maximizing its performance on some set of training data.

However, its efficacy is determined not by its performance on the training data but by its ability to

perform well on unseen data. Overfitting occurs when a model begins to “memorize” training data rather

than “learning” how to generalize from trends. As an extreme example, if the number of parameters is

the same as or greater than the number of observations, a simple model or learning process can perfectly

predict the training data simply by memorizing the training data in its entirety, but such a model will

typically fail drastically when making predictions about new or unseen data, since the simple model has

not learned to generalize at all. In dealing with the trading problem, we usually use as inputs data like

changes in prices, volumes, ratios, news feeds and we aim at predicting discrete moves (up, down) with

a probability distribution through Machine Learning.

Swarm Intelligence Portfolio Optimization

An example, when it comes to using

Artificial Intelligence in portfolio

selection, is Swarm Intelligence, which is

a technology that in these cases has been

recently proven effective.

This technology, that takes its name from

nature, uses Artificial Intelligence to

understand and then extract the patterns

of different data sets. Then, it

automatically selects the models, which

are the best fit for that particular pattern.

Page | 27

Our Track Record

US EQUITIES BACKTEST

Our first model, a backtest in the traditional stock market will be long-only for Insitutional Investors.

As a proof of the efficiency of our technology, the lowest risk model we currently have, with low quality

data and on the basis of the 50 most liquid stock from 2000, and unchanged over the period, has

managed to consistently beat the S&P even in periods of market crash.

This model is only the first one, later we will develop low, mid and high-risk models in US Equities,

Indexes, Futures, and of course crypto-currencies. Ai will allow us to reduce the risk close to zero

while giving constant and consistent returns higher than 15% annually.

FUTURES LIVE

Another application of our AI is on Futures, which is more riskier hence ideal for professional investors

who want to risk more than institutional investors. The team has a profitable, 62.5% ROI, and

demonstrable positive track-record live generated by our automatic algorithms. Here we can share this

year P&L:

The time horizon of the model is strictly intraday, with an average holding period of less than two hours.

The instruments used are liquid futures and options. strategies have been successfully applied on

different markets: US options (Heston-Nandi), Stochastic volatility pricing models, etc.), US stocks

(mean reversion, cointegration based models) and futures on an intraday basis with an average holding

period of less than 20 minutes. These latest strategies are easily convertible for the short term trading

of cryptocurrencies, where we can confidently assess a growth over 100% per year.

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CRYPTO-CURRENCIES BACKTEST (BTC)

In building our btc trading model, we used daily data of different time series (Dollar Index, Gold), so

we did not only use endogenous data. The trading activity consist in buying and closing these long

positions, and short positions are not opened.

As soon as a long position is open, real-time

protection levels are activated; if the price

drops below those levels, the position is closed

immediately.

Using protective real time stops embedded in

the algorithm helps to quantify the amount of

risk that is in line with both the profile and

expectations of our clients; that level could

change as a function of money management

models.

The vast majority of Cryptocurrencies funds use a Buy and Hold strategy, with some minor variation.

The likelihood of further deep corrections is high and there is the need to be protected when that

happens. Here is why we implemented our strategy to decrease the volatility and control the risk.

Elpis will be the first Crypto-Assets Investment Fund to combine the traditional concept of hedge funds

with the latest innovative technologies and a new business model for the asset management business.

We are going to further study and implement these new technologies within these 3 years of operations.

Artificial Intelligence and Blockchain, together, give us the opportunity of revolutionizing traditional

finance with these pillars in mind: Abolition of Management Fees, Total Transparency, Excellent Risk

Management, and Better Performance.

Page | 29

Marketing

Our innovation and product requires trust. Transparency, Trust and Innovation will be central in our

Marketing operations.

Professional and Institutional investors are used to a “one-way” relationship with their fund, with an

approach that is not user centric. Our Strategy is instead to build a profound and daily relationship with

our clients, a constant relationship aimed at creating trust. Technology can sometimes, in fact, create

boundaries. On the opposite, through our marketing user-centric approach we want to engage clients

throughout a system of values and purposes: we use our technology with the purpose of satisfying our

clients not only in performance excellence, but more importantly in building trust and fairness for both

parties.

Our ultimate goal is to give our clients the opportunity, through our use of technologies, to be more

engaged and to better understand how we are operating with their money. And, above all, that

understand how we are always operating for their own interests first.

Our Marketing strategy can be divided in:

Design approach. Design is for us central to create the first impact with our brand. We want

to keep the design on the same line as our brand, a simple but not simplistic design that is

inspired by some of our core values: efficiency, innovation, and trust.

User Experience. The user experience is also crucial nowadays for any investment entity.

Clients require a better user experience, a better understanding of who is operating with their

money and of how it is done. An efficient user experience creates engagement and when coped

with values and simplicity, it creates a relationship and therefore brand loyalty.

Sales. Sales are a key-stone in this business. Developing a sales network will help us to increase

our Assets Under Management. The implementation of blockchain technologies and smart

contract technologies will also help us to trace back the clients directly to their salesman, in

order to constantly implement bonus programs and a reward system for their work.

Events and Networking. Events and networking are fundamental for every investment

company. We are going to use our budget mainly on the development of our network and in

participating to fintech and financial related events.

Online Marketing. Being a technology-driven startup company, online marketing and

marketing tactics are very important to us in finding different opportunities that our sales and

network cannot reach. We are going to use platforms like LinkedIn and Facebook in

combination with our content marketing strategies on blogs and blogging platforms like

Medium. Our online marketing strategy will be implemented also in order to engage users on

an educational level. We believe that what we are doing is very innovative and requires a

content strategy that has the main purpose of educating and informing.

Our Strategy will allow us to raise finance not only from the ICO but massively also from the High Net

Worth individuals side. Furthermore, being mainly a long-only fund, will make it easier for us to have

access to mutual and pension funds, which will become our main source of Assets Under Management.

Page | 30

Value Proposition

Our Value Proposition is very clear: the market needs a massive revolution in the business model and

in the approach to its clients. The market needs: Trust, Transparency, Efficiency, Fairness.

Our model respects these values thanks to technology and a user-centric approach. The technologies we

use allow us to keep costs down while increasing performance. Low biases and high accuracy allow us

to Manage the Risk of the market better than the industry standard.

Our model has proven that Artificial Intelligence makes it possible to increase performance while

lowering costs and risks, hence making us able to decrease fees. Our objective is to abolish management

fees by being totally transparent about how we operate thanks to blockchain technologies.

Page | 31

Competition

Being a very new market, we will be one of the first movers in the space. Soon incumbents will try to

sponsor and invest in new entities: now it is still a blue ocean.

During our market research, we encountered as competitors only a handful of entities that are trying to

do something comparable to what we are doing. We didn’t count as competitors entities like robo-

advisors mainly because their innovation is on the customer experience and not in the actual

performance and technological breakthrough. Here are some of our competitors in terms of the

technologies they use and diversification of investments in the context of the Asset Management

Market:

Elpis will distinguish itself from the competition for its advanced use of technology and the

diversification strategy. We can offer many opportunities managed by Artificial Intelligence. Lowering

risks and creating a constant stream of profits can then open the opportunity to an even larger

diversification.

In the Market of Artificial Intelligence, we have also other competitors such as:

Numer.ai (backed by renaissance technologies)

Euklid (top 50 fintech startups)

Pit.ai

Binatrix

Walnut Algorithms

Our competitive advantages are mainly due to how we approach the market and therefore to how we

use the technology. Strategy is also fundamental: another great competitive advantage would be the

dual side potential of our crypto-assets strategies and the revolutionary image of our fund. We will put,

in fact, a lot of work and focus in the marketing and visual communication of our fund and of our values.

The objective is to use technology with a purpose: therefore, part of our job will be to educate our

customers on the advantages of using our technology.

Diversification

Technology

Page | 32

SWOT Analysis

Strengths

•Proven and Public Track Record

•Technology

•Marketing and Image

•Vision

• Security for technology and legislations

Weaknesses•A new startup in fintech market from Italy

•Need of a strong board of advisors

• Low capital budget

Opportunities

• Swarm Intelligence

•Crypto-equity ICO

•Decentralized community of developers

•Blockchain and cryptocurrencies

• First movers in Europe

Threats

•Competition from other hedge fund Ai startups

•Market Acceptance for new technologies

Page | 33

Team

Elpis team is made by a mix of expertise, youth, knowledge and audacity, and the common will to

pursue constant innovation to build a successful business model and a revolutionary company. The

project was started by Anatoly Castella and Andrea De Francisci, two young and talented financial

experts with a strong vision: bringing trading and investing out of their traditional, restricted circles,

using the power of ideas and technology to shape a different financial landscape, more open, fair and

efficient. With their fresh approach, solid research and analysis skills, Anatoly and Andrea believe

investing is on the brink of a revolution, a technological revolution that can be shaped only with the

fearless audacity of strong, innovative ideas and the right individuals to work with, somebody ready to

share their strong beliefs and take on the challenge of building from scratch an unseen business model.

Soon after defining the core ideas of the project, when research and development already started to give

it shape, a key piece was added to the Elpis puzzle: Luigi Piva. His involvement and trust in the project’s

promising possibilities, was enthusiastic from its first approach and brought him to engage in its

development, becoming one of Elpis co-founders. Luigi is a successful long-term trader, an

international financial expert and pioneer in the field of algorithmic trading. Founder, CEO and

Investment Manager of Quantlab Limited, Luigi is providing Elpis with his outstanding expertise and

leadership, helping the project to grow and improve each and every day. Luigi’s guidance has already

brought significant results throughout the company’s operations, helping in recruiting new talents. With

Luigi, then, we managed to assemble an amazing team of brilliant engineers that are working

relentlessly to make Elpis vision come to reality.

The Team

- Anatoly Castella, CEO and President

- https://www.linkedin.com/in/anatolycastella/

- Andrea De Francisci, COO and Vice President

- https://www.linkedin.com/in/andreadefrancisci/

- Luigi Piva, Chief Investments Officer

- https://www.linkedin.com/in/luigi-piva-cqf-82b25615/

- Andrea Boi, Design and User Interface

- https://www.linkedin.com/in/andreaboi/

- Giuseppe Solinas, Editor in Chief

- https://www.linkedin.com/in/giuseppesolinas/

- Matteo Bigon, Data Scientist

- https://www.linkedin.com/in/matteobigon/

Samuel Zocchetti, Quant Developer

- https://www.linkedin.com/in/samuel-zocchetti-267106139/

Francesco Alessandrini Gentili, Financial Advisor and Business Developer

- https://www.linkedin.com/in/postadifrancesco/

Employees

The company has already an agreement with 4 talents thanks to the partnership with with Luigi Piva’s

Quantlab UK Ltd. Quantlab was established in 2013 by Luigi Piva, and it has always been a forge of

algorithmic trading strategies that have rigorous quantitative basis.

To be more specific, Luigi and the team develops both econometric and statistical based strategies and

strategies with a strong mathematical orientation.

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The quantitative operational team is currently composed by 5 people:

Quantitative developer & Investment manager: Luigi Piva, Partner of Elpis Investments

Data scientists: they are concerned with the collection and cleaning of the data needed for the

the first phase of the data analysis and for the process of testing and validation of quant models.

Machine Learning and Ai Developers: They are concerned with the realization of the models

in Matlab and the study and implementation of algorithms that will be used by the AI system

to perform in the stock market.

Software Programmers: In coordination with the quantitative developer, the AI team and

getting data from the data scientists, deploy models developed in Matlab in Visual Studio as

we are mainly using C#, they are also working with the quant developer to implement

artificial intelligence elements that are used to make the models most effective.

The team is also completed with our partner:

Mauro Mattei, Chartered Accountant and treasurer of Elpis Holding at BeAdvisors.co.uk

o https://www.linkedin.com/in/mauro-mattei-a37986/

Recruitment program

Phase 1: Company internal recruitment

The company strategy will be focused on recruiting top talents in Ai and surrounding it with a great

network of account managers and sales representatives. Technology and Network are crucial for us.

Phase 2: Decentralized Development with Crowdsourced Employees

With the technology of our token and the blockchain technology we look forward to the opportunity of

creating a decentralized community of developers and engineers to develop for us models to be

implemented in our trading strategies.

These models, will be tested and then used in the market, based on their performance, the creator will

be traced back through the transaction in the blockchain ledger and will be rewarded for his positive

outcome.

This technology is currently used by Numer.ai through Ethereum blockchain with their token, which

doesn’t have a real value if not exchanged. Our token will be a real reward with a real value for the

community, which will have the opportunity to earn with their knowledge leveraging and exploiting

our resources.

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Advisors

Ian Scarffe - https://www.linkedin.com/in/ianscarffe/ - Advisor and Board Member

Manan Mehta - https://www.linkedin.com/in/manan-mehta-5746ab23/ - Advisor and Board

Member

Desmond Marshall - https://www.linkedin.com/in/desmondmarshall/ - Advisor and Board

Member

Simon Cocking - https://www.linkedin.com/in/simon-cocking-20540135/ - Advisor and

Board Member

Beryl Chavez Lee - https://www.linkedin.com/in/beryl-chavez-li-832baa4b/ - Advisor and

Partner

Gabriel Zanko - https://www.linkedin.com/in/gabrielzanko/ - Advisor and Board Member

Darrell Emmanuel - https://www.linkedin.com/in/darrell-emmanuel/ - Advisor

Partners

CapchainX

CapchainX is the next generation Crypto Equity platform to create, manage and

trade equity on the Ethereum blockchain. Benefit from real-time transfers. Save

on fees and the hassle of paper-work. We use cutting edge technology to enhance

efficiency, transparency and liquidity in private markets. Through innovating the

ways private companies create, manage and trade their equity, we aim to improve

access to capital and foster opportunities for growth.

BeAdvisors

BeAdvisors is an international independent firm with offices in London and in

Milan. We committed ourselves to one important principle: being the choice for

international clients facing their most challenging legal issues, business

transactions and tax needs. Our focus on innovation: we are embracing

innovative resources and ways of working to provide the very best combination

of people, processes and technology solutions, to deliver a service that exceeds

evolving client expectations.

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Mission and Milestones

Our mission is to use latest Artificial Intelligence technologies with a purpose: making more profits for

our clients, cutting costs, while offering the total transparency of our operations through the use of

blockchain technologies. We believe strongly in what we are doing, and our vision is to revolutionize

the financial market for the years to come. We are committed to sharing the power of our technologies

to the masses with these main values in mind: Transparency, Trust, Fairness, and Results.

Roadmap

November to March (Pre-Sale ICO) : during this stage we will sell privately our token to professional investors. In the meantime we will:

Develop the final investment models

Buy licenses and hardware Attend Fintech events

March to June (Public ICO) : during this stage we will sell to the public our tokens and we will:

Improve our first models and research for the new ones

Visual Development of the users platform Recruit Artificial Intelligence talent

Develop relationships with our clients and advisors Attend Events and Conferences

June to January 2019 (Post ICO) : During the post ICO we will use the funds to grow our

company and start trading. During this stage we will:

Trading assets raised on Traditional and Crypto Market with AI systems Open the regulated fund

Develop the platform for our users Raise a target of 35m in Assets Under Management

January to July 2019 (Operational Stage) : During the operative stage, we will finally start making profits, also on crypto-currencies by trading the ICO harvested. Also, we will make

improvements to our Artificial Intelligence systems. We will do specifically:

Launch the platform for investors Researching for new model

Swarm Intelligence Planning New Recruitment phase

Trading traditional assets Trading crypto-currencies