p1 MEX GLOBAL DIGITAL NOBLE METALS EXCHANGE 全球貴金屬數位化交易所 nbsp;世界の貴金属デジタル化取引所 nbsp;전 nbsp;세계 nbsp;귀금속 nbsp;디지털화 nbsp;거래소 nbsp;Whitepaper Version 1.0 nbsp;2 StatementThis whitepaper is a conceptual document, used to explain the MEX global digital noble metals exchange project hereinafter referred to as quot;MEXquot;, the document does not have any legal force nor have been authorized by any regulatory agency or judiciary authority. The contents of this document may have non-scheduled modifications. However, it does not mean that we have the obligation and responsibility to update this document or provide any additional ination. To participate MEX requires a series of processes. This document does not make any advice or judgment about whether anyone should participate the MEX project or exchange any noble metals token through MEX. The content of this document should not be regard as the constitution of the contract or the reason of your decisions. We do not and will not give any of guarantee to any description, message, term, opinion or other content about the field of industry, technology, market, policy in this document. nbsp;. The contents of this document shall not be used to replace the report provided by professional firm accounting, tax, law etc.. Before making a decision or taking an action, be sure to consult all necessary professional advice, including tax and accounting. Any loss or damage that due to the content or term of the document whether it is foreseeable, we do not take any responsibility. This document only provides traditional Chinese and English version. Any translation version is only for reference. nbsp;3 Contents Introduction ............................................................................................................. - 4 -  The analysis of the noble metals trading industry ................................. - 4 -  The bottleneck of the noble metals trading industry ............................. - 4 - Global Digital Noble Metals Exchange ...................................................................... 7  What are we going to do ................................................................................ 7  What value can we achieve............................................................................ 8  Commercial Logic and Economic system .................................................... 9  Trading Structure ........................................................................................ 10  Hedging ......................................................................................................... 11  Authority quotation ..................................................................................... 11  Drifting management ................................................................................... 11 The characteristics of the exchange .......................................................................... 12 MEX ............................................................................................................................ 14  The introduction of the MEX Token .......................................................... 14  The functions of MEX ................................................................................. 14 1. As an anchor token of the exchange ....................................................... 14 2. As the Token to pay the transaction fee .................................................. 14 3. To increase the circulation and transaction of MEX tokens through the fee discount .................................................................................................. 15  Profit model .................................................................................................. 15  Buyback mechanism of the MEX Tokens .................................................. 15  The conversion of MEX Tokens ................................................................. 16  Plan of the Exchange ................................................................................... 16  Funds using plan .......................................................................................... 17  The core developer of MEX ........................................................................ 19 Technical Cooperation Partner ................................................................................ 20  GalaxyChain ................................................................................................. 20  ChainUp Tech............................................................................................... 21  The advantage of ChainUp ......................................................................... 21  Previous cases of ChainUp .......................................................................... 22 MEX Foundation ....................................................................................................... 23  The company introduction .......................................................................... 23  The counselors .............................................................................................. 24 Risk warning and disclaimer .................................................................................... 25  The risk of technical security nbsp;.................................................................. 26  The Market risk .......................................................................................... 26  The risk of law and policy nbsp;....................................................................... 26 nbsp;- 4 - Introduction  The analysis of the noble metals trading industry Noble metals including non-ferrous metals, etc., hereinafter referred to as the quot;noble metalquot; as an important risk hedging tool and alternative investment target, is one of the most active, most traded commodity in global trading. As a general term, noble metals are classified in detail, including gold, silver, platinum, palladium, copper and other metals, and can be divided into two major categories spot and futures. Taking gold as an example, China is the largest gold producer in the world for the past 11 years, accounts for about 11 of production in 2017. China is also the second largest consumer of gold, accounting for about 23 of consumption. Noble metals have a long history of trading overseas, and the history of market trading in China is relatively short. The largest international market for noble metals is the London bullion market association39;s spot market and the COMEX futures market in New York. Similar to the international, China also established the spot and futures two noble metals trading system, and the most representative for those system are the Shanghai gold exchange hereinafter referred to as SGE and the Shanghai futures exchange hereinafter referred to as SHFE. However, due to the restrictions of financial products and market trading system, the volume of noble metals in China is much lower than that of the international level. There has a great potential market.  The bottleneck of the noble metals trading industry 0501001502002503003504004502011 2012 2013 2014 2015 2016Daily trading volume of three major exchanges ton上期所 金交所 TD COMEX - 5 - In China, due to the difference between countries on the product category, trades, and market access, ed a huge market scale difference. More specifically, in terms of product category, the current Chinese exchanges and with gold, silver, platinum, but palladium is not on an exchange deal yet. For the trade category and market scale, China has developed noble metals otc options for many years. However, the exchange-traded option has not been listed. nbsp;In China, there have been established lots of domestic gold ETF e.g., Huaan gold ETF, Efound gold ETF, Bosera gold ETF, etc. and one silver LOF, but there is no silver ETF listing yet. Take the gold ETF as an example, the gold holdings of the SPDR, the world39;s largest gold ETF, is between 200 and 30 billion; the Huaan gold ETF which is the largest gold ETF in China has a holding capacity of less than 1 billion. nbsp;In terms of the size of the silver holdings, the iShare ETF holds about 5 billion to 6 billion, while as the only one domestic silver futures LOF, the UBS holdings, is less than 100 million. 190,46350,33416,3064,922 1,325 145 43020,00040,00060,00080,000100,000120,000140,000160,000180,000200,000Daily turnover of noble metals in China kg - 6 - As a major global commodity, noble metals, however, have developed a difference between the mature market and lagged market, and the trading market still has a lot of development potential. Meanwhile, since growing so fast of the Cryptocurrency market, there has a hedging relationship between Cryptocurrency and noble metals, and so new requirements are emerging. nbsp;01002003004005006007008002013 2014 2015 2016Domestic（ China） and foreign noble metal ETF scale 100 millionSPDR黄金 ETF ISHARE黄金 ETF 国内黄金 ETF合计 7 Global Digital Noble Metals Exchange  What are we going to do 1 Make The Exchange Market Between Noble Metal Products Digital Tokens And Cryptocurrency By digitalize the Gold, silver and copper, which are the main representatives of the noble metal and generate the digital tokens, and the trading market between cryptocurrency and tokens. Meanwhile, it will break the distinction between the difference of national products and trade categories, and realize various kinds of noble metal transactions through blockchain digital tokens. 2 Use The Gold Digital Tokens To Provide A Stable Currency Solution For The Market Cryptocurrency market has an extremely high volatility and is highly influenced by policy and irrational factors. Digital gold can be a great haven for the major cryptocurrency exchanges. Digital gold is based on the mature/open source blockschain technology. Each issued digital gold, has the same value of the hedging, according to the 7*24 hours instant gold price provided by the Shanghai gold exchange and the London gold exchange. The nbsp;8 warehouse receipt is open to the public under the blockchain technology, for the users and the public inspection at any time. 3 To Provide The Leveraged Trading And Derivatives Trading Of The Noble Metal Digitized Tokens We will provide a variety of leveraged trading and derivative trades, such as futures, asset allocation, options.  What value can we achieve DIGITAL Digitization of the noble metal asset PRODUCTS More products, more segmentation ASSETS Meets the requirements of the holders GLOBLE Achieve a global unification of products and trade category through the smart contracts BLOCKCHAIN Trading under the blockchain, decentralizing, security HEDGE Spot products provide a safe haven for the cryptocurrency market. nbsp;9  Commercial Logic and Economic system Commercial Logic Economic system Bidirectional demand ation There has a hedge demand between cryptocurrency and token. The cryptocurrency is still in the fast growth period, the price fluctuation range is large. for example, amplitude of nearly 50 in December 2017. The main reason of the huge fluctuation comes down to factors such as technology, policy and market, but since the cryptocurrency overall market and rapid growth of the number of users, a growing number of the holders also need to configure the Tokens of other asset, as to improve the yield or hedging risks. Cryptocurrency transaction institutional There are more and more investment institutions begin to pay close attention to the cryptocurrency market, various types of investment funds rise up. Unlike through merely collecting in the initial period of development, institutional investors pay more attention to the balance between the benefits and risks, and start to bring the quantitative trading, high-frequency trading and hedging transactions in the field of cryptocurrency investment. Noble metal digital tokens have certain hedging properties, which shall be regarded as an indispensable possession in the quantitative fund of cryptocurrency. And for long-term investment in noble metals, it also opened the door to the trading of cryptocurrency and noble metal assets, making the transaction more various. The difference of the product and category between countries. The gap of the noble metals trades between countries can be effectively solved by issuing tokens. At the same time, due to the risk to bear ability of the users between the noble metals trading and cryptocurrency trading are great similarity, therefore, it can effectively improve the two user base in the field of investment, to the user to guide mechanism. Security and stability of Decentralizing smart contracts In China, for example, there is a big pain spot of noble metals trading is normative problems of the trading place. Due to the industry management is unsound, there is a large number of noble metals exchanges appear all sorts of fraud risk, negative ination also impact noble metals trading. Through the decentralized intelligent contract under the blockchain technology that make the transaction data cannot be tampered with, and the transaction efficiency and user understanding are improved. nbsp;10 Trading frequency With the gradual opening of the cryptocurrency, the transaction frequency can be improved effectively, which is conducive to the common development of both markets. Market accumulative effect Due to the similarity of the two markets in user risk preference and the complementarity of asset attributes, the potential characters of the market can be preliminarily determined and targeted to exploit the market.  Trading Structure Our digital exchange supporting issued a variety of noble metal material/futures class tokens, and based on the exchange of various types of tokens spot, future, option and other kinds of financial derivatives. The transactions correspond physical assets and contract asset. Take AUT Token for example, the subject corresponding of AUT is physical gold, customers can only use the mainstream cryptocurrency, such as Ether or Bitcoin to exchange. Each AUT Token will be generated base on the real-time quote prices. When the customer extracts the gold, the corresponding AUT Token will be destroyed according to the actual amount of gold, so that the physical assets and digital tokens can be guaranteed 11 corresponding. Both of the Exchange and AUT Tokens are based on smart contract of Ethereum under the technology of distributed books database, ensured the data, through decentralized, could not be tampered with. Once the ination of the client’s assets, nbsp;11 and transaction validated and added on the blockchain, it will be permanently stored under high stability and reliability. The exchange offers variety ways of the transaction of noble metal spot and financial derivatives trading services in the of matching transactions for the/p