Frequently Asked Questions (FAQ) about Bit2Me STX

Investment in the STO issuance of the Valorix Corporate Bond within the Spanish Financial Sandbox of Bit2Me STX, the Blockchain Stock Exchange of the Bit2Me group.

Frequently Asked Questions

1. What is Bit2Me Security Tokens Exchange (Bit2Me STX)?
2.  Where and how can I register to participate in the investment of Blockchain Securities within the Spanish financial Sandbox of Bit2Me STX?
3. Who can participate in this investment within the Spanish financial Sandbox of Bit2Me STX?
4. If I could not attend the primary market, could I register to participate in the secondary market?
5. What are the specific conditions of this issuance?
6. What guarantees does this issuance offer in the Valorix project?
7. If I buy a bond in the secondary market, will I collect a 3.25% coupon at the maturity of the issuance?
8. What is a bond issued under DLT technology?
9. What is an STO and how does it differ from an ICO?
10.  What is the minimum investment amount in the Valorix project?
11.  What fees does the investment in the Valorix project have?
12. What are the cash deposit options and how does it work?
13. How do I execute the subscription order in the primary market in the Valorix project?
14. How do I execute the buy/sell order in the secondary market in the Valorix project?
15. When will I be able to withdraw my funds from the Valorix project?
16.  What are the risks associated with this investment?
17. What would happen if the entire issuance is not covered?
18. What technology is used for this bond issuance?
19. Do I have to pay taxes for investing in a bond?
20. Where can I find more information?

1. What is Bit2Me Security Tokens Exchange (Bit2Me STX)?

Bit2Me Security Tokens Exchange is a Spanish company that is in the process of obtaining its license as a Securities Agency to provide investment services and manage a trading and settlement platform for stocks and bonds (similar to traditional stock exchanges), with the particularity that in this case, traditional financial instruments (stocks or bonds) are issued and traded natively on Distributed Ledger Technologies (DLT or blockchain).

2. Where and how can I register to participate in the investment of Blockchain Securities within the Spanish financial Sandbox of Bit2Me STX?

To participate in this Valorix corporate bond issuance, you must register on the official Bit2Me STX page: stx.bit2me.com (which also involves prior registration with Bit2Me - if you are already registered, the same Bit2Me username and password will allow you to register with Bit2Me STX). The registration process is mandatory due to Spanish and European regulations on the prevention of money laundering and terrorist financing, as well as securities market and Sandbox regulations. Once registered, the investor must pass a knowledge test to participate in the Bit2Me STX market and be able to acquire and trade the stocks and bonds available on the Bit2Me STX platform. In some cases, specialized training in the field of financial instruments, securities markets, and DLT technology will be made available to the investor. This test does not evaluate investment objectives, desired time horizon, risk tolerance, or financial situation. Bit2Me STX does not advise or evaluate the investor on these issues.

3. Who can participate in this investment within the Spanish financial Sandbox of Bit2Me STX?

To invest in this Valorix corporate bond issuance, it is necessary to meet the following requirements:

• Residence: Be a resident in Spain.
  
  
• Documentation: Have a valid National Identity Document (DNI) or Foreigner Identity Number (NIE). The Spanish passport is not accepted as a valid document in this process.
  
  

4. If I could not attend the primary market, could I register to participate in the secondary market?

Yes, provided you meet the requirements of point 3, you can register and enter the platform to buy bonds according to the market price stipulated by the sell orders registered at that time. The term will be until the maturity of the issuance, on February 19, 2025.

5. What are the specific conditions of this issuance?

• Issuer: Valorix, a Spanish Public Limited Company (S.A.) 100% owned by Credimax LLC registered in the USA, whose main investment is Rapicredit, a pioneer in offering microcredits in Colombia.
• Issued amount: 145,000 EUR.
• Token interest rate: 3.25% quarterly (equivalent to 13% annually).
• Regulation: Issued under the regulation of the Spanish financial Sandbox and supervised by the CNMV. It also complies with the Spanish Securities Market and Investment Services Law.
  
  

6. What guarantees does this issuance offer in the Valorix project?

This bond issuance is guaranteed and supervised in the regulatory Sandbox by the CNMV. The funds raised in the issuance are blocked by the issuer in a Spanish credit institution. It is issued under the environment of the Spanish financial Sandbox, complying with the Securities Market and Investment Services Law.

7. If I buy a bond in the secondary market, will I collect a 3.25% coupon at the maturity of the issuance?

Yes, the bondholder, upon the maturity date, will be paid the principal of the invested amount and will additionally collect a gross yield of 3.25% on the invested capital.

8. What is a bond issued under DLT technology?

A bond is a traditional financial instrument used by financial entities and companies to obtain financing. They offer the investor remuneration in the form of interest collected along with the principal invested amount at the end of the issuance maturity. The fact that it is represented on a blockchain network or DLT does not change the nature of the asset; it is always a negotiable security (type of financial instrument), adding transparency, security, and reducing the costs of this type of issuance for both the issuer and the investor due to the technology used for its representation.

[Image of distributed ledger technology]

Being issued on blockchain, this financial instrument is called a Security Token (in this case, Bond Token or, colloquially, "tokenized" Bond). Bit2Me STX is responsible for guaranteeing and ensuring the proper registration of investments in the permissioned public DLT blockchain network deployed on Hyperledger Besu (code based on and compatible with the Ethereum network).

9. What is an STO and how does it differ from an ICO?

STO stands for Security Token Offering, which is a process of Offering Security Tokens that are a type of financial instrument (process similar to a traditional "IPO") regulated by the Spanish Securities Market and Investment Services Law and its European regulatory framework (MiFID II). 

[Image of difference between ICO and STO]

ICO stands for Initial Coin Offering, which is an Offering of Digital Assets on a digital asset platform, meaning that, after analyzing their legal nature, it is concluded that they are not financial instruments. The most well-known in these issuances are Utility Tokens like the Bit2Me token, B2M. ICOs referring to crypto-assets that are not financial instruments are regulated by the European MiCA (Market in Crypto Assets) regulation which will come into application in December 2024.

10. What is the minimum investment amount in the Valorix project?

The minimum amount to participate is 1,000 € for each bond token unit. Investing fractional percentages below one token unit is not allowed.

11. What fees does the investment in the Valorix project have?

The commission is 0.2% for the subscription of the bond in the primary market and 0.2% for each purchase or sale made in the secondary market.

12. What are the cash deposit options and how does it work?

The deposit to acquire these securities must be made exclusively in euros and transferred from a bank account where the registered investor is the holder.

• Transfers from the Bit2Me euro wallet or deposits in cryptocurrencies or so-called stablecoins are not currently accepted.
  
  
• The IBAN of the Bit2Me STX destination account, the holder details, and the concept to include in said bank transfer will be shown to the investor in the “My Portfolio” section and the “Deposit” Button once registration on the Bit2Me STX platform is successfully completed.
  
  
• The time the transfer of funds may take to be able to invest depends on the executing bank and as a general rule may vary:
  • Instant transfers may take between 5 and 20 minutes to be executed.
  • Standard transfers may take between 1 and 2 business days.

13. How do I execute the subscription order in the primary market in the Valorix project?

On the platform, you will need to press the Trade button of the Valorix Token 4T Issuance (VLRX4T24) in the Products Section, select the “no. of securities” field, and register the unit quantity of the tokens you want to invest in. The process is finalized by pressing the Buy button, receiving an “Order created successfully” message. 

Subscription will be possible as long as the planned issuance of 145,000 euros has not been covered.

14. How do I execute the buy/sell order in the secondary market in the Valorix project?

• Limit Order
  On the platform, you will need to press the Buy/Sell button of the Valorix Token4T Issuance (VLRX4T24) in the Markets Section. If the order is limited, type the chosen amount in the price field, and the unit quantity of tokens you want to buy or sell in the “no. of securities” field.
  The process is finalized by pressing the Buy or Sell button, receiving an “Order created successfully” message.
  
  
• Market Order
  In the case of a market order, type the unit quantity of tokens you want to buy or sell in the “no. of securities” field.
  The process is finalized by pressing the Buy or Sell button, receiving an “Order created successfully” message.
  Buy and sell orders can be canceled without associated cost as long as they appear in the open orders section and have not been executed.
  In the my portfolio section, you can check the status of each order (executed, rejected, or canceled).

15. When will I be able to withdraw my funds from the Valorix project?

Due to the special and limited nature of the scope of the tests of this issuance in the CNMV financial Sandbox, fund withdrawals will be disabled until the end of the financial Sandbox tests, which is scheduled for the end of February 2025 (3 months after the closing of the subscription on November 19, 2024).

• Funds can only be withdrawn if they are ultimately not invested to subscribe to the tokens in the primary market.
• Funds derived from the sale of tokens in the secondary market will not be available for withdrawal until the Sandbox phase is completed.

• Fund withdrawals will be made to the same account from which the funds were received.

16. What are the risks associated with this investment?

Like any investment in financial instruments, there are associated risks. These risks are described in the informed consent document and in the issuance document, which the investor must read, understand, and accept before operating.

Both documents remain available to investors for consultation on the platform once accepted.

17. What would happen if the entire issuance is not covered?

Because it is carried out within the testing environment in the financial Sandbox and the objective is to create a safe, transparent, more efficient, and liquid market for company financing, the issuance would continue with the conditions initially accepted in the Issuance Document.

18. What technology is used for this bond issuance?

The bonds of this issuance are issued and represented, as provided by the Securities Market and Investment Services Law, on a permissioned public DLT blockchain based on HyperLedger Besu (code based on and compatible with the Ethereum network).

This guarantees transparency and the ability to verify transactions directly on the blockchain.

This form of issuance and registration on blockchain is fully valid to represent these bonds.

19. Do I have to pay taxes for investing in a bond?

Analyzing the applicable taxes and taxation in each case is the individual and exclusive responsibility of each user. Although Bit2Me STX does not provide tax advice, we have third parties who are experts in tax matters collaborating in our Tax service.

20. Where can I find more information?

For more information, access the article published on our blog by clicking here.

If you are interested, you can access the recorded content of this Webinar explaining how an STO works by clicking here or on Negocios TV here.

You will find more information about bonds on the CNMV website here.

For any queries, you can contact us via email at support.stx@bit2me.com.