Bit2Me STX: frequently asked questions (FAQ)

Investment in the Valorix corporate bond STO issuance within the Spanish Financial Sandbox of Bit2Me STX, The Bit2Me group's blockchain stock exchange.

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 Securities on Blockchain 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 couldn't participate in 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 receive 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 are the commissions for investing in the Valorix project?
12. What are the cash deposit options and how do they work?
13. How do I execute a primary subscription order in the Valorix project?
14. How do I execute a buy/sell order in the secondary market for the Valorix project?
15. When can I 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 fully subscribed?
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 in the process of obtaining its license as a Securities Firm to provide investment services and manage a platform for trading and settling shares and bonds (similar to traditional stock exchanges), with the particularity that in this case, traditional financial instruments (shares or bonds) are issued and traded natively on Distributed Ledger Technologies (DLT or blockchain, in its English terminology).

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

To participate in this Valorix corporate bond issuance, you must register on the official Bit2Me STX website: stx.bit2me.com (which also implies prior registration with Bit2Me – if you are already registered, your existing Bit2Me username and password will allow you to register with Bit2Me STX). The registration process is mandatory under Spanish and European regulations for the prevention of money laundering and terrorist financing, as well as under securities market and Sandbox regulations. Once registered, the investor must pass a knowledge test to participate in the Bit2Me STX market and to acquire and trade the shares and bonds available on the Bit2Me STX platform. In some cases, specialized training in 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 appetite, or financial situation. Bit2Me STX does not advise or evaluate investors on these matters.

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

To invest in this Valorix corporate bond issuance, you must meet the following requirements:

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

4. If I couldn't participate in the primary market, could I register to participate in the secondary market?

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

5. What are the specific conditions of this issuance?

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

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 within the Spanish financial Sandbox environment, complying with the Securities Market and Investment Services Act.

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

Yes, the bondholder, upon maturity, will be paid the principal amount invested and will additionally receive a gross return 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 investors remuneration in the form of interest, which is collected along with the principal amount invested at the end of the issuance maturity. The fact that it is represented on a blockchain or DLT network 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. 

As it is issued on a blockchain, this financial instrument is called a Security Token (in this case, a Bond Token or, colloquially, a “tokenized” Bond). Bit2Me STX is responsible for guaranteeing and ensuring the proper registration of investments on the permissioned public DLT blockchain 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?

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

An 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, they are concluded not to be financial instruments. The most well-known in these issuances are Utility Tokens like Bit2Me's B2M token. ICOs referring to crypto-assets that are not financial instruments are regulated by the European MICA (Markets in Crypto-Assets) regulation, which will come into effect in December 2024.

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

The minimum amount to participate is €1,000 per bond token unit. Fractional percentages below one token unit are not allowed.

11. What are the commissions for investing in the Valorix project?

The commission is 0.2% for bond subscription in the primary market and 0.2% for each buy or sell transaction carried out in the secondary market.

12. What are the cash deposit options and how do they work?

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

• Currently, transfers from the Bit2Me euro wallet or deposits in cryptocurrencies or so-called stablecoins are not accepted.
  
  
• The IBAN of the Bit2Me STX destination account, account holder details, and the reference to include in the 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 it may take for funds to be transferred for investment depends on the executing bank and generally varies:
  • Immediate transfers can take between 5 and 20 minutes to be executed.
  • Standard transfers can take between 1 and 2 business days.

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

On the platform, you will need to click the 'Operate' button for the Valorix Token 4T (VLRX4T24) Issuance in the 'Products' Section, select the “number of securities” field, and enter the unit quantity of tokens you wish to invest. Complete the process by pressing the 'Buy' button and receiving a “Order successfully created” message. 

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

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

• Limit order
  On the platform, you will need to click the Buy/Sell button for the Valorix Token4T(VLRX4T24) Issuance in the Markets Section. If it's a limit order, type the chosen amount into the price field, and in the “number of securities” field, enter the unit quantity of tokens you wish to buy or sell.
  Complete the process by pressing the 'Buy' or 'Sell' button and receiving a “Order successfully created” message.
  
  
• Market order
  For a market order, type the unit quantity of tokens you wish to buy or sell into the “number of securities” field.
  Complete the process by pressing the 'Buy' or 'Sell' button and receiving a “Order successfully created” 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 can I withdraw my funds from the Valorix project?

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

• Funds can only be withdrawn if they are ultimately not invested to subscribe to 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?

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

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

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

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

18. What technology is used for this bond issuance?

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

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

This method of issuance and registration on the blockchain is fully valid for representing these bonds.

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

Analyzing the applicable taxes and fiscal implications in each case is the individual and exclusive responsibility of each user. Although Bit2Me STX does not provide tax advice, we work with third-party tax experts who collaborate on 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 can find more information about bonds on the CNMV website here.

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