HSK WHITEPAPER
HashKey EcoPoints

CONTENTS
1. INTRODUCTION

3

2. ABOUT HASHKEY

5

3. ABOUT HSK7

1. INTRODUCTION

A pivotal moment for mass adoption
Blockchain technology is revolutionizing the world: from internet to blockchain; theright-to-own to the right-to-use; from shareholder to stakeholder; stock trading todigital asset trading; infrastructure development to mass-adoption. The recognitionof the intrinsic value of digital assets signals the strong growth potential for theindustry.
2022 has been an unprecedented year for Blockchain and digital assets, particularlyin the context of compliance and evolving regulations. As the industry-leading digitalasset and blockchain service provider, HashKey believes that the era of licensed
digital asset platforms will be a trend that dominates globally for many years tocome, and that true regulatory-compliance of digital assets is the key to sustainablesuccess.

Chapter 1: Introduction

3

OUR VISION:

Web3 and real-world economies become one
At HashKey we believe that Web3 and real-world economies will eventually become
one, with digital assets existing alongside all other traditional asset classes such as
stocks, bonds, precious metals, and real estate. The goal is the creation of a more
efficient, transparent, and inclusive financial system.
HashKey’s mission is to bridge the gap between these Web3 and real-world
economies. Our goal is to develop both the regulated platforms and public
infrastructure that facilitate the usage of blockchain technology across existing
financial infrastructure. HashKey is dedicated to bringing the potential of Web3 into
everyday life and further expanding on its positive global impact.

Regulatory compliant products and publicinfrastructure in Web3 ecosystem
HashKey is dedicated to promoting the adoption of regulated infrastructure acrossthe core Asian and global financial centers to drive the integration of real-world anddigital assets, merging the two economies into one. By offering regulatory compliant
products and public infrastructure, HashKey is well-positioned to drive mass
adoption and be a key player in the rapidly evolving digital asset space.
At the forefront of this our mission is the HashKey PRO platform, a brand-new,comprehensively regulated virtual asset exchange that prioritizes compliance, safety,and security above all standards.

Chapter 1: Introduction

4

2. ABOUT HASHKEYFounded in Asia in 2018, HashKey is a renowned Web3 ecosystem developer and leading digital asset group.
Today, HashKey provides a complete ecosystem of products and services relating to digital assets including
a regulated exchange , custody, brokerage, venture capital, asset management, node-validation services andas well as additional Web3 infrastructure. HashKey is committed to becoming a globally recognized and fully
regulated digital asset ecosystem.1

REGULATORY COMPLIANCE
Hong Kong
Exchange & CustodyƒType 1 (Dealing in securities) & 7(Providing automated trading services)licenses issued by the Securities andFutures Commission (“SFC”) withapproval to operate a virtual assets
trading platformƒ
Trust or Company Service Provider
Licence issued by the Companies
Registry for the provision of custody
services
Asset Management
ƒType 9 (Asset management) license(with uplift approval to manage
portfolios investing up to 100% invirtual assets) issued by the SFC

Singapore
Brokerage / OTC tradingƒ
Applying for a Major PaymentInstitution Licence for the provision ofDigital Payment Services to be issued
by the Monetary Authority of Singapore(“MAS”). Currently operating under alicensing exemption under thePayment Services Regulations
Asset ManagementƒIn-principle approval received for aCapital Markets Services Licence forfund management to be issued by theMAS

JapanBrokerage & ExchangeƒRegistration as a crypto asset exchange
service provider with the Japan Financial
Services Agency

COMPREHENSIVE ECOSYSTEM••1

One-stop solution provider for digital asset
trading, custody, brokerage, venture capital,
asset management and node-validation
services, and other Web3 infrastructure
DeFi and CeFi strategy in place

REGULATORYCOMPLIANCECOMPREHENSIVE SECURITY
ECOSYSTEMFIRST

SECURITY FIRST•

ISO 27001 certification for HashKey PRO(Information security management)•

ISO 27701 certification (Privacy Information
Management System) for Exchange andBrokerage businesses•

Smart contracts for Hashkey’s token
projects independently audited by Xiamen
SlowMist Technology Co., Ltd.

•Proof of Reserves for HashKey PRO•

KPMG & PwC audited (Internal control,security, and group level financials)•Client funds are protected by institutionalcustody grade insurance

HashKey may at its discretion change the scope and availability of its services and products. Please refer to HashKey’s official communications channels for the most updated guidance.

Chapter 2: About Hashkey

5Comprehensive Ecosystem
Across the Digital Asset Landscape
Headquartered in Hong Kong with operations in Singapore and Tokyo, HashKey offers acomprehensive ecosystem across the digital asset landscape:Insured &Secured Custody

DeFi Wallet,
Decentralized KYC,
Compliant DEXWEB3ADINGR
T

Licensed
Exchange & BrokerageVCAENRETU TALPIODYTSUC

Venture Capital,
Asset Management& Incubator

BL
TE O C K C H AIN
CHN
OLOGY
Infrastructure Services,
Node Validation Services

Chapter 2: About Hashkey

6

3. ABOUT HSK
3.1 HSK Overview
Name

HSK – HashKey EcoPoints

Blockchain protocol

StandardEthereum

ERC-20Total supply

1,000,000,000 HSK (1 billion)

Distribution mechanism

࠮ Incentive-based fair distribution to ecosystem users and contributors
࠮ Not sold via private or public sales for fund raising purposes

HSK powers the entire HashKey ecosystem, with its utility expanding in the future via various
usage benefits across HashKey’s current and future business lines.
At HashKey we believe in the shared value created by adopting a versatile business model, which
can all serve different purposes in helping Web3 businesses engage and support its loyal userbase over time, creating a true stakeholder economy.
HSK is designed to fuel the regulated products and infrastructure across the HashKey
ecosystem, which can be accomplished via establishing an open-source community,
incentivizing developers and users to contribute to the community's growth in a decentralizedand trustless setting. As the platform loyalty reward, HSK will be used to create real usage
benefits in HashKey’s exchange and further across HashKey’s ecosystem.

Chapter 3: About HSK7

3.2 HSK’s Utility
Through providing various use cases for HSK across our ecosystem, HSK is designed to incentivize
contributors to the HashKey ecosystem, including its users and partners. Potential benefits holders of HSK
will be entitled to include:࠮ Trading fees discount. Trading fees settled in HSK
are discounted up to 0% on maker fees
࠮ Withdrawal fees waiver for selected digital assets
࠮ Early access to future new token subscriptions
࠮ Early notifications and access to new product and product upgrades࠮ Custody fee discount or waiver࠮ Research Report Release࠮ Pay for on-chain verifiable credential
service fees
࠮ Pay for limited edition NFTs andAI-generated avatars(in development)

࠮࠮
࠮
࠮
࠮

Trading fees discountExclusive token private sales access
Access to market maker program
Voting power for sound Web3 projects listing
Increased airdrop distribution weight from partner projects

࠮ Increased node validation service rewards*The above is for illustrative purposes. We make no representation or warranty on HSK being distributed to users of these potential services
and products. The availability of these utility is subject to our future official announcements.

Chapter 3: About HSK8

3.3 HSK’s SupplySupply Model
HSK has a supply capped at 1 billion units. HSK’s supply model is designed on a simple principle: issue new
HSK only in relation to real economic activity.
This principle ensures that HSK is issued only when HashKey’s underlying businesses are performing. For
example, new HSK will be issued into the overall HSK circulating supply via a Total Rewards Pool. The sizeof this Total Rewards Pool in USD terms is capped in relation to net profits generated by HashKey’s related
businesses – a “Reward Value Cap”. The Reward Value Cap will be set based on a multiple of generated netprofits. This measure helps to ensure that new issuance is done in a fiscally responsible way.
HashKey will evaluate the multiple and the value of this Reward Value Cap on a frequent basis in response tomarket conditions and communicate all circulating supply changes to HSK holders regularly.
HSK’s supply model also adopts a burn mechanism. HashKey will have the discretion to take 20% of net
profits earned from HSK-participating businesses and use these funds to purchase HSK, then burn theacquired HSK from the outstanding supply. Longer-term, this supply model is designed so that the pace ofburning has the potential to exceed the pace of new issuance, leading to a more deflationary asset model inthe future.
HSK’s supply increases mostly from two allocation pools: the Ecosystem Growth Pool and the Team Pool.
The Ecosystem Growth Pool is further sub-divided into different distribution programs.

65% | 650m HSKECOSYSTEM GROWTH
࠮ Rewards
࠮ Marketing࠮ Business Development

30% | 300m HSKTEAM

࠮ Staff incentives

5% | 50m HSKRESERVE

࠮ Additional protection for ecosystemusers for contingency purposes

Chapter 3: About HSK

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Ecosystem Growth PoolEcosystem Reward Programs
HSK will be allocated to reward users who have contributed to the growth of the HashKey ecosystem.
For example, HSK will be minted and distributed from the Ecosystem Growth Pool for:
Early user incentive rewards: incentivize early users that sign up and transact on HashKey PROTrading and liquidity rewards: incentivize users that trade and provide liquidity on HashKey PRO
Other Contributor’s rewards: rewards users who contribute to the growth of the business

Marketing
HSK will be allocated for marketing activities to drive brand awareness, user acquisition and community
growth.

Business Development
HSK will be used to incentivize the growth of the ecosystem with new partners and projects.

Team Pool
HSK will be distributed as rewards to HashKey staff that contribute to the business growth.

Reserve PoolThe reserve pool provides additional protection for ecosystem users for contingency purposes.

Chapter 3: About HSK10

3.4 Launch Timeline
Announcement

Announcementof the HSK
Rewards Program

Minting & First
Free Distribution

Minting HSKFirst Free
Distribution

Listing & TradingFirst
Trading Day

Subsequent
Distribution &Subsequent
Trading

3.5 Burning
HashKey implements an offsetting issuance mechanism (burning) to protect HSK holders from the dilutionary
impact of rewards-based increases in HSK circulating supply.
To implement this mechanism, HashKey will have the discretion to purchase an amount of HSK equal to 20%of net profits generated from specified HashKey platform businesses and then permanently burn thepurchased HSK from HSK’s supply. At launch, these specified businesses will include HashKey’s licensedexchange (HashKey PRO), with additional business lines and products to follow.

Chapter 3: About HSK11Legal Notice
THIS WHITEPAPER COMPRISES INFORMATION ON THE HASHKEY ECOPOINTS(“HSK”). BEFORE
MAKING ANY DECISION AND ENTERING INTO ANY TRANSACTION IN RELATION TO OR UTILISING HSK,YOU SHOULD TAKE STEPS TO ENSURE THAT YOU UNDERSTAND THE TRANSACTION AND HAVE MADEAN INDEPENDENT ASSESSMENT OF THE APPROPRIATENESS OF THE TRANSACTION. YOU SHOULD
MAKE SURE THAT YOU HAVE SUFFICIENT INFORMATION AVAILABLE IN RELATION TO HSK BEFORE
MAKING ANY DECISION IN RELATION TO HSK.
THIS WHITEPAPER MAY NOT BE FORWARDED OR DISTRIBUTED INTO ANY JURISDICTION IN WHICH
SUCH DISTRIBUTION WOULD BE ILLEGAL OR TO PUBLICATIONS WITH A GENERAL CIRCULATION IN
THOSE JURISDICTIONS.
For convenience, translated versions of this whitepaper may be made available in languages other than inEnglish. Please note that the English version of this whitepaper is the governing version and in the event of
any inconsistency or discrepancy between the English version of this whitepaper and any other translated
version, the English version shall prevail.
The HashKey entities have determined that HSK:
1. could be “digital payment tokens” as defined in the Payment Services Act 2019 of the Laws ofSingapore.
2. would not be “capital markets products” as defined in the Securities and Futures Act 2001 of theLaws of Singapore;
3. would not be “capital markets products” as defined in the Securities and Futures Act 2001 of theLaws of Singapore; and4. would not be “securities” as defined in the Securities and Futures Ordinance (Chapter 571) of theLaws of Hong Kong.

Warning
The contents of this whitepaper have not been reviewed by any regulatory authority in Singapore or HongKong. You are advised to exercise caution in relation to the information in this whitepaper and any transactionthat you intend to carry out involving HSK. If you are in any doubt about any of the contents of thiswhitepaper, you should obtain independent professional advice.
This whitepaper is not an offering circular and should not be treated as offering material of any sort. This
whitepaper is not for public circulation, is solely for your information purposes and may not be reproduced,
redistributed or passed on directly or indirectly to any other person or published in whole or in part for any
other purpose. This whitepaper does not constitute or form part of any offer for sale, subscription for, or
solicitation or invitation of any offer to buy or subscribe for any HSK. This whitepaper does not purport toidentify or define any or all of the risks that would be associated with HSK. Any representation made on thewebsite of HashKey in respect of HSK will prevail over any representation in this whitepaper in the event ofany inconsistency.
Prior to making any decision regarding HSK, you should conduct such investigation and analysis regarding
HSK as you deem appropriate. To the extent that you deem necessary, you should consult your professional
advisers.
A copy of this whitepaper has been published on the website of HashKey. Should you intend to take anyaction (directly or indirectly) relating to HSK described herein to any third party, you will be responsible forcomplying with all applicable laws, regulations and rules in respect of any such action and the provision of
all appropriate risk warnings and disclosures.
HashKey reserves all rights at any time to change the economics, and all other terms and conditions, of HSK
in its sole discretion, including but limited to its supply and allocation schedule, policies, and reward
mechanisms. If HashKey makes any such change it will publish a revised version of this whitepaper on theHashKey website. Before making any decision in relation to HSK you should accordingly ensure that you arereferring to the latest version of this whitepaper on the HashKey website.

Legal Notice12