FIRMACHAIN
WHITEPAPER

Version 1.4
Copyright © 2018-2024 FIRMACHAIN Pte. Ltd. All Rights Reserved

Table of Contents

1. Overview
1.1 Importance of License Agreements

3. FIRMACHAIN DApp: E-Contract
3.1 Problems of Existing License Agree-

for Intellectual Property Rights

ments for Intellectual Property Rights

1.2 Need for Introduction of Electronic

and Solutions Based on Blockchain

Contracts in License Agreements forIntellectual Property Rights
1.3 Decentralization of Data

Technologies
3.2 Need for E-Contracts and Process
Control
3.3 Why E-Contract?

2. Technology

4. Structure of E-Contract

2.1 Introduction

4.1 Core Layer (FIRMACHAIN)

2.2 Overview

4.2 Service Layer (Firma Network)

2.3 Mechanism

4.3 Application Layer (DApp)

2.4 firma-cli User’s Guide
2.4.1 Network Participation

5. Roadmap

2.4.2 Validator Participation

6. Token Status

2.4.3 Use as Command-line

7. Team

2.4.4 Use as RPC

8. Advisor

2.5 Token Economy

9. Partnership
10. Disclaimer

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1. Overview
1.1 Importance of License Agreements for Intellectual Property (IP) Rights(Patent Rights, Trademark Rights, Copyrights, etc.)
Development of the internet has introduced an era of borderless information, and the protection of IP rights(such as patent rights, trademark rights and copyrights, etc.) and their commercial utilization through license agreements have become the key to the competitiveness of
individuals, companies, and nations.
However, the history of protection and transfer of IP rights cannot be fully traced with thecurrent technology, which have resulted in a wide range of domestic or international (i) IP
infringements and (ii) fraud or abuse of rights in the process of executing license agreements.
We plan to utilize blockchain technologies to verify IP rights and record the transfer history ofIP rights in order to promote the safety of companies’ and individuals’ IP rights in the courseof executing international license agreements.

1.2 Need for Introduction of Electronic Contracts in License Agreements forIntellectual Property Rights
Currently, most contracts are still executed in the form of traditional written contracts. So
far, many digital signatures and document-related services have been introduced, and the validity of electronic contracts has been legally recognized. Nonetheless, the majority of companies still continue to use written contracts and many of them are not aware of the usefulnessof electronic documents.

‘We thought.
Why do we prefer written contracts?’
Even today, written contracts are still preferred over electronic documents and have morecredibility within the society, as the original copy of a written contract could serve an evidentiary
purpose. Also, as most services that provide electronic contracts are centralized, the intrinsic
risks, such as forgery, data loss or leakage of confidential information through hacking ofservers, have made electronic contracts seem to be more vulnerable than written contracts. The
higher the transaction price is, the greater the contracting parties’ concerns over a potential

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forgery is. In addition, when it comes to cross-border contracts, taxes, remittance fees, andprocessing fees required to be received through overseas subsidiaries come as a huge burden
to the parties.
Relevant issues can be highlighted in the real-life examples as below.
Example 1.
I recently purchased a license from a user who holds an IP right (patent right). However, I
am highly concerned because it is difficult to verify as to whether the seller is a real holder ofthe patent right, since the seller is a foreigner, and it is difficult to confirm that the seller has
never granted an exclusive license to another purchaser. What if a third party uses the patentright I purchased without proper authority or in excess of the scope of the purchased license?
Example 2.
In order to enter into a content publishing contract, Company A and Company B had exchanged word documents with revisions until the day before executing the contract. On the
day of signing the contract, Company B brought the draft of contract including an additional
provision concerning the copyright protection, which had not been previously discussed between the parties. It was an uncomfortable situation because time was limited and the chairman
was out of office. Although the person in charge promptly made the necessary corrections
without approval of the chairman and executed the contract, similar situations may arise anytime.
As shown in the above examples, the introduction of blockchain-based electronic contracts
in the field of license agreements for IP rights will solve the foregoing issues by improving thetransparency and the efficiency in contracting process based on their broad application, including the protection and tracing of IP rights.
FIRMACHAIN (also referred as “we”), by using the decentralization of the blockchain, hascome up with the reliable decentralized data storage (hereinafter, “Decentralized Data Storage“)in order to (i) create an electronic contract management service where we can secure transparency and reliability of the transaction documents in license agreements for IP rights; (ii)fundamentally solve issues of verifying contracting parties and forgery of contracts; (iii) implement a reasonable contract-making procedure between parties using DApp; (iv) reduce theprocessing cost for international contracts through contract writing using less resources and

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simplifying the process; and (v) ultimately create a service that overcomes the limitations ofwritten contracts.

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1.3 Decentralization of Data
Millions of personal computers all over the world are constantly operated for considerable
time, but not all of their resources, especially in case of storage capacity and network bandwidth,
are currently used to the fullest extent. If the remaining storage capacities and network resources could be lent to another person at a certain price, the user could save files at costs
lower than other similar file storage services while the provider could generate a profit withpreviously unused resources.
We have devised a decentralized distributed file storage system to provide reliable storage
that protects the integrity and reliability of data. Decentralization means that the system ismanaged and operated by every participant in the system without the central management of
the file storage system.
P2P distributed file sharing systems, such as BitTorrent, also allow individuals to upload andstore files by sharing data. The basic idea of these P2P file sharing systems, however, is that anindividual downloads as much as he/she uploads. Unfortunately, such system failed to adequately motivate the users maintaining their seeds without any compensations to continue
uploading their files. As a result, P2P distributed file sharing systems do not guarantee sufficientavailability of files because these files were always at risk of disappearing at any time.
We have adopted a market system where users can buy and sell file storage space upon
their individual needs, in order to address the foregoing issues, including the users with files
disappearing from the system for various reasons. Further, this system does not require theusers to maintain uploading the files in order to download the files from the system.
Further explanation of FIRMACHAIN’s key technology, Decentralized Data Storage, are provided in the following pages. Also, a more detailed explanation of Decentralized Data Storage
will be covered in FIRMACHAIN’s Technical Whitepaper to be disclosed in future.

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2. Technology
2.1 Introduction
FIRMACHAIN’s features including, contract signing between participants, uploading UID of
the file, address monitoring of respective storage spaces and contract status management has
been constructed based on the concept of Ethereum’s smart contract. However, the resulting
data we have obtained from running our service provided us with useful insights and subsequently rooms for improvement. One of the insights was the increase in overall service cost
due to an increase in gas fee. Additionally, there was no need for a user to keep the originalcontract file and the validation history of the contract created based on smart contract. Rather,
we reached the conclusion that the aforementioned responsibility can be delegated to thevalidators for a more efficient and streamlined service.
The insights obtained above renders the traditional agreement mechanism of smart contracts
and the fee structure inapt for FIRMACHAIN especially when our mission is to provide a “bangfor the buck” service. As a result, we reached the conclusion that either stimulating the use of
tokens on another blockchain network or constructing a proprietary main-net would betteralign with the mission of FIRMACHAIN. Since, additional features down the development pipeline also require the presence of a main-net, FIRMACHAIN came to develop its proprietarymain-net based on Cosmos SDK – a framework that utilizes Tendermint BFT agreement mechanism – and initiate a plan to swap tokens.

2.2 Overview
Following are the specifics of the main-net.

Coinsymbol

FCT

denom

Ufct

decimals6

initial supply

600,000,000 FCT (600,000,000,000,000ufct)

Networks
imperium-4

Test-Net

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colosseum-1

Main-Net

EnvironmentGo

v1.19.6

Tendermint

v0.34.21

Cosmos-sdk

v0.45.9

2.3 Mechanism
Following is a description of how contract signing works on the chain.
1.

Create Contract: Upload specifics of the contract such as signature of the participants,
file UID (hash), endpoint where the file is stored etc. → Start

2.

Nullify Contract: Check specifics of the uploaded contract → Upload all participant’s
signature agreeing to nullify the hash value of the contract → Nullification complete

3.

Confirm and Verify Contract: Confirm whether the contract hash value and the owner’s
addressmatch and receive contract file pathtype Keeper struct {cdc*codec.Codec

storeKey sdk.StoreKey}
func NewKeeper(cdc *codec.Codec, storeKey sdk.StoreKey) Keeper {return Keeper{
cdc:

cdc,

storeKey: storeKey,}}
func (k Keeper) IsContractPresent(ctx sdk.Context, hash string) bool {store := ctx.KVStore(k.storeKey)

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return store.Has([]byte(hash))}func (k Keeper) IsDuplicateOwner(contract types.Contract,owner sdk.AccAddress) bool {for _, address := range contract.Owners {if owner.Equals(address) {return true}}
return false}
func (k Keeper) GetContract(ctx sdk.Context,
hash string) types.Contract {store := ctx.KVStore(k.storeKey)
if !k.IsContractPresent(ctx, hash) {return types.NewContract()}bz := store.Get([]byte(hash))var contract types.Contract
k.cdc.MustUnmarshalBinaryBare(bz, &contract)
return contract}
func (k Keeper) InitContract(ctx sdk.Context,
hash string,
path string,owners []sdk.AccAddress) {contract := k.GetContract(ctx, hash)contract.Hash = hash

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contract.Path = pathcontract.Owners = owners
k.AddContract(ctx, hash, contract)}func (k Keeper) SetContract(ctx sdk.Context,
hash string,
path string,owner sdk.AccAddress) sdk.Error {contract := k.GetContract(ctx, hash)
if k.IsDuplicateOwner(contract, owner) {return types.ErrContractDuplicated(types.DefaultCodespace)}
if len(contract.Hash) == 0 {contract.Hash = hash}if len(contract.Path) == 0 {contract.Path = path}contract.Owners = append(contract.Owners, owner)
k.AddContract(ctx, hash, contract)
return nil}
func (k Keeper) AddContract(ctx sdk.Context,
hash string,c types.Contract) {store := ctx.KVStore(k.storeKey)

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store.Set([]byte(hash), k.cdc.MustMarshalBinaryBare(c))}
func (k Keeper) GetContractsIterator(ctx sdk.Context) sdk.Iterator {store := ctx.KVStore(k.storeKey)
return sdk.KVStorePrefixIterator(store, nil)}

Endpoint, in this case, uses a storage blockchain or a tamper and forgery proof IPFS and isaccordingly verified. The verified endpoint value is then converted into the following JSON
format and is stored in the transaction block.
Additionally, respective data are processed in Merkle tree form for data management. Services
that make use of data go through the process of converting the respective data into Merkle
tree form. One such example would be Duite(duite.io). We will provide software tools andguides that will aid services like Duite to easily manage data through FIRMACHAIN. One advantage of managing data in a Merkle form is that data can be shared selectively.
The owner of the data records only the root hash of the Merkle tree. Due to the nature of
Merkle tree, verification of the authenticity of the complete data is possible by providing Merkle
proof that includes the root hash, even if only a portion of the data is made public. Such uniquenature of Merkle tree allows the exclusion of certain sensitive personal information when transmitting data. Further on, the authenticity of the data can be verified prior to transaction, by
selectively providing information – especially when requested by the receiving party – such as
the signature of the contract creator. The converted data is initially saved either on the user’ssmart mobile device or on a storage space in the user’s PC.
Since only the root hash extracted from the original data is recorded on Blockchain the cryptographic algorithm, used especially when saving and sharing data, remains free of any possible
restraints. Even if the existing method of encryption becomes obsolete or unstable, possibly
from an increase in computing power, we are free to deploy a new encryption method without
having to completely overhaul the data already recorded on Blockchain.

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www.firmachain.org{"value": {"msg": [{"type": "FIRMACHAIN/addContract","value": {"path":"<https://ipfs.infura.io:5001/api/v0/cat?arg=QmTF7NerdGZhnDPJj3Yj51gqH18o8kLtgkgtVjMLk1V9tx>","hash":"790e54e8723d7ad9c05b232498c3341e6f4465ec6db9f0449c2ba52fcf9d0569","owner": "firma1ytleandjvn27kcpsfly3d39amw6n2znfpm5eg7"}}],"fee": {"gas": "200000"},"signatures": [{"pub_key": {"type": "tendermint/PubKeySecp256k1","value": "AphzfQjmeJtOSczRUmZeqUKMDU4i6BkX9zL7B8HhidV1"},"signature":"yuHO318uATRuv3bTN6n2EKESWjFi5M9+3JnorGbaV2Zbu.
pMu6roR7dRtVZ46biAKZ4VhP6YMDbwNpTF5X6wLNA=="}],"memo": ""_ }}Copyright ⓒ 2018-2024 FIRMACHAIN Pte. Ltd.

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2.4 firma-cli User’s Guide
Following is the installation method and user’s guide for firma and firma-cli
Installing Go
1.

FIRMACHAIN is based on Cosmos SDK and Tendermint and is written in GO.

2.

if you already have GO installed, you can skip this part of the guide.

3.

Please install Go 1.14 or a more recent version of GO from the GO Download andInstall Guide.

4.

We recommend that you install a stable version of GO.

5.

Upon installation, you must add the $PATH environment variable as shown in thecommand line below.

..bash..mkdir -p $HOME/go/bin..echo "export PATH=$PATH:$(go env GOPATH)/bin" >> ~/.bash_profile..source ~/.bash_profile

Install Binary
1.

Once you have successfully installed and set-up your GO environment, you must install
the latest version of firma and firma-cli.

2.

Clone FIRMACHAIN GitHub and execute build command.

..bash..git clone -b https://github.com/FIRMACHAIN/FIRMACHAIN..cd FIRMACHAIN && make install

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3.

If an error message shown below appears LDFLAGS might be included in the setting.

..flag provided but not defined: -L..usage: link [options] main.o.....
..make: *** [install] Error 2

4.

Please remove LDFLAGS from the setting using the command shown below.

LDFLAGS="" make install

Copy Binary
1.

Once you have installed binary, create Symlink for your convenience.

2.

Please create Symlink by referring to the following command. (The object folder might
differ based on your GO setting and your operating system.)..sudo ln -s ~/go/bin/firma /usr/local/bin..sudo ln -s ~/go/bin/firma-cli /usr/local/bin

3.

Once you created your Symlink, please check if the Symlink functions properly.

> firma
FIRMACHAIN (server)
Usage:
firma [command]
Available Commands:
init

Initialize private validator, p2p, genesis, and application configuration

files

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collect-gentxs

Collect genesis txs and output a genesis.json filegentx
validate-genesis

Generate a genesis tx carrying a self delegation
validates the genesis file at the default location or at the location

passed as an arg
add-genesis-account Add genesis account to genesis.json
start

Run the full nodeunsafe-reset-all

Resets the blockchain database, removes address book files, and re-sets priv_validator.json to the genesis state
tendermint

Tendermint subcommands

exportExport state to JSON

versionPrint the app version

help

Help about any command

Flags:-h, --help--home string--log_level string--tracehelp for firma
directory for config and data (default "/Users/Marutian/.firma")
Log level (default "main:info,state:info,*:error")print out full stack trace on errors

Use "firma [command] --help" for more information about a command.

Pre-built Binary
If your environment does not allow you to build FIRMACHAIN, or if you have trouble building
FIRMACHAIN for any other number of reasons, you can use a pre-built binary. Please find the
pre-built binary in the Release Directory within FIRMACHAIN Repository.
1.

Ubuntu(linux) and macOS(darwin) are supported as operating systems.

2.

The Pre-built Binary is built with Ubuntu 18.04 and macOS 10.15 Catalina.

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2.4.1 Network Participation
Create a new Node to participate in the network.
1.

Create a new Node and a Settings file.

..# ex: firma init validator --chain-id=colosseum-1..firma init <moniker> --chain-id=<chain-id>2.

moniker must be written with ASCII TEXT.

3.

moniker can be revised later from ~/.firma/config/config.toml file.

..# A custom human readable name for this node..moniker = "<new_moniker>"Set Minimum-Gas-Prices
The purpose of this setting is to prevent an attack on FIRMACHAIN.
1.

Please set the value of the minimum-gas-prices as 0.01ufct from the ~/.firma/config/app.toml file.

minimum-gas-prices = "0.01ufct"

Copy Genesis File
This process is to import the basic information of FIRMACHAIN.
1.

The basic information is included in genesis.json file and can be found in FIRMACHAIN
Launch.

2.

genesis.json file should be in ~/.firma/config directory.

3.

Please refer to the command below.

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curl

https://raw.githubusercontent.com/FIRMACHAIN/FIRMACHAIN-Launch/master/genesis.json > $HOME/.firma/config/genesis.json
4.

genesis.json download(https://github.com/FIRMACHAIN/FIRMACHAIN-Launch/blob/master/genesis.json)

Add Seed Node
Blockchain is a network of multiple interconnected Nodes. In order to add the Node that you
created to the network; you must find the Peer.
1.

Please check the list of usable Seed Node from FIRMACHAIN Launch.

2.

You can set-up your Seed Node from ~/.firma/config/config.toml file.

3.

From config.toml file, choose one of the following items and modify.

seeds="<Seed Node1>,<Seed Node2>"

persistent_peers="<Seed Node1>,<Seed Node2>"

Start Node1.

Starting a Node is simple.

firma start

2.

Please check the activated status of the Node.

firma-cli status

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2.4.2 Validator Participation
Participate as FIRMACHAIN’s block validator
Role of a Validator
1.

Manage transaction log from Node operation

2.

Verify the integrity of the block and create block3.

Validate the hash value of the contract file (formed in E-Contract) recorded on theblock

Credentials to become a Validator
1.

Currently, there are no set of criteria a candidate must satisfy in order to become avalidator. However, newly applying validators must bond more Firma than the amountbonded by the existing validators.

Validator System Set-up
1.

Hardware Requirement (The conditions set out herein are subject to change with thegrowth of the network. Changes in hardware requirement will be supported by the
FIRMACHAIN foundation.)

2.

Data center facility that meets the necessary power requirement, networking conditions,firewall settings, hardware security module and a backup server

3.

Network with at least 5Gbps bandwidth

4.

Storage device of at least 100Gb

Tasks of Validator
1.

Software upgrade and bug fixing from regular main network development updates

2.

Participation in the FIRMACHAIN community governance and all decision-making processes

Validator Penalty (Slashing)
1.

Downtime: Downtime occurs whenever a validator pre-commits or in other words,
misses a signature on the block. Validator will be penalized for (or downtime slashed

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for) missing more than 500 of the most recent 10,000 transactions. The downtime
slashing ratio is set at 0.01% of the total quantity owned by the validator and thedelegator.
2.

Dual Signature: If a validator from Chain A signs on two blocks of identical heightfrom both Chain A and Chain B (i.e., if Chain A and Chain B stems from the sameancestor), the validator will be slashed from Chain A. Since dual signature is the mostcritical fault, the occurrence of a dual signature per se, puts the stake of both thevalidator and the delegator at jeopardy. Unlike the downtime slashing ratio, the penalty
ratio for dual signature is set at 5% and the respective node of the validator will beblocked from the network for eternity.

Confirm Validator pubkey

firma tendermint show-validator

Create Validator
Refer the command line below in order to create a validator.
Please check the following items before proceeding.
1.

All blocks must be synced to the node.

2.

Key and account must be registered on firma-cli.

3.

Minimum staking quantity when registering as a validator is 1million Firma.
(1,000,000,000,000ufct)4.

Transaction fee needed to register as a validator will be deducted from the accountregistered on from.

5.

Gas must be set as auto while gas-adjustments must be set above 1.7.

..firma-cli tx staking create-validator \..--amount=1000000000000ufct \..--pubkey=$(firma tendermint show-validator) \..--moniker=<moniker> \..--chain-id=<chain_id> \Copyright ⓒ 2018-2024 FIRMACHAIN Pte. Ltd.

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www.firmachain.org..--commission-rate="0.10" \..--commission-max-rate="0.20" \..--commission-max-change-rate="0.01" \..--min-self-delegation=1 \..--gas="auto" \..--gas-prices="0.01ufct" \..--gas-adjustment=1.7 \..--from=<account_name_or_address>

Checking My Reward
FIRMACHAIN utilizes the DPoS mechanism where individuals or entities can receive reward bystaking their coin to a registered validator.
1.

Please refer to the command below in order to check my reward.

firma-cli query distribution rewards <my_address>

2.

With the above command, you can check the quantity of your reward and the list of
all validators that you voted for.

3.

Please refer to the command below in order to check your reward gained from voting
for a specific validator.

firma-cli query distribution rewards <my_address> <validator_pubkey>

Claiming My Reward
You can claim your reward gained from staking a specific validator or from directly participatingin the network.

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You cannot specify the quantity of the reward that you would like to claim and instead, thetotal reward quantity will be paid out.

..firma-cli tx distribution withdraw-rewards <validator_pubkey> \..--from=<account_name_or_address> \..--gas=auto \..--gas-prices=0.01ufct \..--gas-adjustment=1.7

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2.4.3 Use as Command-line
Using a Command-line Interface called firma-cli, FIRMACHAIN can look up information registered on the network or send transactions. In other words, using firma-cli, users and participants
can check the balance of their wallet and can send Firma to other users or participants.
1.

firma-cli is created alongside firma binary when installing and building FIRMACHAIN.

2.

Please refer to the Binary section for a more detailed guide on installing and building
FIRMACHAIN.

3.

1-depth commands that can be used in firma-cli are as follows.

..status

Query remote node for status..config

Create or query an application CLI configuration file..query

Querying subcommands..tx

Transactions subcommands..rest-server Start LCD (light-client daemon), a local REST server..keysAdd or view local private keys..version

Print the app version..help

Help about any command| By inserting ‘-h’ or ‘—help’ at the end of each command, you can see a brief descriptionof the functions of each command and a short user guide of the respective command.
Wallet Creation
To send or receive FCT on FIRMACHAIN, you must create a wallet.
1.

You can create a wallet by inserting the command below.

firma-cli keys add <key_name>

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2.

Once you enter your password (8 characters or more) your wallet creation process iscomplete. You can also check the Mnemonic Phrase which can be used when you
forget your password or when your firma-cli key storage has been reset.

3.

Please store your Mnemonic Phrase in a secure offline location.

4.

Wallet recovery procedure by utilizing Mnemonic Phrase, please refer to the below.

firma-cli keys add <key_name> --recover5.

For other wallet related commands, please refer to the list below.

..firma-cli keys show <key_name> // Check the address of a specific wallet.
..firma-cli keys delete <key_name> // Delete wallet from the storage space.
..firma-cli keys list // Look up all list of wallets on the storage space.

Sending FCTFollowing is a simple guide on sending Firma using firma-cli

firma-cli tx send <from_key_or_address> <to_address> <amount> [flags]

The user must be in possession of the following information in order to send FCT: the key
name or address of the wallet used to send FCT, and the quantity of FCT to be sent. Whenentering the amount, you must put in the amount in the form of 1,000,000ufct. (Conversion
between FCT and ufct is as follows.)•

1FCT is equal to 1,000,000ufct (decimals: 6)

LCD (REST API) Activation
1.

REST API server can be activated from firma-cli.

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firma-cli rest-server

2.

Under this command, once the Shell session ends, the server becomes inactive.

3.

We recommend that you execute this command in the background.

4.

Query through firma-cli is impossible while LCD server is active.

Search Signed Contract (File)
The authenticity of the file can be determined using the hash value of the file only if the file
if registered on FIRMACHAIN.
1.

To determine the authenticity of the file, please use the command listed below after
retrieving the hash value of the file.

firma-cli query contract <hash>More commands are awaiting you.
For commands not listed in this guide, please insert ‘-h’ or ‘--help’ at the end of each command for a more detailed explanation and user guide.

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2.4.4 Use as RPC

LCD HOST Information
Main-net : https://lcd-mainnet.firmachain.dev
Test-net : https://lcd-testnet.firmachain.dev
GET /txs
View transactions by height.
GET /txs/{hash}View transactions by hash.
GET /node_info
View information on connected nodes.
GET /contract/{hash}View hash value of the contract
func QueryContractHandlerFn(cliCtx context.CLIContext) http.HandlerFunc {return func(w http.ResponseWriter, r *http.Request) {vars := mux.Vars(r)paramType := vars["hash"]res, _, err := cliCtx.QueryWithData(fmt.Sprintf("custom/%s/%s", types.QuerierRoute,paramType), nil)
if err != nil {rest.WriteErrorResponse(w, http.StatusNotFound, err.Error())
return}rest.PostProcessResponse(w, cliCtx, res)}}

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POST /contract
Register Contract

type AddContractReq struct {BaseReq rest.BaseReq `json:"base_req"`Pathstring`json:"path"`Hashstring`json:"hash"`Owner

string`json:"owner"`}
func AddContractHandlerFn(cliCtx context.CLIContext) http.HandlerFunc {return func(w http.ResponseWriter, r *http.Request) {var req AddContractReq
if !rest.ReadRESTReq(w, r, cliCtx.Codec, &req) {return}baseReq := req.BaseReq.Sanitize()
if !baseReq.ValidateBasic(w) {return}addr, err := sdk.AccAddressFromBech32(req.Owner)
if err != nil {rest.WriteErrorResponse(w, http.StatusBadRequest, err.Error())
return}msg := types.NewMsgAddContract(req.Path, req.Hash, addr)
err = msg.ValidateBasic()
if err != nil {rest.WriteErrorResponse(w, http.StatusBadRequest, err.Error())
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utils.WriteGenerateStdTxResponse(w, cliCtx, baseReq, []sdk.Msg{msg})}}

GET /blocks/latest
Retrieve the most recent Block information
GET /blocks/{height}
Retrieve information from a block of a specified height
GET /bank/balance/{address}
Retrieve the quantity of FIRMA in possession by a specified address
POST /bank/accounts/{address}/transfers
Send FIRMA to another wallet
GET /supply/total
Information on the total quantity of FIRMA currently supplied
GET /minting/inflation
View the chain’s current minting inflation rate
GET /minting/annual-provisions
Expected annual quantity of FIRMA to be minted
GET /staking/validators
View information on all validators| Please refer to https://cosmos.network/rpc/v0.37.9 for a more detailed information on RPC.

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2.5 Token Economy
Staking

Slashing

Bond Denom
Unbonding Time

ufct

Downtime Jail Duration

600 SECOND(S)21 DAY(S)Min Signed Per Window

5%

Max Entries

7

Historical Entries

10,000Max Validators60

10,000

Slash Fraction Double Sign

5 / 100

Slash Fraction Downtime

1 / 10,000

Distribution

Minting
Blocks Per Year

Signed Block Window

5,111,183

Base Proposer Reward

1%

Goal Bonded

67%

Bonus Proposer Reward

4%

Inflation Max

15%

Community Tax

3%

Inflation Min

8%

Withdraw Address Enabled

Inflation Rate Change

25%

Mint Denom

ufct

TRUE

Gov
Min Deposit

5000.000000 FCTMax Deposit Period

7 DAY(S)

Quorum33%

Threshold

50%

Veto Threshold

33%

Voting Period

7 DAY(S)For further detailed figures and facts about the token economy, please refer to the following
links.
[Explorer URL]
https://explorer.firmachain.dev/params

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3. FIRMACHAIN DApp : E-Contract

3.1 Problems of Existing License Agreements for Intellectual Property Rights
and Solutions Based on Blockchain Technologies
Because written international contracts require an execution in-person, one of the contracting parties has to spend a lot of time and costs for traveling abroad.
The current IP license agreements are conducted by transferring electronic contracts online
prior to revising and concluding them. However, there have been issues of possible forgery
and security breaches due to the centralized structure of the server. Further, there has been no
way of verifying the counterparty’s identity, authorities or rights when contracts are sent backand forth via email and messengers. However, the advent of blockchain technologies will solve
all these problems.
Thus, FIRMACHAIN and E-Contract combine the fundamental elements of a contract withblockchain technology to achieve our goal of creating a smooth process of contract execution
and implementation between parties. Also, FIRMACHAIN is doing its best in tackling the aforementioned social problems.
The advantages of FIRMACHAIN’s E-contract based on blockchain can be maximized inlicense agreements for IP rights such as patents, trademarks and copyrights (games, characters,
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animation, etc.). Therefore, such IP license agreements will be the first target of the new platform to be established by FIRMACHAIN.
The problems of the current license agreements are as follows:
It is difficult for a licensee who intends to execute an agreement to verify the actual holder(including exclusive licensees) of IP rights (patent, trademark, etc.). Their names or addresses
can be identified in the official publication of patents issued by the Korea Intellectual Property
Office. In case of cross-border contracts, where an IP right has been transferred to a third partyor licensed to an exclusive or non-exclusive licensee, it is more challenging to confirm theidentities of those licensees and trace the actual licensor.
Licensors, too, are exposed to risks of fraud because they cannot confirm the identity of aperson who intends to execute a license agreement. Further, it was difficult for a third party toobtain information on the duration of a patent or trademark and the full information of thelicensor (including exclusive licensee).
For example, the purchasers of a product for which a patent right or a trademark right isregistered are not able to verify whether the product had been manufactured by a person
legitimately holding the right.
Even if there was a known IP right holder, it requires the vast amount of time and costrequired to sign a written agreement. An IP right holder also faced a wide range of practicalproblems (time and cost) in finding a person who desires to use his or her IP in another country.
The process of cross-border remittance of fees and payment of taxes, etc. was at all times
exposed to risks of fraud and caused inconveniences and nuisances.
In order to address the above-mentioned problems, FIRMACHAIN will offer a solution as
follows:1.

As long as accessible to the internets, the users can confirm the details of IP rights,
including the type of IP rights, the titleholder, and the coverage (geographic coverage).

2.

The introduction of blockchain-based electronic contracts in the entire process of contract
execution will enable the users to record and verify the entire contracting process, suchas negotiations and transaction history, etc.

3.

Verified licensor and licensee can execute a cross-border contract (e.g., IP license agreement) online rapidly and free from any risk of fraud using the electronic contract platform(E-Contract) without physically meeting each other through blockchain

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4.

Various useful functions, e.g., dashboards, provision of standard contract forms, matching
service for legal counseling and review by third-party professionals, will be provided tofacilitate rapid and convenient execution of contracts.

5.

FIRMACHAIN platform will allow the IP holders to easily locate the potential licensees
and thereby facilitate the execution of diverse license agreements at lower costs.

FIRMACHAIN’s solution will expand the international license market and improve the transparency in relevant transactions.

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3.2 Need for E-contracts and Process Control
There are many problems in our society due to people’s preference for written contracts.
Written contracts create inconvenience in keeping contractual documents separately. At theoutset, each party share one (1) copy each of the written contract, but it is difficult to synchronize any subsequent revisions, and it can also easily give rise to fraud issues. Numerous companies try to follow the content modification timeline by using external elements such as emails
and voice recordings, but this is difficult to manage. Even if the problem of forgery in writing
is a huge problem that may lead to a legal battle, there is no way to prevent it. In order tosolve these problems, electronic contracts emerged in our society.

Electronic contracts are a way to digitize contractual agreements between companies. Electronic documents of a similar concept (Electronic Transactions Act) are recognized as having
the same legal effect as paper documents. In domestic and overseas laws related to commercial
transactions, it is stipulated that electronic signatures (Digital Signature Act) have a legal effect.
As a result, electronic contracts have also become legally valid.

Currently, the efficiency of electronic contracts is superior to written contracts. However, it is
not preferred over written contracts because certain problems are unavoidable, such as contracts by unauthorized people, burdens that come from transmission risks due to system failures, and so on. In addition, companies that have yet to advance are taking the position toadhere to these traditional methods, so the position of the technology of electronic contracts
is still under-estimated and is regarded as an unnecessary technology.

FIRMACHAIN has the goal of making electronic documents and contracts transparent andreliable by using the characteristics of the blockchain, and thereby solving the current problems.

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3.3 Why E-Contract?

<Create and implement a rational contract with e-contracts>

From an advanced modern society perspective, we are using fairly primitive methods when
making and implementing large and small contracts. For example, we go through several email
exchanges to send and receive contracts, or sometimes we would exchange contracts on thesame day. Some do not check the contents of the contract properly before signing it, use
legally inaccurate seals or stamps with no information, or even try to proceed with work without
making a contract at all because it costs time to create one.

In addition, many companies undergo contracts with large transaction costs and long contract
period, and by doing so, they only manage the contents, such as the contract’s progress, status,
additional work, modifications to the contract, etc. in writing, so the timeline becomes difficult
to manage.

The E-Contract (DApp), which uses FIRMACHAIN, provides a trans-parent ledger through asmart contract and public chain, which means both legality and stability can be assured. The
use of convenient and necessary functions for managing the contract progress allows efficientbusiness operation. In addition, it can reason-ably solve the problem on transaction fees by
replacing the currency used for the contract with cryptocurrency. In particular, it can solve
problems when creating multinational contracts such as double taxation, overseas corporation
establishment problems, overseas remittance, etc., so it can allow people to carry their businessplans efficiently.

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As described in the service structure, E-Contract will provide several functions. (Enforced security parameters for electronic contracts, form presets for standard contracts, contract editand management)

4. Structure of E-Contract

E-Contract is divided into: 1) The core layer where encrypted contract data and the contract
transaction are saved; 2) The application layer which creates and manages the contracts using
DApp; 3) The service layer which verifies and processes electronic contracts, and connects thecore layer and application layer.

4.1 Core Layer (FIRMACHAIN)

FIRMACHAIN is used to transfer and collect transaction prices, distribute the finite-state forthe entire contract procedure, verify the integrity of electronic documents, and protect thecontract data from forgery. The contract will have a finite-state for each phrase, and the details
are as follows. The states that will actually be implemented are going to be broken down
further.

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Establishment of contract
In order to confirm the payment ability of the party paying at the time of drafting contract,a certain percentage of the initial transaction price shall be set as the deposit under the agreement of the parties. The transaction price will be in local currency or FIRMACHAIN Token (i.e.,
FCT). If the transaction price is in local currency, the foregoing deposit will not be necessary.

After the contract is written, the contract will be written in the Decentralized Data Storage
once the parties have reviewed and confirmed its details. In this “waiting to upload” stage, thepaying party should have more money than the deposit amount in their wallet, and they must
remit the money in case they need to pay for certain fees in advance, such as a deposit. Once
this process is complete, the status is changed to “in progress.” Once the contract is in thisstage, the transaction history containing the *Hash String is uploaded in the Smart Contract.
All parties involved can now implement the contract. When using local currency as the transaction price, the party must create a transaction in the Smart Contract without FCT; and include
a proof of transaction in the electronic documents of the corresponding contract, such as a
passbook transaction history or transfer document.

Progress of contract
The contract will be processed, and the transaction amount will be remitted either in FCT or
local currency depending on the agreement. In the blockchain and service layer. The transactionof the remittance can be reviewed to determine the progress of the contract in the blockchain
and service layer

Completion of contract
When the payment of the transaction amount written in the contract is completed, the statusof the corresponding contract is changed to “waiting for completion.” Once the contents ofthe contract are verified and confirmed between the parties, the status is changed to “completed” and the transaction cost will be given to the party that receives the contract.

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Cancellation of contract
The contract may be cancelled or terminated due to circumstances mutual to both parties
while the contract is in progress. A contract that has already been uploaded cannot be deleted,and can only be cancelled by creating an additional contract to override the original. In thiscase, the information of the cancelled contract will be entered on the E-Contract, and a settlement agreement between both parties, or a refund or additional payment request according
to the contract will be settled by creating a new payment contract based on the cancelledcontract.
When the contract is cancelled due to certain reasons between the parties, the E-Contract
service actively supports the technical part so that the data stored in the Decentralized Data
Storage regarding all the details that took place in the contract process can be easily browsed.

Modification of contract
If there is a sudden problem unforeseen at the time of the contract process, the parties maychange the contents of the contract through a special contract. Once the parties create a
special contract and all persons involved agree to such, the corresponding special contract will
be attached as a subcontract of the main contract. In addition, the Hash String of the subcontract will be uploaded to the Smart Contract, and the contents of the subcontract will be
uploaded in the Decentralized Data Storage.
If there are any changes to the transaction amount when amending the contract, the amountof the new deposit will be additionally remitted or refunded depending on the deposit amountset previously.
*Hash String
A Hash String uses a cryptographic hash function to map a data of arbitrary length to astring of fixed length. This function is a unidirectional function, so it cannot obtain the original
data from the Hash String. Even a slight modification to the original will create a completely
different Hash String, so it can check the integrity of the data and is used as the unique
identification value of electronic documents at FIRMACHAIN. For cryptographic hash functions,proven algorithms such as SHA256 or SHA512 are used.

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4.2 Service Layer (Firma Network)
The Firma Network acts as a processor and inspector between the E-Contract service of
the application layer and the core layer. The contract is created through the E-Contract, and it
needs to undergo a processing operation in the middle before it can be uploaded on the
FIRMACHAIN.

The processing operation refers to processing the text data and other data (such as images,
music, recordings, etc.) found in the electronic contract document and uploading it to theDecentralized Data Storage. Generally, users are recommended to make the contract data composed of a text data only.

However, there are contacts in which non-text contents are necessary. For these types ofcontracts, if the electronic documents produced using the Markdown syntax, which is supportedby the E-Contract, are transferred to the Firma Network, the images and other files part of thecontract are included in the electronic document. Also, in the case of electronic signatures, they
are replaced with *digital signatures (using a public key cryptographic method, e.g. RSA,
Merkle, Signature, etc.). With this, a unified document is uploaded to the Decentralized Data
Storage once the processing operation is finished.

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The contracting parties will receive a public key (PK) and a secret key (SK) created by the RSA
method upon signing up on the E-Contract service, and each contracting party will have one
key pair.
In the contract section (A), the contracting parties’ PK are included. Before we jump into the
explanation, let us assume that there are 2 contracting parties, and we will refer to each pairof keys (SK and PK) as (SK1, PK1) and (SK2, PK2). In the digital signature section (B), the message
that includes the personal or company information as well as the agreement to fulfill thecontents of Contract A are encrypted with their own SK for both contracting parties. The Hash
String of Contract A is included in the message in order to identify Contract A.
An electronic document, E, containing both Contract A and Digital Signature B is created,
and the keys are issued only to the contracting parties using a symmetric password

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cryptographic system. This is uploaded to the Decentralized Data Storage. The Hash String of
the document is uploaded to the Smart Contract of FIRMACHAIN, and the contract is implemented.

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Patent Right Licensing Agreement (for Exclusive License)

This Agreement is made and entered into by and between A Co., Ltd. (“Company A”) and B Co., Ltd. (“Company B”) as follows:
Article 1(Purpose)

Company A shall grant an exclusive license for the patent right held by Company A as specified below (the “Patent”) to Company B:
Patent NumberNo.

Title of Invention
Article 2(Registration of License)

Upon execution of this Agreement, Company B may register the establishment of the license indicated in the preceding Article at its
own expense. Company A shall cooperate therefor.
Article 3(Coverage of License)

The coverage of Company B’s use of the Patent is as follows:1.

Region: Republic of Korea

2.

Period: X years from X X, 20XX

3.

Type of use: Manufacturing and sale⋯
Article 13(Non-refund of Licensing Fee)

In no case shall Company B return the licensing fee that it has already received.
Article 14(Termination)

Upon the occurrence of one of following events, Company A may terminate this Agreement immediately without giving notice toCompany B:
1.

Company B fails to pay the licensing fee in a timely manner;

2.

Company B fails to use the Patent within X months from the date of execution of this Agreement without a justifiablereason; or

3.

Any of the notes or checks that Company B has issued or endorsed is in default.
⋯

Attachment. Contract Contents[[image::Binary Data⋯]]
Digital Signature of Company A:

Digital Signature of Company B[[Digital Signature::0GCSqGSZKjeGcjDlb3D⋯]][[Digital Signature::DOL5Ulsuulb3DQEISaC⋯]]< Example of an electronic document before encryption after the processing is complete>
The example shown above is an electronic document that has been processed. This electronic
document consists of a text data that includes the contents of the contract; a binary or base64encoded data, such as images, music, recordings, etc.; and a Public Key that can verify thedigital signature of the parties at any time.

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The above example may be subject to some revisions after reviewing it with our partner law
firm to ensure the effectivity of legal evidence of the electronic documents and electronic
contracts.

𝐴 = Contents of a contract

𝐸! (𝑀):Encrypt 𝑀by using key 𝐾

𝐻𝐴𝑆𝐻" = 𝑆𝐻𝐴256(𝐴)𝑆 = Secret key of 𝐴

.𝑆𝐾, 𝑃𝐾 = 𝐾𝐸𝑌_𝐺𝐸𝑁𝐸𝑅𝐴𝑇𝐸()

𝑀1 = "Information about PK1, I agree with this contract(𝐻𝐴𝑆𝐻" )"𝑀2 = "Information about PK2, I agree with this contract(𝐻𝐴𝑆𝐻" )"𝑆1 = 𝐸#!$ (𝑀1)𝑆2 = 𝐸#!% (𝑀2)
𝐵 = 𝑆1||𝑆2
𝑊 = 𝐴||𝐵
𝐶& = 𝐸# (𝑊)
𝐻𝐴𝑆𝐻& = 𝑆𝐻𝐴256(𝐶& )𝐻𝐴𝑆𝐻& → Smart Contract
𝐶& → Decentralized Data Storage

The above formula illustrates the process of creating an electronic document that is uploaded
to the Decentralized Data Storage by combining the contents of the contract and the digital
signature. As E-Contract development progresses, changes may occur if a more efficient andmore secure algorithm is discovered.
These types of processing operations are only used in E-Contracts. Other DApps using theFirma Network can create various processing algorithms to suit the nature of the service. This
allows us to create a variety of services through the efficacy of the contract, and this will
become the basis for producing various electronic document-based services.
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4.3 Application Layer (DApp)

The basic role of the E-Contract (DApp, Decentralized Application) is to write contracts,
make necessary modifications under the agreement of the parties, receive confirmation fromall contracting parties, and upload this state to the blockchain. In addition, all core tasks required for the contract such as confirming and changing the status will be carried out in the
E-Contracts, by connecting the Smart Contract code of the Ethereum. The parties may checkthe contract before signing, and all of the contract processes after signing can be managed
using the E-Contract. In addition, as mentioned in the introduction, many functions are available
to assist in the contract writing and implementation process, some of which are described
below.

Markdown and Visual Editor that help in writing contracts
You can create a contract using DApp. The content creation should be done according to
the Markdown syntax as defined by the E-Contract in order to textualize the data. Of course,
it supports Visual Editor (WYSIWYG) for those users who have difficulties in using Markdown
syntax. In addition, it also provides a conversion function to enable the use of existing contract
formats such as doc and hwp.

Security enhancement system for digital signatures
Most electronic signature services are written directly on the digital canvas in the contract.
However, this can easily be done by someone else as a proxy, and one cannot expect to havethe same non-repudiation effect as an authorized certificate. Signatures affixed in written contracts are also exposed to such risks. Even if this may have legal effect, it is difficult to determine
who actually affixed the signature. E-Contract allows users to use a digital signature registration system provided by Firma Network after signing up. This system makes it easier to haveproof when a legal dispute arises. The details are given below.

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Standard contract preset support
You may receive various standard contracts used in the industry that were reasonably prepared based on legal advice before the time of writing. If the contract is not significantly
different from the standard contract, users can immediately create a contract by changing only
the parties to the transaction, contracting entities, project name, transaction amount, date, etc.
In addition, users may edit the standard contract and save the contract they have created.

Identifying progress and revision history of contract
Users can determine the progress of their agreement through the E-Contract. In addition,
when the contents of the contract are changed, users can add DiffTool to compare whichparts have been modified or deleted and they will be able to see the changes at a glance.
This tool will help the contracting parties recognize the modifications that took place in thecontract.

Matching Service for legal advice on cross-border contracts
There may be cases wherein it is difficult to draft cross-border contracts due to differencesin customs and laws between countries. Upon comparing and analyzing such cases, Tooltip forlegal advice from third-party professionals will be provided when creating contracts. In addition,
we are also planning to provide a matching service for one-on-one legal advisory services fromthird-party professionals for contracts with large or frequent transactions.
Besides this, various convenience functions will be added to make it easier to proceed withthe contract.
For the E-Contract web services, we are planning to build a server with Node.js Frameworkusing JavaScript (ES7 standard). For the web, we plan to apply the ReactJS library. We havechosen ReactJS since it is a library optimized for creating a view that is easy to see and understand so that the parties may implement the contract in an easier way.
The mobile services are in the planning stage. The main service will be done via web, andwe are planning to provide various functions such as chatting between the contracting parties,
notifications of the contract progress, etc., on mobile. We will be using React Native, or build
it using the native language of the platform (iOS and Android).
The technology to be used in the service development has been chosen to meet our goal:

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to develop as quickly as possible while allowing us to have a stable and efficient development.
In addition, we will create and distribute an SDK, which will allow users to use electronic
contracts and signatures, one of the core functions of the E-Contract service, in a modular
format for all web and app services that require contracts. We are also planning to produce
various electronic document services using FIRMACHAIN.

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5. Roadmap
Further information on FIRMACHAIN's roadmap can be found at the following websites.
[FIRMACHAIN Official Site]
https://firmachain.org/roadmap/[FIRMACHAIN Medium]https://medium.com/firmachain/firmachain-roadmap-2024-with-a-summary-of-the-progressmade-in-2023-d47cb60b8b22

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6. Token Status
Information on FIRMACHAIN token can be found on Xangle's public announcement channel.
[Xangle URL]
https://xangle.io/en/assets/FCT2

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7. TeamFurther information about the main members of FIRMACHAIN can be found on the official
website.
[FIRMACHAIN Official Site]
https://firmachain.org/about/

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8. Advisor
FIRMACHAIN's vision is to reform the basis of our modern society, thewritten contract, by eliminating its various complications through the decentralization, transparency and credibility that block chains offer.
Especially in the case of multinational contracts, issues of conflict suchas country-by-country double taxation, overseas incorporation, remit-

Han Jong Lee
CEO
Goodtimewith.metance abroad, and fee arrangement can be resolved transparently and effectively with our technical skills that are basd on a framework of economic growth. With hopes to materialize such vision, along with our prolonged teamwork, and quick, flexible executions, Firma team invites you
to join us on a challenge that seeks authenticity.

There are still lots of spaces that can be improved in the blockchainbased data storage, especially in the form of electronic documents andcontracts. I have seen and worked with the FIRMACHAIN team from theearly stage.

Hyeonwook Jeong
CEO / Founder
beSUCCESS

Based on my personal experience, I believe FIRMACHAIN will keep
growing and will remain strong in the future, because it is handled by asolid team with a realistic road map. Due to its strong development
team, FIRMACHAIN also has a high potential for producing solutions thatcan bring more innovation to the transaction and can add even more
speed to it. Personally, I am excited to be joining as an adviser and am
happy to support the global expansion of this project.
.

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Starting with the financial industry, blockchain has been leading the 4th
industrial revolution and is believed to be the leading technology. The
numerous count of devices and the skyrocketing trade volume has
caused traditional cloud based centralised systems various problems suchas system maintenance, and security.

Guho SonCEO
Monument Company
Former Managing Director of
SoftBank Ventures

FIRMACHAIN’s solution will create a more transparent and secure resolution not only for the financial industry, but in retail, manufacturing, andin resolving social-cultural issues, ultimately bringing a positive impact toour economy.

Blockchain technology, based on the responsibility of the participants
within the network, verifies transactions and decentralizes encrypted information allowing for better transparency and security. FIRMACHAIN utilizes these aspects of the blockchain and has formulated a blockchainbased electronic contract platform. This allows for simplified contract proJiwook Kim

cedures (drafting, negotiating, closing) and by uploading to the block-

Attorney at law

chain network this contract can be verified by those participating in thePartner at Yoon & Yang LLC

network, eliminating the risks of forgery and emphasizing transparency
for safe contract management. FIRMACHAIN is the solution to the disadvantages we experience with traditional contracts.

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9. Partnership
Strategic Partners

Ecosystem Partners

Press

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10. Disclaimer
Please read this entire section carefully. If you are in any doubt as to the action you shouldtake, please consult your legal, financial, tax or other professional advisor(s).
1.1Legal Statement(a)This Whitepaper (“Whitepaper”), in its current form, is circulated for general
information purposes only in relation to the platform and applications described in the
Whitepaper (“Platform”) as presently conceived and is subject to review and revision.
Please note that this Whitepaper is a work in progress and the information in thisWhitepaper is current only as of the date on the cover hereof. Thereafter, the information, including information concerning FIRMACHAIN Pte Ltd (the “Company”) business operations and financial condition may have changed. We reserve the right tochange, modify, add or delete parts of this Whitepaper or website without notice forany reason or at any time.

(b)

No person is bound to enter into any contract or binding legal commitment
in relation to the sale and purchase of the tokens native to the Platform (“FCT Token”
and/or “FIRMA Coin” or collectively, the “Tokens”) (as defined above in section ) andno payment is to be accepted on the basis of this Whitepaper. Any sale and purchaseof the Token will be governed by a legally binding agreement, the details of which will
be made available separately from this Whitepaper. In the event of any inconsistencies
between the abovementioned agreement and this Whitepaper, the former shall prevail.

(c)This Whitepaper does not constitute or form part of any opinion on any
advice to sell, or any solicitation of any offer by the issuer/distributor/vendor
of the Tokens to purchase any Tokens nor shall it or any part of it nor the factof its presentation form the basis of, or be relied upon in connection with, any contract
or investment decision.

(d)

The Tokens are not intended to constitute a type of capital market products, which
includes but is not limited to securities, spot foreign exchange contracts for the
purposes of leveraged foreign exchange trading, derivatives contracts, or units in acollective investment scheme, each as defined under the Securities and Futures Act

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www.firmachain.org(Cap. 289) of Singapore (“SFA”), or its equivalent in any other jurisdiction. Accordingly,
this Whitepaper therefore, does not, and is not intended to, constitute a prospectus,
profile statement, or offer document of any sort, and should not be construed as anoffer of securities of any form, units in a business trust, units in a collective investment
scheme or any other form of investment, or a solicitation for any form of investment
in any jurisdiction.
(e)None of the Tokens should be construed, interpreted, classified or treated as enabling,or according any opportunity to, purchasers to participate in or receive
profits, income, or other payments or returns arising from or in connection
with the Platform, the Tokens, or products, or to receive sums paid out ofsuch profits, income, or other payments or returns.

(f)This Whitepaper or any part hereof may not be reproduced, distributed orotherwise disseminated in any jurisdiction where offering coins/tokens in themanner set out this Whitepaper is regulated or prohibited.

(g)

No regulatory authority has reviewed, examined or approved of any of the information
set out in this Whitepaper. No such action has been or will be taken in any jurisdiction.

(h)Where you wish to purchase any Tokens, the Tokens are not to be construed, interpreted, classified or treated as any type of capital markets product under the SFA or
its equivalent in any other jurisdiction including but not limited to: (a) any kind ofcurrency other than cryptocurrency; (b) debentures, stocks or shares issued by any
entity; (c) rights, options or derivatives in respect of such debentures, stocks or shares;(d) rights under a contract for differences or under any other contract with the purposeor pretended purpose to secure a profit or avoid a loss; or (e) units or derivatives in acollective investment scheme or business trust, or any other type of securities.

1.2

Restrictions on Distribution and Dissemination(a)

The distribution or dissemination of this Whitepaper or any part thereof may be prohibited or restricted by the laws or regulatory requirements of any jurisdiction. In thecase where any restriction applies, you are to inform yourself about, to obtain legal
and other relevant advice on, and to observe, any restrictions which are applicable to

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your possession of this Whitepaper or such part thereof (as the case may be) at yourown expense and without liability to the Company or its representatives, agents, andrelated companies (“Affiliates”).
(b)Persons to whom a copy of this Whitepaper has been distributed or disseminated,
provided access to or who otherwise have the Whitepaper in their possession shall not
circulate it to any other persons, reproduce or otherwise distribute this Whitepaper or
any information contained herein for any purpose whatsoever nor permit or cause thesame to occur.

1.3

Disclaimer of Liability(a)

The Tokens, the Platform and related services provided by the Company and its affiliates are provided on an “as is” and “as available” basis. The Company and its Affiliates
do not grant any warranties or make any representation, express or implied or otherwise, as to the accessibility, quality, suitability, accuracy, adequacy, or completeness of
the Tokens, the Platform or any related services provided by the Company and its
Affiliates, and expressly disclaim any liability for errors, delays, or omissions in, or for
any action taken in reliance on, the Tokens, the Platform and related services provided
by the Company and its Affiliates.

(b)

The Company, its Affiliates and its directors, officials and employees do not make or
purport to make, and hereby disclaim, any representation, warranty or undertaking inany form whatsoever to any entity or person, including any representation, warranty or
undertaking in relation to the truth, accuracy and completeness of any of the information set out in this Whitepaper.

(c)

To the maximum extent permitted by the applicable laws and regulations, the Company
and its Affiliates shall not be liable for any indirect, special, incidental, consequential orother losses of any kind, in tort, contract or otherwise (including but not limited to lossof revenue, income or profits, and loss of use or data), arising out of or in connection
with any acceptance of or reliance on this Whitepaper or any part thereof by you.

1.4

Cautionary Note on Forward-Looking Statements

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www.firmachain.org(a)Certain information set forth in this Whitepaper includes forward-looking
information regarding the future of the project, future events and projections. Thesestatements are not statements of historical fact and may be identified by but not limited
to words and phrases such as “will”, “estimate”, “believe”, “expect”, project”, “anticipate”,
or words of similar meaning. Such forward-looking statements are also included inother publicly available materials such as presentations, interviews, videos etc., information contained in this Whitepaper constitutes forward-looking statements including
but not limited to future results, performance, or achievements of the Company or its
Affiliates.

(b)

The forward-looking statements involve a variety of risks and uncertainties. These statements are not guarantees of future performance and no undue reliance should beplaced on them. Should any of these risks or uncertainties materialize, the actual performance and progress of the Company or its Affiliates might differ from expectations
set by the forward-looking statements. The Company or its Affiliates undertake no
obligation to update forward-looking statements should there be any change in circumstances. By acting upon forward-looking information received from this Whitepaper,
the Company or its Affiliates’ website and other materials produced by the Company
or its Affiliates, you personally bear full responsibility in the event where the forwardlooking statements do not materialize.

(c)

As of the date of this Whitepaper, the Platform has not been completed and is not
fully operational. Any description pertaining to and regarding the Platform is made on
the basis that the Platform will be completed and be fully operational. However, thisparagraph shall in no way be construed as providing any form of guarantee or assurance that the Platform will eventually be completed or be fully operational.

1.5

Potential Risks
By purchasing, holding and using the Tokens, you expressly acknowledge and assume
the risks set out in this section if any of these risks and uncertainties develops into
actual events, the business, financial condition, results of operations and prospects of
the Company or its Affiliates may be materially and adversely affected. In such cases,
you may lose all or part of the value of the Tokens. Such risks include but are notlimited to the following:

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Risks Relating to the Tokens(a)There may not be a public or secondary market available for the Tokens
I.

The Tokens are intended to be native tokens to be used on the Platform,
and the Company and its Affiliates have not and may not actively facilitate
any secondary trading or external trading of Tokens. In addition, there isand has been no public market for the Tokens and the Tokens are nottraded, whether on any cryptocurrency exchange or otherwise. In the eventthat the Tokens are traded on a cryptocurrency exchange, there is no assurance that an active or liquid trading market for the Tokens will develop
or if developed, be sustained. There is also no assurance that the market
price of the Tokens will not decline below the purchase amount paid for
the Tokens, which is not indicative of such market price.

II.

A FCT Token and/or FIRMA Token is not a currency issued by any central
bank or national, supra-national or quasi-national organisation, nor is itbacked by any hard assets or other credit. The Company and its Affiliates
are not responsible for nor do they pursue the circulation and trading of
the Tokens on the market. Trading of the Tokens merely depends on theconsensus on its value between the relevant market participants, and no
one is obliged to acquire any Tokens from any holder of the Tokens, including the purchasers of the Tokens, nor does anyone guarantee the liquidity or market price of the Tokens to any extent at any time. Accordingly,
the Company and its Affiliates cannot ensure that there will be any demandor market for the Tokens, or that the price upon which the Tokens werepurchased is indicative of the market price of the Tokens if they are madeavailable for trading on a cryptocurrency exchange.

Risks Relating to the Company, its Affiliates and the Platform(a)

Limited availability of sufficient information

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www.firmachain.org

The Platform is still at an early development phase as of the date of this Whitepaper. Its governance structure, purpose, consensus mechanism, algorithm,
code, infrastructure design and other technical specifications and parameters
may be updated and changed frequently without notice. While this Whitepaper
contains the key information currently available in relation to the Platform, it issubject to adjustments and updates from time to time, as announced on the
Company’s website. Purchasers will not have full access to all the information
relevant to the Tokens and/or the Platform. Nevertheless, it is anticipated thatsignificant milestones and progress reports will be announced on the Company’s website from time to time where deemed necessary in the Company’ssole discretion.
(b)

The digital assets raised in the sale of the Tokens are exposed to the risksof theft.
Whilst the Company and its Affiliates will make every effort to ensure that any
cryptocurrencies received from the sale of Tokens are securely held throughthe implementation of security measures, there is no assurance that there will
be no theft of the cryptocurrencies as a result of hacks, mining attacks, sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities ordefects on such blockchain addresses, or any other blockchain, or otherwise.
Such events may include, for example, flaws in programming or source code
leading to exploitation or abuse thereof. In such event, even if the sale ofTokens is completed, the Company and its Affiliates may not be able to receive
the cryptocurrencies raised and the Company and its Affiliates may not be able
to utilize such funds for the development of the Platform, and the launch of
the Platform might be temporarily or permanently curtailed. As such, the issued
Tokens may hold little worth or value. The Tokens are uninsured, unless you
specifically obtain private insurance to insure them. In the event of any loss orloss of value of the Tokens, you may have no recourse.

(c)

The blockchain address(es) may be compromised and the digital assets
may not be able to be retrieved.

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www.firmachain.org

The blockchain address(es) are designed to be secured. However, in the eventthat the blockchain address(es) for the receipt of purchase amounts or otherwise are, for any reason, compromised (including but not limited to scenariosof the loss of keys to such blockchain address(es), the funds held at such blockchain address(es) may not be able to be retrieved and disbursed, and may bepermanently unrecoverable. In such event, even if the sale of the Tokens is
successful, the Company and its Affiliates will not be able to receive the funds
raised and the Company and its Affiliates will not be able to utilize such funds
for the development of the Platform, and the implementation of the Platformmight be temporarily or permanently curtailed. As such, distributed Tokens may
hold little worth or value.
(d)There is no assurance of any success of the Platform and the Company
and its Affiliates may cease the development, launch and operation of the
Platform.
I.

The value of, and demand for, the Tokens hinges heavily on the performance of the Platform. There is no assurance that the Platform will gain
traction after its launch and achieve any commercial success. The Platform
has not been fully developed, finalized and integrated and is subject tofurther changes, updates and adjustments prior to its launch. Such changes
may result in unexpected and unforeseen effects on its projected appeal tousers, and hence impact its success. There are no guarantees that the process for creating the Tokens will be uninterrupted or error-free.

II.

While the Company has made every effort to provide a realistic estimate,
there is also no assurance that the cryptocurrencies raised in the sale ofTokens will be sufficient for the development and integration of the Platform. For the foregoing or any other reason, the development and integration of the Platform may not be completed and there is no assurance thatits systems, protocols or products will be launched at all. As such, distributed Tokens may hold little or no worth or value.

III. Additional reasons which may result in the termination of the development,
launch or operation of the Platform includes, but is not limited to, (aa) an

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unfavorable fluctuation in the value of cryptographic and fiat currencies,(bb) the inability of the Company and its Affiliates to establish the Platformor the Tokens’ utility or to resolve technical problems and issues faced inrelation to the development or operation of the Platform or the Tokens,the failure of commercial relationships, (cc) intellectual property disputes
during development or operation, and (dd) changes in the future capitalneeds of the Company or its Affiliates and the availability of financing andcapital to fund such needs. For the aforesaid and other reasons, the Platform may no longer be a viable project and may be dissolved or notlaunched, negatively impacting the Platform and the potential utility andvalue of issued FCT Tokens and/or FIRMA Tokens.
(e)There may be lack of demand for the Platform and the services provided,
which would impact the value of the Tokens.
I.

There is a risk that upon launching of the Platform, there is a lack of interest
from consumers, merchants, advertisers, and other key participants for the
Platform and the services, and that there may be limited interest and therefore use of the Platform and the Tokens. Such a lack of interest could
impact the operation of the Platform and the uses or potential value of the
Tokens.

II.

There is a risk of competition from alternative platforms that may havebeen established, or even from existing businesses which would target any
segment of the potential users of the Platform fulfilling similar demands,
e.g. corporations targeting advertisers seeking purchase consumer data andmarket analysis. Therefore, in the event that the competition results in alack of interest and demand for the Platform, the services and the Tokens,the operation of the Platform and Tokens’ value may be negatively impacted.

(f)

The Company and its Affiliates may experience system failures, unplannedinterruptions in its network or services, hardware or software defects, security breaches or other causes that could adversely affect the Company
or its Affiliates’ infrastructure network, or the Platform.

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www.firmachain.org

I.

The Company and its Affiliates are unable to anticipate or detect when
there would be occurrences of hacks, cyber-attacks, mining attacks (including but not limited to double-spend attacks, majority mining power attacks
and “selfish-mining” attacks), distributed denials of service or errors, vulnerabilities or defects in the Platform, the Tokens, or any technology (including but not limited to smart contract technology) on which the Company, its Affiliates, the Platform, the Tokens, rely on or the Ethereum Blockchain or any other blockchain. Such events may include, for example, flaws
in programming or source code leading to exploitation or abuse thereof.
The Company and its Affiliates may not be able to detect such issues in atimely manner, and may not have sufficient resources to efficiently copewith multiple service incidents happening simultaneously or in rapid succession.

II.

Although the Company and its Affiliates will be taking steps against malicious attacks on its appliances or its infrastructure, which are critical for the
maintenance of the Platform and its other services, there can be no assurance that cyber-attacks, such as distributed denials of service, will not be
attempted in the future, and that any of such security measures will beeffective. Any significant breach of security measures or other disruptions
resulting in a compromise of the usability, stability and security of the Company and its Affiliates’ network or services, including the Platform.

Risks Relating to the Participation in the Sale of Tokens(a)You may not be able to recover the purchase amount paid for the Tokens.
Except as provided under any applicable terms of sale or prescribed by applicable laws and regulations, the Company is not obliged to provide you with arefund of the purchase amount. No promises of future performance or priceare or will be made in respect to the Tokens, including promises of inherent
value or continuing payments, and there is no guarantee that the Tokens willhold any particular value. Therefore, the recovery of the purchase amount may
be impossible or may be subject to applicable laws and regulations.

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www.firmachain.org(b)

You may be subject to adverse legal and/or tax implications as a result of
the purchase, distribution and use of the Tokens.
I.

The legal character of cryptocurrency and cryptographic assets remain uncertain. There is a risk that the Tokens may be considered securities incertain jurisdictions, or may be considered to be securities in certain jurisdictions in the future. The Company and its Affiliates does not provide any
warranty or guarantee as to how the Tokens will be classified, and eachpurchaser will bear all consequences of the Tokens being considered securities in their respective jurisdictions, and bear the responsibility of the legality, use and transfer of the Tokens in the relevant jurisdictions.

II.

Further, the tax treatment of the acquisition or disposal of such cryptocurrency or cryptographic assets might depend on whether they are classified
as securities, assets, currency or otherwise. As the tax characterization of
the Tokens remains indeterminate, you must seek your own tax advice inconnection with the purchase, acquisition or disposal of the Tokens, which
may result in adverse tax consequences or tax reporting requirements for
you.

(c)

The loss or compromise of information relating to the purchaser wallet andyour method of accessing the Platform may affect your access to and possession of the Tokens.
There is a risk that you may lose access to and possession of the Tokens permanently due to loss of unique personal ID created on the Platform, and otheridentification information, loss of requisite private key(s) associated with thepurchaser wallet or vault storing the Tokens or any other kind of custodial orpurchaser errors.

(d)Blockchains may face congestion and transactions may be delayed or lost.
Most blockchains used for cryptocurrency transactions (e.g. Ethereum) areprone to periodic congestion during which transactions can be delayed or lost.
Individuals may also intentionally spam the network in an attempt to gain anadvantage in purchasing cryptographic tokens. This may result in a situation

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where block producers may not include your purchase of the Tokens when you
intends to transact, or your transaction may not be included at all.
Privacy and data retention issues.
As part of the Tokens sales, the verification processes and the subsequent operation of
the Platform, the Company may collect personal information from you. The collection,
use and disclosure of such information is subject to applicable laws and regulations,and privacy policies provided by the Company All information collected will be used
for purposes of the Tokens sales and operations of the Platform, thus it may be transferred to contractors, service providers and consultants worldwide as appointed by theCompany. Apart from external compromises, the Company and its appointed entities
may also suffer from internal security breaches whereby their employees may misappropriate, misplace or lose personal information of purchasers. The Company may berequired to expend significant financial resources to alleviate problems caused by any
breaches or losses, settle fines and resolve inquiries from regulatory or government
authorities. Any information breaches or losses will also damage the Company’s reputations, thereby harming its long-term prospects.
Macro Risks(a)

General global market and economic conditions may have an adverse impact on the Company and its Affiliates’ operations and the use of the Platform.
I.

The Company and its Affiliates could be affected by general global economic
and market conditions. Challenging economic conditions worldwide have fromtime to time, contributed, and may continue to contribute, to slowdowns in theinformation technology industry at large. Weakness in the economy may havea negative effect on the Company and its Affiliates’ business strategies, resultsof operations and prospects.

II.

Suppliers on which the Platform relies for servers, bandwidth, location and otherservices could also be negatively impacted by economic conditions that, in turn,

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could have a negative impact on the Company and its Affiliates’ operations or
expenses.
III. There can be no assurance, therefore, that current economic conditions orworsening economic conditions or a prolonged or recurring recession will nothave a significant adverse impact on the Company and its Affiliates’ businessstrategies, results of operations and prospects and hence the Platform, which
may in turn impact the value of the Tokens.
(b)

The regulatory regime governing blockchain technologies, cryptocurrencies,
Tokens, offering of Tokens, and the Platform remain uncertain, and anychanges, regulations or policies may materially adversely affect the development of the Platform and the utility of the Tokens
I.

Regulation of the Tokens, the offer and sale of Tokens, cryptocurrencies,
blockchain technologies, and cryptocurrency exchanges is currently undeveloped or underdeveloped and likely to rapidly evolve. Such regulation
also varies significantly among different jurisdictions, and is hence subject
to significant uncertainty. The various legislative and executive bodies indifferent jurisdictions may in the future adopt laws, regulations, guidance,or other actions, which may severely impact the development and growthof the Platform, the adoption and utility of the Tokens or the issue, offer,and sale of the Tokens by the Company. Failure by the Company and its
Affiliates or users of the Platform to comply with any laws, rules and regulations, some of which may not exist yet or are subject to interpretationand may be subject to change, could result in a variety of adverse consequences against the Company and its Affiliates, including civil penalties andfines.

II.

Blockchain networks also face an uncertain regulatory landscape in many
foreign jurisdictions. Various jurisdictions may, in the near future, adopt
laws, regulations or directives that affect the Platform, and therefore, thevalue of the Tokens. Such laws, regulations or directives may directly andnegatively impact the operations of the Company and its Affiliates. The
effect of any future regulatory change is impossible to predict, but such

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change could be substantial and could materially adverse to the development and growth of the Platform and the adoption and utility of the Tokens.
III. To the extent that the Company and its Affiliates may be required to obtainlicenses, permits and/or approvals (collectively, the “Regulatory Approvals”)
to carry out its business, including that of the creation of the Tokens andthe development and operation of the Platform, but are unable to obtainsuch Regulatory Approvals or if such Regulatory Approvals are not renewed
or revoked for whatever reason by the relevant authorities, the business of
the Company and its Affiliates may be adversely affected.
IV. There is no assurance that more stringent requirements will not be imposed
upon the Company and its Affiliates by the relevant authorities in the future,or that the Company and its Affiliates will be able to adapt in a timely
manner to changing regulatory requirements. These additional or more
stringent regulations may restrict the Company and its Affiliates’ ability tooperate its business and the Company and its Affiliates may face actions
for non-compliance if it fails to comply with any of such requirements.
V. Further, should the costs (financial or otherwise) of complying with such
newly implemented regulations exceed a certain threshold, maintaining the
Platform may no longer be commercially viable and the Company and its
Affiliates may opt to discontinue the Platform and/or the Tokens. Further,
it is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the Platform and the
Tokens. The Company and its Affiliates may also have to cease operations
in a jurisdiction that makes it illegal to operate in such jurisdiction, or makeit commercially unviable or undesirable to obtain the necessary regulatory
approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the distributed Tokens may hold little or no worth or value.
(c)

There may be risks relating to acts of God, natural disasters, wars, terrorist
attacks, riots, civil commotions widespread communicable diseases andother events beyond the control of the Company and its Affiliates

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The sale of the Tokens and the performance of the Company, its Affiliates
and/or the Platform’s activities may be interrupted, suspended or delayed due
to acts of God, natural disasters, wars, terrorist attacks, riots, civil commotions,widespread communicable diseases and other events beyond the control of theCompany and its Affiliates. Such events could also lead to uncertainty in theeconomic outlook of global markets and there is no assurance that such markets will not be affected, or that recovery from the global financial crisis would
continue. In such events, the Company and its Affiliates’ business strategies,
results of operations and outlook may be materially and adversely affected, andthe demand for and use of the Tokens and the Platform may be materiallyaffected. Further, if an outbreak of such infectious or communicable diseases
occurs in any of the countries in which the Company, its Affiliates, and theparticipants of the Platform have operations in the future, market sentiment
could be adversely affected and this may have a negative impact on the Platform and its community.
(d)Blockchain and cryptocurrencies, including the Tokens are a relatively new
and dynamic technology. In addition to the risks highlighted herein, there
are other risks associated with your purchase of, holding and use of the
Tokens, including those that we cannot anticipate. Such risks may further
materialize as unanticipated variations or combinations of the risks discussed herein.

1.6

No Further Information or Update
No person has been or is authorized to give any information or representation notcontained in this Whitepaper in connection with the Tokens, the Platform, the Company
or its Affiliates and their respective businesses and operations, and, if given, such information or representation must not be relied upon as having been authorized by oron behalf of the Company or its Affiliates.

1.7

LanguageThis Whitepaper may be translated into other languages. If any disagreement shouldarise due to different language translations, the version in English will prevail.

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1.8

AdviceNo information in this Whitepaper should be considered to be business, legal, financial
or tax advice regarding the Tokens, the Platform, the Company or its Affiliates. You
should consult your own legal, financial, tax or other professional advisor(s) regarding
the Tokens, the Company or its Affiliates and their respective businesses and operations.
You should be aware that you may be required to bear the financial risk of any purchaseof the Tokens for an indefinite period of time.

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