Binance Exchange
www.binance.com

Whitepaper
V1.1

Intro3

Problems

3

Binance Exchange
Matching Engine
Feature Rollout
Coins
Device Coverage

4
4
4
5
5

Multilingual Support
UI Preview

5
6

Revenue Model

7

Binance Coin (BNB)
Allocation

7
8

ICO
ICO Schedule

8
8

BNB Value & Repurchasing Plan
BNB Vesting Plan for the Team
Funds Usage

9
9
10

Team
Changpeng Zhao - CEO

10
10

Roger Wang - CTO
James Hofbauer - Chief Architect
Paul Jankunas - VP of Engineering

11
12
12

Allan Yan - Product Director
Sunny Li - Operations Director

13
13

Investors & Advisors

14

Risks
Security is Paramount17
17

Market Competition

17

IntroIn our view, there are fundamentally two different types of exchanges: the ones thatdeal with fiat currency; and the ones that deal purely in crypto. It is the latter one that
we will focus on. Even though they are small now, we strongly believe that pure
crypto exchanges will be bigger, many times bigger, than fiat based exchanges in thenear future. They will play an ever more important role in world finance and we callthis new paradigm ​Binance​; Binary Finance.
With your help, ​Binance will build a world-class crypto exchange, powering the futureof crypto finance.

Problems
Some of the current crypto exchanges suffer from a number of problems:●Poor technical architecture
Many exchanges are “put together quickly”, by good tech people, but who
have little or no experience in finance or in operating an exchange. They oftenchoose the simplest approach to get the system up and running. While thismay work well in the beginning, as traffic grows, the system will not able tohandle the increased load. Exchange systems need to be engineered fromthe ground up with security, efficiency, speed, and scalability in mind. This
often slows down the initial development, but is critical for long-term success.
Our team has decades of combined experience building and maintaining
world class financial systems that shape the economy. We understand how
these systems are built from the ground up.

●

Insecure platform
There are hundreds of exchanges that went down due to being hacked1.
Binance is built to high standards, audited, and penetration tested. We haveexperience building financial systems to the highest security standards andstrive to ensure security first.

●

1

Poor market liquidity
Professional traders and normal users are significantly affected by this.
Having a shallow orderbook means high slippage when trading, which is very
expensive for traders. Getting miners, institutional investors and large traders
into a new exchange is a chicken and egg problem, and requires a team withdeep industry resources.

​https://bitcointalk.org/index.php?topic=576337

Binance’s team have been in both the finance and crypto industry for many
years. The team has worked on and operated a number of exchanges, andhave accumulated a large network of partners in this space. These partners
will be key in bootstrapping the exchange.
●

Poor customer service
Traders are a different breed when it comes to users. Understanding thetrader mentality is vital for running a successful exchange. Money is literally
on-the-line. Many exchanges service traders as if they were running a social
media site. A 3-second delay in seeing your friends’ status update would
hardly be noticed, but on an exchange, the same would be unacceptable,
resulting in a torrent of user complaints.
In additional to the technology stack, Binance is built with service in mind.
Binance shares support responsibilities across the entire staff and company.
When a trader has a problem, they get an answer directly from someone who
knows the system and not someone reading from a script.

●

Poor internationalization and language support
Blockchains have no borders. Most exchanges focus only on one language
or one country.
Our international multi-lingual team has extensive working experience inNorth America, Europe and Asia, and we are able to smoothly support the
global market.

Binance Exchange
Matching Engine
Our matching engine is capable of sustaining 1,400,000 orders / second, making
Binance one of the fastest exchanges in the market today. You can be certain, on
our exchange, that your orders will never be stuck due to the matching engine being
overwhelmed.

Feature Rollout
We will roll out the platform in roughly the following order:● Spot trading● Margin trading● Futures● Anonymous instant exchange● Decentralized (on-chain) exchange● and more…

CoinsBinance will support trading pairs in the following coins:
● BTC
● ETH
● LTC
● NEO (ANS)● BNB (Binance Coin)
More coins will be added over time. We generally will only add coins that havestrong credibility, user base, and liquidity. If you have a coin that you wish to belisted on Binance later, participating in our ICO will help.
We have no plans to support any fiat currencies such as USD, RMB, JPY, or KRX.

Device Coverage
We will provide cross-platform trading clients for:● Web-based trading client● Android native client● iOS native client (pending App Store review)● Mobile HTML5 client (including WeChat H5 client)● PC (Windows) native client● REST API

Multilingual Support
We will support English, Chinese，Japanese and Korean on all of our userinterfaces. (The very initial release will be in English and Chinese only.) Morelanguages will be added over time.

UI Preview

Professional Web Trading Interface

Mobile HTML5 Market Data

iOS Trading Page

Windows PC Native Client - Multi-Interval View

Revenue Model
Binance’s revenue will come from the following sources:
SourceDescription

Exchange Fee

Binance initially will charge a 0.2% fixed fee per trade. Other
variations will be subsequently introduced, including
maker-taker, volumed based tiering and 0 fee promotions.
We have no plan to charge above 0.2%.

Withdrawal Fee

Binance may charge a small fee for withdrawals.

Listing Fee

Binance will select innovative coins and other assets to belisted on the exchange, there may be a fee associated withthose listings.

Margin Fee

If you trade on margin, there may be a fee or interest on the
borrowed amount.

Other Fees

There may be other fees the platform may collect for various
services such as automated algorithmic order etc.

Binance Coin (BNB)
We will issue our token coin, called the Binance Coin. A strict limit of 200MM BNB
will be created, never to be increased. BNB will run natively on the Ethereum
blockchain with ERC 20.

Allocation%

Amount (BNB)

Participant

50%

100,000,000

ICO

40%

80,000,000

Founding Team10%

20,000,000

Angel investorsICO
The ICO will be done in BTC and ETH, on multiple platforms around the world.

ICO Schedule
All times below are China Standard Time (CST), UTC+8 hours.
Date

Task

2017/06/14

Confirmed start of the Binance project

2017/06/16

Initial draft white paper completed, circulated to potential angel
investors

2017/06/22

Announce Binance ICO plan, and release whitepaper to generalpublic2017/07/01

ICO starts (platforms will be announced soon)

2017/07/15

Binance.com release v0.1 go live, active trading begins

2017/07/21

ICO finishes, or whenever the coins are sold out

ICO will start from 3PM July 1st, investors can purchase BNB tokens in 3
phases on a first-come, first-served basis until 100,000,000 tokens are sold.
As each new phase starts, the price will increase.
Investors will receive BNB tokens within 5 working days after the ICO finishes.
The detailed schedule is as below:
ICO Phase

1st week

2nd week

3rd week

CST/GMT+8 15:00 July 1th 15:00 July 7th

15:00 July 7th 15:00 July 14th

15:00 July 14th 15:00 July 21th

1ETH

2700 BNB

2500 BNB

2300 BNB

1BTC

Based on market price

BNB Value & Repurchasing Plan
You can use BNB to pay for any fees on our platform, including but not limited to:● Exchange fees
● Withdraw fees
● Listing fees
● Any other fee
When you use BNB to pay for fees, you will receive a significant discount:

Discount Rate

1st year

2nd year

3rd year

4th year

5th year

50%

25%

12.5%

6.75%

no discountRepurchasing plan
Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until
we buy 50% of all the BNB (100MM) back. All buy-back transactions will beannounced on the blockchain. We eventually will destroy 100MM BNB, leaving
100MM BNB remaining.
Decentralized Exchange
In the future, Binance will build a decentralized exchange, where BNB will be used as
one of the key base assets as well as gas to be spent.

BNB Vesting Plan for the Team
Initial release: 20% (16MM)
After 1 year:
20% (16MM)
After 2 year:
20% (16MM)
After 3 year:
20% (16MM)
After 4 year:
20% (16MM)

Funds Usage●●●

35% of the funds will be used to build the Binance platform and perform
upgrades to the system, which includes team recruiting, training, and thedevelopment budget.
50% will be used for Binance branding and marketing, including continuous
promotion and education of Binance and blockchain innovations in industry
mediums. A sufficient budget for various advertisement activities, to help
Binance become popular among investors, and to attract active users to theplatform.
15% will be kept in reserve to cope with any emergency or unexpected
situation that might come up.

Team
We have a solid team led by Changpeng Zhao, with both traditional wall street
finance and cryptocurrency experience. We have a track record of successful
startups under our belt.

Changpeng Zhao - CEO(aka CZ in the crypto community) ​LinkedIn Profile
CZ is the founder and CEO of BijieTech, a company thatprovides cloud-based exchange systems to exchange
operators. Since founding in Sept 2015, BijieTech now powers
30+ exchanges in Asia. In the first 12 months since founding,
BijieTech closed 36.1 million RMB ($5.3MM USD) in revenue,
and will double that in its second year. BijieTech has neveraccepted any outside investments, being cash flow positivefrom day one.
As soon as the Binance ICO finishes, CZ will remain a shareholder of BijieTech, butwill relinquish all of his management duties to a new CEO. CZ will focus exclusively
on Binance. This applies to all BijieTech members listed in this whitepaper.
Prior to BijieTech, CZ was the co-founder and CTO of OKCoin. During his staythere, OKCoin launched their international site, and their futures trading platform.
Co-ordinating with Stefan Thomas, CZ also lead the first proof-of-reserves in any
China crypto exchange. Most other major exchanges in China followed soon after.
In addition to managing the tech team there, he also lead the international marketing
team. He is still mentor to and good friends with Zane Tackett.

Before OKCoin, CZ was the Head of Technology and the 3rd person to join the
Blockchain.info team. He worked closely with Ben Reeves, Roger Ver, Anthony
Antonopoulos and Nicolas Cary to grow the Blockchain.info service.
Before Blockchain.info, CZ co-founded Fusion Systems Ltd in 2005, a company thatspecializes in ultra-low-latency trading systems for brokers. Fusion Systems wasstarted in Shanghai, and currently has offices in Tokyo, Hong Kong, and Los
Angeles. Among other tasks, CZ was responsible closing and deploying trading
systems at Credit Suisse, Goldman Sachs, Deutsche Bank, and more. CZ left
Fusion System to work full time in the blockchain industry in 2013.
Before Fusion Systems, CZ was the Head of Development at Bloomberg Tradebook
Futures for 4 years, in New York. There CZ managed a team that was responsible
for the entire futures trading platform in Bloomberg, with annual revenues exceeding$300 million USD.
Prior to Bloomberg, CZ’s college internship and first job out of college was in Tokyo,
working for a tech outsource company that was involved in developing trading
systems for the Tokyo Stock Exchange. This is where his exchange experiencebegan.
CZ was born in China and went to high school and college in Canada. CZ is fullybilingual in English and Chinese, and can speak basic Japanese.

Roger Wang - CTO
LinkedIn Profile
Roger is a co-founder and the CTO. He has been working in
the financial industry for 10+ years, responsible for building up
technical teams, designing the high level architecture of theexchange and clearing systems, and running ops teams toensure the security and stability of exchange systems.
Prior to BijieTech, Roger worked at Nomura Securities, thelargest investment bank in Japan. He was responsible for a
global credit booking, analytics, and marking system, which supported thousands ofglobal traders and analysts. He has also successfully implemented a smart bondmatching engine, which consumes firm wide trading/order/position data, clientenquiry info, 3rd party data as well as public bond data, to discover business
opportunities for the firm using sophisticated custom built algorithms. It now
generates over 100MM USD revenue annually for Nomura.
Before Nomura, he was a tech leader in Morgan Stanley, where he designed andbuilt a financial TB level data warehouse, which supported a large number of users todo real time data analysis and financial modeling. He was also a core developer for
low latency algorithmic trading systems, which served the firm’s largest clients like
Blackstone and Wellington Fund, that delivered significant commission income forMorgan Stanley.
Roger is fully trilingual in English, Chinese and Japanese.

James Hofbauer - Chief Architect
LinkedIn Profile
James is a co-founder and the Chief Architect of BijieTech.
He architects and implements the core matching engine andits middleware. He also oversees client exchanges' public
endpoints to ensure security and high performance.
Before BijieTech, James worked at Palantir, a Silicon Valley
company that focuses on big data analysis.
Palantir's
large-scale high-performance systems are used forcyber-security, anti-money laundering, fraud detection, counter-terrorism, and manyother data relationship analysis purposes by both private and government entities.
Before Palantir, James worked at Fusion Systems. A notable project James worked
on was a global investment bank's systems architecture redesign, focusing on
reducing the number of systems, encrypting and securely handling sensitive data,and introduced a new user security system which provides authentication,authorization, and action audit logging.
James was raised and educated in America, earning a Bachelor’s of Science, ​Cum
Laude​, in Computer Science. He is bilingual, native in English and fluent in Japanese(JLPT N2 certified), and has lived in Japan for over 10 years.
James has known CZ for 7 years and they have worked in two startups together.

Paul Jankunas - VP of Engineering
LinkedIn Profile
Paul is the VP of Engineering at BijieTech, responsible for theC++ implementation of the core machine engine. He has over
15 years of experience in developing exchange systems andfinancial trading applications. He is constantly looking for new
ways to improve the performance and scalability of the system.

Prior to BijieTech, Paul worked at SBI BITS, part of SBI Group, in Tokyo. SBI Groupis a listed financial services company with interests in a wide assortment ofbusinesses. Paul was responsible for both client and server side development fortrading applications.
Before that, Paul worked at Fusions Systems in Tokyo as the Head of Developmenton Raptor, a market gateway with latencies under 2 microseconds, and before thatfor Bloomberg in New York.
Paul has known CZ for 9 years and they have worked together in 3 companies.

Allan Yan - Product Director
LinkedIn Profile
Allan is a co-founder and the Product Director of BijieTech.
Allan has over 10 years of experience in product design, user
experience and trading. He drives the innovations in theexchange systems built by BijieTech, and pushes the productfar ahead of the the competition in this ultra competitive
space.
Before BijieTech, Allan worked in Orient International Holding,which is one of the biggest import & export firms in Shanghai. He was responsible forthe implementation of several informationization products, including ERP and e-Fax.
Meanwhile, he led a variety of game and VOD content platforms.

Sunny Li - Operations Director
LinkedIn Profile
Sunny is a co-founder and the Operations Director of
BijieTech. He has many years of management and technology
consulting experience, has led 20+ exchange systems
projects, and provided comprehensive consulting for strategy,
operations, risk control and system development.
Prior to BijieTech, Sunny worked at Accenture as the seniorconsultant. He provided many Top 500 companies forstrategic and IT consulting, and l​ed a number of IOT, big data,
ERP information integration systems projects.

Investors & Advisors
In no particular order.

Matthew Roszak

Roger Ver

Ron CaoBloq co-founder.
Tally Capital Founding
Partner.

Angel investors in many
blockchain businesses.
CEO of Bitcoin.com.

MD of Sky9 Capital
Institutional investor in
BTCChina.

Chandler Guo

He Yi

Yang Linke

Angel Investor inblockchain businesses in
China.

CMO of Yixia
Technology.
Previously Co-founder at
OKCoin.

Co-founder of BTCChina.
ICOCoin Founder.

Zhao Dong

Da Hongfei

Jun DuOne of the largest crypto
OTC brokers in China.

AntShares Founder.
Onchain CEO.

Co-founder of Huobi.
Angel investor.

Vincent Zhou

Lu BinLiu Sutong

Founder of FinTech
Blockchain Group. Active
angel blockchain investor.

CEO of Andui.com, ablockchain financial
service company in China

Finance Channel TV
Anchor.
CEO of Heng Pool.

Eric Zhang

Leah Zhang

Wang Qijun

AntShares Core Member.
Lead match- engine
developer at Huobi.com

CMO of F2Pool.
Previously Investment
Manager of AngelCrunch.

Co-founder of Andui.
Formerly Marketing at
Blockchain.info

Roy Zou

Jackie Wang

Li Da

CEO of Bitkio, Secretarl
at Ethereum Classic
Consortium (ECC)

Founding team memberof Bitbank.com andBW.com and CHBTC.

Co-founder ofJiulianTech.

Xiaoning Nan
Founder of BitOcean.

Jeff Cui

Guicheng Xiong

Founder and CEO of
TKing.cn. Tech lead at
Morgan Stanley.

Co-founder of 91
Wireless, acquired by
Baidu at $1.9 billion USD.

Some investors choose toremain private.

Xin ChenWilliam Liu

Previous Product Directorof OKCoin. Analyst at
Guotai Junan Securities.

Senior Partner at AllBright
Law Offices, the biggest
Law Firm in Shanghai.

RisksThere are many risks involved in running an exchange. We understand this and havethe skills, experience, and leadership to overcome them.

Security is Paramount
Many crypto exchanges have failed due to poor security procedures. Most security
breaches could have been prevented by taking simple precautions to protect criticalresources. Our team has developed Binance with security as the foremost concern
in their minds. We strive to ensure that we have followed all the industry bestpractices when it comes to securing infrastructure and data including ​ISO/IEC
27001:20132 and the CryptoCurrency Security Standard (CCSS)3.

Market Competition
We know this will be an ultra competitive space. There are probably hundreds, if not
thousands of teams wanting, planning or doing exchanges. Competition will be fierce.
But in this age, this is a common risk in any decent concept/startup or maturecompany. The question is: given our team, track record, experience, industry
resources, and product, do you believe we stand a better chance than the rest of the
pack? If yes, then please join our ICO.

2
3

https://en.wikipedia.org/wiki/ISO/IEC_27001:2013
https://cryptoconsortium.org/standards/CCSS