ChanceBlock 
Whitepaper 
 

 
 
 
 
 
 
 
 
 
 
 

 
The amount of money donated to charity each year is difficult to determine, but it is commonly estimated 
to be around $ ​ 600 billion​, 

while the global gambling market amounts to $

​ 465 billion​, 

and eCommerce sits at ​$2.8 trillion. 

 
Property of our community. 

Last updated July 7th 2018. 

1 
 

Table of Contents 
The official 37-page ChanceBlock whitepaper. 

 
1.0 Introduction 4 
1.1 Welcome to ChanceBlock 
‘Take a chance, give a chance’ 4 
1.2 The Industry and its Issues 5 
1.3 The Concept. The Solution. The Application. 7 
1.4 The Bigger Picture 10 
1.5 Final Product & Primary Use Cases 10 

2.0 Outline of Features 12 

3.0 EoWD (End-of-Week Donation) 13 

3.1 Distribution 13 
3.2 Voting 14 
3.3 Token Jackpot 15 

4.0 Direct Donations 16 

4.1 One-Off Donations 16 
4.2 Monthly Subscriptions 16 
4.3 Donor Pool 16 

5.0 Outright Purchases 17 

5.1 Purchases 17 
5.2 Retail Jackpot 18 

6.0 Partnerships, incl. Charities 19 

6.1 Charities 19 
6.2 Retailers 19 
6.3 Broker Exchanges 20 

7.0 CHB Exchange 21 

8.0 Fund Allocation 21 

9.0 Utility Token 23 

9.1 Purpose 23 
9.2 Token Sale & Token Details 23 

2 
 

9.3 Distribution 24 

10.0 Roadmap 26 

11.0 Team 28 

12.0 Legal 28 

12.1 Securities Law 28 
12.2 ICO Regulation 29 
12.3 KYC & AML 29 
12.4 Gambling Law 30 

13.0 Marketing 30 

13.1 General — Marketing Material 30 
13.2 Press Releases 31 
13.3 Referral Program 31 
13.4 Public Events 31 
13.5 Exchange Listings 32 
13.6 Forums and Telegram 32 
13.7 Ad Space and Email Marketing 32 
13.8 Blog and SEO 32 

14.0 Security 33 

14.1 Application 33 
14.2 Wallet 33 

15.0 Risks & Disclaimers 33 

15.1 Promotion Laws 33 
15.2 Cryptocurrency Regulations 33 
15.3 Financial Difficulties 34 
15.4 Legal Disclaimer 34 

3 
 

1.0 Introduction 
1.1  Welcome to ChanceBlock 
‘Take a chance, give a chance’ 
ChanceBlock provides a new way to incentivize philanthropy, coupled with an unprecedented 
amount of transparency and community influence. It is ChanceBlock's mission to encourage and 
unite a collaborative philanthropic power by offering an all-in-one decentralized solution, in which 
gambling meets retail on blockchain technology. 

With ChanceBlock, you may take a chance while providing one. 

ChanceBlock’s distributed application serves as a hub for c
​ ryptocurrency donations, raffles, 
ecommerce​, and other decentralized features in which the proceeds are donated to charities of the 
user’s choice. 

When you take a chance, you give a chance, ​and​ you have a say in which charity receives the 
donation. 
Users can contribute to charities and win prizes in numerous ways, including the following: 

● By entering live raffles that give away varying amounts of cryptocurrency or retail items 
● By voting for the charity of their choice to win the total raised at the end of each week 
● By subscribing to donate monthly to the charity of their choice 
● By purchasing retail items outright 

ChanceBlock can be envisioned as t​ he bridge between cryptocurrency holders, charities and 

retailers​.​ It does not serve one single purpose, but instead hosts a number of features, all of 
which make new things possible using blockchain technology while raising money for charity.  

The multitude of innovative features offered render ChanceBlock a unique, first-mover of its kind. 

If thousands of raffles are executed every hour, there will be thousands of winners every hour, 
making millions of dollars each day for charity. This is our long-term goal, along with thousands of 
retail purchases being made per hour (also generating money for charity), and it is achievable 
through ChanceBlock’s self-marketing fund, incentives and partnerships. 

Widespread use 

The ChanceBlock platform caters for widespread use while encouraging the use and exposure of 
cryptocurrencies. It does this via integration of a broker exchange, in which users can convert 
their fiat to crypto directly on the ChanceBlock app. 

4 
 

This way, anyone that knows how to use a smartphone or laptop can play. It provides 
ChanceBlock with a much wider audience to market to, rather than just proficient users of 
cryptocurrency. 

As well as appealing to users wanting to try their luck while raising money for charity, 
ChanceBlock will also attract general philanthropists and shoppers. Anyone who normally 
donates each month to charity, can now do so using cryptocurrency via the ChanceBlock app. 
Not only that, but they’ll automatically be entered into a monthly raffle, known as the ​Donor Pool.​  

As mentioned above, ChanceBlock will also attract general shoppers. This is briefly elaborated 
on in section 1.2, and then in greater detail in section 5.0. 

1.2 The Industry and its Issues 

Raffles 

Games of chance revolve around luck, or at least they should do. When the general public 
purchase lottery tickets, scratchcards etc., they tend to doubt the legitimacy of the product.  

These traditional games of chance are operated by central authorities, such as lottery operators, 
casinos and betting shops. 

When you play their games of chance, you run into the following issues: 

● You must trust that the game is fair 

● You must trust that they pay you if you win 
● The central authority must trust that your ticket/scratchcard is real 
○ They have the ability to reject your ticket/scratchcard if they believe or prove that 
it is fake 
○ This relies on their own technology to determine whether or not it is fake 
○ You must trust that their technology works correctly and is fair 
● If it is a non-profit game of chance, you must trust that the charitable causes are paid 
correctly 
○ The charitable cause is chosen by the central authority 
○ It is not uncommon for the public to disagree with the choice of charity due to 
what they stand for or how they are known to operate their funds ​— ​some 
charities are known to spend their funds irresponsibly and/or not to the public’s 
liking, so it would be fairer and more attractive for the public if they could choose 
the charity their money is donated to 

5 
 

In common TV raffles, we see this problem magnified, along with other issues being introduced. 
Television raffles are popular on daytime television and during live events, such as America’s Got 
Talent, The X Factor, The Voice etc. 

TV raffles are present in the form of prize competitions, in which the participants must text (SMS) 
or call a phone number to submit their entry, which typically costs around $3. 

In these raffles, the odds are not fixed nor available ​— there is no limit to the number of 
participants. This means, hypothetically, that you could be entering among 100,000 other people, 
all paying $3 each. Let’s imagine the prize is $20,000 (this is a common amount for TV raffles).  

The TV raffle could have raised $300,000, yet only paid out $20,000. That leaves a profit of 
$280,000; 100% of which distributed in ways that are not disclosed. Granted, this may not be the 
case for some, but unfortunately, it is the case for the majority of TV competitions in western 
countries. 

If you attempt to contact these TV companies to ask about how the proceeds are used, the 
responses you will typically receive merely inform you that they cannot disclose any information 
regarding the matter.  

Yes, this means that 100% of their proceeds may be kept for themselves as oppose to being used 
for charitable purposes. 

There is also no or very little transparency with the way the prize winners are drawn, and again, it 
requires its participants to trust a central party. 

Retail 

The rate at which ecommerce is replacing traditional retail is phenomenal. The industry is 
currently estimated at​ $2.8 trillion​. The cryptocurrency industry is also performing beyond belief, 
as one of the biggest emerging markets of the 21st century. 

There’s one problem: the two are divided. With more and more people exploring cryptocurrency 
by the day, the demand for the ability to spend cryptocurrency increases exponentially. 

Many projects aim to solve this issue by introducing payment cards and pursuing partnerships 
with the likes of VISA and Mastercard etc., while others are developing apps that convert 
cryptocurrency on mobile phones for instant fiat purchases. 

However, widespread adoption of these methods still seems a little too far out of sight, as the 
aforementioned solutions require huge legal hurdles to be overcome. 

6 
 

This is where ChanceBlock comes into play: bridging the divide, enabling mainstream crypto 
ecommerce, incentivizing users with rewards, and raising money for charity in the process. 

Another huge issue that is faced by ecommerce is the fact that two billion people worldwide are 
without the financial services required to use it. By bridging the divide, we also grant access to 
those without financial services, as they will now be able to purchase items online without the 
need for a bank account. 

Charities 

Giving to a charity of your choice in cryptocurrency is near impossible at present, however, there 
are hundreds of thousands of people holding cryptocurrency who would like to donate. 

It has been almost 10 years since the genesis of cryptocurrency, and receiving income primarily 
(or even solely) in cryptocurrency is transitioning from popular demand to reality Almost 33% of 
the world’s population give to charity each month, but those whose income is paid in 
cryptocurrency must convert to fiat currency if they wish to donate. To do so, they must pay fees. 

Last but not least, there are over 2 billion people in the world that are without bank accounts. Of 
course, a lot of these people don’t have the money to be donating to charity. However, some of 
them are without bank accounts simply because they choose not to operate with banks due to 
concerns regarding banks in their area. 

With cryptocurrency, they are granted financial services, as they do not require a bank account. 
Even with these newfound financial services, though, they are unable to make donations to 
charities as the options available for cryptocurrency contributions are extremely limited. They 
cannot convert to fiat and donate in fiat as they do not have bank accounts and cannot activate a 
PayPal account. 

There must be an easier, simpler solution. 

1.3 The Concept. The Solution. The Application. 

ChanceBlock is an easy-to-use distributed application that incentivizes philanthropy via trustless 
cryptocurrency raffles. It is usable from iOS, Android and web devices using respective apps. 

As well as live raffles, users can contribute to a charity of their choice via monthly subscription or 
a one-off donation, with the option to assign 2% of their donation to the ​Donor Pool​. 

The Donor Pool is a separate raffle held at the end of each month for the users that donate via 
subscriptions and one-off donations. 

7 
 

Those aren’t the only features, though: 

The retail items available in raffles can be purchased outright, just like an online store. This is 
operated in Tether only, as it protects the retailers/merchants from price volatility. 

When a user purchases an item outright: 3.5% of the funds are sent to the ​EoWD​, and 1.5% of the 
​ hich is a separate raffle held at the end of each week for 
funds are sent to the ​Retail Jackpot w
the users that bought items on the ChanceBlock platform. 

The decentralized platform that ChanceBlock provides will also give users the ability to vote at 
the end of each week on the charities they would like the charity funds to be donated to. This is 
known as the​ ​EoWD​ (End-of-Week Donation). 

To vote in the EoWD, each user must submit one Chance Token (CHB). Each token is entered 
into a separate raffle (known as the ​Token Jackpot)​ that is drawn at the end of the week along 
with the result of the vote. Three winning users are selected. You can find full details on the 
Token Jackpot in section 3.3. 

As is evident, the underlying theme throughout all forms of donation is the raffle function. All 
features will be explained in further detail in their respective sections in this whitepaper. Here, 
though, the Live Raffle feature will be explained as it is important to understand its mechanics 
before continuing to read the whitepaper. 

How live raffles work 

Although ChanceBlock boasts multiple features, Live Raffles are essentially the face of the 
ChanceBlock app.  

They will offer varying amounts of each supported cryptocurrency, starting with Ether but later 
incorporating Bitcoin, Litecoin and USDT to further widen the target audience. 

Live raffles are run 24/7, being drawn instantly upon the tickets being sold. This means that there 
can be infinite numbers of raffles drawn each minute, hour, day, week and month. It also means 
there can be infinite amounts of money raised for charity and infinite amounts of cryptocurrency 
awarded to winners of the raffles. 

The prizes will consist of cryptocurrency, vacations, and retail items, as provided by the 
partnerships we will establish prior to integration. The former will constitute the only available 
prizes in the first, published version of ChanceBlock, however, the latter two (vacations and retail 
items) will come later, as marked on our roadmap. 

In all raffles, a 10% surplus is collected to enable charity donations: 

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● 80% of the surplus is donated to the selected charities 

● 20% of the surplus is used for project expansion 

Other invariable factors: 

● Each ticket is 0.002 ETH 

● The maximum number of tickets purchasable per user is 1/5th of the total number of 
tickets issued for the raffle. 

Example 

The prize is 10 ETH and there is 1 winner. 

1. 5,500 tickets are purchased totalling 11 ETH 

2. 1 ticket is drawn from the raffle by a transparent randomizing algorithm, executed by a 
trustless Ethereum smart contract 
3. The owner of the winning ticket is sent 10 ETH 
4. The remaining 1 ETH is the surplus 
a. 80% is transferred to the EoWD and donated to the selected charities at the end 
of the week 
b. 20% is transferred to the ETH address of our expansion fund 

Example with John 

The prize is 0.1 ETH and there are 3 winners. There are 55 tickets totalling 0.11 ETH. 

1. John puts 0.01 ETH into the raffle, meaning he receives 5 tickets 
2. John’s 5 tickets mean he has a 1/11 chance of winning 1st place 
3. 3 tickets are drawn from the raffle by a transparent randomizing algorithm, executed by a 
trustless Ethereum smart contract 
4. The first ticket belongs to someone else 
a. 0.07 ETH (70% of the prize) is sent to the owner of the ticket 
5. The second ticket belongs to John ​—​ he’s a winner! 
a. 0.02 ETH (20% of the prize) is sent to John because he had the second drawn 
ticket 
6. The third ticket belongs to John too ​— ​he got lucky! 
a. 0.01 ETH (10% of the prize) is sent to John because he had the third drawn ticket 
7. The remaining 0.01 ETH is the surplus 
a. 80% is transferred to the EoWD and donated to the selected charities at the end 
of the week 

9 
 

 
b. 20% is transferred to the ETH address of our expansion fund 

1.4 The Bigger Picture 

To ensure the project is executed (and the application is released) as soon as possible, we are 
only offering cryptocurrency prizes to begin with. The initial features will include live and timed 
raffles for cryptocurrency prizes, direct donations to charity, the donor pool, and voting/the token 
jackpot. 

Bringing retail to ChanceBlock later on will help to create a much more substantial amount of 
organic demand and provide us with a new opportunity for marketing. To aid this, we will also 
introduce a brokerage to our application to ​allow users to exchange their fiat currencies to 
cryptocurrencies to use on the app​, as mentioned in section 1.1. 

We will look to accomplish this via a partnership with a reputable broker exchange followed by 
direct integration. This renders our platform a beginner-friendly app, which will open 
ChanceBlock up to a much wider audience, encouraging widespread, mainstream adoption.. 

The bigger picture is a product that ​everyone​ can use. 

1.5 Final Product & Primary Use Cases 

The final ChanceBlock product is a user-friendly platform, used by a widespread audience to take 
chances while giving chances. Users can visit the app, convert their fiat into crypto, use the 
crypto to buy raffle tickets, or purchase items, and then vote for their preferred charity to receive 
the profits. 

They also have the option to directly donate to their chosen charity rather than do so through 
raffles or by purchasing items. 

Here are some of the most frequent ways in which we envision ChanceBlock being used: 

Example A 

1. Fifa 19* has just been released for Xbox One and John is about to buy it 
2. Rather than go to the store and spend the full $60 right away, John decides he might as 
well try on ChanceBlock for $1 before he leaves the house 
3. John goes onto ChanceBlock, finds Fifa 19 and buys a ticket in USDT for $1 
4. The winning ticket is drawn by the smart contract; it isn’t John’s ticket 
5. ChanceBlock notifies John to tell him he can purchase Fifa 19 on the ChanceBlock app. 
​ eans he doesn’t need to convert his crypto into fiat. He 
This saves John time ​and m
purchases Fifa 19 from the ChanceBlock app instead and fills out his delivery details. 

10 
 

 
a. His total spend is $61 
b. He is satisfied because he knows he took a chance to win Fifa 19 for just $1 that 
just wasn’t worth not attempting, PLUS he donated to charity with the raffle entry 
and again with his purchase, AND he was entered into the Retail Jackpot 
c. If he didn’t try on ChanceBlock first, he would only have saved $1 and he wouldn’t 
have donated to charity, nor had the chance to win the game 
d. He tries again next time he wants to buy a game and/or uses the app when he 
receives an email from ChanceBlock informing him of how much has been raised 
for charity this week, instructing him on how to vote and informing him of the 
Token Jackpot​ ​available 

Example B 

1. Upon the release of Fifa 19*, Paul wants to buy the game too 
2. He decides he might as well buy a $1 ticket with USDT on ChanceBlock before going to 
the store to spend $60 on the game 
3. He goes onto ChanceBlock, converts his fiat into USDT and buys a Fifa 19 ticket for $1 
4. The winning ticket is drawn by the smart contract; it’s Paul’s ticket! 
a. Paul is filled with joy and excitement as he has saved $59 on his purchase AND 
he gets to feel great about donating to charity too 
b. Paul shares his win to social media and/or tells his friends and family 
5. Paul is rather philanthropic and enjoyed the feeling of giving to charity 
a. He now considers using some of his $59 savings to enter more ChanceBlock 
raffles 
b. He also buys some CHB tokens so he can vote in EoWDs for his preferred charity 
and stand a chance at winning the Token Jackpot 

Example C 

1. James donates to a close-to-home charity on a regular basis using fiat even though his 
income is in cryptocurrency 
2. He hears about ChanceBlock and its monthly subscription option in which he can donate 
to his preferred charitable cause using his cryptocurrency instead of fiat 
a. He signs up to ChanceBlock and subscribes for his monthly subscription, meaning 
he no longer has to convert his cryptocurrency to fiat each month to donate 
b. He ticks the box to assign 2% of his monthly donation to the ​Donors Pool 
c. This 2% amounts to much less than what he was charged to convert his crypto 
into fiat each month, so he’s saving money while receiving a chance to win! 
3. James doesn’t win on his first two months in the Donor Pool, but he does on his third! 

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a. He decides to take a look at the rest of the application and notices that you can 
purchase CHB tokens to vote for your preferred to charity to win the EoWD 
(End-of-Week Donation) while having the opportunity to win the ​Token Jackpot 
b. After seeing that the EoWD is $125,000 this week, he decides to buy some CHB 
tokens using an instant buy on the ChanceBlock exchange and place his vote 
c. He uses Facebook to invite his friends and family to download the app and do the 
same 

Example D 

1. Jennifer is a frequent scratchcard and TV raffle player 

2. Despite the fact she plays regularly, she always wonders whether or not the scratchcards 
and raffles are drawn fairly. She also wonders what the odds are of her winning on the 
raffles, as the number of tickets purchased is never disclosed. 
3. She finds ChanceBlock through an advert targeted at people who are interested in 
cryptocurrency and lotteries/raffles 
4. Learning of the capped-entry raffles that ChanceBlock offers, the transparent 
smart-contract results, the charity voting, and the ability to use cryptocurrency, Jennifer 
decides to give ChanceBlock a try. 
a. After watching an official ChanceBlock tutorial and trying a live raffle for the first 
time, Jennifer transforms her routine and replaces scratch cards and TV raffles 
with ChanceBlock’s live raffles. 
b. She can now rest assured the results are fair as they are conducted on the 
blockchain via smart contracts. 
c. She also loves the fact she can vote on the charity that the proceeds are donated 
to. She didn’t like not knowing how the proceeds from the TV raffles were used, 
so this leaves her with a much more rewarding feeling! 

These are just a few of the ways in which ChanceBlock can be used. 

2.0 Outline of Features 

The features the ChanceBlock application offers to its users are displayed below in a very brief 
format, but are explained individually in greater detail further into the whitepaper. 

Raffles 

Raffles occur in numerous forms in ChanceBlock. We have the following types: 

● Live raffles 

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● Timed raffles 
● Donor Pool 
● Token Jackpot 
● Retail Jackpot 

Donations 

Donations also occur in numerous forms in ChanceBlock. We have the following types: 

● EoWD (End-of-Week Donation) ​— sourcing from live raffles, timed raffles, and retail 
purchases 
● One-off donations 
● Monthly subscriptions 

Voting 

There is only one form of voting in ChanceBlock ​— the vote that determines the winning charities 
for the EoWD. To vote, you must submit 1 CHB (Chance Token). 

All CHB tokens submitted are placed into the Token Jackpot. 

Retail 

All items available in raffles can be purchased outright if the user would rather do so than take a 
chance. The cryptocurrency accepted is Tether (USDT) so that retailers are protected from price 
volatility. 

A cut of 3.5% is taken from each purchase and placed into the EoWD, while 1.5% is sent to the 
Retail Jackpot. 

Note: Tether is a cryptocurrency designed to maintain an exchange rate that is actively equal to 
one US dollar. 

3.0 EoWD (End-of-Week Donation) 

3.1 Distribution 
We can imagine the EoWD as an automated, decentralized piggy bank that has an output as well 
as an input ​— ​using smart-contract technology,​ ​it collects the money raised and distributes it 
accordingly. 

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Upon the end of each week (at exactly 00:00 UTC every Sunday), the EoWD will distribute its 
collected funds to the chosen charities and the Global Expansion Fund. Each partnered charity 
has a wallet manger: this is one of their staff members who is assigned the duty of withdrawing 
funds from their charity’s wallet and converting it into their local fiat currency. 

(With the integration of a broker exchange to the ChanceBlock application, wallet managers will 
eventually be able to convert crypto to fiat without leaving the app). 

As mentioned earlier, the EoWD’s funds are sourced from the 10% surplus that is collected from 
every raffle. 

The collected funds will be distributed as follows: 

3.2 Voting 
As the EoWD is distributed weekly, each user can vote once per week. They can vote at any 
point throughout the week before 23:59 UTC each Sunday. 

If a user hasn’t voted by Saturday 4PM UTC, they are reminded via a push notification (for iOS 
and Android users) or email notification (for non-mobile users) unless they disable the notification 
setting. 

14 
 

Each vote must be submitted with 1 CHB token, which is automatically entered into the Token 
Jackpot. 

If the CHB token was to increase to a price that rendered 1 CHB an unreasonable price for a vote, 
the amount of CHB required to vote would be reduced. 

Voting results 

The amount raised for charity is split into 8 prizes, awarded as follows: 

1st place: 60% 

2nd place: 20% 

3rd place: 10% 

4th-8th place: 2% each 

In the event of a tie 

If in any case the results are tied, i.e. two or more charities receive the same amount of votes, the 
charities in question have their reward divided by the number of charities that received that same 
amount of votes. 

For example: 

Charity A, Charity B and Charity F received the highest number of votes ​— ​100 votes each. As 
they are tied, they share their 1st-place prize of 60%. So, each of the three charities receive 20%. 

3.3 Token Jackpot 

The Token Jackpot consists of all Chance Tokens submitted in the EoWD vote. 

Once voting is over at the end of each week, 25 winning user addresses are drawn using 
transparent smart-contract technology. The users are sent their prizes via the smart contract ​—
they each receive a share of the tokens raised. 

Unlike the Donor Pool (section 4.3) and the Retail Jackpot (section 5.2), the Token Jackpot is 
distributed equally among the 25 winners. This means they each receive a 4% share of the 
tokens. 

Note: To reduce the prospect of market manipulation, each winner receives their 4% share in 
segments over a 4-week period. They are given a quarter of their winnings each week for 4 

15 
 

 
weeks. The first payment is made immediately after the draw, with the second one being made 
exactly 7 days later, and so forth until all 4 segments have been paid. 

4.0 Direct Donations 

4.1 One-Off Donations 
For those not in favour of commiting to a subscription, ChanceBlock provides the option to make 
a one-off donation. Users can select their charity of choice and send any amount of 
cryptocurrency they desire from their ChanceBlock wallet. 

2% of the donation is sent to the Donor Pool, providing the user with a number of entries that 
correlates to the amount contributed. This feature can be disabled if the user would rather not 
take a chance on the Donor Pool and instead would prefer to donate 100% of the amount. 

4.2 Monthly Subscriptions 

Using the ChanceBlock application, users can subscribe to any of the partnered charities. A 
subscription constitutes a monthly cryptocurrency donation to a charity of the user’s choice, 
taken automatically from their ChanceBlock wallet. 

The donation will be taken via an Ethereum smart contract at 23:59 UTC on the date selected by 
the user. Any date from the 1st-28th can be chosen. If there are insufficient funds in the user’s 
wallet at the 23:59 UTC on the date selected, no donation will be taken. 

Subscriptions can be cancelled at any time from the ChanceBlock application. 

2% of the monthly donation is sent to the Donor Pool, providing the user with a number of entries 
each month that correlates to the amount contributed. This feature can be disabled if the user 
would rather not take a chance on the Donor Pool and instead would prefer to donate 100% of 
the amount. 

4.3 Donor Pool 

The Donor Pool is a monthly raffle for all users who donated either via subscription or one-off 
donations. There are three main winners, but 25 in total, rewarded accordingly from the first 
drawn to the last drawn. The prizes are distributed as follows: 

1st place: 50% 

2nd place: 20% 

16 
 

3rd place: 10% 

4th & 5th place: 5% each 

6th-25th place: 0.5% each 

It is drawn automatically via an Ethereum smart contract on the 28th of each month at 12:00 UTC. 
Any entries after this time are assigned to the following month’s Donor Pool. 

5.0 Outright Purchases 

A new way to donate. A new way to win. A new way to shop. 

5.1 Purchases 
As well as product raffles, users will also be able to purchase the products outright directly in 
USDT (Tether) from the retailer using ChanceBlock; the prices will be standard retail prices, 
however, a percentage will be transferred to the EoWD and Retail Jackpot. 

In the ‘The Concept’ section of this whitepaper, we outlined some examples of the most frequent 
ways in which we envision ChanceBlock being used. One of which, was for a user to try their luck 
before heading to a store to purchase a product. 

John wanted to buy FIFA 19. He thought he may as well try his luck on ChanceBlock for $1 before 
heading to the store to buy it for $60, as if he was to lose, his total spend on FIFA 19 would only 
be $61 instead of $60. Plus, he’ll have given to charity! 

So, in this theory, if John doesn’t win FIFA 19, he’ll go and purchase it from the store for $60 and 
be satisfied with the $1 chance he took on ChanceBlock that enabled him to give to charity. 

But, what if John didn’t have to visit the store to buy FIFA 19? Better yet, what if he didn’t have to 
leave the ChanceBlock application at all? If paying customers are visiting ChanceBlock daily, why 
not sell to them and raise much more money for charity? 

Don’t worry, John. ChanceBlock has your back. Retailers, we’ve got your backs too. 

By offering outright purchases on ChanceBlock, we can generate more money for charity and 
incentivize retailers to partner with us. All retailers want extra custom, and where better to get it 
from than the emerging cryptocurrency market? 

17 
 

Once we are seeing significant traffic, partnerships with us could be highly desirable. This means 
we may see large worldwide brands and retailers competing to partner with us due to the 
outright purchases feature. 

The Economics 

Selling retailers’ products, donating to charity, and entering the Retail Jackpot without increasing 
the price of the product is all possible, and will be how ChanceBlock operates its retail sales.  

This structure is possible and feasible for retailers because, by using ChanceBlock, they are 
avoiding marketing costs. The money that will be donated to charity and sent to the Retail 
Jackpot with each sale will typically amount to what they would normally spend on marketing per 
sale. It may even be cheaper than the amount they normally spend on marketing, which will only 
incentivize them further. 

The retailers and manufacturers that partner with us don’t necessarily have to be huge 
corporations, such as Gamestop and Sony. Although those kinds of partnerships would be great 
for our exposure, we will discuss with and consider all retailers and manufacturers that have a 
proven track record and are sufficiently reputable regarding their delivery times and overall 
service. 

We do envision huge corporations, such as the aforementioned, becoming partners with us at 
some point, though ​— especially once general cryptocurrency adoption gains the significant 
traction we are anticipating. 

Regardless,​ those that partner with us will benefit from new sales, exposure, and increased 
brand value due to raising money for charity.  

The general cryptocurrency community benefit from ChanceBlock introducing outright purchases 
too, as it welcomes them to a new way to spend their cryptocurrencies.  

5.2 Retail Jackpot 

The Retail Jackpot is a raffle drawn at the end of each week that is funded with 1.5% of all outright 
purchases made that week. It is drawn every Monday at 00:00 UTC. Any entries after that time 
will be assigned to the following week’s Retail Jackpot. 

As all purchases are made in USDT, the Retail Jackpot is distributed in USDT. 

Note: USDT (Tether) is a cryptocurrency that is built to hold the price of a US Dollar. 

18 
 

There are three primary winners, but 25 in total. The prize proportions and distribution method 
work the same way as the Donor Pool, which was detailed in section 4.3. 

6.0 Partnerships, incl. Charities 

6.1 Charities 
Charities are our first priority when it comes to partnerships. We aim to form partnerships with 
25+ charities of different categories, and will be open to community suggestions via polls when 
adding to our list of charities by seeking new partnerships. 

Upon establishment of a partnership, the charity will have a ChanceBlock wallet created for them 
to receive funds from the EoWD. Their addresses will be made publicly visible to allow donations 
from non-ChanceBlock users too. 

Each charity assigns a staff member the task of withdrawing the funds and converting it into their 
local fiat currency, as described in section 3.1. 

All transactions can be seen publicly using block explorers. In combination with public 
announcements/confirmations from each charity regarding their cryptocurrency addresses, this 
allows users to see that the addresses assigned via the smart contract are correct and that each 
donation goes exactly where it says it is going.  

6.2 Retailers 
Retailers could range from video game and electronic stores to car manufacturers and travel 
agents. This is a feature that would become available further into the ChanceBlock development. 

The introduction of retail partnerships will see a huge update to the ChanceBlock application, as 
well as a new wave of marketing with the objective of acquiring a substantial influx of new, 
mainstream users. 

To render these partnerships feasible, we must protect the retailers from volatility. Otherwise, 
they will not want to partner with us and accept cryptocurrency as payment for their products. 

To do this, we will introduce USDT (Tether) support. Each of the raffles for retail products will be 
conducted in USDT. This is a cryptocurrency which correlates with the price of the U.S. Dollar. By 

19 
 

 
using USDT, the retailers can sell their products without worrying about cryptocurrency price 
volatility. 

How retail works in Live Raffles 

1. The product costs $60, so 66 USDT is the raffle’s capacity due to the 10% surplus for the 
EoWD (End-of-Week Donation) 
2. The product is awarded to the owner of the first ticket drawn by the smart contract 
3. 60 USDT is transferred to the retailer’s address, 6 USDT is transferred to the EoWD 
4. If it is a physical product, the owner of the winning ticket submits their delivery address 
5. The retailer dispatches the product 

Note: The product raffles enterable by each user will depend on their location. For example, if a 
product can only be shipped to the U.S., only U.S. residents can enter. If location services are 
enabled for ChanceBlock on the user’s device, they will only see raffles that are available to 
them. 

6.3 Broker Exchanges 

We only wish to partner with one broker exchange, so ensuring it’s the most suitable, credible 
and efficient broker exchange we can find for the ChanceBlock users is crucial. 

Once we establish the partnership, the ChanceBlock application will require a large update to 
integrate the exchange. It is part of the final section of our mission, as becoming successful in 
charity and retail are first on our list. 

The exchange we plan to integrate will be one that provides a balance between cost efficiency 
and intuitiveness; it must have low fees and allow us to collaborate with their development team 
to reprogram the API to our needs for Solidity. 

The vision for the broker exchange is to allow the general public (everyone, including 
non-cryptocurrency users) to convert their fiat into crypocurrencies and use ChanceBlock. 

If they are able to do this without leaving the ChanceBlock app, it can truly be branded as 
user-friendly. It can also be seen as healthy onboarding for cryptocurrency and blockchain 
technology as whole. 

20 
 

7.0 CHB Exchange 

The ChanceBlock application, on both web and mobile platforms, will also include a user-friendly, 
peer-to-peer exchange for Chance Tokens (CHB). This helps to increase liquidity, so that users 
can easily cash out their tokens if/when they wish to. 

Keeping everything in one place, it also enables ease-of-use purchases of Chance Tokens for 
users who want to become tokenholders and participate in the EoWD vote to help their preferred 
charity and receive a chance to win the Token Jackpot.  

At first, only ETH/CHB will be tradeable. Further down the line, though, we will support buying 
and selling CHB tokens with fiat currencies to aid the general, non-crypto public. 

8.0 Fund Allocation 

The funds raised from the ICO (Initial Coin Offering) will be used as follows: 

Product Development (42.5%) 

For the web, iOS and Android applications, we will hire the best Solidity developers available to 
us, the best mobile app developers available to us, and the best designers available to us. 

Worldwide Marketing & PR (22.5%) 

For ChanceBlock to perform optimally, it needs thousands of users participating in raffles 

everyday, thousands of donors subscribing to donate monthly, and thousands of crypto shoppers 
buying items through the app. This all comes at a cost. 

These funds do not include marketing staff. They only account for the funds required to run each 
campaign. 

Employment, Wages, Overheads etc. (20%) 

The ChanceBlock vision isn’t executable without a strong multilingual team, management, 
equipment, and premises for them to work on. The team will comprise professionals from many 
different compulsory sectors, including customer support, marketing strategy, legal, and 
accounting. 

If we reach our hard cap successfully, this percentage accounts for 5 years of wages, offices, 
training and overheads etc., ensuring that the project has enough reserve cash to survive any 
unforeseeable droughts and expand when necessary according to community growth. 

21 
 

Legal Reserve (5%) 

These funds are set aside for any unanticipated expenses regarding legal events. Many ICOs fail 
to account for unforeseeable legal costs, leading to a painful, regrettable outcome. 

To limit ChanceBlock’s risk in this department, we are reserving 5% of the funds raised. 

General Reserve (10%) 

These funds are set aside for any unforeseeable expenses regarding general matters, whether 
during an unexpected drought or during the expansion of the project. Although we have 
meticulously planned this operation from top to bottom, we must be sensible and account for 
things we are unable to foresee. 

By protecting ourselves with a general reserve, we safeguard the project, ensuring it will remain 
afloat with marketing, support, and development, even if no income was being generated to fund 
it. 

22 
 

9.0 Utility Token 

9.1 Purpose 
ChanceBlock’s native token is known as the ​Chance Token (CHB)​. It is a utility token and is used 
to vote in the EoWD (End-of-Week Donation). Each user is limited to one vote per week. To vote, 
the user submits a CHB token along with their choice of charity/cause for the EoWD to be made 
to. 

A vote can be placed at any point in time before the EoWD is drawn at the end of each week. 

All submitted tokens are entered into a seperate, unique, once-a-week raffle (known as the 
Token Jackpot​) that is drawn upon the execution of the EoWD. For further details, see section 
3.3. 

9.2 Token Sale & Token Details 

Type of token: ​ICO (Initial Coin Offering) 

Token ticker: ​CHB 

Token type: ​ERC-20 

Total token quantity: ​150,000,000 

Time/date of sale: 
Pre-Sale: ​September 2018 TBA 
Main Sale: ​October 2018 TBA 

Tokens available at each sale:  

Pre-Sale: ​7,000,000 
Main Sale: ​68,000,000 

Price of token​: $0.20 

Soft Cap: ​$3,000,000 

Hard Cap: ​$14,500,000 

Bonus structure:  
Pre-Sale  

23 
 

 
50% bonus 
Main Sale 
First 10,000,000 tokens sold ​— ​25% bonus 
Up to 30,000,000 tokens sold ​— ​15% bonus 
Up to 60,000,000 tokens sold ​—​ 5% bonus 
After 60,000,000 tokens sold ​— ​No bonus 

Accepted currencies: ​ETH 

Whitelist: ​Yes 

KYC: ​Basic/unintrusive; no photo ID required 

9.3 Distribution 
There will be 150,000,000 CHB tokens in total. They will be distributed as follows. 

The number of CHB tokens for sale at the ICO Token Sale is 75,000,000. Any tokens that aren’t 
sold during the ICO Token Sale will be destroyed. 

The remaining 75,000,000 CHB will be locked for certain periods of time. You can find the 
durations of locked-token periods below, along with breakdowns of each chunk of the CHB pie 
aside the token-sale chunk. 

Team 

24 
 

These tokens are set aside for the team behind ChanceBlock and are completely frozen until a 
certain date. To incentivize the team and prevent bulk selling of the CHB token, the tokens are 
released in a staggered fashion: 

25% of the team’s tokens are released 3 months from the end of the ICO. 

25% of the team’s tokens are released 6 months from the end of the ICO. 

25% of the team’s tokens are released 12 months from the end of the ICO. 

25% of the team’s tokens are released 24 months from the end of the ICO. 

Advisors 

These tokens are set aside for the advisory board offering their assistance and network of 
contacts to ChanceBlock. They are locked for 3 months from the end of the ICO. 

Overheads Reserve 

These tokens are set aside for any unanticipated costs regarding salaries, travel, events, office 
tenancies, equipment etc. 

The majority of our staff will be working in customer support to ensure a smooth experience for 
all ChanceBlock users. The remainder will be in development, communications (for retail 
partnerships etc.), management, marketing, public relations, human resources and accounts. 

As these tokens are reserved for unanticipated overheads, they will not be sold until they are 
needed. When/if they are needed, they will be sold in staggered amounts over numerous days, 
as oppose to being sold all at once. 

Overheads Reserve tokens are locked for 6 months from the end of the ICO and they are merely 
a backup; the overheads should instead be covered by the expenses funds that source from the 
surplus of each ChanceBlock prize draw. To clarify: these tokens are only reserved in case of 
emergency. 

Long-Term Expansion 

These tokens are set aside for further expansion of the ChanceBlock project. They account for 
networking and development costs regarding fiat/broker integration, retail integration and 
additional global marketing applicable to the bigger, longer-term picture of the ChanceBlock 
community. 

Long-Term Expansion tokens are locked for 9 months from the end of the ICO. 

25 
 

10.0 Roadmap (dates are to be ignored, as the roadmap will 

be amended shortly) 
Q4 2017  
● Inception of the ChanceBlock concept 
● Legal and technical research 
● The assembly of the handpicked ChanceBlock team 
Q1-2 2018 
● Communications with charities begun 
● Further development of the concept and technical fundamentals 
● The ChanceBlock team grew stronger 
● Communications with charities progressed 
● Ecosystem developed and primary technical issues solved  
June 2018 
● Funds for the ICO are raised from private investors 
● First charity partnerships established 
July 2018 
● ICO website designed 
● ICO smart contract and token development 
● Public demo released 
August 2018 
● ICO presale launched 
● Alpha development begins (subsequent to presale) 
September 2018 
● Alpha released 
● ICO main sale launched 
● Marketing campaign reaches its most aggressive stage 
● ICO comes to a close 

October 2018 

● Token is listed on various exchanges 

● dApp development begins 
● iOS, Android and web app development begins 

26 
 

 
● More charities are added 

November 2018 

● Application beta is released 

● Relationships with broker exchanges are developed 

December 2018 

● Full web app is released 

● iOS and Android apps are released 
● Product marketing campaign begins 
● Referral program goes live 
● Discussions with retailers begin 

Q1 2019 

● Further development of raffles 

● Broker exchange partnership is established 
● Fiat-to-crypto brokerage exchange is integrated to ChanceBlock to enhance accessibility 
to a broader audience 

Q2 2019 

● Retail platform added to ChanceBlock 

● Tether ($USDT) added to ChanceBlock to shield retailers from volatility, enabling more 
opportunities for partnerships with popular retailers 
● New marketing campaign 

Ongoing 

● Continuous legal support for any unforeseeable regulatory action 

● Market research and further product development 
● Studies into further innovation 
● Adding support for a wider range of cryptocurrencies 

27 
 

11.0 Team 

12.0 Legal 
12.1 Securities Law 
The CHB token is strictly a utility token: 

● The motive for users to buy the CHB token should be to USE it for voting in the EoWD 
(End-of-Week Donation) and entering the Token Jackpot. 
● The purpose of the CHB token is exclusively to be used to vote in the EoWD 
(End-of-Week Donation) and enter the Token Jackpot. 
● The CHB token passes the HOWEY test, meaning U.S. users can legally purchase it, as 
well as most other countries. 

28 
 

ChanceBlock Limited is the legal entity that is running the ChanceBlock ICO. It is based in the Isle 
of Man. We chose the Isle of Man for the base of our company due to its laws on securities and 
its attitude toward ICOs, cryptocurrencies and blockchain technology. 

12.2 ICO Regulation 

The Isle of Man is taking a much friendlier stance on the emerging ICO space, embracing it with 
open arms. Striving to become the ‘island of blockchain’, it welcomes ICOs and we are confident 
that their jurisdiction provides us with the safest legal framework under which we can shelter our 
Token Sale. 

With the Isle of Man being a step ahead of most other legal regions in terms of cryptocurrency, 
our ICO will be overseen by the Isle of Man FSA (Financial Services Authority). It is important to 
note that the ICO remains unregulated, however, basing ourselves in the Isle of Man helps us 
remain reassured that any impending regulations will work much more in our favour than they 
would under other jurisdictions. 

We are registered as a Designated Business under Isle of Man legislation, which is what grants us 
FSA oversight. 

12.3 KYC & AML 

KYC (Know-your-Customer) 

The KYC requirements we have imposed on the whitelist process are, firstly, due to the fact our 
ICO is overseen by the Isle of Man FSA, secondly, due to laws in place in jurisdictions in which 
participants of our ICO may be based, and thirdly, due to the rules and preferences of the bank 
we hold an account with.  

It also future-proofs us from many anticipated legislations that may come into place later on, as 
well as offering us the potential of being protected against some unforeseeable forthcoming 
legislations, too. 

AML (Anti-Money-Laundering) 

AML is another practice we must enforce in our ICO for legal reasons. It ensures we comply with 
the Isle of Man FSA, the rules and preferences of the bank we hold an account with, and the laws 
in place in jurisdictions in which participants of our ICO may be based. 

29 
 

12.4 Gambling Law 

The ChanceBlock application itself is technically owned by nobody. It is an open-source project 
hosted on the Ethereum blockchain, thus meaning nobody is liable for any breaches of legal 
conduct that the application may make under certain jurisdictions. This renders the application 
legal and means we do not require a gambling license. 

The promotion and support of the application will be provided by our non-profit organization. This 
means that we are responsible for complying with any laws regarding marketing the application. 
The laws differ from jurisdiction to jurisdiction, commonly referring to the promotion of raffles, 
prize competitions and lotteries.  

ChanceBlock’s non-profit organization will be based in the Isle of Man, just as the ICO entity is. 
The Isle of Man is the optimal location for the legal entity that provides these services due to its 
proactive movement in the e-gaming and e-business sector as well as its views on blockchain 
technology.  

13.0 Marketing 
13.1 General ​— ​Marketing Material 
The material we plan to use when marketing ChanceBlock primarily consists of promotional 
videos and articles. 

The content used will differ from audience to audience, predominantly maintaining a 
gimmicky/fun approach throughout. To reiterate, content marketed to audiences that are 
accustom to cryptocurrencies and blockchain technology will differ heavily from the content 
marketed to audiences that are not familiar with these concepts, but the style will remain fun and 
gimmicky. 

We will also produce our content in different languages, so that we can market to specific 
audiences in their native language. For instance, we would market content in Mandarin if it is 
being promoted to Chinese audiences, however, we would market content in English if is being 
promoted to U.S. audiences. 

One of the biggest divides in our marketing approach will be apparent when we are splitting our 
audience into two groups based on their primary interests: philanthropy, and gambling. When 
marketing to a philanthropic audience, our content will revolve around the features ChanceBlock 

30 
 

 
provides to philanthropists; when marketing to a gambling audience, our content will revolve 
around the features ChanceBlock provides to people who like to take a small gamble. 

The underlying theme for much of our marketing will convey our tagline, “Take a chance, give a 
chance”. This means that regardless of the interests of the audiences (whether it be philanthropy 
or gambling), we will still make our core principle clear. 

13.2 Press Releases 

As part of creating a social omnipresence for ChanceBlock, we will use a portion of the marketing 
funds on exposing our project to mass audiences through relevant, highly-influential, top-tier 
websites, such as Forbes, BusinessInsider, CoinDesk and others. 

The articles shall document the purpose behind ChanceBlock, the issues we are solving and 
expose our presence to the world. This is phase 1 and is used to create awareness of our ICO 
and help us raise the funds required to start ChanceBlock. 

Phase 2 is the second wave of press releases and will kick off during the build up to the public 
launch of the ChanceBlock application. It will continue throughout the launch and be used to 
draw new users onto the application. 

13.3 Referral Program 

Not to be confused with a bounty campaign, our referral program will go live upon the launch of 
the application. Think ​Uber​ and ​Airbnb.​ More regarding this component of the campaign will be 
revealed later. 

13.4 Public Events 

Included in our marketing budget is the cost of attending and speaking at public events. To 
spread awareness of our project, raise funds, build trust and bring in new users, our presence at 
public events around the globe is crucial.  

As well as aiding ChanceBlock’s exposure, public events provide us with an unparalleled 

opportunity to meet important contacts, develop working relationships and establish 
partnerships. Its role in progressing the ChanceBlock project is vital. 

Alike the press releases, our attendance at public events will come in waves; phase 1 and 2. 

31 
 

13.5 Exchange Listings 

Users like liquidity! It’s fact, not fiction. At ChanceBlock, we value the ability to cash out your 
tokens very highly, as we understand that users do too.  

To enable this, we will be treating the act of listing the CHB token on major exchanges as a high 
priority. The marketing funds raised in the ICO account for the costs involved with executing this. 

13.6 Forums and Telegram 

With the recent bans of cryptocurrency-related advertising on Facebook, Twitter and Google, one 
of the most effective ways remaining to market dApps is via forums and groupchats. 

By establishing a solid Reddit and BitcoinTalk forum, we can grow our community while building 
trust and legitimacy for the ChanceBlock project. Keeping the community updated, and 
responding to their answers as transparently and promptly as possible plays a major role in 
developing a healthy relationship between ChanceBlock and its supporters. 

Growing and maintaining a Telegram community also plays a vital role, as it allows us to provide 
active 24/7 support to our community to ensure all questions are answered and that the 
community can easily be updated with news regarding our progression and any important events 
that occur. 

13.7 Ad Space and Email Marketing 

This involves sponsoring our adverts and content to be displayed on relevant websites, 
marketing to existing audiences. We can also do this by having ChanceBlock featured in various 
websites’ email newsletters. 

These channels provide us with an opportunity to spread awareness and draw new users by 
utilizing relationships and trust built up over time by established brands and websites. 

13.8 Blog and SEO 

Building a relationship with your audience via regular, relevant, value-providing blog posts is a 
great way to promote your product and develop the reputation of your brand. 

This is the purpose of the blog content we will be releasing on a daily basis, along with 
generating traffic via SEO. 

32 
 

14.0 Security 
14.1 Application 
When the user first accesses the mobile ChanceBlock application, they’ll be asked to create a 
PIN and password. If their device supports Touch ID, they can use this as an alternative if they 
wish to. 

The user can also enable 2FA (2-factor authentication) as provided by Google Authenticator. 

14.2 Wallet 
Each user’s wallet on the ChanceBlock application runs very similarly to that of a decentralized 
exchange. 

The only ‘account’, per se, is the user’s device. This means that a user’s private key is only stored 
on the user’s device, and therefore is not accessible to hackers that attempt to attack the 
ChanceBlock application or the Ethereum network that ChanceBlock operates on. 

15.0 Risks & Disclaimers 

15.1 Promotion Laws 
At any moment in time, jurisdictions may introduce new legislations or update existing ones to 
render the promotion/marketing of raffles and/or prize competitions illegal. This wouldn’t hinder 
ChanceBlock’s growth too much unless it occurred in a large number of the locations we plan to 
market ChanceBlock. 

Regardless, there are often ways we can bypass this, by promoting certain features of 
ChanceBlock that do not regard raffles or prize competitions. 

Keeping up to date with international law in regards to these matters is one of the top priorities at 
ChanceBlock, as it determines what we can and can’t do. We will always do everything in our 
power to ensure we do not breach any laws. 

15.2 Cryptocurrency Regulations 

The adoption of new laws regulating cryptocurrency turnover and the implementation of token 
sales worldwide is just beginning. ChanceBlock warns contributors that it is not responsible for 

33 
 

 
possible changes in the project in the event of a possible restriction on cryptocurrency projects 
and tokensales in different jurisdictions. 

As China and the United States prohibit their citizens from participating in contributions in 
high-risk projects related to the cryptocurrency market, we cannot accept contributions from the 
citizens of the aforementioned countries and jurisdictions. Blockchain technology is a recent 
development, and the technical and legal issues associated with it are virtually unregulated or 
nonexistent. 

ChanceBlock notes that it is not responsible for possible adoption of laws regulating blockchain 
technology by any country that would adversely affect the development of the project or the 
entire crypto industry. 

15.3 Financial Difficulties 

Cryptocurrencies currently have a high volatility. Financial losses are possible in the event of 
acute fluctuations in cryptocurrency or fiat currencies. 

If any jurisdiction implements a law with adverse effects on the crypto industry, translation of 
tokens to fiat currency could become difficult or impossible. When tokens are exchanged to fiat, 
the relevant services could charge a commission and the government of the relevant jurisdiction 
could mandate payment of taxes. 

If new laws are enacted in any of the world's jurisdictions, there is a risk that contributors be 
obliged to pay taxes or additional charges against any funds contributed in ChanceBlock. After 
contributing in the token sale and before the launch of the project, contributors could lack the 
ability to use tokens in any way or sell them. 

15.4 Legal Disclaimer 

This whitepaper does not constitute advice nor a recommendation by the Company, its officers, 
directors, managers, employees, agents, advisors or consultants, or any other person to any 
recipient of this document on the merits of the participation in the token sale. Participation in the 
token sale carries substantial risk and may involve special risks that could lead to a loss of all or a 
substantial portion of such an investment. Do not participate in the token sale unless you are 
prepared to lose the entire amount you allocated to purchasing CHB tokens. 

CHB tokens should not be acquired for speculative or investment purposes with the expectation 
of making a profit or immediate resale. No promises of future performance or value are or will be 
made with respect to CHB tokens, including no promise of inherent value, no promise of 
continuing payments, and no guarantee that CHB tokens will hold any particular value. Unless 

34 
 

 
prospective participants fully understand and accept the nature of the Company and the potential 
risks inherent in CHB tokens, they should not participate in the token sale. 

CHB tokens are not being structured or sold as securities. CHB tokens are sold as a functional 
good and all proceeds received by the Company may be spent freely by it, absent any conditions 
set out in this whitepaper. 

This whitepaper is not a prospectus or disclosure document and is not an offer to sell, nor the 
solicitation of any offer to buy any investment or financial instrument in any jurisdiction and 
should not be treated or relied upon as one. This whitepaper is for information only. Written 
authorisation is required for distribution of any or all parts contained herein. 

All information here that is forward looking is speculative in nature and may change in response 
to numerous outside forces, including technological innovations, regulatory factors, and/or 
currency fluctuations, including but not limited to the market value of cryptocurrencies. This 
whitepaper is for information purposes only and is subject to change. 

The Company cannot guarantee the accuracy of the statements made or conclusions reached in 
this document. The Company does not make and expressly disclaims all representations and 
warranties (whether express or implied by statute or otherwise) whatsoever, including but not 
limited to: 

• any representations or warranties relating to merchantability, fitness for a particular purpose, 

suitability, wage, title or non-infringement; 

• that the contents of this document are accurate and free from any errors; and 

• that such contents do not infringe any third party rights. The Company shall have no liability for 
damages of any kind arising out of the use, reference to or reliance on the contents of this 
document, even if advised of the possibility of such damages. 

This whitepaper includes references to third party data and industry publications. The Company 
believes that this industry data is accurate and that its estimates and assumptions are reasonable; 
however, there are no assurances as to the accuracy or completeness of this data. Third party 
sources generally state the information contained therein has been obtained from sources 
believed to be reliable; however, there are no assurances as to the accuracy or completeness of 
included information. Although the data are believed to be reliable, the Company has not 
independently verified any of the data from third party sources referred to in this whitepaper or 
ascertained the underlying assumptions relied upon by such sources. 

Please note that the Company is in the process of undertaking a legal and regulatory analysis of 
the functionality of its CHB tokens. Following the conclusion of this analysis, the Company may 

35 
 

 
decide to amend the intended functionality of its CHB tokens in order to ensure compliance with 
any legal or regulatory requirements to which we are subject. In the event that the Company 
decides to amend the intended functionality of its CHB tokens, the Company will update the 
relevant contents of this whitepaper and upload the latest version of this to its website. Any CHB 
tokens could be impacted by regulatory action, including potential restrictions on the ownership, 
use, or possession of such tokens. Regulators or other circumstances may demand that the 
mechanics of the CHB tokens be altered, all or in part. 

The Company may revise mechanics to comply with regulatory requirements or other 
governmental or business obligations. Nevertheless, the Company believes it has taken all 
commercially reasonable steps to ensure that its planned mechanics are proper and in 
compliance with currently considered regulations. 

CAUTION REGARDING FORWARD-LOOKING STATEMENTS 

This whitepaper contains forward-looking statements or information (collectively "forward-looking 

statements") that relate to the Company's current expectations and views of future events. In 
some cases, these forward-looking statements can be identified by words or phrases such as 
"may", "will", "expect", "anticipate", "aim", "estimate", "intend", "plan", "seek", "believe", "potential", 
"continue", "is/are likely to" or the negative of these terms, or other similar expressions intended 
to identify forward-looking statements. 

The Company has based these forward-looking statements on its current expectations and 
projections about future events and financial trends that it believes may affect its financial 
condition, results of operations, business strategy, financial needs, or the results of the token sale 
or the value or price stability of the CHB tokens. In addition to statements relating to the matters 
set out here, this whitepaper contains forward-looking statements related to the Company's 
proposed operating model. 

The model speaks to its objectives only, and is not a forecast, projection or prediction of future 
results of operations. Forward-looking statements are based on certain assumptions and analysis 
made by the Company in light of its experience and perception of historical trends, current 
conditions and expected future developments and other factors it believes are appropriate, and 
are subject to risks and uncertainties. 

Although the forward-looking statements contained in this whitepaper are based upon what the 
Company believes are reasonable assumptions, these risks, uncertainties, assumptions, and 
other factors could cause the Company's actual results, performance, achievements, and 
experience to differ materially from its expectations expressed, implied, or perceived in 

36 
 

 
forward-looking statements. Given such risks, prospective participants in a token sale should not 
place undue reliance on these forward-looking statements. 

Risks and uncertainties include, but are not limited to those identified in the token sale’s T&Cs. 
These are not a definitive list of all factors associated with a making a contribution to the 
Company, in connection with its operations. The Company undertakes no obligation to update 
any forward-looking statement to reflect events or circumstances after the date of this 
whitepaper. The Company's business is subject to various laws and regulations in the countries 
where it operates or intends to operate. 

There is a risk that certain activities of the Company may be deemed in violation of any such law 
or regulation. Penalties for any such potential violation would be unknown. Additionally, changes 
in applicable laws or regulations or evolving interpretations of existing law could, in certain 
circumstances, result in increased compliance costs or capital expenditures, which could affect 
the Company's profitability, or impede the Company's ability to carry on the business model and 
the CHB token model proposed in this whitepaper. 

37