Whitepaper

19

Scarlett Enterprises A Platform, Where Real Estate market meets with

Blockchain Technology

2

3

nvesting in real estate, even on a small scale, remains one of the most reliable

ways for individuals to boost their personal wealth. Although it is a popular

investment across the globe, the real estate market is one of the hardest

investments to analyze since there has never been a standard source of real

estate pricing data. The traditional centralized real estate system has remained

mostly unchanged in the past couple of decades. The real estate business as a

whole is now ripe for disruption through the introduction of blockchain

technology. Combining blockchain technology and smart contracts with real

estate will create unprecedented opportunities and asset classes. Scarlett is

creating a real estate investment platform to unwind these opportunities in the

blockchain era. Scarlett objective is to disrupt the traditional model associated

with real estate investment. Scarlett plans to disrupt the current ecosystem by

streamlining processes, automate time consuming tasks and significantly cutting

cost by implementing blockchain technology. Scarlett platform will provide users

with some of the strongest security and safety measures through the use of

innovative monitoring and reporting regimes that will be based on blockchain

technology. This structure will also create a transparent and streamlined business

model with all platform information being accessible in real time. Scarlett’s

objective is to introduce cryptocurrencies into this overly regulated and slow

market to facilitate investments and transactions on a global scale. We plan on

achieving this through the utilization of the core principles of the blockchain:

fairness, accessibility, transparency and trust while applying them to an already

existing, fully operational, with an annual income and a substantial annual profit.

Scarlett platform will give investors direct access to a new and lucrative asset

class to add to their investment portfolios. The model involves the acquisition of

real estate assets though the token sale, placing these assets on the Scarlett

blockchain platform and tokenizing them, then issuing Security Tokens as a ROI

from rental returns which can be purchased and sold through the Scarlett

dashboard. Scarlett is next generation investment platform will revolutionize and

democratize investment and property development globally by facilitating

I

4

investors to capitalize on their cryptocurrency and invest intangible, high

sustainable return on investment. The Security Tokens will be based Ethereum

Smart Contracts and will be ERC20 compliant. Investors will then be able to access

investments by purchasing these tokens via the Block Estates platform. Tokenizing

real estate investments will allow assets to be uniquely identified via a digital

record that contains information regarding ownership, asset characteristics, legal

status, historical performance, and financial position. Real estate tokens,

representing a share in property ownership, will allow for a liquid real estate

market due to transfer simplicity while providing investors a unique transparent

environment.

5

Difficulties with the Traditional Global Real Estate

Investment Market

lobal Real Estate is to attract private investors and other funders who are

interested in financing sustainable development and land rehabilitation.

The market is not as accessible to investors who can afford it as it should

in the age of decentralization and digitalization. As capital markets are becoming

global markets, real estate markets are no exception despite the difficulties posed

by venturing overseas no investor can overlook the potential international

investment holds out. This urges the need for a new decentralized solution to

capitalize on this potential.

Approvals and Procedural difficulties-

There are almost 50 approvals or more need to be taken for starting a real estate

project and further these approvals are required form different govt.

departments or authorities. This is one of the major causes of delays and high

amount of corruption in the real estate sector. Consequently, corruption and

delay cause inconvenience to even the astute Investor.

High Input Cost-

One of the biggest hurdles is capital. This is a huge barrier for individuals who

want to get involved in investing in real estate but don’t have the capital. When

an individual decides to invest in property through a real estate fund, they invest

in an individual property, and their funds become locked at the moment of

purchase. That means investors can’t liquidate the investment until the property

is sold.

Limited access to foreign Investors-

G

6

Many foreigners who are interested in real estate investing encounter

considerable difficulties, mainly in long-distance real estate negotiations.

Depending on each jurisdiction (country, state or city), the purchase process

demands a plethora of minutiae that can quickly derail the transaction, e.g,

details about the negotiations such as financing, security, regulations, and fees. In

most cases, it is necessary to hire real estate professionals to analyze all

documents in order to check any legal impediment, request debt clearance

certificates, and prevent fraud. Consequently, this process prevents foreign

investors from proceeding with the transaction.

7

Scarlett is the solution over the problem

carlett has mostly been concerned with listing and connecting buyers and

sellers. However, The Scarlett with the help of blockchain introduces new

ways to trade real estate and can enable trading platforms and online

marketplaces to support real estate transactions more comprehensively. Scarlett

has launched its own ERC20 token that uses blockchain technology to facilitate

real estate and rental property transactions. By tokenizing real property, assets

can then be traded much like stocks on an exchange and transactions can be done

online. Scarlett allows sellers to tokenize assets, essentially handling it like a stock

sale, and liquidating that asset through a token sale using the platform. The

collected tokens can be exchanged for fiat currency, with buyers owning a

percentage stake of the property and its rental returns.

No Intermediaries-

Brokers, lawyers, and banks have long been part of the real estate ecosystem.

However, cutting out the intermediaries will result in buyers and sellers getting

more out of their money as they save on commissions and fees charged by these

intermediaries. This also makes the process much quicker as the back-and-forth

between these middlemen gets cut.

Liquidity-

Real estate has long been considered an illiquid asset since it takes time for sales

to conclude. This isn’t the case with cryptocurrencies and tokens since they can

readily be traded for fiat currencies through exchanges. However, as tokens, real

estate can be readily traded. A seller doesn’t have to wait for a buyer who can

afford the whole property in order to get some value out of their property.

Fractional Ownership-

S

8

By allowing fractional ownership, the Scarlett also lowers the barriers to real

estate investing. Typically, investments would require significant money upfront

in order to acquire property. Alternatively, investors could also pool their money

to acquire bigger ticket properties. Through the Scarlett, investors would simply

buy and sell even fractions of tokens as they required. In addition, fractional

ownership would also help them avoid managing the properties themselves such

as maintenance and leasing.

Decentralization-

Blockchain commands trust and security being a decentralized technology.

Information stored in the blockchain is accessible to all peers on the network

making data transparent and immutable. A decentralized exchange has trust built

into the system. Since information can be verifiable to peers, buyers and sellers

can have more confidence in conducting transactions. Fraud attempts would also

be lessened. Smart contracts are increasingly becoming admissible. As such, smart

contracts would have more enforceability beyond the technology itself.

Costs-

This transparency can also trim down all associated costs with real estate

transactions. Beyond the savings in cutting out intermediaries’ professional fees

and commissions, there are other costs such as inspections costs, registration

fees, loan fees, and taxes associated with real estate. These costs even vary

depending on the territory that has jurisdiction. Like intermediaries, these can be

eliminated from the equation as platforms automate these processes and make

them part of the system.

Towards True Peer-to-Peer-

Global real estate is worth $217 trillion but is dominated by the wealthy and large

corporations. Through the blockchain, more people will be able to access the

market where transactions can now be made more transparent, secure, and

equitable. Real estate transactions may soon become truly peer-to-peer activities

with blockchain-powered platforms doing most of the work.

9

trong growth in developed economies should continue to support favorable real estate fundamentals in the near term. The baseline scenario remains very positive, and global listed equities’ earnings yields are providing a

positive spread over local government bonds, a sign that real estate is still fairly priced. Yet macro risks to the outlook are perhaps now greater today than in prior years; many are increasingly global in nature. Global opportunities Investor surveys in recent months reflect an increasing appetite for real estate, with allocations to the sector expanding to more than 10% of institutional portfolios. While greater in the US and Asia Pacific than in Europe, many investors are seeking to leverage value-add platforms to enhance returns, likely in response to expectations of limited future cap rate compression (Figure 1). In Europe, there is a greater appetite for core strategies, given real estate’s attractive pricing relative to long-term government bonds. We envisage the next few years will be marked by the emergence of new regionally focused offerings that can cater to these changing investor preferences. Regional investment themes Differences in the regional total return outlook are driven in large part by our expectations of growth, with various local and regional nuances: Asia Pacific Over the last few years, Asia Pacific returns have surprised to the upside. There have been strong market-level returns. Going forward, total return forecasts for the region are projected to maintain a stable growth profile, driven in part by greater net operating income potential. Europe Prime rental growth is becoming increasingly broad-based amidst ongoing economic growth in Continental Europe. Despite Brexit uncertainty, UK real estate fundamentals and capital markets have thus far remained resilient, but peak uncertainty is likely still to come. Limited development pipelines and structural demand growth make logistics and hotels of particular interest. A nascent institutional-grade multi-family housing market presents additional opportunities to participate via forward-funded developments.

S

10

United States The US is probably furthest along in its real estate cycle relative to the other regions, although thus far it has maintained its robust pace of growth. The near-term outlook remains positive, although labor constraints could start to weigh on sustained growth. We anticipate a tapering in real estate returns in 2019-2021 after a strong 2018. Given it is in a later stage of the economic cycle, we intend to lean into markets and sectors that have historically offered enduring value and stable income, while supplementing with selective growth-oriented opportunities.

Investment style appetite by region

Sources: Invesco Real Estate using data from CBRE Research Global Investor Information Survey, 2018

0

5

10

15

20

25

30

35

40

Prime or coreasset

CorePlus/GoodSecondary

Value Add Opportunistic Distressedassets

EMEA

Americas

APAC

11

Top cities for real estate investment in 2019

Canada-Toronto, Vancouver, Montreal

United States- Dallas/Fort Worth, New York-Brooklyn, Raleigh/Durham, Orlando,

Nashville, Austin, Boston, Denver, Charlotte, Tampa/St Petersburg

Europe- Lisbon, Berlin, Dublin, Madrid, Frankfurt, Amsterdam, Hamburg, Helsinki,

Vienna, Munich

Asia Pacific- Melbourne, Singapore, Sydney, Tokyo, Osaka, Shanghai, Ho Chi Minh

City, Shenzhen, Seoul, Guangzhou

12

And how countries fared in 2018…

Americas

Country Volume($bn) YOY(%)

United State 470.7 19 Canada 20.2 -15 Brazil 1.5 -34

Mexico 0.8 -58

Total 493.8 16

EMEA

Country Volume($bn) YOY(%)

Germany 76.3 -4 United Kingdom 67.6 -14

France

37.6 -13

Spain

Netherland

23.3 21.9

1 3

Total 310.7 -10

Asia Pacific

Country Volume($bn) YOY(%)

China 31.3 -14

Australia 28.8 -2 Japan

28.8 -26

Hong Kong

South Korea

25.7 22.7

32 43

Total 159.1 -2 Source:Emerging Trends in Real Estate United States and Canada 2019,

Emerging Trends in Real Estate Europe 2019.

13

carlett introduces the world’s first platform enabling investors to research,

invest in and exit global real estate investments by utilizing crypto and fiat

currencies combined with secure block chain technology and smart

contracts. All this can be done by maintaining the best safeguards available.

Scarlett believes in the power of great technologies however most importantly we

also recognize that deep asset market knowledge is required in order to realize

profits for investors.

We believe that combining blockchain technology with real estate will create unprecedented opportunities that did not previously exist. We plan to do this by developing a platformthat facilitates a streamlined gateway for investors to participate in global real estate investments. The Scarlett platform will be based on tokenized investments that utilize the

Ethereum Blockchain network and associated Smart Contract technology.

Investors will get access to a diverse range of institutional grade global real estate

opportunities with no minimum or maximum investment amounts.

S

14

Before we go in to more detail, we would like to provide a brief

overview of Blockchain Technology & Smart Contracts.

Blockchain

Blockchain is a type of digital ledger that is not maintained in one central

location but is instead distributed amongst peers. The distributed records

are kept on thousands, even millions, of individual computers all over the

world – in contrast to the traditional form of database administered by a single,

central body, like a bank or federal reserve. Due to the decentralized nature of

the distributed ledger, all recorded transactions are fully traceable and virtually

impervious to tampering. This decentralized ledger, or blockchain, is synchronized

within a given network via the internet, making all transactions visible to anyone

within the network. Blockchain networks can have restricted membership or be

open to the public. Every time a digital transaction is carried out between

members of the network in question, the specifics of the transaction are compiled

into a “block” that is protected by sophisticated cryptography. This block is

bundled with other transactions occurring within the same timeframe and sent

out to every participant in the network. Members of the network then compete

for the right to validate these transactions by solving a complex, cryptographic

puzzle - a task that requires significant computing power. The first member to

solve the problem and complete the validation receives a reward. This process of

competing for the right to validate a block is called mining. Each validated block

receives a time stamp and is appended tool der blocks, creating a chain of blocks

that shows every single network transaction in chronological order. The entire

blockchain is updated every few minutes so that each network member’s ledger

contains identical information. Because any member can prove what is owned by

whom at any given time, the blockchain is a completely transparent and tamper-

proof record of transaction values and ownership.

A

15

Smart Contracts

one particularly promising application of blockchain technology comes in the form of “smart contracts.” Smart contracts are self-fulfilling agreements between network members. Any information inserted into these contracts is automatically treated according to a previously agreed upon protocol. Since the previously agreed-upon protocol is the sole arbiter of the transaction, the transaction can be carried out transparently, free of conflict, and without expensive and time-consuming middlemen.

Traditionally, legally enforceable agreements have required the intervention of expensive lawyers and notaries who draft and validate contracts. The costs and delays associated with this lengthy process become even greater in cases where parties disagree about contractual obligations. With smart contracts, agreement stipulations and enforcement functionality are already built in. This functionality includes when, how, and where a given payment or return is to be made. The smart contract even carries out such payments.

Smart contracts both define the terms of the agreement and automatically enforce applicable obligations. Once deployed to the blockchain, a smart contract is given an immutable address, and the deployed contract cannot be altered. That makes smart contracts a direct, secure way of agreeing on the exchange of money, property, shares, or practically anything of monetary value.

The Ethereum blockchain is especially dedicated to the development and application of smart contracts. Ethereum is an open blockchain that works as a decentralized computer, and as such, its source code is non-proprietary and visible to all.

Although Ethereum has its own cryptocurrency (Ether or ETH), it also accommodates other cryptocurrencies. Block Estates adheres to the standards of the Ethereum blockchain and shares with Ethereum a philosophy of creating access and transparency.

16

sing blockchain technology, Scarlett Ecosystem will bring a revolutionary

way for real estate investors to enter the rental market without facing

many barriers normally associated with the procurement of large sums of

money for entry. We will achieve this through creating our own SE tokens, which

will serve as the platform’s cryptocurrency and establishing smart contract.

Scarlett will issue these tokens, which will provide SE token holders the following

management opportunities: The Scarlett platform will provide SE token holders

with the opportunity to:

Search for, select and stake SE tokens using smart contracts and receive payments on fractional parts of rental contracts.

Rent SE properties using SE token as payment for rent provide feedback on the website interface and mobile app

Use SE tokens as a membership fee for access to SE’s P2P platform

At the most basic level, Scarlett is a platform for procuring real estate assets, and

assisting with access the highly lucrative investment opportunities.

U

17

Scarlett Platform

The aim is to develop the Scarlett platform to a BETA stage with basic (buy, rent

and development overview) functionalities already before the start of ICO.

Timeframe is presented in Road map below. The platform will also display listed

reports for projects. These reports will be based on all standard analysis

(quantitative/static, and qualitative/dynamic with cash-flow projections)

developed with our real estate advisors and an algorithm developed by the

Scarlett Enterprise team that considers the level of risk and the associated rate of

return. As such, the algorithm takes the following parameters into consideration:

Class of real estate (residential, commercial).

Phase of development of real estate.

Location of the property.

Market attractiveness of the real estate.

User friendly platform

In case there would be potential buyers for units in platform ownership that are

not familiar with crypto world, Scarlett platform will enable them to pay units in

fiat currency according to market price of SE token at that moment + additional

fee of up to 4 percent. Platform will then immediately change this to SE token

through exchange. Reason for offering this solution is not to limit purchaser base

only to community that is familiar with crypto currencies, but to offer it to general

public as well. We believe that this solution will also benefit the SE token holders,

because it will enable easier entrance barrier to Scarlett ecosystem and increase

growth value potential for the SE token. We predict the beta platform will be

operational from October 2019 as well as first units from pipeline will be available

on platform for sale and rent.

18

Buying real estate with fiat currency:

The buyer will be able to pay 50 percent of purchase price directly in fiat currency through SE platform (calculation will be done according to market price of SE token).

The buyer will need to buy SE tokens through exchange and transfer on base of smart contract for purchase of property for rest of 50 percent of purchase price.

19

Buying real estate with crypto currency/SE token:

The buyer will need to buy SE tokens through exchange for BTC/ETH/USD.

The purchase will be done via smart contract.

The fund will then need to exchange tokens through exchange to be able to buy

the new distress properties for the portfolio.

20

Scarlett Card

Scarlett is pleased to offer to first the 1000 customers our special Limited Edition

Gold Card. The Gold Card Customers will come with enhanced investment

features and customer services including an extra 10% return on your investment

when purchasing the Scarlett Tokens. If you happen to miss out never fear as the

next 5000 Platinum Cards will come with an extra 5% return on your investment

when purchasing the Scarlett Tokens. Still missed out? Never fear as we will give

the next 5000 card holders an extra 2.5% return on their investment! Get behind

this game changing platform as we set to revolutionize the world with crypto

backed assets, property, BTC mining and a new exchange that encompasses the

fluidness and integration of the blockchain to everyday society.

Scarlett Interface

User experience is an integral aspect of the vision for the Scarlett platform.

Scarlett will provide a feature-rich platform that relies on a secure backend

infrastructure and a highly intuitive front-end interface. Simple registration,

instant access, direct payment processing, transaction mobility and a selection of

lucrative rental properties of the platform.

21

Scarlett Token Economics & The ICO

Token: Scarlett Enterprise

Total supply: 200 .000 .000

Token symbol: SE

Token Decimal: 18

Project Protocol: ERC20

The ICO will be broken down into three main phases:

PPP – Private Participation Period – Open to those who are related to the project or who are approached as a private participant.

Pre-ICO – The pre-ICO will only be open to those who participate in our White List which will be placed on our website before the pre-ICO goes live. Time duration: Three Weeks.

ICO – This is the period when anyone can participate in the ICO itself. Time duration: Three weeks.

During each phase you will be able to acquire a different number of tokens for

BTC, ETH and USD. This is known as the “discount” amount. The earlier you

participate, the bigger discount on tokens you will receive.

22

Token Distribution

The Tokens will be distributed in the following amounts.

20% for Liquidity pool – tokens will be locked with smart contract for a period of 3 years (50 million tokens). These tokens can be used after the 3 years for the:

support additional liquidity,

disbursement at the market price,

used for the fork, or

be locked again.

60% available in whole crowd sale (150 million tokens)

20% for business costs, team etc. (50 million tokens) We intend to lock the 20% of tokens primarily for building business operations,

set-up and scale business infrastructure and target additional distressed deals for

after the initial portfolio is set up and platform in place.

23

Token Allocation

As seen with token distribution 20 percent of tokens will be dedicated to business

costs and the team. This 20 percent of issued will be allocated for building

business operations.

Business operations:

Advisors = 5% Token

Management = 20% Token

Marketing = 20%Token

Legal = 10% Tokens

Promotions (bounty, hackathon, referrals etc.) = 20 % Tokens

Reserve fund = 10 % Tokens

Development= 15% Token

24

25

Barry Moore

Barry Moore General Manager

and Director has had many

years business experience. After

completing a Bachelor in the

Sciences& joining the Australian

military has owned several high-

profile establishments around

WA. Completing a Post Grad

Diploma in Psychotherapy has

assisted in Barry's business

negotiation skills as well as a

wanting to give back to the

community.

General Manager and Director

26

Eddy Boehm

Eddy Boehm has enjoyed over

40 years experience in the

corporate commercial and

residential real estate,

investments. Eddy’s leadership

as CEO of Enebcorp helping

people throughout the world

maximize their real estate

portfolio has enriched many of

his clients. The Principal and

Director of Enebcorp Australia

and Malaysia Eddy joins our

team as an integral executive to

manage the compliancy in real

estate laws as well as acquisition

of the properties and rental

management.

Property Acquisition and Management

Australia

27

Natalja Jejomenko

Natalja Jejomenkoan expert

in all things property. Finished

Tallinn University of

Technology in 2011 year, got

Masters degree in Civil

Engineering, in 2015 year

attended Tallinn University of

Applyed science to study

Architecture. Living in Estonia

with a deep love of the

country and its beauty.

Interested in art, music,

nature is inspiration and

proficient in Estonian, Russian

and English languages. Natalja

will assist with acquisition of

property in Eastern Europe

Real Estate Expert

28

Rahul Bhadoriya

Rahul Bhadoriya is a

Managing Director at ESP

Softtech Pvt. Ltd. , an

Entrepreneur of Blockchian

Talent Solution. Previously,

Rahul worked as a Project

manager for a tech software

startup. He graduated with

Honors from ITM University

with a dual degree in

Business Administration and

Computer Science

Engineering.

Director

29

Adam J

Adam J is a Busniess Analyst

at ESP Softtech Pvt. Ltd. , For

the past 3 years Adam J has

been providing top-notch

analytical and research

management advice to small

and midsize companies.

Business Analyst

30

Ayushi Vaishnav

Ayushi Vaishnav is Tech

head at ESP Softtech Pvt.

Ltd. and working as Technial

Lead. She is responsible to

provide tech support for

Scarlett Enterprise. She has

graduated with Honors in

Computer Science and got

Master Degree in

Management from DAVV

University, India.

Technical Head

31

General

This document describes Scarlett’s current vision for providing opportunities to

participate in the real estate maker, which Scarlett plans to diligently pursue and

seeks to realize. As Scarlett’s vision depends upon many factors and is subject to

many risks, including, without limitation, advances in technology and changes in

applicable law, this Whitepaper is subject to the disclaimers contained here in,

and Scarlett reserves the right to change, modify, add, or remove portions of this

document at any time before, during, and after the sale of SE tokens.

Disclaimer of Liability

Scarlett does not make or purport to make, and hereby disclaims, any

representation, warranty, or guarantee of any type or nature what or ever

(including those that are implied) to any person or entity, including, without

limitation, any representation, warranty, or guarantee arising out of or relating to

the truth, accuracy, and precision of any information in this document and the

Scarlett ecosystem, or Scarlett Platform, or Scarlett token. To the maximum

extent permitted by applicable law, regulations, and rules, Scarlett will not be

liable for any indirect, special, incidental, consequential, or other losses of any

kind, in tort, contract, or otherwise (including, without limitation, loss of revenue,

income, or profits, and loss of use or data) arising out of or relating to any

acceptance of or reliance on this document or any part thereof by you. This

document does not obligate any party to enter into any contract or binding legal

commitment or to accept any form of payment for any purpose. Any agreement

with Scarlett for the sale and purchase of Scarlett tokens will be governed by the

terms of conditions of that agreement, which will prevail over this document.

32

Not a Securities Offering

The Scarlett tokens are designed as functional utility tokens and are not intended

to constitute securities in any jurisdiction. This document or any part of it does

not constitute a prospectus or offer document of any type or nature and is not

intended to constitute an offer of securities or a solicitation for investment in

securities in any jurisdiction. Scarlett intends for Scarlett token holders to use

those tokens to participate in the developing of the Scarlett ecosystem and

platform and receive the benefits of landlords in the residential real estate rental

market without incurring the substantial investment costs of acquiring residential

property. If the Scarlett ecosystem, Scarlett platform, and SE token are

successfully developed, whether a Scarlett token holder successfully receives any

returns as a landlord and the amount of those returns depends upon the

decisions of the Scarlett token holder, including, without limitation, in proposing,

obtaining information on, and voting on properties that Scarlett acquires, in

proposing, obtaining information on, and voting on potential renters, in

proposing, obtaining information on, and voting on rental contract terms and

conditions, individually deciding whether and how to select, bid on, and stake

tokens to obtain rents received from rental contracts for Scarlett residential real

properties, providing feedback on the Scarlett ecosystem, Scarlett platform,

rental properties, and deciding whether to participate in any of these activities at

all. Scarlett token holders do not have any ownership or equity interest in

Scarlett, are not entitled to the profits or losses or assets or liabilities of Scarlett,

are not creditors or lenders of Scarlett, cannot claim in bankruptcy as equity

interest holders or creditors of Scarlett, and are not entitled to any repayment

from Scarlett. Scarlett token holders are provided with the opportunity to use

their knowledge, time, and financial resources and improve the Scarlett

ecosystem and Scarlett platform and pursue returns with SE Tokens as desired

pursuant to their investment strategies.

33

Risks and Uncertainties

Prospective purchasers of Scarlett tokens should carefully consider and evaluate

all risks and uncertainties associated with Scarlett, the Scarlett ecosystem,

Scarlett platform, the SE token, the SE token generation event, and the terms and

conditions of any agreement with Scarlett for the sale and purchase of SE tokens

before purchasing and SE tokens. These risks and uncertainties may include,

without limitation, the following risks relating to the value of the SE tokens

because a market for SE tokens does not currently exist and because SE tokens do

not provide any rights Scarlett for profits, assets, bankruptcy claims, or

repayment; risk relating to residential real estate rental markets and competitive

conditions; risks relating to blockchain technology and software, including delays,

interruptions, errors, losses, advances, and changes; security risks to your access

and use of a digital wallet and blockchain applications; risk relating to platform

development and implementation of business strategies, including, reliance on its

personnel and third-party service providers; political or government risk, including

changes to applicable laws, regulations, and rules, and enforcement actions. If

any such risks and uncertainties arises, such events may materially and adversely

affect Scarlett, and you may lose all or part of the value of the SE Tokens.

Non-advisory

This document does not constitute any legal, tax, regulatory, financial,

accounting, or other advice, and is not intended to provide the sole basis for any

evaluation of Scarlett, SE tokens, the Scarlett ecosystem, or the Scarlett platform.

Before acquiring SE tokens, a prospective purchaser should consult legal,

investment, tax, accounting, and other advisors to determine the potential

benefits, burdens, and other consequences of such transaction, Scarlett, SE

tokens, the Scarlett ecosystem, and the Scarlett platform.