where your contents become tokens · that combines crowdsourcing journalism and social media...

WhitePaper

Where your contentsbecome tokens

v.2.2 - 24/9/2018

AbstractToday FidelityHouse is a Social Content Network that allows users to be updated on their own interests, publish contents earning on views and be part of a fun and innovative community.

The consolidated experience of the italian project, born with zero marketing budget, thanks to the unique performance together with important recognitions, become in a few years one of the leading websites in Italy with 750 million page views per year.

Our mission is to become a reference platform for authors and publishers of original and high quality contents, offering services aimed at their attribution, protection and monetization.

Taking advantage of the new technological paradigm it is possible to make content lifecycle management fairer and more transpa-rent, formalising and certifying the relationship between author and Publisher.

FidelityHouse is the first Publisher to choose this innovative appro-ach, that takes advantage of the blockchain technology, as the basis of the editorial project, making it at the same time accessible to independent authors and third-party publishers through the services offered by FidelityHouse Chain.

3

C H A P T E R 1

5..............Introduction6..............About us7..............Numbers in Italy9..............Mission10...........UGC model: issues and opportunities

C H A P T E R 2

12. .........Copyright in digital era13............The author-publisher relationship and the legal concept of copyright14...........Licensing in the digital era16............What lies ahead17............Different countries, different protections?19............Bumps in the road

C H A P T E R 3

20...........Digital Ad Spending21.............Total Media Ad Spending22.............Digital Media Ad Spending23.............Programmatic Trends25............Action Plan

C H A P T E R 4

27...........How FidelityHouse Chain works29...........Choice of services30..........Timestamping31............Plagiarism monitoring

C H A P T E R 5

32...........How FidelityHouse Community works34...........The author writes a content and submits it for approval36............Originality check37...........Manual moderation process39...........Content publication and linked interests41...........How to enjoy contents: registered users and visitors43..........Advertising space monetization

C H A P T E R 6

45...........FidelityHouse Chain and Coin46...........FidelityHouse Trilogy47..........Proof of Authorship48..........Proof of License49..........Proof of Revenue52..........Dynamic of value recognition53..........FidelityHouse Chain: features and benefits55.........Advantages of FidelityHouse Chain

C H A P T E R 7

56...........Business model57...........Value proposition59...........Strenghts

Table of contents

4

C H A P T E R 8

60...........Growth strategies and future developments61..............Community consolidation62.............Author loyalty63.............Growth of FidelityHouse Coin value64...........FidelityHouse App

C H A P T E R 9

66...........Token sale and distribution67...........Overview68...........Token distribution69...........Airdrop: what it is and operation details

C H A P T E R 1 0

70...........Partners

C H A P T E R 1 1

72...........Roadmap

C H A P T E R 1 2

74...........Team75...........Founders76...........Advisors79...........Marketing e Sales80..........Tech team e Finance81............Community team

C H A P T E R 1 3

82...........Terms and condition

16..............About us7..............Numbers in Italy9..............Mission10...........UGC model: issues and opportunities

Introduction

I N T R O D U C T I O N

6

About us

The registered user is welcomed by the Community which is the real engine of FidelityHouse, where it

can meet people with the same interests, follow the worthiest authors or contribute by posting interesting contents for other users. All original contents published are remunerated in relation to visits recei-ved, in FidelityHouse Coins, FidelityHouse cryptocurrency.

The highly social graphic design makes the user at ease and ensures a comfor-table user experience enhanced by the ability to customize the feed and to be, therefore, constantly updated only on what really interests.

Today, FidelityHouse is a content aggregation platform that combines crowdsourcing journalism and social media oriented information. It is a Social Content Network that changes the way people make “information”, making it more simple, multimedia, social and fair.

7


Numbers in Italy

2,8MILLION EUROSIN ADVERTISING

REVENUES

63MILLION

PAGE VIEWS PER MONTH

5MILLION FANS ON

FACEBOOK

400MILLION

IMPRESSIONS PER MONTH

750MILLION

PAGE VIEWS

20MILLION

UNIQUE VISITORS PER MONTH

10MILLION

VIDEOS VIEWED PER MONTH

G O A L S I N 2 0 1 7 I N I T A L Y

The success of FidelityHouse in Italy is told by many achievements: the project, born with zero marketing

budget and became soon one of the main websites in the italian panorama, reaching 750 million page views per year and get-ting important awards worldwide.

One example is the recent entry of Hori-zon Group (owner of FidelityHouse) in the FT1000, the Financial Times’ list of 1000 European companies with the highest compound annual growth rate in revenue, placing at 490th in Europe and 42nd in Italy.

8


M I L E S T O N E S

2011FidelityHouse project is born

2011Best Web Innovation Ika Award for FidelityHouse

2014New headquarters

2016Success Story by Facebook for Business

2017Enabling Google AdExchange

for programmatic adv

2018Financial Times 1000 Europe’s fastest growing Companies


9

Mission

FidelityHouse’s mission is twofold and integrated:

• to provide independent authors or Community members and digital publishers a large set of innovative services relating to the intellectual pro-perty allocation and protection;

• to become one of the main original and high quality content aggrega-tion platforms internationally, able to attract and retain authors and industry influencers, changing world’s media, making it more engaging, personali-zed and highly social.

FidelityHouse wants to put the author in the middle of a disclosure system that rewards original and quality contents, which allows anyone to get involved and pass on his knowledge to other members of the Community who have the same interests, to give a chance to the author to improve and achieve a certain topic expertise which gives it greater visibility and increased revenue opportunities.

Author, information, Community, interests, topic expertise: these are the keywords that define the heart of FidelityHouse,

a system that is supported by the cryp-tocurrency FidelityHouse Coin and the blockchain technology, that is the basis of the innovative services provided by the platform.

Sustainability of the business model and innovation are not two antithetical concepts: blockchain, file systems and di-stributed databases, decentralized appli-cations let us go beyond the limits of Web 2.0 and reinterpret services, engineering again the relationship between society and technology through a fundamentally different model of interaction between the parties.

By leveraging these technologies, Fideli-tyHouse wants to create a new paradigm of trust and transparency in the process of value creation, placing itself at the ser-vice of the user, with intellectual property protection and value certification servi-ces first and in the future also as a mar-ketplace of expertise with the objective to become the first user generated value platform of Web 3.0.


UGC model: issues and opportunities

“User generated content is the new king”Always basis of the platform business, FidelityHouse has studied the User Ge-nerated Content sector identifying oppor-tunities and problems, and offering at the same time solutions to give the right va-lue to the authors.

The relationship between “content cre-ators” and “platforms” is definitely the weak point of the entire ecosystem, whi-ch treats customers as a “product” and in fact deprives them of the paternity of their contents.

In FidelityHouse’s vision, authors must be owners of the contents they have cre-ated, that are and will become more and more the curriculum of the information society, in which competency and influen-ce are “liquid assets” not relegated to limi-ted professional categories.

Whether they are photos, articles, guides, tutorials or recipes, contents are therefore an investment for the author, a real ca-pital that guarantees, in addition to repu-tation and influence, an income over time and for this reason it must be certified and protected.

For platforms and publishers even a “not professional” author is strategic: it is the-refore necessary a new approach based on fairness and transparency to be able to attract and retain them.

Content is the king: as early as 1996 Bill Gates understood the immense power of contents for web development, de-fining them as the means by which we can expect “most gains on the internet”. Is it different today?

1 0


Content monetization

Lack of clarity on real earnings

Transparency of monetization via “Proof of revenue”

PROBLEM OUR SOLUTION

Revenue share with users

Unclear earnings identification mechanisms

Identification of each adv space real monetization


Contents published by authors

Platform property Owned by user and licensed to the platform


Payments to users

Arbitrary and with high minimum thresholds

Provided by smart contract and with user-configurable thresholds


1 1

13............The author-publisher relationship and the legal concept of copyright14...........Licensing in the digital era16............What lies ahead17............Different countries, different protections?19............Bumps in the road

Copyright in digital era

2

1 3

The author, being the sole copyright owner, is generally the only one entitled to reproduce the work, di-

sclose it to the public, recite or perform the such work, communicate it using techno-logy – online platforms included – transla-te it, etc. In other word, to exploit it in any way.

The contractual relationship between au-thor and publisher is the expression of the author’s will to either assign copyright ri-ghts or to license them for a period to the publisher, generally under payment of a monetary compensation.

In return for such payments, the publisher is granted the right to exploit the work and multiply it in various forms.

Copyright is free and “automatic” (me-aning it does not require any registra-tion or certification) starting from the date of creation of the relevant work. Thus, establishing a date of creation and obtaining proof of it may often be crucial.

Author retains control over the work, mea-ning that it cannot be used without permis-

sion from the date of creation to seventy years after the creator’s death (under Ita-lian, UK and US applicable laws), or in sta-tutory exceptions (for instance, the so-cal-led “fair use”). These exclusive rights are called economic or patrimonial rights.

Economic rights encompass the publica-tion, reproduction, communication and translation rights over the work.

The “other half” of the author’s rights are moral rights, which include the right to be acknowledged as author of the work, the right to its integrity (meaning that the au-thor can object to a prejudicial treatment of the work), and the right to disclosure, which determines how the work material is made available to the public.

It should be noted that digital content is subject to the same rights and restrictions applicable to printed materials: copyright protection is indeed as equally broad for online content as it is for non-digital con-tent. Blogs, website designs, e-books, vide-os, pictures and graphics are among the most common protectable digital works.

The author-publisher relationship and the legal concept of copyright

C O P Y R I G H T I N D I G I T A L E R A

Many publishers will agree that acknowledging the impor-tance of the authors and recognizing their rights is crucial to ensure a thriving business relationship.

1 4

However, authors and publishers in the digital era are increasingly re-sorting to control how their works

are used through the use Creative Com-mons (CC) standards.

CC licenses offer simple and standardized scenarios to copyright owners to allow others to make use of their work under certain different conditions. Such condi-tions include the automatic granting of permission to use the work for commer-cial or non-commercial purposes, to use the work to obtain derivative ones, etc. Currently the CC suite is in its fourth ver-sion, and they are applicable to most juri-sdiction without requiring ports into natio-nal applicable laws.

Most company websites, blogs and pla-tforms offering publishing services imple-

ment the CC BY NC SA license, meaning that the published content may be shared by others allowing them to remix it, twe-ak it, and build upon it for non-commer-cial purposes, as long as they credit the author(s) and license their new creations under the identical terms1.

Social media and content licensingMany of the major online publishing pla-tform – including social networks - make use of an automatic licensing system in their favour when a user uploads or publi-shes a content on such platforms (submit-ting it through the relevant user interface, by email, etc.).

Licensing in the digital era


Traditionally, copyright owners (either authors or publi-shers, in case such rights were licensed or assigned) mana-ge their rights on their own: in such case, the use by third parties will be regulated from time to time by the rightshol-ders. Often, they inform the general public of their exclusi-ve rights in the work by inserting a disclaimer.

1 According to a survey, around 70% of CC Licensed Works are granted for non-commercial use only, around 81% of them allow derivative works, and around 70% of them require share alike (copies or adapta-tions of the work must be released under the same or similar licence as the original). See Kim, The CC and Copyright Protection in the Digital Era: Uses of CC Licenses, in Journal of Computer-Mediated Communica-tion (2008), 187-209.

Commonly this is specified under the ter-ms and conditions: by submitting a con-tent (e.g. texts, images, videos), liking or leaving feedback, posting a comment, etc., the user grants the platform an irre-vocable, nonexclusive, perpetual, worldwi-de, royalty-free license to use the content.

The user (just like an author for a literary work) will also represent and warrant that he/she is duly empowered to grant such licence, and that the publishing of the con-tent will not violate, misappropriate, or infringe any copyright, or any other intel-lectual property right of third parties.

Facebook’s TOS (aptly named The Face-book Statement) indicate that the licence ends when the user deletes the relevant content, or deletes his/her account, unless such content has been shared with others, and they have not deleted it. The settings under the user’s account may also allow everyone to access and use that informa-tion. The word use in this case is rather ge-neric and broad, and includes the acts of running, copying, public performance or display, distribution, modification, transla-tion and the creation of derivative works.

Social media platforms also ensure to go exempt from liability (and the potential monetary claims), and reserve the right to remove content that violates the rights of

a copyright holder. Typically, the platform will issue the user a warning on his/her in-fringing activity.

The implementation of this mechanism of removal allows online platforms to be compliant with “safe harbour” provi-sions2 which exclude their liability in case:

• they do not have knowledge of the infringing activity, or do not exert any pre-emptive control over the publi-shing of the infringing content;

• they do not receive any direct financial benefit from the infringing activity;

• upon receipt of notice of the infringe-ment, they promptly remove the infrin-ging content.

Therefore, in a nutshell, all social media providers disclaim liability for the content made available on their platforms and for its use. Further, in case statutory provisions do not allow to fully exclude their respon-sibility, platform usually limits or excludes their liabilities to the maximum extent al-lowed by applicable laws through their TOS, also committing users to indemnify the platform for any and all claims.


1 5

2 For instance, the Digital Millennium Copyright Act in the US; Articles 12-15 of EU Directive 2000/31 (Directive on Electronic Commerce), implemented in Italy by Articles 14-17 of legislative decree no. 70/2003.

1 6

The most recent focus of the on-going debate in the EU is on the interest of the users, and comple-

ting the Digital Single Market.

The heated debate in the past months has centred on the Proposal for the EU Directive on copyright in the Digital Single Market, and in particular two of its Articles, namely Articles 11 and 13. The first would introduce a mandatory license for the pu-blishing of snippets (cropped articles that bear only the title and the first lines of a written article and including a link to the full text), to compensate the holder of the ri-ghts over the original content. The second one would require platforms to implement a preventive upload filter, to prevent the sharing of content embedding intellectual property rights of third parties.

Critics held that these provisions would entail burdensome restrictions on access to data and on the fundamental right of freedom of information.

The EU reform of copyright was nonethe-less approved by the European Parliament on the 12th of September 2018.

Scholars3 however are suggesting to look at copyright also from another perspecti-ve, pushing to take into consideration not only holder’s rights, but also what copyri-ght users’ rights are and should be within the context of the digital environment where new forms of creativity have surfa-ced (e.g. self-published e-books, YouTube videos, etc.)

What lies ahead


3 See Chapdelain, Copyright User Rights, Contracts and The Erosion of Property, Oxford Press, 2018.

It is no mystery that laws and regulations on copyright in several jurisdictions were designed well before the begin-ning of the digital era, and currently legislators all-across the world are seeking to bring the legal frameworks up to date with the ever-evolving technology.

1 7

While there is no proper “inter-national” copyright law ensu-ring protection worldwide, the

Berne Convention (originally signed in 1886), its principles, standards and rules are considered the framework for copyri-ght national laws. By virtue of the TRIPs Agreement, nearly all countries over the world are bound to comply with most of the Convention’s provisions. The Conven-tion sets however minimum standards for copyright protection. Thus, there may be and in fact there are several differences under the various national laws.

The “basic” protection under the Berne Convention of works lasts for 50 years after the author’s death, which in EU coun-tries was expanded to 70 years after the death of the last surviving author (in case of co-authorship).

In 1998, the United States equalled the ti-mespan of the EU copyright protection for works created after the 1st of Ja-nuary 1978. If the work is a work-for-hire or anonymous, the work is protected for 120 years after creation or 95 years after publication, whichever expires first.

Several jurisdictions offer many excep-tions to this duration, meaning that some work may not be protectable and fall un-

der the public domain (e.g. governmental works in the US) or may be subject to a special regime (e.g. Peter Pan perpetual copyright).

Moreover, many national laws set out ca-ses when a copyrighted work can be used without the holder’s authorisation (for in-stance, Japanese legislation provides a very detailed set of cases to define circu-mstances for both lawful and unauthori-zed use).

The most significant differences between the EU and US with respect to copyright revolve around the concept of “fair use”: unlike in the EU (where copyright excep-tions are acknowledged more rigorously) in the US the use of copyrighted work for several purposes may not represent in-fringement, but an allowed use of a third party’s copyright. Such purposes include criticism, comment, news reporting, te-aching, scholarship, research, satire. US Courts’ decisions have gradually widened the borders of this exception.

Another significant difference between sy-stems concerns the registration of copyri-ght.

Though registering the copyrighted work is not required to access protection, in the US4 (unlike Italy and the EU) the registra-

Different countries, different protections?


4 Under paragraph 107 of the Copyright Act

5 See Renckhoff, C-161/17. 6 See Nintendo v PCBox, C-355/12.

tion is required to allow the holder in case of infringement to be awarded of additio-nal damages, called statutory damages, which serve both compensatory and pu-nitive purposes.

Copyright is a living and constantly evol-ving matter: the digital progress is ma-king substantive law struggle to keep the pace with technology. However, the ru-ling of higher courts often remedies the shortcomings of statutory provisions, and has provided some guidance in dealing

with some intricate cases. For instance, the rulings of the European Court of Ju-stice have addressed several interesting issues, like the unauthorized reposting of protected content5, or the circumvention of protection systems implemented by copyright holders6.


1 8

1 9

Holding and managing intellectual pro-perty rights may also involve the han-dling of many types of legal disputes. Trying to break down the most common ones is not an easy task, but the following are worthy of interest and mention:

• controversies over the due compen-sation for authors in case of exploita-tion of their work, or over the proper acknowledgement of author’s moral rights;

• disputes over the authorized/unautho-rized use of the work, and the relevant means of diffusion/distribution (e.g. content portability, the online strea-ming of content outside the territorial boundaries of a license);

• the lawful/unlawful use of a third par-ty’s work to obtain a new work. For in-stance, it appears that mining data and text from users’ Instagram or Twitter posts to obtain a new, different work can be allowed7;

• the lawfulness/unlawfulness of pro-viding means that can infringe third parties’ rights: for instance, selling har-dware which - through software or hyperlinks - allow users to stream con-

tent from websites managed by third parties without the holders’ consent.

The copyright holder usually resorts to two kinds of legal actions:

• he/she seeks injunctive relief to swiftly obtain a preliminary decision to stop the infringing activity exploiting his/her exclusive rights;

• he/she files a lawsuit in a civil court to obtain the reimbursement of dama-ges suffered as a consequence of the copyright infringement.

Prosecution of acts of counterfeiting is in-stead prosecuted through the criminal sy-stem, and generally involves piracy.

Moreover, online hosts are required by law to offer right holders the so-called notice and takedown procedures to obtain the removal of infringing content (though no monetary restoration can be sought).

Bumps in the road


7 Certain EU Member States have already introduced this exception, including the UK, France and Germany.

21.............Total Media Ad Spending22.............Digital Media Ad Spending23.............Programmatic Trends25............Action Plan

Digital Ad Spending

3

2 1

D I G I T A L A D S P E N D I N G

The total Media Ad Spend hit in 2017 $500 billions, including digital (desktop, mobile and other inter-

net-connected devices) but even newspa-pers, Tv and radio.

According to the latest Global Adverti-sing Forecast by MAGNA1, the total media

ad spend is expected to have a steady growth in the next three years, reaching $600 billions by 2021.

This trend is positively confirmed by eMar-keter predicting a stronger growth for the industry, overtaking $700 billions by 2021.

Total Media Ad Spending

5.4%

$508.97

2015

Total media ad spending % change

7.0%

$544.41

2016

7.3%

$584.00

2017

7.7%

$628.97

2018

7.4%

$675.53

2019

5.5%

$712.94

2020

5.0%

$748.68

2021

Note: includes digital (desktop/laptop, mobile and other internet-connected devices), directories, magazi-nes, newspapers, out-of-home, radio and tv. Source: eMarketer, March 2017

Total Media Ad Spending Worldwide, 2015-2021Billions and % change

1 https://bit.ly/2KTfSku

2 2

Digital Media Ad Spending (desktop and laptop computers, mobile de-vices as smartphones, tablets and

other internet-connected devices, exclu-ding sms, mms e p2p messaging-based advertising) will growth globally by 40% by 2021, reaching 50% of total media ad spending – eMarketer predicts.

Focusing on key markets such as US, ac-cording to MAGNA Global, in 2018 Digital Advertising will grab 50% of all Ad Dollars reaching $97 billions, of which almost 60% will come from mobile advertising. And Mobile is the key driver of the digital ad-vertising growth primarily due to adverti-ser’s high interest in mobile ad format2.

Digital Media Ad Spending


Digital ad spending % of total media ad spending% change

20.1%

35.2%

$191.87

2016

$228.44

2017

$266.04

2018

$306.59

2019

$341.81

2020

$375.80

2021

Note: includes avertising that appears on desktop and laptop computers ad well as mobile phones, tablets and other internet-connected devices, and includes all the various formats of advertising on those platfor-ms; excluded SMS, MMS and P2P messaging-based advertising. Source: eMarketer, September 2017

19.1% 16.5% 15.2%11.5% 9.9%

39.1%42.2% 44.9% 47,3% 49.6%

Digital Ad Spending Worldwide, 2016-2021Billions, % change and % of total media ad spending

2 https://bit.ly/2rIjaiP

2 3

Mobile is also leading the Program-matic Advertising adoption. By 2019, nearly 80% of programma-

tic ad spend will go to mobile, rather than desktop ads – according to eMarketer.3

Zooming out to the entire Programmatic Ad Spend, according to eMarketer nearly

4/5 of US digital display will be bought via automated channels in 2018, and half of them will be through Private Marketplace and, more in general, Programmatic Di-rect Solutions4..

Programmatic Trends


Programmatic digital display ad spending

% of total digital display ad spending*% change

51.0%

65.0%

$17.50

2015

$25.48

2016

$32.56

2017

$39.10

2018

$45.72

2019

Note: digital display ads transacted via an API, including everything from publisher-erected APIs to more standardized RTB technology; includes native ads and ads on social networks like Facebook and Twitter; includes advertising that appears on desktop/laptos computers, mobile phones, tablets and other inter-net-connected devices, *includes banners, rich media, sponsorship, video and other. Source: eMarketer, October 2017

45.6%

27.8%20.1% 16.9%

73.0%78.0%

81.5% 83.6%

US Programmatic Digital Display Ad Spending, 2015-2019Billions, % change and % of total digital display ad spending

3 https://bit.ly/2IhHq1n4 https://bit.ly/2GLgLZW

2 4

Digging into Mobile Advertising transacted programmatic, the latest PubMatic Quar-terly Mobile Index5 showed how in 2017 In-App Adv drove the growth from a volume standpoint while mobile web eCPMs incre-ased by 50 YoY.


US Programmatic Digital Display Ad Spending,by Transaction Method, 2018Billions

Programmatic direct*$27.00

RTB $19.55

Openexchange***

$10.56

Real-time bidding (RTB) vs.programmatic direct*

Private marketplace**$8.99

RTB

Note: includes native ads and ands on social networks like Facebook and Twitter; includes advertising that appears on desktop/laptop computres, mobile phones, tablets and other internet-connected devi-ces; *includes all programmatic ads that are transacted as blocks of inventory using a non-auction-based approach via an API; **includes ads transacted through an invitation-only RTB aution where one publisher ora a selected group of publisher invite a select number of buyers to bid on its inventory; *** includes ads transacted through a public RTB auction in which any buyer or seller can partecipate, also know ad open auction or open marketplace. Source: eMarketer, March 2018

5 https://bit.ly/2jSiGlP

2 5

Thanks to this approach, users made FidelityHouses’ mobile properties their main touch point and, con-

sequently, mobile has become the main monetization platform for both direct and programmatic advertising sales.

Action planD I G I T A L A D S P E N D I N G

Horizon Group has developed the brand FidelityHouse with a mobile first approach, delivering engaging user experien-ces across both mobile web and app.

Desktop

Mobile

Tablet

63% 75% 83%10%

9%6%27% 16% 11%

2016 2017 2018

Visits by device type

2 6

On the international market, FidelityHouse will leverage more and more on Program-matic Advertising, focusing on following action-plan:

• Continue to leverage on the cutting-e-dge programmatic technologies avai-lable on the market, with a key role of DoubleClick’s full-stack and key players such as PubMatic, Rubicon, AppNexus and SpotX;

• Adopt Header Bidding technologies for both mobile web and in-app envi-ronments, focusing on open source so-lution such as Prebid.js

• Prioritize the adoption of server-to-ser-ver Header Bidding solution not to im-pact on mobile user experience

FidelityHouse action plan perfectly ma-tches with the key growth directions of the Programmatic Advertising Spend: focus on mobile monetization, both direct and programmatic, and push on header bid-ding technologies.

These trends are confirmed by several players among the programmatic chain. According to latest PubMatic’s Quarterly Mobile Index6, “Mobile web header bidding approached maturity at the end of 2017 as monetized impression volume grew over 200% YOY” 6 .

The Mobile header bidding growth will in-crease in parallel with the in-app growth as outlined by PubMatic for 2017 vs 2016.


2016 20162017 2017

Monetized Mobile Impression Volume

Share of Monetized Mobile Impressions, by Platform

+26%YOY CHANGE

37%

65%

APP

MOBILEWEB

63%35%

6 https://bit.ly/2IdraCJ

29...........Choice of services30..........Timestamping31............Plagiarism monitoring

How FidelityHouse Chain works

4

2 8

The author signs on FidelityHouse Chain and chooses one or more services, paying in FidelityHouse Coins (FIH)

Contents are uploaded on the platform, certificated with timestamp on blockchain and granted or not to third par-

ties according to the selected distribution license

Periodically, at a frequency that depends on the subscrip-tion, using external “best of breed” cloud services (con-

tractualized by FHISA) contents will be monitored on web, notifying the user any misuse

H O W F I D E L I T Y H O U S E C H A I N W O R K S

1

2

3

2 9

Once registered on platform, the author must select one or more services from those provided by

FidelityHouse Chain:

• timestamp on blockchain,• plagiarism monitoring,• legal services for the protection from

plagiarism,• digital curriculum.

The author can purchase a single opera-tion (such as the certification of a single content through a timestamp) or choose

the most affordable packages/sub-scriptions, depending on its needs.

The payment of the services offered by the platform may only be made in Fide-lityHouse Coins: the author should have, therefore, in his wallet the necessary amount of FIH.

Choice of services

H O W F I D E L I T Y H O U S E C H A I N W O R K S

2 9

3 0

This is an IT process, legally recogni-zed, through which you can protect your own creativity, a real proof of

copyright applicable to any intellectual work, which can then be published to web or shared on Social Networks safely.

Taking advantage of the blockchain tech-nology characteristics, a network distribu-ted on a global scale, inviolable and with no preset deadlines, the timestamping service consists basically of two mecha-nisms:

• timestamping, which allows you to prove the existence of a content after a certain date (which corresponds to the filing date);

• hashing, which through the application of a specific algorithm allows to obtain the so-called “hash value”, that is the fingerprint of a digital file, an alphanu-meric string that uniquely identifies it.

In the absence of antecedents and con-trasting proofs, the certification generated through a timestamp on blockchain is an authorship proof, legally valid and reco-gnized worldwide, of the work that can be

used by the author as proof against pos-sible cases of plagiarism, copyright infrin-gement, counterfeiting, misuse and illicit diffusion of the content.

Content upload and distribu-tion license choiceAfter choosing the timestamp service on blockchain, the author uploads its content on the platform and declares its author-ship.

In case the author wishes to make it avai-lable to third parties, it can also choose the recipients and the “Creative Commons” distribution license that best fits its needs.

In other cases, the author might want to prohibit the use of its work without per-mission by selecting the “all rights reser-ved” license, or to keep the content only for itself and use it, for example, in its “digi-tal curriculum” without granting it to third parties (possible choice later).

TimestampingH O W F I D E L I T Y H O U S E C H A I N W O R K S

A timestamp on blockchain is a service that allows you to prove the authorship of a content and to certify the date of existence.

3 0

3 1

About plagiarism softwareA plagiarism software is an automated sy-stem that allows to detect duplicate con-tents, in whole or in part, that infringe the intellectual property rights of another au-thor. The concept of authenticity and ori-ginality has evolved over time and today the plagiarism softwares have developed the ability to detect even the intention of plagiarism.

These tools, indeed, allow not only to de-tect the excessive similarity arising from a simple “copy and paste”, but also from an excessive paraphrases, a high percenta-ge of citations or their improper use, and by the presence of suspicious textual ma-tches.

How is it used in FidelityHou-se Chain?The plagiarism monitoring of contents offered by FidelityHouse Chain takes ad-vantage of some of the best softwares on

the market, aggregating the results throu-gh a proprietary algorithm in order to en-sure the most reliable and accurate one.

The author may decide to monitor plagia-rism on texts and images loaded on the platform daily/weekly/monthly, depen-ding on its subscription plan, paying a fee in FidelityHouse Coins (FIH).

According to a predefined similarity thre-shold, the system will notify immediately (on platform and via email) any plagia-rism, whether intentional or accidental, indicating the necessary details for veri-fication (url, percentage of similarity, hi-ghlighting the parts subject to plagiarism).

Following the detection of copyright in-fringement of the content certified by ti-mestamp on blockchain, the author may request the service of legal protection of-fered by the platform itself.

Plagiarism monitoringH O W F I D E L I T Y H O U S E C H A I N W O R K S

3 1

34...........The author writes a content and submits it for approval36............Originality check37...........Manual moderation process39...........Content publication and linked interests41...........How to enjoy contents: registered users and visitors43..........Advertising space monetization

How FidelityHouse Community works

5

3 3

H O W F I D E L I T Y H O U S E C O M M U N I T Y W O R K S

AUTHORThe author writes a content and submits it for approval

MODERATORSTwo moderators, authoritative about that topic, evaluate the content independently and determine if it can be published or should be revised by the author

Monetization is shared among author, moderators and platform, according to predefined percentages defined in the user license agreement associated with the content on the platform

FIDELITYHOUSE WALLET The FidelityHouse Coins earned by the author and moderators are credited to the user’s wallet and can later be spent to buy services within the FidelityHouse Chain or converted through Exchange

ADVThe content is monetized through advertisements

CONTENTPublished content, linked to an interest, is displayed to registered users, through a custom feed, and visitors from search engines, social networks and other sources

AUTHOR MODERATORS FIDELITYHOUSE

FIDELITYHOUSE CHAINThe originality of the content is verified through the FidelityHouse Chain plagiarism service and recorded on blockchain. The author grants the

license to FidelityHouse through the revenue sharing model.

The author writes a content and submits it for approval


The author is the real protagonist of the whole FidelityHou-se model. According to its skills and interests, it decides to get involved by posting useful and interesting contents for other users, getting a monetization in FidelityHouse Coins in relation to the visits received.

3 4

Each author can “get noticed” in the community and create a circle of people (followers) interested in its

contents:

• posting interesting and high quality ar-ticles

• gaining expertise in certain topics.

Authors also have the chance to get Fide-lityHouse Coins:

• moderating contents updated by other authors

• collaborating in managing interests• improving its topic expertise and in-

creasing the percentage of monetized (from 40 to 50% of the total monetized)

3 5

Topic expertiseThe author is “rated” in relation to its expertise on a particular topic or interest (eg. Smartphone, Pop music, vegetarian recipes, etc) through the “topic expertise” parameter that is defined daily by an al-gorithm that considers:

• Direct evaluation of the contents by the topic-related moderators and in-ternal content curators;

• Indirect evaluation of community members through interactions on con-tents (reactions, comments and sha-ring on social networks);

• Readers average time on the contents• Frequency of publication of contents• Quality and consistency in moderationThe topic expertise is therefore the meri-tocratic key in order to grow within the community and to have greater visibili-ty than other authors as well as a higher content monetization (with percentages on monetized ranging from 40 to 50% depending on the topic expertise acqui-red).

Content publicationAfter registration, the user who decides to become a FidelityHouse author needs to access to the internal platform for pu-blishing new contents. This is a full-fea-tured editor but at the same time simple and intuitive.

The monetization system is designed to incentivize authors to create well structu-red and hefty documents, allowing then to increase the residence time of the readers and ad space, increasing the amount of FidelityHouse Coins generated.


POP MUSIC

Topic Expertise 70/100 44% of total monetization

VEGETARIAN COOKING

Topic Expertise 50/100 42% of total monetization SMARTPHONE

Topic Expertise 90/100 50% of total monetization

3 6

Why is it used in FidelityHouse?Taking advantage of FidelityHouse Chain’s plagiarism protection service, the platform rejects upstream of the process articles not unique. This assures the originality of the texts of those contents that are subject to the moderation process less than a certain tolerance within which it is null and void the risk of charges of plagiarism, intentional or accidental.

Originality checkH O W F I D E L I T Y H O U S E C O M M U N I T Y W O R K S

Author writes andsubmits a content

Content passes to manual moderation

Content is sent back to the author for corrections

A plagiarism software verifies it

65%unique text

95%unique text

3 7

Who the moderators are and their roleThe moderator is the one who determi-nes the suitability of a content for pu-blication. All authors can play the role of content moderator, with the exception of its own contents: for each content Fideli-tyHouse selects, automatically, a group of potential moderators in relation to their topic expertise, ensuring high quality stan-dards of the moderation process.

Moderators participate in monetized con-tent distribution in percentage of 5% each.

Approval processAfter passing the check for plagiarism, the content is subject to the moderation process. The system identifies the poten-tial moderators more competent on the subject in relation to their topic expertise and time availability and submits the con-tent to at least 2 reviews to determine its suitability for immediate publication or after a revision by the author.

Moderators who take charge of the con-

tent evaluation must answer to simple short questions (yes/no/partly) or with subjective variable scales (from 1 to 5 or 1 to 10). The two evaluations are com-pared by an algorithm that matches, with a certain default tolerance, the answers given by two moderators and reaches 4 possible outcomes:

• Congruent and positive evaluations - Content suitable for immediate publi-cation;

• Congruent and negative evaluations - Content rejected

• Congruent and positive evaluations with review request to the author;

• Inconsistent evaluations - The system requires a third evaluation and leads back to one of the three previous ca-ses.

Content requiring a revision by the author must be forwarded again to the modera-tion process: after checking for plagiari-sm, a moderator verifies that the required changes have been made and then pro-ceeds with the publication of the content. Conversely, it rejects the article.

Manual moderation process


3 8


MODERATOR 1Approves content

MODERATOR 3A third moderator approves content

MODERATOR 2Doesn’t approve content

Case 3





Content is published

Content is published

Content is rejected

Case 1

Case 2

3 9

After passing the check for plagia-rism and the moderation process, with possible revision of texts by

the author, the content is published and available to the Community.

Registered users also have the ability to receive automatically updates on topics that interest them.

About interestsThe “interest” is at the cornerstone of the whole FidelityHouse platform: it is a the-matic hub that brings together contents and updates from social networks such as Facebook, Twitter, Instagram, etc. As a re-sult each content can be linked to one or more interests.

This link is made automatically just befo-re the publication, using an algorithm that analyzes the text, ensuring a constant and dynamic update of interests in all areas.

How interests workEvery registered user can follow an unli-mited number of interests and receive re-al-time updates on its personal feed with a notification. Users and authors can also suggest the creation of new interests and contribute to their definition and de-epening through the inclusion of detailed information that are published only after an automated verification process, getting back a reward in FidelityHouse Coins.

Interests can be followed after a manual search through the toolbar or selected in your feed from those related to the con-tents of the interest already followed or between those proposed by an algori-thm that evaluates the level of user inte-raction (reading time, likes, comments, ar-ticles written) in certain topics.

Content publication and linked interests


3 9

4 0

Example 1: an author submits an arti-cle about Angelina Jolie. This content is checked for plagiarism, evaluated by mo-derators and finally published: in this last phase it is linked to the interest “Angelina Jolie”. Therefore all registered users who follow this interest will be notified and their feeds will be updated.

Example 2: an author submits an article about George Clooney and Amal Alamud-din. This content is checked for plagiari-sm, evaluated by moderators and finally published: in this last phase it is linked to the interests “George Clooney” and “Amal Alamuddin”. Therefore all registered users who follow one or both interests will be notified and their feeds will be updated.


SOCIAL NETWORKS

ANGELINA JOLIE

FIDELITYHOUSE

COMMUNITY

4 1

There will be a different way to enjoy the contents published by the authors on FidelityHouse de-

pending on whether the user is registe-red, and therefore part of the Communi-ty, or not. For registered users, indeed, is guaranteed an engaging, dynamic and personalized user experience, with a con-stantly updated feed according to their own interests.

Registered user - User feed

For registered users, as mentioned befo-re, there is a way to enjoy contents that guarantees a pleasant user experience highly social, through a custom feed that is based on an algorithm that takes into account:

• Interests followed• Author’s topic expertise• Popularity of a content and number of

comments• Readers average time on contents• Authors followed• Date and time of publication

It is also possible to choose the display mode of published contents, and in par-ticular:

• according to the daily trend• in chronological order of publication• filtering the feed by “interest”

Community, user interactions and affinity

Registered users, as well as being able to follow interests and have a custom feed, have the chance to get to know other users/authors with the same interests and choose which one they want to follow, be-coming followers.

The user will be assisted in this choice by an algorithm that calculates the degree of affinity between two authors or between user and author and advise who to follow based on:

• Common interests• Topic expertise• Author’s level of interaction on

contents

When a user decides to follow an author, it chooses to give it greater relevance and priority in its feed over other authors, other factors being equal.

How to enjoy contents: re-gistered users and visitors


Smartphones

SmartphonesLondon

London

4 2

Unregistered user - Visitor from various sourcesAll published contents are also made avai-lable to visitors coming from search en-gines, social networks and other sources on vertical sites, divided into macro are-as/categories, such as: “wellness”, “food”, “engines”, “news”,” hi-tech “,” travel “,” tele-vision”.


4 3

The content monetization is re-lated primarily to the header bidding prebid technology

(http://prebid.org/) to get the best mone-tization possible.

There is also the possibility of signing agreements with other adv partners and direct advertisers.

Header Bidding: what it is and how it worksThe header bidding is a technology that allows publishers to maximize monetiza-tion in a revolutionary way: whenever a new impression is available, several au-ctions are launched simultaneously and in real time with different sources of de-mand, as DSP and network.

Unlike the traditional “waterfall” models in ad space sale in Programmatic in which, reported the availability of an advertising inventory, it is given priority to only one exchange at a time, proceeding with the others in case of unsuccessful transaction, thanks to the header bidding publisher checks each supplier’s offers at auction and, in the absence of priority constraints, delivers the campaign to the highest bid-der.

This way the Publisher must not accept the CPM offered in first call, but it may take into account other players that although

placed at the base of the “waterfall”, would perhaps have offered more.

The main advantages of this monetization technology are:

• improving the performance of an in-ventory

• rising price as a result of competition• transparency of the actual value of the

inventory

Other monetization methodsTo support the monetization automated in programmatic (using header bidding te-chnology), agreements with adv partners are signed to ensure an increase in com-petition and therefore in adv space mone-tization.

Direct advertisersAt a later stage, advertisers can buy visibili-ty directly within the authors’ contents and custom feeds: these financial transactions may be carried out also in FidelityHouse Coin therefore obtaining discounts or ad-vantageous conditions.

Advertising space monetization


4 4

Monetization Tracking and revenue transparencyFidelityHouse Chain marks every impres-sion of an advertising space, determining the actual monetization and the distribu-tion of revenues among authors, modera-tors and platform.

Applied a layer of encryption algorithms designed to protect privacy, all informa-

tion is stored on a distributed and unchan-geable database based on blockchain in order to make it accessible and verifiable.

When a minimum level of payout is achie-ved, revenues are credited in FidelityHou-se Coins in the authors and moderators’ wallets and they can later be spent to buy services within the FidelityHouse Chain or converted through Exchange.

Example of tracking monetization of every single impression distributed among all parties


ARTICLE ID: 256254

Transaction ID

cfertv6778g

345td9o9ioj

nyu89yfhjk

h76reriyuik

e56tyghjl89

Device CPM

2$

6$

4$

2$

8$

Author

50% = 1$

50% = 1$

50% = 3$

50% = 2$

50% = 4$

Moderator 2Moderator 1

5% = 0,1$ 5% = 0,1$

5% = 0,1$ 5% = 0,1$

5% x 2 = 0,3$ 5% x 2 = 0,3$

5% x 2 = 0,2$ 5% x 2 = 0,2$

5% x 2 = 0,4$ 5% x 2 = 0,4$

FidelityHouse

40% = 0,8$

40% = 0,8$

40% = 2,4$

40% = 1,6$

40% = 3,2$

46...........FidelityHouse Trilogy47..........Proof of Authorship48..........Proof of License49..........Proof of Revenue52..........Dynamic of value recognition53..........FidelityHouse Chain: features and benefits55.........Advantages of FidelityHouse Chain

FidelityHouse Chain and Coin

6

4 6

It’s based on 3 “cornerstones” enabled by the blockchain technology and ba-sed on our holistic vision of the impor-

tance of original contents.

The proof of authorship, using crypto-graphic and timestamping technologies on blockchain, will track forever the exi-stence and originality of a content at a given moment, together with the declara-tion of paternity made by the author. The use of public, decentralized and verifiable by everyone blockchains, such as Bitcoin, makes a central authority unnecessary.

The proof of license will track on blockchain the license granted by the au-thor for the specific content to beneficia-ries or community.

The proof of revenue will certify the crea-tion and allocation of the value generated by contents: an Open Source algorithm will store revenues in a scalable, decentra-lized and distributed file system that each stakeholder can consult in a fully transpa-rent way.

FidelityHouse TrilogyF I D E L I T Y H O U S E C H A I N E C O I N

FidelityHouse Chain is a platform that offers value-added services to authors and publishers for attribution, pro-tection and monetization of original contents.

4 7

The blockchain technology has the ability to completely reconfigure the intellectual property mana-

gement: the existence of a content in its original form can be guaranteed by ma-thematics and no more by a central au-thority. Legal acceptance of records on blockchain is spreading in many jurisdi-ctions worldwide.

The Proof of Authorship is a technologi-cal ‘suite’ aimed at generating an unchan-geable track in the lifetime of a content. Thanks to hashing capabilities, secure timestamping and digital signing, gua-ranteed by blockchain technology, you can save the “proof” of the existence of a specific digital content in its original form and the author that generated it.

Cryptographic tracking of this information is saved by Proof of Authorship as a tran-

saction on a permissionless blockchain (Bitcoin at the moment, extended in the future to other blockchains for redundan-cy and resilience).

By integrating “best of breed” plagiari-sm services the presence of the content on web will also be verified and saved si-milarly on blockchain: during the first uplo-ad and the checks provided to monitor the spread of the content or be notified of any unauthorized use.

The Proof of Authorship will enable also to associate the contents with self decla-rations (prepared by our lawyers) on the originality and the source of the content. The self certification, digitally signed by the author, will be tracked on blockchain to ensure legally the applicability of licen-se agreements.

Proof of AuthorshipF I D E L I T Y H O U S E C H A I N E C O I N

4 7

4 8

The Proof Of License suite will enable the author:

• to associate to each own content “cer-tified” by Proof of Authorship the licen-se type among those prepared by our legal team specialized in intellectual property (eg creative common, assi-gnment of rights, revenue sharing)

• to define the details (e.g. duration, limi-tations, payout)

• to define the beneficiaries (publishers and companies)

This information will be tracked on per-missionless blockchains and will enable at any time the check and the rights associa-ted with contents.

In the future we plan to build a smart con-tract ecosystem that will operate as a pla-tform for Digital Rights Managements to run royalty and licensing transactions in real time.

Proof of License is strategic to enable the third “innovation” brought by FidelityHou-se Chain: the Proof of Revenue. A true paradigm shift between authors and pu-blishers in sharing revenues generated by contents.

Proof of LicenseF I D E L I T Y H O U S E C H A I N E C O I N

4 8

4 9

Proof of RevenueF I D E L I T Y H O U S E C H A I N E C O I N

The Proof of Revenue algorithm aims to store in a distribu-ted database based on blockchain all information to certify the generation and assignment of specific revenues.

AUTHORMODERATORS

FIDELITYHOUSE

+

4 9

Timestamp, IP Address, Device, etc.

AuthorID, ContentID, Moderato-r1ID, Moderator2ID, etc,

MonetizationID1, Value; MonetizationID2, Value; etc.

USERADS

HIGH QUALITY CONTENT

EXCHANGE

APIProof of Revenue AlgorithmProtecting Privacy

FidelityHouse ChainBlockchain

Distribuited Database

A first software component will extract from partner publishers’ web server logs the information about the specific session. The URL accessed will identify the content and will unequivocally determine the creators of value (eg. author and mode-rators).

For each adv partner (eg. Google, Pubmatic, Rubi-con) and remuneration model (CPM, CPC, CPL, etc) an open source al-gorithm will be developed to find or determine the

value of the specific monetization, in or-der to enable its assignment to the cre-ators of value (author, moderators, other subjects).

These algorithms will be developed and constantly updated to get in real time the highest level of accuracy of the infor-mation, in compliance with the policy and conditions of the specific partner.

If the partner provides only aggregate and/or final (not real time) information, FidelityHouse will share transparently lo-gics and develop the algorithm to distri-bute the monetization stream according to the best available metrics providing an estimated value of monetization (eCPM) and, when available, a real value (CPM).

In any case, it is guaranteed transparency in the relationship between platform and user: this logic will be applied to all forms of monetization in the future, such as na-tive or paid interactions between commu-nity users and external stakeholders.

The Proof of Revenue algori-thm is engineered in order to:

• provide maximum tran-sparency on the distri-bution of revenues by ensuring public access to information to all stakehol-ders

• protect your privacy, indiscrimina-tely not exposing sensitive information, such as IP addresses or data that vio-late contractual agreements with spe-cific partners

These objectives will be pursued by ap-plying to specific fields asymmetric key cryptography, which will allow access to information only to the assigned subject.

An open algorithm will store the “Proof of Revenue” on a scalable, decentralized, di-stributed and uneditable file system. Every stakeholder will be able to consult its “Proof of Revenue” in a transparent way.

F I D E L I T Y H O U S E C H A I N E C O I N

5 0

ADS

The following is an example of moneti-zation process through programmatic advertising with header bidding technolo-gies, used to maximize the revenues of all the ad space available.

What does “value” mean? The definition of value is very wide. It is understood primarily as “applied compe-tence”: in the creation of quality conten-ts, in moderation, increasing the value of contents (for example through SEO opti-mization, translation, etc), interacting with other community members or with custo-mers.

The other definition of value is linked to the revenues that “applied competence” generates through advertising or future competency-based services that will be distributed in FidelityHouse Coins, Fideli-tyHouse cryptocurrency.

In the case of reports in “fiat money” with customers, the platform will buy in real time from the Exchange the amount of FidelityHouse Coins corresponding to the value to distribute (calculated by the proof of revenue algorithm ) and will distribute them in authors’ wallets.

Customers and users will be incentivized with discounts or exclusive services to di-rectly make operations in FidelityHouse Coins.

What does “assignment” mean?FidelityHouse “user centric” vision, which puts the user at the center of the ecosy-

stem, also aspires to ensure the full re-cognition of intellectual property and of the value that the user has produced through its contents, moderation and the execution of other skills. A real contract between user and platform, certified by FidelityHouse Chain, clear and pursued with the best available technology.

What does “certification” mean?FidelityHouse as a publisher wants to obtain user’s full confidence through tran-sparency and demonstrate with open al-gorithms and innovative technology the truthfulness of the data produced, espe-cially in the attribution and protection of the intellectual property.

Who is the “Stakeholder”?Every person involved in FidelityHouse: authors, moderators, other creators of va-lue, advertisers, partners and potential cu-stomers who want to objectively evaluate the services offered by the platform.


5 1

5 2

With more daily jobs distributed within 24 hours, the platform as an editor will access to a Fideli-

tyHouse Chain via API to count the “certi-ficated” revenue accrued and not yet paid to each author and moderator. The pay-ments total in FidelityHouse Coins will be determined to be made to all authors and moderators included in the specific job.

FidelityHouse or the publisher partner will buy in real time on multiple Exchange (in single or multiple transactions) the num-ber of corresponding FidelityHouse Coins (paying USD/EUR and getting back the cryptocurrency on a “technical” wallet).

When the FidelityHouse Coins or the publi-sher partner will be credited, FidelityHouse will make payments to the wallets spe-cified by authors and moderators in their profile.

The fees of the blockchain transaction payment will be debited to author/mo-derator docking them from the total due. In order to determine freely the inciden-ce of fees, the author/moderator will have the possibility to configure the de-sired payout threshold, starting from a minimum preset threshold that protects against the excessive incidence of tran-saction fees.

Dynamic of value recognition


5 2

5 3

FidelityHouse Chain: features and benefits


FidelityHouse Chain makes FidelityHouse vision possible and achievable, through an open and “alive” technology platform, which relies on the most effective and sufficiently mature Web 3.0 technological developments available.

Here is an example of progressive technological transition from centralized to decentrali-zed application stacks.

This transition is largely enabled by new open source software platforms constant-ly evolving.

FidelityHouse wants to release open source software components in the Fi-delityHouse Chain developed for a triple purpose:

• to ensure “trustability” of processes and algorithms, giving the opportuni-ty to all interested parties to analyse them critically;

• to spread FidelityHouse philosophy across the market, providing an inno-vative platform to anyone who wants to use it;

• to become a benchmark, offering the as-a-service experience developed by extending the use of FidelityHouse Coin and FidelityHouse Chain also to third parties

Applications Applications Applications

Platform (e.g. AWS) Platform (e.g. AWS) Platform (e.g. Ethereum)

Processing (e.g. EC2) Processing (e.g. EC2) Processing (e.g. Eth VM)

File System (e.g. S3)

File System (e.g. S3)

File System (e.g. IPFS)

Database(e.g. MySQL)

DatabaseBigchainDB

DatabaseBigchainDB

Centralized Decentralized

Full in Web 3.0 philo-sophy, it is expected for FidelityHouse Chain an implementation road-map that takes advanta-ge of any available tech-

nology to achieve the mission.

The first step is to store contents, intel-lectual property certification, licenses and data related to the “Proof of Revenue” on a distributed database based on blockchain. This will ensure:

• Massive scalability (large number of distributed nodes, DB size > 1 PB)

• Performance level in line with the ne-eds (> 1 million Scriptures/s, low laten-cy)

• Decentralization• Immutability (once stored data cannot

be changed or deleted)• Data validation based on consensus

between nodes (Consensus in about 1 second with Byzantine Fault Toleran-ce)

Cryptographic and timestamping proofs related to Proof of Authorship and Proof of License will be also saved on permis-sionless blockchain transactions (Bitcoin at the beginning)

In the roadmap are planned later stages of transition towards a completely de-centralized stack:

• Transfer of the “executive” business lo-gic of smart contract payments with access to the information stored on Fi-delityHouse Chain through Oracles

• Computing tasks execution on distri-buted blockchain-based systems

All the information stored on FidelityHou-se Chain will be easily accessible via API, allowing for example:

• to check the intellectual property of a content and related licenses

• to make cross-checks on the truthful-ness of stored data (e.g. knowing the details of a session you can check for its existence on FidelityHouse Chain)

• to create an Analytics integrated ser-vice into the product to view real time contents, authors and moderators mo-netization statistics

• to make FidelityHouse Chain available to FidelityHouse or third-party apps

• advertisers to evaluate the KPIs of their campaign.


5 4

API

5 4

5 5

Advantages of FidelityHouse Chain


• Unequivocal attribution of content and value chain• Transparency “by design” is defined in a contract with the user and implemented te-

chnically• Trustability of the entire chain guaranteed by the union of “open code” and blockchain• Opening the platform to third parties who want to use its innovation and functionalities• Monetization traceability with a logic of “certification”• Immutability of transactions – for the purpose of establishing a relationship based on

trust between platform, authors, moderators and advertisers• Progressive decentralization of all functions• Adoption of a mature ecosystem (Ethereum)• Progressive automation of the entire process• Encryption is used to prevent privacy or policy partners violations

Advantages for authors

• Attribution of intellectual property and originality of contents

• Choice of provided licenses • Opportunity to access to intellectual

property protection services with de-tection of unauthorized uses

• Full attribution of contents/value and revenues generated

• Creation of published and certifica-ted content “showcase” (for exam-ple, to add on your linkedin profile)

• Full visibility of each micro tran-saction

• In case of monetization access to a real business model with the intro-duction of real “money” into the pla-tform, a real “business backed coin”

Advantages for customers

• Full “pluggable” integration of Fi-delityHouse Chain platform with its backends

• Guaranteed access to original and properly licensed contents

• Access to intellectual property pro-tection services with detection of unauthorized uses (for example, when a license has been acquired)

• Ability to enable Revenue Sharing innovative services to acquire and retain quality authors

• “Trustable” analytics features

57...........Value proposition59...........Strenghts

Business model

7

5 7

The possibility to be updated only on its own interests guarantees, than-ks to the implicit caring and the ine-

vitable emotional thrust, the return of the user on the platform, where it can satisfy not only its “need” for information, but also meet people with the same interests.

This is a user-generated content model, which gives value to contents and authors through a meritocratic revenue distribu-tion, based on real visits and monetization of the content, with maximum transpa-rency of the process guaranteed by the blockchain technology.

Every registered user can become an au-thor, creating interesting contents which other users of the Community and visitors from other traffic sources can enjoy. Each author can get greater visibility and stand

out from the others by reaching a certain topic expertise: quality contents are the only real weapon to take over this system.

Authors, but also small and medium blog-gers who create a profile on FidelityHouse, can increase their popularity by showing itself to the Community, continuously growing, and creating an audience of “fol-lowers” totally on target with their own in-terests and which will be the primary basis of their earnings.

Content monetization above average is guaranteed thanks to the knowledge of the dynamics of monetization, partner-ships with the main leaders of the adv market and programmatic technology through header bidding that will put in competition, in real time, dozens of SSP platforms to get the best monetization

Value propositionB U S I N E S S M O D E L

At the beginning, FidelityHouse was born as an innovative, dynamic and “user centric” editorial platform: the empha-sis is given to the author, that creates quality contents on its own interests getting, in Revenue sharing license mo-dels, a reward in FidelityHouse Coins, and the user that can take advantage of a custom information system.

possible for each individual ad impression. The total monetization of a content is divi-ded as follows:

• from 40 to 50% to the author, based on its topic expertise;

• 5% to each moderator• the remaining portion to FidelityHouse

Economic transactions within the platform are performed exclusively in FidelityHou-se Coins: for this reason, FidelityHouse provides remuneration to authors and moderators in FidelityHouse Coins, pur-chasing them in real time by Exchange.

Upon reaching a minimum payout thre-shold, revenues are credited to authors and moderators’ wallets and can later be spent to buy services within the Fi-delityHouse Chain or converted through Exchange.

In order to diversify the sources of mo-netization at the base of the business mo-del and increase the value of FidelityHou-se Coin cryptocurrency, there are multiple and open to evolution business models.

Within the platform many services, pur-chased both with FidelityHouse Coins, through monthly subscription plans and a one-time fee, will be available, such as:

• intellectual property certification and allocation services

• plagiarism protection services with cloud search and notification of unau-thorized uses

• “take down” notification services and legal support

B U S I N E S S M O D E L

5 8

5 9

StrenghtsB U S I N E S S M O D E L

QUALITY AUTHORSCapability to attract authors with high topic expertise through strategies and in-vestments in marketing and acquisition, and consequent customer loyalty with a revenue sharing system that ensures hi-gher earnings than market average

TOPIC EXPERTISEAdvanced algorithms to define the to-pic expertise that certifies the author’s skills and determines the percentage on the content monetization

USER CENTRIC“Transparency by design” and “user centric” product philosophy implemen-ted with the best available technologies and using open source algorithms

QUALITY CONTENTAdvanced anti-plagiarism technology implementation and quick moderation process run by authors with high topic expertise.

HEADER BIDDINGMaximizing monetization through the use of header bidding advanced tech-nologies that allow adv optimization

TRANSPARENCYTransparency in the monetization of each space and adv revenues genera-ted by a meritocratic distribution of re-venues. All certified via our blockchain technologies.

BUSINESS STRATEGYSustainable business model tested in the “real world”, with existing customers and predi-ctable revenue streams.

ADVANCED TECHNOLOGYAdvanced learning/recommendation system technologies which brings new readers suitable for the relevant au-thors andsuggesting them contents ba-sed on their real interests

CONTENT AUTHORSHIPThe ownership of contents on the pla-tform will be certified by a timestamp and a dedicated license

61..............Community consolidation62.............Author loyalty63.............Growth of FidelityHouse Coin value64...........FidelityHouse App

Growth strategies and future developments

8

Acquisition campaigns will be lau-nched in order to acquire authors who already have an high reputa-

tion on the web with expertise in a certain subject areas and can write interesting and high quality contents for the Commu-nity, with the aim of attracting new users (potentially interested in the author or that already follow it on other social networks) and to ensure their return to the platform.

Following the definition of the authors with high topic expertise, some features that allow users to interact with the authors fol-lowed will be implemented, exponentially improving the level of user engagement not only through constant publication of high-quality contents but also thanks to the Author-Reader relationship which is expressed, for example, through the an-swer to questions and doubts of the user.

Community consolidation

G R O W T H S T R A T E G I E S A N D F U T U R E D E V E L O P M E N T S

FidelityHouse has planned strategies that will allow the consolidation of the Community, which is the basis of the user generated content project, as well as the loyalty of the authors with high topic expertise, and the growth of FidelityHouse Coin value, with the progressive extension of the FidelityHouse Chain platform use to independent au-thors and third-party publishers.

6 1

The development of a translation platform is planned in order to translate contents already publi-

shed in other languages: the best articles will be translated by new authors, creating a new form of income for the author of the original contents who will participate in the distribution of monetized.

A database of the original media lo-aded will be realized on the platform as well: photos and videos owned by the au-thor can be used by other authors. In this case the author of the original media will

participate in the distribution of monetized resulting from adv on the specific content.

Finally, the development of a content marketplace for the creation of conten-ts for third parties is planned. As a matter of fact, customers will be able to require customized contents on various topics, which will be written by authors with high topic expertise. In this case, the author will receive a payment in FidelityHouse Coins previously established and independently from views received.

Author loyaltyG R O W T H S T R A T E G I E S A N D F U T U R E D E V E L O P M E N T S

Authors with high topic expertise will be involved, passively and actively, in FidelityHouse’s future developments in or-der to increase their revenue opportunities.

6 2

Advertisers can buy direct visibility within authors’ contents and users’ custom feeds. They will be offered

a fully automated platform that allows them to plan campaigns on:

• Contents related to an interest or keywords

• Contents of a section or category • Contents created by topic expertise

authors• Registered users’ personal feed

1. in relation to their interests2. in relation to socio-demographic

data

The capabilities of semantic advertising based on keywords completely controlled by advertisers combined with the unique characteristics of FidelityHouse Chain re-present a significant growth factor for the platform and FidelityHouse Coin.

FidelityHouse Chain, FidelityHouse Coin and semantic advertising platform will be made available as “turn key” SDK for third-party publishers to transfer to the market the same benefits of automation and transparency for the advertiser.

Even independent authors (not associa-ted with any publisher partner) can take advantage of the services offered by Fi-delityHouse Chain by paying subscription plans or fees in FidelityHouse Coins.

In order to attract advertisers looking for new “in target” (for combinations of keywords) for premium campaigns, mul-tiple editors that share the use of the pla-tform will be aggregated in a collaborati-ve network.

The characteristics of transparency “by design” guaranteed by FidelityHouse Chain will ensure full visibility to publishers, advertisers and customers ensuring KPI certified by blockchain technology.

Growth of FidelityHouse Coin value


Customers will be offered the ability to buy visibility, throu-gh adv space, sponsored articles or interests, paying in FidelityHouse Coins.

6 3

INTEREST

AUTHOR

Topic Expertise 90/100about smartphones

In the last few years, the number of mo-bile users has exceeded globally the desktop audience: this results in website

optimizations for mobile devices and the development of related apps that allow to enjoy contents and services provided in a faster, more intuitive and simpler way.

In order to significantly improve the user experience on the go, then, FidelityHouse has planned the development of a native app for iOs and Android, with exclusive features for the benefit of the user (both active and passive).

Benefits for FidelityHouseThe launch of the proprietary app will con-tribute to the affirmation of the brand on the market, with a consequent increa-se in direct and indirect value, and it will increase the visibility thanks to the po-pularity of the more authoritative app sto-res. Moreover, the presence of an app on mobile devices will be an implicitly brand advertising, with an effect that is linked to the Signal Detection Theory.

Through the app, you can also:

• improve user engagement, which gua-rantees the constant return of the regi-stered user;

• let users interact with the platform on-the-go, ensuring continuity of content production and moderation flow;

• provide fast navigation even in case of low speed internet;

• increase the conversion rate.

Advantages for authors/mo-deratorsThanks to the app, authors will be able to interact with the platform FidelityHouse and submit their own contents at any time of the day, wherever they are. They will also be able to start writing an article, save a draft and finish it later from the same device or another one.

They will also have a space reserved for notes, where they can write down ideas, suggestions, links, and useful references to create their own content. They will also be able to attach photos and videos taken with their smartphones.

FidelityHouse AppG R O W T H S T R A T E G I E S A N D F U T U R E D E V E L O P M E N T S

6 4

Similarly, it will also be possible to mode-rate articles on-the-go, allowing the pu-blication of the authors’ contents promptly.

Advantages for the Commu-nityFidelityHouse wants to revolutionize not only world’s media but also how to enjoy news and contents in general, offering a constant updating system customized to user’s interests.

Through a sophisticated system of push and in-app notifications, the app will

guarantee to the user timeliness of upda-tes, giving the chance to read first the re-commended contents or save them as “unread” for later use.

The app will integrate features based on geolocation, leveraging the gps hardwa-re devices, to improve the relevance of the flow of information and other merely so-cial features.

It will be possible, for example, to meet users with a high level of affinity that are within a certain distance from your loca-tion. Finally, the app will be also equipped with an instant messaging service.


6 5

67...........Overview68...........Token distribution69...........Airdrop: what it is and operation details

Token sale and distribution

9

6 7

OverviewT O K E N S A L E

Token Name

Private sale, presa-le & ICO Event

Total FIH token amount

Exchange Rate During ICO Event

Emission rate

Token Symbol

Private sale

Presale

Available in Presale/ ICO (hard cap)

Conversion rate

FidelityHouse Coin

Extra bonus Lock Time Lock EndingLocked

1.000.000.000

New tokens will not ever be created. All the unsold tokens will be destroyed.

Weeks 4-629 jan - 11 feb +10% NoNo

FIH

1 sept - 30 oct

31 oct - 7 jan

+32%

+27%

Till MVP release

Till MVP release

25/11/2019

25/11/2019

Yes

Yes

500.000.000

Weeks 1-38 jan - 28 jan +15% NoNo

1 FIH = 0,0002 ETH

Weeks 7-912 feb - 28 feb +5% NoNo

All bonus tokens will not be locked

6 8

Token distribution

T O K E N S A L E

15%FOUNDERS Tokens locked for 12 month

6,4%REFERRAL SALES Tokens locked for 9 month

6%ADVISORSTokens locked for 9 month

13,6%RESERVE FUNDS

9%TEAM Tokens locked for 9 month

50%PRIVATE, PRESALE E ICO Tokens private sale and presale locked for 9 months

Overview

Symbol: FIHInitial value: 1 FIH = 0,0002 ETHICO: 31 october, at 2.00 pm - 28 Fe-bruary, at 2.00 pm

Type: ERC20Soft Cap: 50.000.000 FIHHard Cap: 500.000.000 FIHToken Supply Cap: 1.000.000.000 FIH

In order to encourage all participants in FidelityHouse Coins presale and/or ICO to hold purchased tokens until the release of the product MVP, FidelityHouse provides an Airdrop operation.

All participants in FidelityHouse Coin presale and/or ICO will receive an airdrop, based on the number of tokens purchased during the sale and unmoved for 3, 6 and 9 months after the actual ICO closing date (February 28th 2019). The structure of the Airdrop operation will be as follows:

IMPORTANT: ONLY the tokens purchased during private sale, presale and ICO will be coun-ted for the Airdrop. If tokens are moved you will lose the right to receive the airdrop for the amount moved. For example, if you purchase 100,000 FIH and move 40,000 FIH before the vesting period, you will receive the airdrop only on the amount unmoved (60,000 FIH).

NOTE: FidelityHouse reserves the right to use, even after the product release, Airdrop ope-rations to encourage holding FIH earned by users during the first phase of the platform or the incentive acquisition of new users.

Airdrop: what it is and operation details


An Airdrop is the moment when a blockchain project decides to assign tokens/coins for free to specific holders.

6 9

Airdrop

Presale 1,50% 2,50% 6,00%

Private sale 1,50% 2,50% 6,00%

ICO 1,50% 2,50% 6,00%

3 months 6 months 9 months

ICO Partners

10

7 1

I C O P A R T N E R S

GroupM is the world’s largest media in-vestment group with more than $108bn billings. With over 30.000 employees in 400 offices worldwide GroupM offers un-rivaled data, media and technology ser-vices.

Publicis Media creates value for clients through global media agency brands and scaled capabilities across invest-ment, strategy, insights and analytics, data and technology, performance mar-keting and content. It drives new levels of scale and client value.

PubMatic is a publisher-focused sell-side platform for an open digital media fu-ture. It empowers publishers and media buyers with powerful solutions across channel, screen and format to meet their unique needs. Headquartered in Redwo-od City, California, PubMatic operates 13 offices and six data centers worldwide.

Detsu is a global media group speciali-zed in Media, Digital and creative Com-munications services. Detsu makes the best use of today’s media mix to bring to life the right communication strategy and deliver the best results for clients.

Founded in 2007, Rubicon created a new model for the advertising industry. Its automated advertising platform is used by the world’s leading publishers and applications to transact with top brands around the globe enabling them to reach more than 1 billion consumers.

Eidoo is a blockchain-to-human interface that brings the crypto world to the end user in a different way, safer and simpler.

Roadmap

11

7 3

R O A D M A P

Q3 - Q4 2018 Private sale & presale

Q1 2019 ICO - MVP FidelityHouse Chain

“proof of license”

Q4 2019 Ios and Android native App

Q2 2020 Direct adv sale in FidelityHouse Coin,

Sponsored content, special projects

Q4 2020 B2B content marketplace

in FidelityHouse Coin

Q4 2018 MVP FidelityHouse Chain “proof of authorship”

Q2 2019 MVP FidelityHouse Chain “proof of revenue”. MVP FidelityHouse.com community in English. Strategic growth in author acquisition

Q3 2020 FidelityHouse Chain feature Extension, Analytics extended features for users and advertisers

Q1 2020Multilingual support and content translation service. Creation of a Network for premium publisher partners

75...........Founders76...........Advisors79...........Marketing e Sales80..........Tech team e Finance81............Community team

Team

12

7 5

T E A M

Francesco FasanaroCEO & Founder

Graduated from the University of Trieste in Communica-tion Sciences, Francesco Fasanaro has been a successful digital entrepreneur for over 11 years with almost 3 million euros invoiced in 2017. In September 2007 he founded Horizon Group srl, then FidelityHouse.

Alessandro BeniniCo-founder - CMO - Project Manager Monetization Expert

Business partner of Horizon Group srl since 2008, Ales-sandro Benini is co-founder of FidelityHouse, Project Ma-nager, Marketing Manager and Programmatic Specialist. He is among the leading experts in digital advertising in Italy with 20 years of experience.

Alessandro BellatoCo-founder - CTO - Cloud Architecture - Cyber Security - Blockchain Design & Business Model

Specialized in designing security services in Telco and Enterprise, in 2014 he created a leading Italian Security Operation Center with more than 2000 customers handled. Active in blockchain from 2010. In 2013, he founded Nethive, vertical Sistem Integrator.

Founders

7 6

T E A M

Vladimir NikitinAdvisorVladimir is a world-class professional and legal consultant with more than ten years’ experience in the legal, finance retail and IT industries. Vladimir is renowned as a cryptocurrency expert and ICO advisor. For example he is a Top-5 worldwide ICObench certified expert.

Simon CockingAdvisorSenior Editor at Irish Tech News, Editor in Chief at CryptoCoin-News, also freelances for Sunday Business Post, Irish Times, Southern Star, IBM, G+D, and others. He is a top ranked member of the People of Blockchain (currently ranked at #1 / 18,000). He is also a business mentor and advisor working with 70+ succes-sful ICOs to date.

Nikolay ShkilevAdvisorNikolay has proved to be a crypto enthusiast and ICO mentor. He is rated as one of the Top 5 individuals demonstrating know-ledge and understanding of blockchain technology. Nikolay has 20 years of experience in large-scale transaction projects. He received several awards and titles in the IT business. For exam-ple, he received the Self-Made Russia award, an award as Tech guru as well as the Super TOP award.

Advisors

7 7

T E A M

Alvise SaccomaniFinance advisorA successful leader in finance with over 11+ years of experience, specializing in Quant Trading, Asset and Risk Management Graduate of the renowned University of Bologna, MSc in Finan-ce (Università of Pisa) and later Harvard Business School (Stra-tegy and Leadership), Alvise is currently the Head of Trading at Banor - a leading private investment firm with more than 8 billion asset under influence.

Francesco Nazari FusettiAdvisorSerial digital entrepreneur. CEO and co-founder of CharityStars (3 million euros collected from VC) he created an ICO reaching Hard Cap with 14,333 Eth collected for AidCoin which he foun-ded. Previously founder of ScuolaZoo, the largest Italian student community (70 employees, 15 million dollars of annual turnover). NetWorker, a tireless traveler and crypto investor from 2013.

Giacomo ArcaroAdvisorGiacomo Arcaro is one of the most experienced European Growth Hacker. He’s Professor at Collège Des Ingénieurs, TAG Innovation School, founder of Black Marketing Guru and Con-findustria Speaker. He exited for 1M€ with CercaClienti.it in 2015 and now he became one of the most Influent European ICO Advisor with over 140,000 crypto-followers. He works in a XII° century Italian Church managing a team of 30 Growth Hackers from all over Europe.

7 8

T E A M

Giovanni CasagrandeAdvisorGiovanni is Blockchain enthusiast who is passionate about Blockchain Growth Hacking. 20-year experience in fields of marketing and business strategy. Giovanni is very active in the Blockchain space. He is CO-Founder of Black Marketing Guru, a digital marketing and Growth Hacking startup based in Rimi-ni, Italy. He’s also ICO Advisor and Strategic Advisor in a lot of Crypto / Blockchain project.

Sebastiano CappaAdvisorComputer engineer graduated in Bologna and specialized in managerial economics at the Université Panthéon-Assas in Pa-ris. Sebastiano Cappa, with over 10 years of experience in Di-gital, is now Managing Director of the Italian branch of Ligatus and Board Member of IAB Italy and IAB Europe.

Marco ValentiAdvisorAmong the leading experts in digital advertising with over fi-fteen years of experience in web programming. Valenti is Ceo & Founder of Moving Up, digital company leader in web and digital out of home. He is also an active member of the Scientific Committee IAB in Worktable DOOH.

7 9

T E A M

Marketing

Sales

Filippo Marcassoli

Marketing Consultant

Michele Carbonara

Business developer

Riccardo Benelle


Vittorio Ferrari

Business developer

Luca Del Torchio


Giuseppe Bronzino

Sales Director

8 0

T E A M

Finance

Tech team

Giuseppe Chimenti

CFO

Giacomo RoccoProduct Developer

Stefano GiomoSoftware Architect

Machine Learning Leader

Filippo FerraziniProduct Developer

8 1

T E A M

Community team

Floriana Calabrese

Content Curator

Maria CianciarusoContent Curator

Katia Pivato

Content Curator

Mirko Giocondo

Content Curator

Ivana Currao

Content Curator

Monica Garavello

Content Curator

Fabrizio Ferrara

Content Curator

Marcella Chimenti

Content Curator

Giovanna Barone

Content Curator

Terms and conditions

13

PREMISESFidelity House International SA (the Com-pany) is a Swiss commercial entity with the scope of the development and sale of programs, applications, tokens and IT platforms related to Intellectual Properties Certification services, through the e-com-merce sector and Blockchain.

The Company is promoting and develo-ping a project (FHI Project) connected to the Fidelity House Coins (FIH Tokens) in order to develop and finance its commer-cial activity, by an Initial Coins Offering (FHI ICO). The FHI Project will be develo-ped through several operational phases.

The Whitepaper and the Road Map con-nected to FHI ICO are published on the website: www.fidelityhouse.com.

The subjects who want to participate to FHI ICO (the Participants) have to know all information and details contained in the Whitepaper and have to be aware that these data could be changed (also sub-stantially) during the development of the Company activity.

For any information connected to the FHI Project, the Participants have to refer to the Whitepaper, to the Road Map and to the contents of the said documents (and their eventual changes).

GENERAL PROVISIONSa) The development and execution of the FHI Project is solely and exclusively com-petence of the Company. The Company shall be entirely free to develop and exe-cute the FHI Project, in particular (and

among other measures) by engaging any subcontractors necessary to perform the entire or partial development and execu-tion of the FHI Project.

b) The first phase of the FHI Project will be released within the month of October 2018.

In this First Phase of FHI Project

• the Participants:a) register themselves in the reserved area of the website www.fidelityhouse.com the service;b) choose a subscription plan (for example, Bronze, Silver, Gold) paying the corresponding monthly subscrip-tion in FIH Token;c) upload their original contents (tex-ts and images) indicating the websites authorized to use these contents and the type of use license among those prepared by our experts in copyright / intellectual property.

• The ownership of the original contents will be certified with timestamping on a blockchain.

• The contents will be searched on the Internet daily / weekly / monthly (de-pending on the subscription plan) through external “best of breed” cloud services (contracted by the Company) and an alert indicating the use of the contents / images on sites not previou-sly authorized or in violation of the user license will be sent to the Participants.

• A dynamic and personalized “User Experience” (according to the interests of the users and promoting the con-nection with users) is guaranteed to the Participants, as registered users.

T E R M S A N D C O N D I T I O N S

8 38 3

In the following phases, the Company will introduce:

• revenue certification services related to revenue sharing use licenses;

• decentralized management of user li-censes which, by the use of smart con-tract technology, will allow the creation, certification and operation of the said licenses;

• legal support services for actions against unauthorized use and recogni-tion of fair value / fair payment;

• services aimed to publishers for the prevention of copyright infringement.

c) Smart contract technology is still in an early development stage and its ap-plication has an experimental nature. It therefore carries significant operational, technological, financial, regulatory and re-putational risks. The Participants are fully aware of such risks and accept them as part of their participation to the FIH Tokens sale and FHI Project.

d) It is responsibility of each Participant to seek legal advice in his/her/its jurisdi-ction in order to identify any legal restri-ctions connected to the purchase of FIH Tokens. The Participants understand and fully agree that certain jurisdictions restri-ct (or may restrict in future) their residents or citizens from participation in any token sales, the use of cryptocurrencies, or use of any cryptocurrency exchanges for va-rious reasons. The Company does not bear any liability for any possible current or future FIH Tokens use impediment due to the aforementioned (or any other pos-sible) restriction.

e) The purchase of FIH Tokens is not meant

to generate any profit, interest, gain, divi-dend nor even to maintain the substance of the Participants’ contribution. In particu-lar, in the First Phase, FIH Tokens purchase is only intended to allow the Company to develop the FHI Project and to allow the Participants to obtain a service.

f) The FIH Token is not a security and the Participants will not become shareholders of the Company nor does it give to the Participants any right associated to the shareholding or the management of any company, including Fidelity House Inter-national SA or any of its affiliated compa-nies.

g) The Company has no debt towards the Participants with respect to FIH Tokens and will have no obligation to buy back any FIH Tokens purchased by the Partici-pant or to refund them in any way.

It also not ensure to the Participants any advantage or discount in relation to, or in exchange of, the FIH Tokens.

h) The Participants are the sole respon-sible for the research of legal, business, tax, regulatory, accounting and financial advice in the involved jurisdictions at the moment of FIH Tokens purchase. The Par-ticipants should not construe the contents of this documents as legal, business, tax, accounting, investment or other advice.

i) FIH Tokens sale is not a collective invest-ment scheme or a sale of derivatives and it is not done under the supervision of any authority (as Swiss regulatory authority FINMA). FHI Project does not represent a prospectus for the issuance of bonds, se-curities or other investment instruments.


8 48 4

RISKS a) The purchase and any other acquisition of FIH Tokens contains significant risks, in-cluding but not limited to the volatility of cryptocurrency prices and markets in ge-neral, risks of systemic failure, risks of code failure, bugs, hardware failure, loss of data, theft, lost usernames, passwords or priva-te keys, incorrectly executed transactions and/or hacks which can lead to, inter alia, the complete loss of the FIH Tokens.

In particular, the inherent risks associated with the Blockchain technology and cryp-tocurrencies, include, but are not limited to, those listed hereinafter:

• risks associated with (intellectual) pro-perty rights;

• risks associated with the Blockchain;• regulatory risks;• risks associated with abandonment /

lack of success;• risks associated with other applica-

tions;• risks associated with a loss of private

key;• risks associated with your wallet;• risks associated with theft/hacks;• risks associated with Ethereum / cryp-

tocurrencies / protocols mining at-tacks;

• risks associated with a lack of consen-sus;

• risks associated with depreciation;• risks associated with forking;• risks associated with the Company’s

liquidity.b) The Participants’ contribution will only be used for financing the operations of the Company.

The Participants’ contribution shall ra-ther be made for the sole purpose of the achievement of the FHI Project and so it can not be considered as an investment or speculation.

By purchasing FIH Tokens, the Participants shall not expect to get anything else than FIH Tokens in return out of the contribu-tion given.

KYC & AML REGULATIONSFIH Tokens are not investment tokens.

They are utility tokens that Participants can use in relation to the FHI Project only.

They are not cryptocurrencies and may not be used as such, in any way. They are also not, and shall not be used in any way as, equity, assets, bonds, securities, deriva-tives or any other financial instruments.

In the First Phase of FHI Project, FIH Tokens can be used only in order to obtain a ser-vice. Therefore, there is no obligation to submit AML (under Swiss LRD). In fact, the FIH Tokens serve mainly to provide access to the use of the Blockchain (with different functionalities: copyright protection, etc.) as above indicated.

Not only if necessary, but in any case, the Company requests to any Participant to apply, on a voluntary basis, the KYC / AML procedures, cooperating for the identifica-tion process according to the provisions for the prevention of money laundering and for the KYC checks.

The Company is entitled to use subcon-tractors to fulfill the KYC obligations and the Participants agree to fully cooperate


8 58 5

with any sub-contractor for this purpo-se. The Participants in particular (without limitation) will have to answer fully and truthfully to any question or information request in relation to anti- money laun-dering requirements, by the Company or any sub-contractor.

The Company will not be responsible for any false or misleading information that the Participants communicate to the Com-pany or to its subcontractor(s). The Parti-cipants shall fully indemnify the Company and its directors in the event of any claim, loss or damage (including reputational ones) in relation to a breach of applicable anti-money laundering regulations.

TAXATIONThe Participants are the sole responsible of the determination of the tax implica-tions connected to:

• his/her/its contribution for the deve-lopment of the FHI Project,

• the transfer of the Price to the Com-pany,

• the purchase, acceptance, ownership or holding of FIH Tokens,

• the potential appreciation or depre-ciation in the value of FIH Tokens over time (if any)

• the allocation of FHI and/or• any other action or transaction rela-

ted to the FHI Project.

By purchasing, holding, or using FIH Tokens, the Participants agree the Com-pany and / or any third party (including, but not only, developers, auditors, con-

tractors or founders) are liable for any tax connected to the purchase, ownership or use of FIH Tokens or any other action or transaction related to the FHI Project.

The Participants are the sole responsible for the compliance with all applicable tax laws, including, but not limited to, the re-porting and payment of income tax or si-milar, arising in the involved jurisdiction in connection with the actions above (tran-sfer, purchase, holding, appreciation, de-preciation, etc. related to FIH Tokens).

WARRANTYThere is no warranty whatsoever on FIH Tokens, the website above and/or the suc-cess of the FHI Project. The FIH Tokens are purchased under the sole risk of the Parti-cipants on an “as is” and “under develop-ment” basis and without, to the extent per-mitted by law, any warranties of any kind.

The Participants also accept that there is no warranty about the un-interruption and / or error-free of the FHI Project conside-ring the following exemplifying reasons:

• the Company’s concept is still in an early development stage

• there are inherent risks that the Blockchain could contain weaknesses, vulnerabilities, or bugs causing, inter alia, the complete loss of FIH Tokens.

If the total value of FIH Tokens indicated in the Whitepaper (the version of which can be updated) as necessary for the imple-mentation of the FHI Project (the CAP) is not reached within the ICO closing date, the Participants will have the right to have


8 68 6

returned the amount paid to the Com-pany.

If the CAP above is reached, the Partici-pants will lose any right of restitution and will only claim the right to conversion the amount paid to the Company into FIH Tokens.

If the CAP is reached, Tokens purchased can be locked for a time period as indica-ted in the Whitepaper or as decided by the Company on the basis of the FHI Project development.

LIMITATION OF LIABILITYThe Participants assume all responsibili-ties and risks in respect to the purchase of FIH Tokens, their use and their holding. The Participants hereby expressly agree that, to the maximum extent permitted by the applicable law, the Company does not ac-cept any liability for any damage or loss, including loss of business, revenue, or pro-fits, or loss of or damage to data, equip-ment, or software (direct, indirect, punitive, actual, consequential, incidental, special, exemplary, or otherwise) resulting from any use of, or inability to use the websi-te, FIH Tokens or the material, information, software, facilities, services, or contents on the website, as well as from the pur-chasing of FIH Tokens (regardless of the reasons connected to the claims and even if the Company had been advised of the possibility of such loss or damage).

FINAL PROVISIONSBy participating to the FIH Tokens sale, the Participants agree that the personal data will be processed by the Company pur-suant to the Privacy Policy available.

The FHI Project is governed and con-strued in accordance with the substantive laws of Switzerland (to the exclusion of the provisions of the conflict of laws and any international conventions applicable).


8 78 7

FidelityHouse International SA Via Guido Calgari 2

6900 Lugano, Svizzera

where your contents become tokens · that combines crowdsourcing journalism and social media...

Documents