Q&A — 2: Primalbase ICO

1. What is the extent of liability for token holders? For example:

• If a renter commits a crime while on Primalbase property, what legal liability do token holders have?

The legal liability arising in the framework of the relationship between the landlord, resident and Primalbase is provided by the legislation in force in the territory where the Primalbase office is located. Therefore, if the holder of the token or the lessee commits an offense in the Primalbase territory, he will be liable in accordance with applicable law.

• If a property must have repairs in excess of funds on hand, will token holders be required to pay an assessment fee to perform the required work?

The Primalbase concept implies renting office space to companies, project teams, startups, branch offices, etc. This part of the project is based on a classic real estate relationship and will cover the company’s operating expenses for property management. Proceeds from this part allow us to maintain Primalbase offices in good condition from day to day, from month to month. It is unlikely that there may be a situation where something completely fails and we need to carry out a radical reconstruction. In addition, Primalbase property will be insured, which will provide protection against most of the risks. In this sense, we must bear in mind that this is a classic real estate relationship in which the property insurance is a must. The token can be regarded as the key that gives access to the property. This would not be an attractive investment if it meant subsequent fees from our users.

• Are the properties ensured for loss and what details are available concerning payment for those losses?

Any property of Primalbase is subject to insurance, like any other real estate. Compensation for losses will be in accordance with the agreement between the management company (Primalbase) and the insurance company.

• If a person using the space were to become injured on the property, what liability would the token holder have?

All cases will be properly investigated to find out the causes of the injury, to assess the severity of the injury and to calculate the amount of compensation. Again, in this sense, this is a classic real estate relationship, which is subject to insurance. There is a basic insurance package. Individual cases will be treated separately.

• If an argument between Primalbase and a user of the space were to result in a law suit against Primalbase, what liability would fall to the token holder?

Any disagreement between Primalbase and the resident that reaches legal action will be treated in accordance with the law in force in the territory of the country where the Primalbase office is located. Any liability of the token holder, as well as the one of Primalbase, is a subject of this law. The relationship with our community members are very important to us, and therefore, we will do our best to resolve any disagreement that may arise without taking it to court.

2. Who legally owns the physical building/land; the token holders, the management company, third party?

The property is transferred to the management company (Primalbase) in accordance with the terms of the lease agreement. Primalbase does not act as the owner of the space, but rather as a managing entity that can dispose of the property and sublet it to residents. On the basis of classic economic relationship, it will provide the residents with an access to infrastructure.

3. Who vets the people wanting to use the space to ensure they are appropriate for the space?

Primalbase does not impose any restrictions on the choice of residents, but we reserve the right to suspend or block access to the office space if the owner of the token violates the rules for using the workspace. In the event that access to the office space is blocked, the token holder can still rent it to someone else or sell it.

4. Are token holders responsible for finding and securing leasers?

Indeed, the responsibility for finding tenants rests solely with the owners of the tokens. However, on our part, we will try to help to match those who would like to rent a token and those who would like to have it rented. This can be done through a matching pool, e.g.

We would like to emphasize that we do not want to limit token holders and impose any restrictions as to who can rent the token, from which professional area this person is. We don’t want to limit our pool of residents only to tech community. The diversity of the professional fields is what we believe will inspire collaborative projects and creation of new partnerships.

We have the intention and the resources to create a sort of tech hub, however, practice will show how we will move forward on the way to achieve our goal. We focus on building relationships with the community, we have a vision of this, how to do it, but practice is what will guide us in this process, so we do not want to impose any restrictions.

5. Does the management company have employees local in each building to manage the property?

Of course, in each office room, there will be employees who will keep an orderly house and help residents to solve any issues that arise. Office space will be available around the clock. Since we focus on tech projects, and these projects need unlimited access to the workspace, which means that if our residents want to work at night, they should be able to access the office at night. This is a requirement of the time — everything work-related is getting more flexible, and thus, one should be able to work in the office whenever it is convenient and whenever a business task occurs.

6. As the project expands to new countries, how will the local laws affect each of the above questions?

Local legislation can certainly have some influence on how our project will develop, but we do not foresee that this influence will turn out to be negative. We have never heard of any place where real estate relationship would be illegal or banned, so we do not see any reasons why our project could be considered undesirable in the territory of any country. We are a real estate project for tech community that provides access to office spaces — nothing more, nothing less.

7. Will these specific items be addressed in a legally binding document prior to execution of the ICO?

We do not see the need for creating complex rules and conditions, we are for flexibility. Observing existing projects in real estate, we noticed that this model works well enough. As the project develops and if there is a need, we will create a certain set of rules for our residents and highlight these aspects in the official document.

8. Will the precise (detailed) mechanism for buying / selling tokens on the platform be clearly documented prior to the ICO?

A certain manual explaining how to buy and sell tokens will be certainly created. We understand that potential investors may be those who have never dealt with tokens, so we will explain how the system works, the conditions for owning the token, how the application is built, and the basic principles and mechanisms for leasing and selling tokens.