NapoleonX Newsletter — 10th January 2021

Dear Napoleonians,

We take this opportunity to wish you a Happy New Year. May it bring happiness and wealth to you and your beloved. What a ride!!!! and it’s still early before arriving to Mars. Moon is definitely behind us. We must all dream bigger. In 2020, after a nice start of the year and a frightening plunge on 12 March, the crypto markets ended on fire. BTC was up 303% and ETH 472%.

Performance analysis

In this context, our ETH.BTC.USD AR flagship managed a 501% gross return and our historical BTC LO a 369% one with just 19 trades over 2020. Our strategies passed very successfully the March test. They just lag in the first 2 weeks of December due to a turn off in the long mode due to a prolonged correction below the 20k mark for BTC. Since then, they have tracked the market nicely.

Sales report

The year-end crypto rallye definitely put the light on those alternative assets for institutional and asset allocators, even during the Christmas holidays.

We are thus in discussion with several players, including a Tier1 insurer, thinking of referencing the Napoleon Bitcoin Fund as a unit-linked support. We are also considering launching a dedicated EMTN, which of course would be a new DAF, to match their needs.

Those discussions, with several other well-advanced lead us to be pragmatic with this DAF and put on hold the restructuring, as mentioned in the previous newsletter. If we can not convince those professional investors, we will thus move back to the initial plan.

With the massive price action, the DAF#1 ended the year cumulating 1.47M€ of AUM while DAF#3 cumulates 2.03MUSDT. We will communicate on DAF#2 as soon as possible.

Last, we need to be innovative as well on the investment vehicle structuring and are working on feasibility on alternative and lighter structures.

Perf fee report

We are glad to announce that the NPX licensing right for DAF#1 and DAF#3 as of December 31st, 2020, will be paid before the end of January for the Eligible Holders. Those Holders can retrieve their live balance (Accrued License Fee, License Fee Balance and Payment Balance) on their dashboard at napoleonx.ai.

As a reminder, this right is eligible for holders whom registered and filled up their KYC, and accepted the terms of use, privacy policy, terms of services and sub-licensing contract.

The calculation mechanism is fully transparent, as reminded below:

For a Performance Fees Generation Timeframe (PFGT): 1/(29 800 000* (1 + T)) x 85% x N x PF for each Registered NPX where:

•N = nb of NPX continuously held by Eligible Holder on a Registered Address from the beginning of the PFGT to last day of the PFGT

•PF = amount (in €) of Perf Fees generated by the DAF on the PFGT

•T = the French VAT rate at time of calculation

•The Accrued License Fee is computed and provisioned at the end of a License Fee Generation Timeframe (LFGT). On the 31st of December of each year, it is frozen and transfer to a License Fee Balance

•License Fee Balance is distributed to Eligible Holders on a quarterly basis

Listing

We are still working behind the scenes to provide a listing on a better platform so that people can get access to our NPX token again. This should be effective before the end of January.

Indeed, we believe the time has come to turn on the light again on our project given the robustness of our algos’ performance, the achievement on the DAFs side as well as the new payment feature embedded in our token.

More people on NapBots are inquiring to use the NPX for monthly plan payments which demonstrates the synergies within the Group. As a reminder, you can use it at a price of 0.001 ETH (= ICO price). Essentially, this gives a floor to our token price given its payment nature. We will promote as well the NPX token onto NapBots platform.

Conclusion

2021 will be a determinant year for the crypto adoption by institutional investors. This coupled with a regulated status, highly robust performance, a new payment right to use NapBots and a promising listing should be positively perceived by the market.

On our side, we will fully focus to reach those goals and will be as transparent as possible. On that part, please if you have any questions fill up this form before January 20th to organize a written AMA session at the end of the month.

Once again, happy new year to all of you.

Best regards,

Stéphane, Arnaud and Jean-Charles