RialtoTrade.com Tokenomics FAQ

Q: Who exactly gets the preferred account?

The user account on rialtotrade.com without second type of fees (percentage of profit generated by the user through the algorithms) will be activated for everybody who was XRL token holder on November 15th @14:00 CET. This essentially means that everything stays the same for existing users. For example: those who used the market making algorithm in the past were receiving 100% of profits made to their user accounts and that will remain the same on the rialtotrade.com platform as they will pay no profit based fees.

For users who are already registered at www.rialto.ai we have all the data required and will automatically activate these accounts. All others will have to contact us through support. It is still possible and easier to go through the automated registration process on rialto.ai and we encourage all non-registered XRL holders at the time of the snapshot to do so.

Q: Who exactly gets the preferred shares?

If you held in total more then 1337 XRL tokens on November 15th at 14:00 CET, then you can opt-in for share distribution (there is no obligation for you to accept the shares) and you will receive the shares.

In order to meet the requirements for entry in the registry of shareholders, one is required to complete the KYC process. If you have a verified account at rialto.ai then you already completed the verification and will be contacted in January, otherwise you can do so until 31st December 2018 by writing to support@rialto.ai. There are some geographical limitations for distribution based on AML requirements that are explained in the original article, other then that there are no limitations.

Q: Who is Rialto AG, why do they get 25% common stock (is this diluting 75% owned by XRL non-team token holders)? Is the example calculation correct i.e. 100k XRL = 38 shares or should that be 50?

The 25% of the RialtoTrade AG (common shares) and any preferred shares of RialtoTrade AG that will remain undistributed or not taken by token holders will remain owned (and some vested in the options) by the founders, employees and contractors of iTrade LTD (operating company of www.rialtotrade.com).

The calculation is correct and is as follows:
Shares per 1 XRL = 37.500 / 100.000.000 = 0,000375
Shares per 100.000 XRL = 37.5 = 38

Q: What happens to XRL tokens that were on IDEX/EtherDelta at the time of the snapshot on 15th November 2018?

They will be included in the distribution. We flagged the amount of XRL tokens that were deposited on decentralized exchanges and will process such requests manually. Holders are required to send us a proof of deposit or other proof of balance at the time. As the token will soon be delisted from trading, users will be able to normally withdraw their tokens.

Q: What rights exactly did the snapshot give (preferential account, preferred equity shares or both)?

Both

Q: What rights does a Rialto.ai account give (verified/non-verified/funded/non-funded)

Having or opening a RIALTO.AI account is the fastest and easiest way to both verify your Ethereum address (to prove XRL token holdings) and to complete the KYC personal information verification process (needed for the future entry in the shareholder’s register). Nevertheless, you can also complete this step manually by contacting us at support@rialto.ai.

RIALTO.AI account status (verified/non-verified/funded/non-funded) by itself is not relevant to your rights or eligibility for distribution of shares.

Q: What happens to withdrawn/burned XRL tokens? Do they grant any rights to their former owners?

We keep records of all transactions including dates and amounts for users who have withdrawn their assets from the platform. Many of them are our initial crowdsale supporters, who have since then withdrawn a portion or all of their assets, but still significantly contributed to the development of the project with their initial participation. This is why we have decided that even those who have withdrawn their assets (burned tokens) are eligible for distribution of preferred shares. We will reach out to respective customers for participation in the distribution of preferred shares in January.

Q: How will RialtoTrade AG distribute profits? What is the corporate governance structure of RialtoTrade AG and what exactly are the rights of preferred shares vs. common shares?

RialtoTrade AG shall distribute any profits made annually according to the decision made by the general assembly. We would like to make the distribution in digital assets but whether it will be possible to distribute the profits in e.g. ETH or not will depend on the local legislation at the time. Please note that Liechtenstein is currently in the process of implementing blockchain legislation.

RialtoTrade AG is governed by the board of directors elected by shareholders or appointed by other board members, which consists of at least one Rialto founding member and one independent board member. The capital stock of RialtoTrade AG (the Company) is subdivided into 50,000 registered shares each valued at CHF 1,00 and divided into 2 classes:

• Category A — Common shares — 12,500 with a voting right of 1 vote per share,
• Category B — Preferred shares — 37,500, without a voting right.

In case of dividend distribution, shareholders of preferred shares have the right to a 10% higher dividend compared to the shareholder of category A. Example: if the dividend for the common share would be €1, then the dividend for the preferred share would be €1.1.

Q: What will the fees be and how will they be distributed?

Fee schedule of the rialtotrade.com platform will be published before the launch of the platform together with the guidelines on how to use the platform and other platform policies. It is currently anticipated that the daily usage fee will correspond to 0.00548% of user’s assets, while the profit fee will differ based on the product used and is not yet determined.

Q: What about token balances under the share limit of 1337 XRL?

Token holders who own less than 1337 XRL tokens can normally access their platform assets on rialto.ai and decide on withdrawal or transfer to the rialtotrade.com platform until December 31st.

Q: Are non-deposited XRL tokens now worthless, i.e. is there any point buying/depositing more?

Non-deposited XRL tokens can normally be used on our rialto.ai platform until December 31st for personal withdrawal or transfer of assets to the rialtotrade.com platform.

Buying or selling of XRL tokens after the snapshot on the 15th November 2018 does not transfer any rights as the purpose of the snapshot was to prevent speculation and ensure same information accessibility to all stakeholders.

Q: Will XRL token still trade on exchanges?

XRL token will be delisted from all exchanges due to the changed functionality of the token. Users who still hold XRL tokens are able to deposit them to our www.rialto.ai platform until December 31st to either withdraw the assets to their personal wallet or leave them to be transferred to the new rialtotrade.com platform.

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