Hatchworks (spectre.ai) — Spectre.ai ICO and token sale process.

Dear token-holders*,

We have carefully studied the token-sale models of popular ICOs to understand both, the benefits as well as the risks that are associated with current token sale practices. These risks of investing are clearly highlighted in the ‘Risks’ section in the whitepaper found on the Spectre token-sale website. They are also available to you if you write to legal@spectre.ai

A fairly paced, priced and decentralized ICO (where token ownership is truly distributed and not concentrated in the hands of a few “whales”) is the first step to drive positive sentiment towards our long term ethos of creating a fraud-less, decentralised trading platform truly owned by the masses. Creating an impactful investor experience and also helping develop a productive, amicable and long lasting relationship with our global token-holder base, is a key priority. In the rest of this blog post, we will detail the token sale process which initiates on the 27th of October, 2017.

The below process has been modified to accommodate for significantly higher than forecast demand for Spectre.ai tokens at the pre-sale registration phase that began at the end of September. The modifications are conducted to include more investors into the sale so that they do not feel they missed out and to expand the range over which the 33% pre-sale bonus would be applied.

Whitelisting and Pre-sale Process

· In order to participate in the pre-sale, potential token holders must register on our whitelist. The purpose of the whitelist is two-fold. First, to give to as many members of the community as possible the opportunity to participate (excluding U.S citizens). Second, to ensure that we’re selling only to qualified, token holders with a long term view and especially ones that fully understand and comprehend the risks of participation.

· The registration form for the SPECTRE.ai pre-sale can be found on our website.

· SPECTRE.ai’s pre-sale will be based on a queue and entry to the pre-sale will be on first-come first-served basis. This is to maximize distribution and avoid network congestion.

· The pre-sale will be conducted in a phased manner. Emails will be sent to investors on October 26th (for actual contributions starting on the 27th) asking them to login at a specified time period in order to see the contribution address. Investors will be able to participate only during their allocated time slots and they will be getting a 24 hours window to participate. The exact times will be published on the aforementioned emails sent on October 26th.

· The pre-sale commences on the 27th of October and ends on the 5th of November. During the first 3 phases (each phase lasts 24 hours) all the people that white-listed their ETH address will be invited via email to a password protected area where they will be able to send their contributions. The 4th phase will start at the beginning of the 4th day and all people regardless of being white-listed or not, will be able to participate. (The pre-sale contribution ETH address will be published in a password protected area. This method of password protection provides the maximum level of security as the user is required to log in before the protected token sale address is displayed. You will have to use the email id and password you have entered during the crowd sale registration process in order to view the token sale address.)

· By the 23rd of October, investors will have to have specified the exact amount of ETH they wish to contribute in the pre-sale registration form. If during the sale they attempt to send a transaction with more than 5% less or more than 20% more ETH than indicated in the pre-sale registration, then the transaction may be rejected and the ETH will be returned to the contributor. (Instructions on how to handle gas will be published in a tutorial closer to the pre-sale date).

· The minimum contribution amount for the pre-sale is 1 ETH. There is no maximum contribution amount. The first 100 million tokens (c. $15 million in value) purchased in the pre-sale will carry with them a 33% bonus. Any additional tokens purchased during the presale will be sold with a 22% bonus. This means that if someone contributes, for example, 1 ETH to purchase 2.000 Tokens (as per the token price) before the first 100 million tokens are sold, then they will end up with 2,000 tokens plus 660 tokens; so in total 2,660 tokens. If their contribution happens after 100 millions tokens have been sold, then they will end up with 2.000 tokens plus 440 tokens, so in total 2,440 tokens.

· Each white-listed investor will only be allowed to contribute once during the first 3 days of the Presale. If they miss their chance, then they will be able to participate again during the 4th phase.

Public Sale Process

· During the public sale, which is scheduled to run from the 17th of November until the 10th of December, contributors will be required to go through a registration process and the contribution address will be revealed at the end of this process, again in a password protected area on site.

· There will be no white-listing of ETH wallet addresses and contributors will be able to participate in the crowdsale immediately after registration on site.

· The minimum contribution amount for the public sale is 1 ETH.

· There is a 11% bonus for each contribution made during the first week of public sale. This means that if someone contributes 1ETH to purchase 2.000 Tokens (as per the original price) then they will end up with 2.000 tokens plus 220 tokens, so in total 2.220 tokens. There is no bonus offered for contributions received after the end of the first week of the public sale.

· The maximum number of tokens sold in both pre-sale and public sale is 240 million tokens.

Final Notes

· The team will not provide additional discounts or bonuses to any individuals or entities (including Venture Capitalists, buyers groups etc). Any claims to the contrary are false. We operate a bounty program run on bitcointalk.org that does offer promo codes to influencers which activate a bonus for said influencer, however these are not investment related additional bonuses.

· Please be aware that our team members will not be asking for contributions before the pre-sale on October 27, 2017 and public sale on November 17, 2017. You will also not receive any kind of contribution address by email. These are phishing attempts by scammers, and should you encounter these messages in your inbox through direct messages, please report them by sending an email to team@spectre.ai.

· We will publish the last 6 characters of the token sale address on our official Facebook and Twitter pages. Please make sure that the token sale address on the SPECTRE’s website ends with the same characters before making a transaction.

· We will never ask you to act in haste and we will never send you emails and direct messages with any special offers. Do not trust Slack and Telegram direct messages, even if they appear to be coming from the SPECTRE’s team members as they may be compromised. Do not trust ICO review websites which publish material about Spectre.ai including what seem to be our ETH address as those websites may be compromised by hackers.

· Clear instructions and tutorials will be released through our official communication channels as we approach the token sale and purchase periods. Join our Telegram channel to receive important updates and get your questions answered.

· As per legal counsel, Spectre ICO investors will be required to register, and submit their email, first name, last name, address, submit basic KYC (ID) sign our disclaimer/terms of sale agreement (which confirms that they are not a U.S citizen or resident) on the day they wish to contribute. We reserve the right to request more information from any participant prior to distribution of Spectre.ai tokens to ensure compliance with any foreign securities laws of countries that are restricted from contributions (eg. the U.S amongst others).

· Any attempt to circumvent the technical measures in place which thwart restricted citizens from investing (eg. the U.S or other countries as per our T&C) could result in legal action. The group has a range of VPN blockers (in the form of blacklisted servers at popular VPN providers), I.P blockers and basic KYC in place and takes attempts to circumvent these, very seriously.

The Spectre.ai team

* The term ‘token-holders’ and investors is used interchangeably in Spectre.ai communications but is not to be confused with equity-shareholders of the firm which have actual ownership in the underlying companies. Token holders and SXDT/SXUT tokens do not own or confer any rights of ownership in the underlying company.