F. Revix Crypto Bundle Methodology

Version history

Version Release date Notes

1.0 16 April 2019 Original version

1.1 16 November 2019 Updated version

1.2 23 November 2020 Updated version

1.3 31 May 2022 Updated version

The purpose of this document is to inform our customers and prospective customerson how our crypto Bundles function.

We welcome all feedback and suggestions to improve our services. We will conductregular reviews and provide feedback from engagement with external stakeholdersto keep our Bundle methodology updated, complete and representative. Foradditional information, please email [email protected].

Before continuing, please read our Crypto Risk Disclosures as well as our Disclaimersso as to understand the risks of investing with us.

Revix | Crypto Bundle Methodology | v1.2 1

mailto:[email protected]

https://www.revix.com/legal/risk-disclosure

https://www.revix.com/legal/disclaimer

1. Disclaimer

Revix and its affiliates (Collectively “Revix” or “We”) offer its Bundle Technology asa means for investors to gain direct, manageable, and secure exposure to thecryptoasset market. Cryptoasset Bundles (“Bundles”, or “Crypto Bundles”) are notto be misconstrued as mutual funds, ETNs, ETPs, collective investment schemesor any similar fund structure.

A Bundle is a proprietary investment management technology that allows Revixusers to directly trade and securely store a specified set of cryptoassets withdefined operational rules.

There can be no assurance that Revix’s Bundle Technology will accurately trackit's intended assets or otherwise achieve its investment objectives. Specifically,transactional and rebalancing fees are expected to cause tracking error betweenRevix’s Bundles and the underlying assets.

Cryptoasset prices are volatile and it is possible to incur significant losses ofinvested capital. You should not invest more than you are prepared to lose. Thevalue of cryptoassets may go down as well as up, and returns are not guaranteed.An investment using a Revix Bundle should be considered long-term in nature. Tothe maximum extent allowed by law, Revix, its licensors, and their respectiveemployees, contractors, agents, suppliers and vendors shall have no liability orresponsibility whatsoever for any injury, damages or loss - whether direct orindirect, consequential, incidental, punitive or otherwise - arising in connectionwith the Revix Bundles or any data or values relating thereto - whether arisingfrom their negligence or otherwise. Without limiting any of the foregoing, in noevent shall Revix have any liability for any lost profits or indirect, punitive, specialor consequential damages or losses, even if notified of the possibility thereof.

The information, data, analyses, and opinions contained herein:1. Include the proprietary information of Revix,2. May not be copied or redistributed,3. Do not constitute investment advice offered by Revix,4. Are provided solely for informational purposes and therefore are not an offer to

buy or sell any asset,5. Are not warranted to be correct, complete, or accurate, and6. Nothing offered by Revix shall constitute or be construed as an offering of

financial instruments.


All information provided by Revix is impersonal and not tailored to the needs ofany person, entity or group of persons. Revix does not express an opinion on thefuture or expected value of any currency, security or other interest and does notexplicitly or implicitly recommend or suggest an investment strategy of any kind.

Before deciding to invest, prospective investors should read all definitiveinformation relating to a Bundle and pay particular attention to the risk factorsrelated to the investment. Revix shall not be responsible for any trading decisions,damages, or other losses resulting from, or related to, this information, data,analyses, or opinions or their use. This document and all website related contentdoes not constitute an offer to subscribe for securities and is neither an offer tosell nor a solicitation to buy units or shares in any fund.

It is the responsibility of any persons wishing to acquire cryptoassets using Revix'sPlatform to observe all applicable legal requirements and tax consequenceswithin the countries of their citizenship, residence, domicile, and place of businesswith respect to the acquisition, holding or disposal of the cryptoasset, and anyforeign exchange restrictions that may be relevant thereto. You should consultwith your own attorney, accountant and other advisors about those mattersincluding determining whether you may legally purchase cryptoassets usingRevix’s Bundle Technology.

Nothing in this document is intended to create a contract for investment intoRevix or any Bundle, and each investor acknowledges that Revix will rely on thisassertion of Bundle holders’ statements with respect to compliance with the lawsof the jurisdiction in which the investor is legally domicile. This document doesnot constitute the provision of investment advice and is not an offer to sell or asolicitation of an offer to purchase interests in any fund or investment vehicle.


Table of Contents

Version history 1

Disclaimer 2

Introduction 5About 5Our principles 5

Bundling Approach 6Defining a crypto Bundle 6Rebalancing and reconstitution 7Crypto Bundles 9Market pricing and capitilisation methodology 12

Governance, protection and security 13The Revix Bundle manager 13Rules-based Approach 13

Eligibility requirements 15Cryptoasset exchange eligibility requirements 15Cryptoasset eligibility requirements 16

Asset pricing 17Cryptoasset pricing 17Crypto Bundle pricing 17Treatment of hard forks and distribution 19Historic Bundle data 20

Contingency treatment 21Data interruption or delay 21Erroneous data 21Exceptional events 21Security and custody 21

License and Use 23


2. Introduction

2.1. About

Founded in April of 2018, Revix UK Ltd (Revix) is an investment platform thatcaters to professional and non-professional investors alike. We offer individualcryptocurrencies that we refer to as cryptoassets throughout this methodology,as well as various crypto Bundles. Crypto Bundles are baskets of cryptocurrencieswhich enable you to easily own and manage a diversified crypto portfolio. OurBundles are ready-made investments that provide you with direct exposure tothe underlying cryptocurrencies within each Bundle. This approach providesBundle holders with a means to obtain effortless low-cost diversified exposure tothe crypto market.

Our crypto Bundles attract a diverse investor base with a longer-term investmenthorizon and a high tolerance for risk.

Some benefits of a bundling approach to cryptoasset investing include:● There’s a lower crypto-specific risk when investing due to diversification. Many

professional investors prefer a diversified approach, so you’re ‘not putting allyour eggs in one basket’.

● Your crypto holdings are kept up to date with the dynamic crypto marketthrough the automated monthly reconstitution and rebalancing of ourBundles, and

● We provide immediate access to multiple secure, liquid and reputable cryptoexchanges to offer superior trade execution pricing for both buy and selltransactions.

We believe that all investors deserve a simply-delivered yet sophisticated level ofservice and security when investing in the novel crypto asset class.

We aim to make it safe and simple to buy, store and manage a portfolio ofcryptoassets.

2.2. Our principles

We aim to consistently provide investors with a hassle-free, rules-based andtransparent way to invest in cryptoassets. The cryptomarket is new andpresents many challenges to well-established protocols found investing intraditional assets such as stocks and bonds. Our Bundles aim to combine thebest of traditional asset investing methodologies with appropriateadjustments to adapt those practices to the crypto space.


The principles of our Bundles include:

Maintain a systematic and transparent approachThe pricing and corresponding performance of our Bundles follows a structured,transparent and predefined rules-based approach.

Maintain investabilityBundles are designed in all aspects to be investable through the directacquisition of the underlying cryptoassets. So, our Bundles will take into accountfactors impacting liquidity, exchange trading pairs, spreads, exchange stability,custody limitations, custody charges and other notable factors.

Minimise Bundle turnoverDue to crypto market price movements, a Bundle could potentially berebalanced at the end of every moment in order to remain compliant with theBundle's targeted holding weights and associated framework. This would resultin significant Bundle turnover (the number and value of transactions including orexcluding assets from a Bundle) and exorbitant fees associated with thesetransactions. To avoid this, maintaining a reasonable level of Bundle turnover isan important guiding principle at Revix.

Maintain fully backed collateralAt any given time, Bundles are 100% collateralised by the underlying cryptoassetsthat constitute the Bundle.

3. Bundling Approach

3.1. Defining a crypto Bundle

Our Bundles are developed to provide our customers with a clear, pre-defined,rules-based and transparent way to own a diversified basket of individualcryptoassets.

When you buy any of our crypto Bundles, you automatically purchase theunderlying cryptocurrencies within that Bundle.

Revix’s Bundling approach is the cryptoasset version of direct indexing. This is amethod for replicating the performance of a broader portfolio, or index, bypurchasing the underlying assets rather than buying an ETF (exchange-tradedfund), mutual fund or structured financial product.


As is the case with any industry, investing has evolved thanks to technologicalimprovements over the decades. Direct indexing is the next evolution in theinvesting landscape.

Direct indexing is a technology, not a financial instrument, which enablesinvestors to instantly purchase, manage and sell a number of individual assetswithin a broader portfolio.

3.2. Rebalancing and reconstitution

What happens?At 00:00 on the 1st of every month we reconstitute and rebalance our Bundles toensure that:

1. You hold the largest cryptocurrencies as measured by market capitalisedwithin your Bundle, and

2. The cryptocurrencies within your Bundle are equally weighted.

The monthly reconstitution and rebalancing is considered a re-weighting and isperformed by our direct indexing algorithms. It is a fully automated process andensures that your portfolio stays up to date with the fast-paced crypto market.

Our reconstitution and rebalancing steps occur simultaneously on amonth-to-month basis.

What fees are charged?We charge a 0.17% rebalancing fee on a monthly basis which is levied on yourBundle holdings at 00:00 on the 1st of every month. This fee remains constantfrom month-to-month and equates to a 2.04% annualised fee.

This fee is only levied on our Bundles and is not charged on individualcryptocurrencies that you may hold like Bitcoin or USDC.

What does it mean to reconstitute and rebalance a Bundle?

ReconstitutionWe analyse the crypto market and compare the relative size of individualcryptocurrencies as measured by free-float market capitalisation. If acryptocurrency that is not included in one of our Bundles has grown in value sothat it has become more valuable than a cryptocurrency that was held within ourBundles during the prior month, then we would sell the cryptocurrency which


has declined in relative value and purchase the cryptocurrency that hasincreased in value and include it in the Bundle.

ExampleIf we look at the Top 10 Bundle, at month-end we could see that Stellar (XLM)has declined in relative value and fallen out of the top 10 largestcryptocurrencies. While Tezos (XTZ) has increased in relative value andovertaken Stellar in market capitalisation. In this instance, we wouldautomatically sell out of Stellar’s XLM tokens in the Bundle and replace them bypurchasing Tezos’ XTZ tokens.

RebalancingWe evaluate the weights of cryptocurrencies within your Bundle at 11:59pm onthe last day of the month and, after taking into account what needs to occur inthe reconstitution step, calculate how much of each cryptocurrency within theBundle should be purchased or sold so that the Bundle can be equally weightedby 00:00 on the first of the month.

Example: If Bitcoin returned 10% over the prior month but the prices of the 9other cryptocurrencies within the Top 10 Bundle remained unchanged then aportion of Bitcoin’s value gain would be sold and used to equally purchase theremaining 9 cryptocurrencies. This would result in each cryptocurrency having aweight of exactly 10% within the Top10 Bundle at 00:00 on the 1st of the month.

Why do you do this on a monthly basis?This was a data-driven decision. When looking at backdated market data,performing a re-weighting of a Bundle on a monthly basis produced the bestreturns for investors outperforming all other re-weighting periods over a 5-yeartimeframe.


3.3. Crypto Bundles

We offer 3 crypto Bundles - a Top 10 Bundle and 2 theme-based Bundles thatprovide exposure to major crypto sectors: Payments and Smart Contracts.

Our Bundles are “passive” meaning that there is no active fund manager orsimilar discretionary management that takes place. The Bundles follow the rulesand structure outlined in this methodology. Our Bundles’ passive approach aimsto provide investors with diversified and low cost exposure to the crypto marketor crypto sector. Our Bundles do not aim to outperform any particular asset orindex.

More detailed information on our Bundles

Top 10 Bundle | Ticker: RVX10The Top 10 Bundle offers broad equally weighted exposure to the 10 largestcryptoassets as measured by free-float market capitalisation. The Bundle tracksthe total return of the 10 largest cryptoassets aiming to mimic the performanceof the broader cryptoasset market.

Exposure to a diversified basket of cryptoassets helps to avoid concentration riskin any specific cryptocurrency (i.e. the level of risk in your portfolio arising fromconcentration to a single cryptocurrency).

This Bundle’s holdings provide exposure to a significant portion of the overallcrypto market when measured as a percentage of total market capitalisation.

The Top 10 Bundle is ideal for anyone who wants to diversify their crypto portfolioacross a variety of large reputable cryptoassets without spending time and effortbuying them independently or managing the portfolio to reflect movements inthe market on a month to month basis.

This Bundle is rebalanced and reconstituted monthly on the 1st of every month.

Theme-based crypto BundlesJust like listed stocks in the technology sector are different from those in the oiland gas sector, you get cryptoassets that do different things.

The term cryptocurrency is confusing for newcomers to the crypto space. There’sa preconceived notion of what a currency is and what it can and cannot do. Manycryptoassets aim to achieve very different objectives than to solely act like digital


cash storing and/or transfering value. It’s for this exact reason that we often usethe term cryptoasset instead of cryptocurrency.

The constituents of our theme-based Bundles are based on the individualcryptoasset’s operating dynamics and intended use. While somecrypto-enthusiasts may take issue with the broad categorisations and a clearoverlap between each cryptoassets potential uses, we have identifiedcryptoassets for each theme-based Bundle according to how closely they alignwith the underlying theme in question. There are many crypto projects that aimto solve similar real-world problems but undertake very different approaches. Forexample, Stellar can host initial coin offerings (ICOs) which is generally a SmartContract Bundle attribute but its native token (Lumens - XLM) is designed forpayment purposes. This makes Stellar’s Lumens (XLM) tokens a better fit for thePayment Bundle than the Smart Contract Bundle.

Payment Bundle | Ticker: RVXPAYBitcoin may have paved the way for digital payments but other globalcompetitors are making peer-to-peer, business-to-business andcountry-to-country payments cheaper and faster than ever before. The PaymentBundle offers broad exposure to the most well-recognised and tried and testedpayment cryptoassets available.

This Bundle offers you the ability to invest in the largest 5 payment-focusedcryptoassets as measured by free float market capitalisation and aims to berepresentative of the payment-focused cryptoasset sector. The Bundle is equallyweighted to avoid the risks of over-investing in a single cryptoasset. This meansthat each cryptoasset is rebalanced and reconstituted on the 1st of every monthso that each cryptoasset makes up a 20% within the Bundle.

Payment-focused cryptoasset investable universe:

1. Bitcoin (BTC)2. Ripple (XRP)3. Bitcoin Cash ABC (BCH)4. Stellar (XLM)5. Bitcoin Cash SV (BSV)6. Litecoin (LTC)7. Monero (XMR)8. ZCash (ZEC)

9. IOTA (MIOTA)10. Dash (DASH)11. Algorand (ALGO)12. Bitcoin Gold (BTG)13. Bitcoin Diamond (BCD)14. Bytecoin (BCN)15. Decred (DCR)16. Nano (NANO)


https://www.stellar.org/?locale=en

Smart Contract Bundle | RVXPLATThe goal of smart contract orientated cryptoassets is to offer a more generalpurpose blockchain infrastructure where smart contracts can be built andexecuted on the network. A smart contract is a protocol, or set of rules, intendedto digitally facilitate, verify, or enforce the negotiation or performance of acontract. Smart contracts allow the performance and verification of credibletransactions without the need for multiple third party providers.

This Bundle consists of cryptocurrencies such as Ethereum’s ETH that enabledevelopers to build applications on top of their blockchains, much like howdevelopers build mobile apps on top of the Apple mobile iOS operating system.When looking at smart contract networks, the applications that we know todayare often replaced by decentralised applications (DApps), which are managedand maintained by multiple network participants and not a centralisedorganisation. DApps allow for more advanced actions to be recognised withoutthird party verification and are created with multiple smart contracts. Initial CoinOfferings (ICOs) is one feature often offered by smart contract cryptoassets.

The significant potential for an autonomous, decentralised global network ofblockchain operators makes the Smart Contract Bundle an opportunistic play onthe growth in this innovative crypto-sector.

This Bundle offers investors the ability to passively invest in the largest 5 smartcontract-focused cryptoassets as measured by free float market capitalisationand aims to be representative of the smart-contract cryptoasset sector. TheBundle is equally weighted to avoid the risks of over-investing in a particularcryptocurrency. This means that each cryptoasset is reweighted monthly toensure an equal 20% weighting across each cryptoasset in the Bundle.

The Bundle is rebalanced and reconstituted on the 1st of every month.

Smart contract focused cryptoasset investable universe:

1. Ethereum (ETH)2. EOS (EOS)3. Tron (TRX)4. Polkadot (DOT)5. Polygon (MATIC)6. Cardano (ADA)7. NEM (XEM)8. Neo (NEO)9. Ethereum Classic (ETC)

10. Cosmos (ATOM)11. VeChain (VET)

12. Tezos (XTZ)13. Waves (WAVES)14. Ontology (ONT)15. Zilliqa (ZIL)16. Qtum (QTUM)17. Lisk (LSK)


3.4. Market pricing and capitilisation methodology

In calculating crypto Bundle prices, we incorporate pricing data from over 200reputable exchanges.

Price: for a market pairThe price for each individual market pair is calculated by taking the unconvertedprice reported directly from the exchange and converting it to USD usingCoinMarketCap’s existing reference prices. Let’s take PAXG/BTC market as anexample:

Let (E) be the price of PAXG/BTC reported directly from the exchange.Let (C) be the last known reference price of BTC from CoinMarketCap in USD.Let (D) be the derived price reported on CoinMarketCap for the market pair.

For this example, let (E) = 0.1 BTC / 1 PAXG and let (C) = 10,000 USD / 1 BTC.

D = E * CD = (0.1 BTC / 1 PAXG) * (10,000 USD / 1 BTC) = 1,000 USD / 1 PAXG

Therefore, the derived price for PAXG/BTC on this specific market pair is $1,000.

Note: Any conversion into other fiat currencies (for example, GBP) are convertedfrom the USD price based on current foreign exchange rates provided byopenexchangerates.org.

Price: for a single cryptocurrencyThe price of any cryptoasset is a volume weighted average of market pair pricesfor the cryptoasset from different exchanges as determined by Coinmarketcap.

The higher percentage of volume contributed from the pair, the more influenceit has on the average price. The rationale for using a weighted average is becausein general, markets with higher volume have higher liquidity and are less proneto price fluctuations. Some prices are manually excluded from the average if theprice does not seem indicative of a free market price; for example, when anexchange disables withdrawals or deposits, or regulatory conditions make itimpossible for anyone else outside of a certain geographical region to buy coins.Some prices are also automatically excluded when our algorithms detect thatthe reported price is a significant outlier when compared to other market pairsfor the same cryptoasset.


https://coinmarketcap.com/

https://coinmarketcap.com/glossary/#fiat

https://openexchangerates.org/


4. Governance, protection and security

4.1. The Revix Bundle manager

The Revix Bundle Manager is Sean Andrew Sanders a CFA Charterholder.

The Revix Bundle Manager is responsible for:● Reviewing the accuracy and availability of data sources, both existing and

proposed, for uptime, accuracy, and robustness.● Reviewing calculations of the Bundle prices for anomalies.● Determining whether, in exceptional circumstances, the Bundle price will be

calculated from different data sources.● Determining whether, in exceptional circumstances, it is necessary to

recalculate the Bundle’s price for a particular period. For example, if one ormore data sources are discovered to be inaccurate.

● Determining whether, in exceptional circumstances, a change to the Bundlemethodology or Bundle constituents is required.

● In extraordinary circumstances the Revix Bundle Manager has full discretionto override the algorithmic rules in order to protect client assets.

● Publishing the outcome of any such extraordinary events or adjustmentsnoted above on the Revix website and emailing all respective Bundle owners.

● Handling other matters on an ad-hoc basis.

4.2. Rules-based Approach

4.2.1. Bundle orders● Bundles can be purchased using one of our supported fiat currencies or

supported cryptoassets.● All Bundle buy and sell orders are market orders and the prices of the

underlying holdings are subject to market price volatility.

Buy orderIf a buy order of yours is confirmed then new Bundle units are allocated toyour Revix account. This is done by purchasing the constituent assets in theexact quantity as detailed by the Bundle composition on your behalf. Thesesteps include:

1. Calculating the value of your transaction fee as a percentage of the totaltransaction value.


https://www.linkedin.com/in/seanandrewsanders/

https://www.revix.com/fees

The transaction fee is then deducted from the total transaction amountin either a cryptoasset or fiat currency. The transaction fee is alwayspaid in the asset used in the transaction (i.e. if bitcoin is purchasedusing GBP, then the transaction fee will be paid in GBP.).

The net value of the transaction, which is the total transaction value lessthe trading fee, is then used in the transaction

In some cases, the quoted price of a trade on an exchange is notattainable when the order is executed due to the inherent volatility inthe cryptoasset markets. This is known as slippage, and results invarying amounts of individual cryptoassets being purchased. This isunpredictable and can result in some unexpected gains or lossesduring the purchase or sale of a single cryptocurrency or crypto Bundle.We endeavour to ensure that slippage related losses are mitigated.These pricing variations can result in a trade price that are marginallydifferent to the quoted price.

A new Bundle unit would then have been created and allocated to theinvestors account.

Sell orderIf a market sale order is initiated, then a redemption process is started.Bundled cryptoassets are then sold as follows:

1. Calculating the value of your transaction fee as a percentage of the totaltransaction value.

The transaction fee is then deducted from the total transactionamount. The transaction fee is paid in the currency or cryptocurrencyused in the transaction (i.e. if a Top 10 Bundle is sold to GBP, then thetransaction fee will be paid in each of the Top 10 Bundlecryptocurrencies).

Each of the underlying assets is then traded for Bitcoin using our SmartPricing Engine through our network of crypto exchanges.

In certain geographies Crypto Bundles can be converted into a fiatcurrency.


https://www.investopedia.com/terms/s/slippage.asp

https://www.revix.com/fees

4.2.2. Bundle rebalancing and reconstitutionAny amount held in a Bundle over a rebalancing period will have arebalancing fee levied and deducted from the total value held.

The process to complete a rebalance is as follows:1. The value of a single unit of the Bundle in USD is calculated using price

data from CoinMarketCap.2. The Revix rebalancing fee is levied on the total Bundle value being

rebalanced. Terces neddih3. The list of the largest cryptocurrencies as measured by market

capitalisation is retrieved from CoinMarketCap. This includes a closingvalue for each cryptocurrency in the list.

4. The post-rebalance Bundle Composition is calculated by using the newasset closing values, the list of largest cryptocurrencies by marketcapitalisation and the USD Bundle unit price calculated above in step 1.

5. The differences between the old and new composition of the Bundleare calculated and our system automatically initiates transactions tobring the underlying asset holdings in line with the new BundleComposition.

6. Our Smart Pricing Engine connects a network of exchanges to acquirethe required assets to be included in the Bundle at the best possibleprices available at the time the trade order was placed.

7. The Bundle is then regarded as having been rebalanced andreconstituted.

5. Eligibility requirements

5.1. Cryptoasset exchange eligibility requirements

Cryptoasset exchanges from which we obtain prices and volumes for the Bundlecalculation are subject to the following selection criteria:

1. The exchange has significant trading volume for at least two or morecryptoassets.

2. The exchange has no capital controls in place for international investorsin the country where the exchange is domiciled in.

3. The exchange charges trading fees.4. The exchange operates in compliance with local laws and is not subject

to significant regulatory investigation or under severe legal action.5. The exchange has an accumulative trading volume of over USD 10m per

day calculated on a 20-day moving average basis.6. The exchange has appropriate Know-Your-Client (KYC) and

Anti-Money-Laundering (AML) policies and procedures in place and theprocesses are properly documented.



https://forms.gle/D4p9yDDNX1BYMFWw8


Eligible exchanges that Revix uses include:

1. Binance2. Bitstamp3. Coinbase4. Huobi

5. Kraken6. Luno7. Poloniex8. VALR

5.2. Cryptoasset eligibility requirements

Cryptoassets that are included in a Bundle are required to fulfill a set of eligibilityrequirements which are also subject to a monthly review, as follows:

1. The cryptoasset is a cryptographically secure digital bearer instrument.2. The cryptoasset has sufficient liquidity, community support and trading

history to ensure that the cryptoasset is investable for an average retailinvestor. Additionally, any cryptoasset to be included in a Bundle must belisted on Coinmarketcap.com on the rebalancing date for eligibility.

3. The cryptoasset has a free-floating price that is not pegged to any otherasset, such as currency, commodity or another cryptoasset. So, it cannotbe a stablecoin.

4. The cryptoasset is not a meme coin, NFT, regulated or unregulatedspeculative or interest bearing token.

5. The cryptoasset trades on three or more eligible exchanges.6. The cryptoasset has no more than 80% of its past trailing 30-day average

trading volume on any single eligible exchange.7. The cryptoasset must meet the above eligibility requirements to be

included in a Bundle.

Supported stablecoins

We make use of stablecoins for trading purposes and for the movement of assetsbetween exchanges. The stable coins we use and support include the following:

1. Tether (USDT)2. USD Coin (USDC)3. Paxos Standard (PAXOS)

4. TrueUSD (TUSD)5. Multi-collateral DAI (DAI)6. Binanace USD (BUSD)

6. Asset pricing

This section details how we identify the prices of individual cryptoassets and priceour Bundles. This section also describes how Revix handles network distributionsincluding hard forks and airdrops.


6.1. Cryptoasset pricing

● The price for each cryptoasset on our platform is the latest available price onCoinmarketcap with a maximum of up to 15-minutes of pricing delay.

● Coinmarketcap offers the most accurate and reliable prices for cryptoassetsglobally.● When we execute cryptoasset trades on behalf of investors, we link to various

individual cryptoasset exchanges. We strive to offer superior trade pricing tothat displayed on CoinMarketCap for every trade.

● Any conversion into fiat currencies other than USD, for example GBP, are1

converted from the USD price based on either the Bid or Ask foreignexchange rates provided by openexchangerates.org .2

● CoinMarketCap provides up-to-the-minute updates for all market data foundon their website. All data is run through several data cleaning and verificationalgorithms to ensure data integrity.

● CoinMarketCap offers a detailed overview of its pricing methodology athttps://coinmarketcap.com/methodology/.

6.2. Crypto Bundle pricing

● Revix’s Bundle prices are published in near real-time.● All cryptoassets included in a Bundle are equally weighted and are considered

for inclusion or exclusion from a Bundle based on their market capitalisation.

Market capitalisation of the cryptoasset is calculated by multiplying the existing referenceprice of the cryptoasset by the current circulating supply. Let’s take the marketcapitalisation of Bitcoin as an example:

Let (C) be the last known reference price of Bitcoin from CoinMarketCap in USD.

Let (S) be the current circulating supply of Bitcoin.

Let (D) be the derived market capitalisation for Bitcoin.

For this example, let (C) = 10,000 USD / 1 BTC and let (S) = 17,000,000 BTC.

D = C * S

D = 10,000 USD / 1 BTC * 17,000,000 BTC = 170,000,000,000 USD

Therefore, the derived market capitalisation for Bitcoin is $170,000,000,000.

● The Bundle composition reflects the exact ratio of assets required to represent1 unit of the Bundle.

2 https://openexchangerates.org/1 https://coinmarketcap.com/glossary/#fiat


https://www.investopedia.com/articles/forex/090914/understanding-spread-retail-currency-exchange-rates.asp

https://openexchangerates.org/

https://coinmarketcap.com/methodology/

https://support.coinmarketcap.com/hc/en-us/articles/360043395752-Price-Market-Pair-Cryptoasset-#price_cryptoasset

https://support.coinmarketcap.com/hc/en-us/articles/360043395752-Price-Market-Pair-Cryptoasset-#price_cryptoasset

https://support.coinmarketcap.com/hc/en-us/articles/360043396252-Supply-Circulating-Total-Max-#circulating_supply

https://coinmarketcap.com/glossary/#fiat

● Revix’s Bundles are designed to capture the total returns of the constituentcryptoassets grouped by market capitalisation.

● The default denomination of a Bundle is the U.S. Dollar.

Equally weighted Bundle price

The formula for an equally-weighted Bundle’s price is:

Where:BP = Bundle Pricet = time period (0 for start of the month to max 31)x = the number of cryptoassets included in the Bundlei = the starting point, the lower limit of the summationp = cryptoasset pricen = number of cryptoasset units held in the BundleD = eligible average distribution price

For illustrative purposes, Bundle prices for equally weighted Bundles are calculatedas per the following flow diagram below (the Payment Bundle is used for illustrativepurposes).


Net distributions, if they are eligible for inclusion as detailed in 5.3. below, are addedto a Bundle’s price. A distribution will only be included in a Bundle’s price prior to arebalancing period, after which the distribution will be considered for inclusion onlyif it is an eligible Bundle cryptoasset.

6.3. Treatment of hard forks and distribution

Hard forksWhen a hard-fork occurs, we consider the asset with the larger post-fork market3

capitalisation to be the original coin, and the asset with smaller post-fork marketcapitalisation to be a new asset. Provided that:● At least 2 eligible exchanges, as listed above, agree to list the hard-forked asset

in a period of 10-days,and

● The combined trading volume is at least 5% of the combined trading volumeof the original pre-forked token as measured in USD.

Bundle owners who hold the pre-forked cryptoasset will then receive directownership of the newly formed forked cryptoasset in the commensurate amountto their holdings prior to the fork.

This means that during a given month you may hold more cryptoassets in agiven Bundle than at the start of the month. At the next rebalancing date thehard-forked asset(s) will be treated in the same manner as all other cryptoassetswhen considered for inclusion.

DistributionsDistributions can come about in two ways:1. Certain cryptoassets provide regular rewards to holders in the form of

cryptoasset grants, typically in the form of “gas” that powers transactions onthe network itself.

2. Some cryptoassets entitle their owners to airdrops .4

4 An airdrop occurs when a new or emergent cryptoasset is granted to holders of an existing cryptoasset on a one-off or occasionalbasis.

3 Hard forks are new cryptoassets that are granted to holders of existing cryptoassets when portions of the consensus nodes adoptdifferent policies. A hard fork is considered if two or more diverging blockchains exist post fork that share the same pre-forkblockchain, and nodes running previous versions will no longer be compatible with the new version. These hard-fork assets can besignificant in size and importance in the marketplace.


If network distributions have a tradable price on at least two eligible exchangesand they are significant enough in total value to be traded (i.e. the combineddistributed assets’ value must exceed the supporting exchanges’ minimumtrading value), they will then be priced using the average price of the two eligibleexchanges offering the highest price for the particular asset.

If no trade price is available for distribution, or if a network distribution trades onfewer than two eligible exchanges, then the network distributed asset will not beincluded in a Bundle’s holdings.

This means that during a given month investors may hold more cryptoassets in agiven Bundle than at the start of the month. At the next rebalancing date, thedistributed asset will be treated in the same manner as all other cryptoassetswhen considered for inclusion.

6.4. Historic Bundle data

● Historic Bundle prices are calculated from the 1st of January 2016.● The baseline value of each Bundle was arbitrarily assigned $1 on this day.● The closing price of bitcoin was $431.55 on the 1st of January 2016, so in order

to equate bitcoin’s price to our Bundle’s arbitrary value the price of the largestcryptoasset was divided by 431.55.

● Hypothetical asset returns follow the same pricing methodology detailed inthis document, however, please note that historical Bundle returns arehypothetical returns and do not reflect an actual investment into a Bundle.

● Additionally, hypothetical Bundle returns only consider the top 20cryptoassets as measured on Coinmarketcap at the start of each month. Thisinvestable universe ensures that our Bundle historic returns are representativeof what an ordinary retail investor could obtain in the crypto market.

● Hypothetical returns, unless explicitly stated, do not include Revix fees andtherefore will have tracking error when compared to a direct investment in aBundle’s underlying assets over the specified period.

7. Contingency treatment

7.1. Data interruption or delay

If the retrieval time of the relevant price source at an eligible cryptoassetexchange is at least 15 minutes later than the time of calculation of the real timeprices, then the eligible exchange is removed in the pricing calculation, and theweighting of the affected exchange will be automatically re-distributedproportionally into the remaining functional exchanges until the affectedexchange resumes operation.


http://www.coinmarketcap.com

7.2. Erroneous data

All relevant pricing sources are subject to a filtering process to screen outerroneous data. Erroneous data is disregarded in the calculation of the spot priceof a Bundle, and the weighting of the affected exchange will be automaticallyre-distributed proportionally into the remaining functional exchanges until theaffected price source is no longer regarded as erroneous.

7.3. Exceptional events

It is clearly acknowledged that the ability to connect to the internet is subject tolimitations on the stability of the global network, residence of user, network inuse, power supply, computer viruses, hacking, and other uncertain factors. We wenot liable to any stop in service due to the above-mentioned situations. We may,at our sole discretion, suspend trading, especially in circumstance of forcemajeure events, including but not limited to typhoon, earthquake, tsunami, flood,power outage, terrorist attacks, computer viruses, Trojan horse, hacking attacks,system instability or government behaviors, material adverse change ofapplicable laws or policies and other reasons, which result in our inability toprovide a reliable service or if, in our reasonable opinion, continuous provision ofservices would result in significant risks.

7.4. Security and custody

Your trust and security are important to us. We're committed to keeping yourassets and personal information safe. We invest heavily to ensure both a securesystem and a continually developing internal process for identifying andremedying any vulnerabilities detected.

To ensure system integrity, we employ industry-standard information securitypractices. These include, but are not limited to:

1. The separation and full isolation of the production environment from alldevelopment or testing environments. The production system cannot beaccessed, nor deployed via any other means than a pre-configureddelivery pipeline.

2. The use of key vaults, operated on globally distributed hardware securitymodules (HSMs) to securely store an application secret key or access key5

for the production environment.3. All accounts and integration partners, or provider accounts, are protected

by multi-factor authentication and disable all unneeded functionality.

5 https://safenet.gemalto.com/data-encryption/hardware-security-modules-hsms/


4. Bi-directional authentication between front and backend systems,network address restriction and whitelisting for communication betweendistinct applications in the Revix universe.

5. Distinct identity server for central user authentication across all Revixservices.

6. Standard web protection techniques to combat injection attacks.7. Full SSL protection.

Key management and payment authorisationTo ensure operational integrity, auditability and disaster resilience, the followinginternal controls have been adopted:

1. All keys are stored in HSMs, operated by Microsoft Azure. Access to thekey vaults is restricted to whitelisted domains and configuration thereofis limited to the development lead within Revix. Access to these accountsis protected by multi-factor authentication, and restricted to fixed IPaddresses.

2. All exchanges and wallet providers are whitelisted to only allow requestsfrom the Revix system.

3. Transfer of any crypto asset between any exchange and cold storage isrestricted to multi-factor, password manager-controlled transactionauthorisation by management at Revix. Recovery of this access in case ofemergency can be facilitated via a manual KYC process with theexchange or custody provider itself.

4. The allocation of fiat deposit and withdrawal amounts paid or receivedby customers is managed via an administration dashboard.

8. License and Use

8.1. The Revix trademark (when registered), Revix Bundles, which for the purposes ofthis section includes the website at www.revix.com, and all related tickers,widgets, URL’s, factsheets, and APIs and the contents of this document areproprietary property of Revix UK Limited and is provided for information purposesonly.

8.2. Subject to the terms of this document, you are granted a non-exclusive,revocable, limited license to copy and redistribute this document, or publish,quote or refer to Revix Bundles, in any medium or format for non-commercialand non-monetisation purposes only and provided that you give attribution toRevix. If you modify this document, you may not distribute the modified materialwithout the prior written permission of Revix.


http://www.revix.com

8.3. For the avoidance of doubt, you may not, directly or indirectly, create or distributeany financial products, including swaps, futures, options or other derivatives orsimilar contracts, contracts for difference, annuity products, insurance products,funds or other collective investment vehicles or schemes which rely on, quote, orrefer to Revix’s Crypto Bundles or this document, without our prior writtenpermission.

8.4. Our Bundles and this document are provided on an "as is" basis and Revix UKLimited and all other affiliated entities make no representations or warranties asto the quality, accuracy or suitability of Bundle pricing data.

8.5. We are not acting as an investment advisor or portfolio manager by providingaccess to Crypto Bundles and shall bear no responsibility or liability for any loss ordamage.

Revix UK LimitedUK Company Registration Number: 11713189

Please refer to additional important disclaimers at www.revix.com

Revix UK LimitedAll rights reserved


http://www.revix.com

Documents

F. Revix Crypto Bundle Methodology