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Introduction 3. Main Service and Technology

3.1 Crypto Bank 1. Introduction 1.1 Cryptocurrency transaction system and current state of cryptocurrency exchanges 3.2 Index QR system

4. Rhea Token 1.2 Upcoming issues of cryptocurrency industry 4.1 Token Economy

1.3 Current state of Simple Payment market 4.2 Benefits for the stores

1.4 Problems of the simple payment market 4.3 Cryptocurrency Exchange

1.5 Structural limitations of cryptocurrency 4.4 Token Distribution

1.6 Lack of user convenience in cryptocurrency payment 5. Business Schedule of Rhea Protocol

2. Rhea Protocol 5.1 Roadmap of Rhea Protocol (SWEPT Network System)

2.1 Service of Rhea Protocol 6. Partners

2.2 System concept of SWEPT Network 6.1 Partners of Rhea Protocol

2.3 Rhea Protocol’s Expanded Service 7. Disclaimer

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Introduction

The popularization of credit cards and the growth of the FinTech market and the mobile device market have created a new payment process called mobile simple payment. The mobile simple payment has reduced the need for wallets offline. And as technology develops, its convenience and speed improved. Virtual asset, which was created at the point when people are getting more used to digital transactions, became the key to easily expand the payment market from the limited domestic market to the global market.

Many companies that have identified these opportunities in advance have continued striving to connect the virtual asset with the real economy. However, there are some limitations to apply virtual asset to the payment and settlement system due to the delay in the transaction processing of the Blockchain network, price volatility of virtual assets, and absence of an actual cryptocurrency payment platform. Even if these limitations are resolved, the lack of user experience for cryptocurrency payment and complicated exchange process does not correspond to the users who are already getting used to the simple payment system.

In order to apply cryptocurrency to the existing payment platform, the new process should be developed without changing too much from the current simple payment process. In this state, the online payment market will grow more than any other payment market when it is connected with the cryptocurrency payment market. Thus, Rhea Protocol is the cryptocurrency payment protocol created to accentuate the expected effect that could occur when cryptocurrency is applied in the on/offline payment market.

Rhea Protocol supports immediate cryptocurrency payment based on the SWEPT network of the cryptocurrency exchange. And it provides convenience, versatility, and security to customers using the QR code payment technology, which is familiar to everyone. The QR code payment technology has obtained a patent from the Korean Intellectual Property Office (KIPO). The technology supports Index QR payment by applying the cryptocurrency payment to the POS system faster than any other technologies through the cooperation with Doobitnaraesoft, Daewon POS, and ChanYul. The issued Rhea token can be used to pay fees and prepaid tickets that use the Index QR payment system. As the demands of the QR payment system increases, the demands of the token increase as well. This has led to an increase in the Rhea token value and designed the token economy.

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1. Introduction

For the past decade, the virtual asset market has shown remarkable growth.

There some voices concerning this could be just a ‘Bubble.’ But, virtual asset, which is safe, transparent, and globally available in terms of Cryptology, is ready to change every industry’s foundation.

The Korean government is also preparing legal and regulatory measures to keep pace with the trend of virtual asset. Starting from this or the next year, the government is planning to introduce practical measures, such as the Act on Specified Financial Transaction and Support (hereunder SFTS Act). Some countries, like Japan, and some large corporations, like Starbucks, are already providing payment services using cryptocurrency. For example, Facebook has launched Libra, their own cryptocurrency token.

Date Key content

2017. 9. ㆍ Government has announced cryptocurrency is not a legal tender nor a currency

ㆍ Banned all forms of ICO including issuance of securities

ㆍ Banned credit exposures, such as lending money or trading coin margin and blocked related financial company business and business cooperation 2017. 12. ㆍ Korea Blockchain Association announced ‘Self-regulation’ (Regulation on protecting virtual asset users, etc.)

ㆍ Announced ‘Special measures to eradicate cyrptocurrency speculation’ (Real-name cryptocurrency transaction system, joint investigation on illegal acts, etc.) 2018. 1. ㆍ Enacted and launched ‘Cryptocurrency-related money laundering prevention guidelines’

2018. 4. ㆍ Recommended correction of unfair terms and conditions of Fair Trade Commission’s cryptocurrency service providers (12 service providers) 2018. 6. ㆍ Announced the revised version (1st) of ‘Cryptocurrency-related money laundering prevention guidelines’

2018. 8. ㆍ Launched the ‘New Cyber Package Insurance’ (including cryptocurrency theft cover, etc.), developed by Korea Blockchain Association ㆍ Hanwha General Insurance 2019. 1. ㆍ Financial Supervisory Service announced the result of the Korean ICO research (September ~ November, 2018)

2019. 3. ㆍ Supreme Prosecutors' Office founded the ‘People’s Multiple Damage Crime Response Task Force’ (to investigate cryptocurrency fraud, etc.) 2019. 6. ㆍ Announced to extend the enforcement of the revised ‘Cryptocurrency-related money laundering prevention guidelines’

2019. 10. ㆍ The Presidential Committee on the 4th industrial revolution announced the ‘Governmental recommendation on the 4th industrial revolution’ (mentioned the necessity of institutionalizing cyrptoasset) 2019. 11. ㆍ The National Policy Committee of the National Assembly passed the revised version of the ‘Act on Reporting and Using Specified Financial Transaction Information’, related to virtual assets 2019. 12. ㆍ The Ministry of Economy and Finance stated the plan about the revised tax law related to the taxation of domestic residents and nonresidents’ cryptocurrency transaction profit Reference: March 2020 issue of KCMI Capital Market Focus

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All these data show us that it won’t be long before we witness the advent of virtual asset, which can be seen as a new tool or a game-changer. It will become the core of the next industrial revolution and an irreversible trend. In that respect, it is possible to say that virtual assets have limitless potential. But, are we ready to join that trend? Do we know the detailed structure of the trend? Or do we understand what we should prepare? This Whitepaper not only is the overview of our project but also one of the proposals about every company in this era that handles virtual assets. It is becoming clearer by the day that you cannot survive in the market if you don’t realize the changes in the emerging virtual banking market.

Definition & Range Obligation to Report

Electronic token with values that can be electronically traded or transferred (includes all related rights) Virtual Asset Exceptions: Non-convertible electronic token, game items, prepaid electronic payment methods, or electronic money, etc.

Enhanced Due Diligence of VASP (CDD, EDD): Service provider performs the obligation to report

- Separately deposits assets of VASPs and their customers - Certification of Information Security Management System (ISMS) Virtual Asset Service Included in financial companies - Open a real name-verified checking account Providers (VASP)

If unable to check customers’ identification due to their refusal of providing information, decline/end transaction

EDD: Obligation to directly report currency transaction (more than 10 million won) and suspicious transaction (with reasonable evidence)

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Include cryptocurrency transaction to ‘financial Required information when arranging a wire transfer of trade’ cryptocurrency: When a financial company or remitter remits more than a million won domestically / more - Trade virtual assets than USD1,000 overseas through wire transfer - Exchange with virtual assets (transferring money or virtual currency to other - Transfer of virtual assets domestic/overseas financial companies), the information Cryptocurrency - Storage/Management of virtual assets about the remitter and the recipient should be provided transaction - Mediate, recommend, substitute trade and to the receiving financial company exchange - Any other actions that have a high probability of being used as money laundering or terrorist financing, or actions that are designated in the presidential decree concerning virtual assets

Reference: February 2020 issue of Hexlant ISSUE REPORT

1.1 Cryptocurrency transaction system and current state of cryptocurrency exchanges

In order to use the cryptocurrency transaction, one should follow the cumbersome system that each cryptocurrency exchange requires to purchase and remit virtual assets. Although exchange platforms have changed to a more user-friendly format compared to the past, there are still huge hurdles for the users who are newly introduced to the exchange. Putting aside those facts, the current remittance system between exchanges shows a very insufficient level compared to the existing system of the conventional financial market. This is not just because it is inconvenient. If we look at it on a deeper level, we could see that a precarious situation continues. However, we will deal with it later. First, let’s briefly look at an example of an inconvenience that users can feel.

Let’s say that user A who uses exchange U is trying to remit bitcoins to user B who uses exchange H. Or, we could say that A is trying to remit his/her asset in exchange U to exchange H. In both cases, the user should follow the procedure that each exchange requires. But this procedure is mostly in favor of the convenience of exchanges. Therefore, users should wait a long time since they need to wait for the additional processes besides the procedures necessary for sending the bitcoin blockchain network. Not only that, the users have to copy and paste every single long and complicated bitcoin address that is in the database of both exchanges. But they don’t have a clue about when it will be approved and when the remittance process finishes at the receiving exchange. In other cases, some exchanges allow withdrawal only at certain fixed times for their convenience (But they allow deposits 24/7. This proves that the deposit and withdrawal system is only for the convenience of exchanges.). And each exchange has a different amount of limits per withdrawal, which confuses the users. Moreover, due to the arbitrary fee policy of each exchange, users often have to pay unreasonably high fees compared to the conventional financial system. For instance, there are cases of paying a minimum of $5 to a maximum of $20~$50 as a fee for remitting $100- worth bitcoins. This is truly making unreasonable profits by taking advantage of the current situation 6

without a foundational system. In the short term, this situation could benefit the exchanges. However, in the long term, it could harm the entire market. This is because the situation will eventually delay the massive inflow of virtual asset users and emphasize the negative aspects compared to the conventional financial system. Let’s go back to the abovementioned example. If the U exchange user A can spend lower fees then now when remitting cryptocurrency to the H exchange user B, and if the user can spend the same fee at a certain fixed time regardless of what exchange platform he/she uses, the virtual asset remittance market will be vitalized even more. Once safety and convenience are secured, the inflow of new users will naturally increase. Eventually, it will give huge benefits to all exchanges.

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1.2 Upcoming issues of cryptocurrency industry

The abovementioned example is just a beginning. In fact the more grave issue will come from various laws and regulations, which will be enacted soon. People who are familiar with cryptocurrency transactions will know that the current exchange remittance system has no clear plans. In this case, exchanges will first encounter challenges like enhanced Anti-Money Laundering Law (AML), Travel rule, and real-name account authentication and Information Security Management System (ISMS), which are the basic requirements of the SFTS Act. Due to these challenges, the existing exchanges will have to bear huge pressure. Exchanges will have to shoulder not only the initial costs for establishing the system but also the massive additional costs for hiring relevant manpower every year.

Reference: Introduction data of Financial Intelligence Unit’s AML system

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So, if relevant laws become realized with more details cryptocurrency exchanges will bear more burdens. This is because they will have to record perfect remittance and transaction records regardless of their format, whether it is domestic to domestic remittance or domestic to overseas remittance. In addition to that, the regulations that were applied to the existing financial market will be similarly applied to the virtual asset market. In-house transactions within an exchange may be easy to manage, but transactions between exchanges can be an issue. And in this process, VASPs have to follow the government-required laws and procedures. The remittance and transaction systems applied with various regulations like SFTS Act, AML, and Travel rule, will be just a beginning. Therefore, more exchanges will try to divert the responsibility of potential problematic tasks to each other. Or, there may be more cases of exchanges suffering from errors occurring from different systems and work systems, mistakes, or even from big or small legal issues.

Date Content March 5th, 2020 Passed the National Assembly’s plenary session (Enact 1 year after proclaiming the revised version) Before March 2021 Confirm false regulations of Financial Services Commission, FIU, and Enforcement decree of the revised version of the SFTS Act From March 2021 Financial companies are obligated to refuse financial transactions with FIU- unregistered businesses Until September 2021 Report obligations, such as existing VASP, real-name account, ISMS, etc. to FIU

Reference: National Assembly, Financial Services Commission

To that end, there is a possibility of domestic exchanges to minimize the connection with overseas exchanges. The sudden price change that occurs when transferring capital between exchanges is another factor that makes cooperation difficult. If this trend continues, it would be difficult for exchanges to cooperate with each other, and the meaning of blockchain technology may be tarnished. Also, the market will again face the fundamental question, “Why Blockchain?”

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Category Organization Regulation VASP treatment Key characteristics Bank Secrecy Act ㆍ Comply with the AML regulation FinCEN Registration (MSB) ㆍ Suspicious transaction report United System States of Uniform ㆍ Comply with the AML regulation America Uniform Law Regulation of License system ㆍ Store records (transaction form,

Commission Virtual Currency (license) technology, debt, etc.) Businesses Act License system ㆍ Obligation to explain to protect Regulation on (BitLicense) investors New York NYDFS Financial (Reviewing to ㆍ Store transaction records State, US Supervision change the ㆍ Obligation to Know Your Customer reporting system) Labor, ㆍ Warn potential dangers of virtual permission, and Recommendation assets regulatory state ㆍ Recommends to register VASP MSB Maryland Financial ㆍ Allows to secure certain amount of State, US Financial Consumer virtual assets during a specific situation Consumer Protection by setting the clause of the Control of Protection Law Commission Virtual Currency regulation Expand targets of ㆍ Obligation to Know Your Customer regulation ㆍ Comply with the AML regulation Europe EU AML guidelines (Exchange, wallet ㆍ Obligation to establish domestic laws providers, etc.) by January 2020 ㆍ Conduct periodic inspection of the user transaction, fees, system safety management, etc. Fund Settlement Registration system ㆍ Virtual asset change prior notice Act system, excessive advertisement Financial Japan regulation, etc. (revised version, enact Service Agency from April 2020) Prevention of Regulation targets of ㆍ Check users Transferring AML ㆍ Store transaction records Proceeds of Crime ㆍ Suspicious transaction report

Act Reference: KCMI International status and implications related to virtual asset anti-money laundering

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1.3 Current state of Simple Payment market The simple payment market became vitalized with the settlement of the FinTech industry, increased penetration rate of mobile devices, commercialization of credit cards, and the advent of mobile device businesses’ payment platforms. As it became possible to pay without handing over one’s credit card by inputting one’s credit card information to their smartphones, which is the core of simple payment, it became more difficult to see payment processes of not only cash but also credit cards.

In 2018, the size of the global mobile payment market recorded about $897.6 billion. And based on CAGR 26.93%, the figure is expected to reach about $3,695.4 billion in 2024. In addition, as the simple payment market moves from offline to online, the market is expected to grow even more along with the growth of e-commerce, digital content, and the e-sports market. The expansion of the simple payment market size has naturally led to the expansion of the payment market from the domestic market to the global market.

Mobile payment market size

The expansion of the global market has driven the need for the international remittance process, which was considered unnecessary in the domestic market. But the procedure, time, and fees necessary for international remittance became obstacles in the digital economy market, which became used to simple payment. Although the advent of the platform specialized for international

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remittance lowered the hurdles for the procedure, the existence of the intermediary that participates in the process has increased the amount of transaction processing fees. In this situation, virtual assets have emerged as the solution for the global simple payment. Virtual assets did not require borders since they do not get affected by any operator and are the intermediaries that can be exchanged on a network. Also, as the role of an intermediary in the transaction process got replaced with the smart contract, we could see a more active introduction of virtual assets and blockchains to the financial sector.

Among those introductions, the introduction of virtual assets to the remittance and payment area were especially active. With that, we have witnessed the simplification of the payment authorization process and the effects of reduced time and fees. However, due to the high simple payment fees, affiliated stores and users had to shoulder higher fees on the legacy system. This has made it difficult for them to introduce virtual assets because of structural limitations even if they want to. Also, the lower fee policy of regulatory authorities to deal with high fees has raised complaints from more intermediaries.

1.4 Problems of the simple payment market

When proceeding with the high fee simple payment with the participants within the payment process, the back-end process is very complicated unlike what you see from the payment scene. Since the payment is made based on the credit card information, it requires at least eight businesses to participate in the payment process. The fact that many businesses have to participate in one transaction means that the transaction consumes a lot of time and high fees. And the high fees become a burden to the affiliated stores or the consumers.

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Credit card (Upper-side) / Debit card (Down-side) Simple payment process

1.5 Structural limitations of cryptocurrency

The advent of a new currency offered opportunities to various currency-related markets. There were several conditions for the new currency to be acknowledged in the payment market. The most representative condition was to receive a consensus among the market participants based on its price stability. If there is a participant who doesn’t accept the currency during the payment process, it will lose its value as a currency.

The virtual asset could be seen as the technology optimized for the payment market with its accessibility to the financial system and its role as a smart contract in the international remittance and settlement process. But most virtual assets were traded mainly in the cryptocurrency exchanges due to the insufficient number of places to use. And most of them transformed into a method of speculation as its investment feature got stronger. Because of that, virtual assets started to show high price volatility, which is unsuitable for the payment market.

This volatility could be fatal when a transaction processing delay occurs within the blockchain network. If there is a large price difference between the point of the payment and the point of the settlement, every member in the payment process will be damaged. Despite these limitations, new services supporting virtual asset payment began to emerge based on rapid technology developments.

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1.6 Lack of user convenience in cryptocurrency payment

The development of the current blockchain industry is faster than any other industry to commercialize services. The price volatility and transaction processing delay issues are rapidly being resolved using stable coins and developing main net optimized for transaction processing performances. Various virtual asset payment services are created based on these situations. But there are still some limitations to the users who are used to the simple payment system.

First, to use the existing virtual asset payment services, users should pay extra money to purchase a terminal that supports cryptocurrency payment. If not, for every payment, the user should purchase cryptocurrency at the cryptocurrency exchange and remit the cryptocurrency to the virtual asset payment service wallet. Even if you complete the payment going through all these processes, another inconvenience occurs during the settlement process.

To settle virtual assets, you must create an account at the cryptocurrency exchange affiliated with the virtual asset payment service and separately affiliate with the corresponding cryptocurrency exchange and affiliated store. If the user, who is trying to use the virtual asset payment, is not the user of the affiliated cryptocurrency exchange, the virtual asset payment will not be made. Or, one should receive it from the affiliated store and go through a separate settlement process.

This kind of inconvenience occurs because it provides services based on a limited system within a restricted protocol. Since this is not that different from the mileage system of the conventional financial system, it is highly vulnerable in terms of scalability. Moreover, it is not suitable for the growing simple payment market.

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2. Rhea Protocol

2.1 Service of Rhea Protocol

Rhea Protocol is created to identify the expected effects that might occur when virtual assets are applied to the payment market and to resolve issues of the existing simple payment service and the virtual asset payment. It realizes the virtual asset simple payment service by using the QR code, which is one of the simple payment methods.

The biggest advantage of Rhea Protocol is that it can immediately pay with virtual assets without developing a technology that requires physical time or purchasing a separate device that costs an immense expense. The Protocol will use a POS device, which has been universally used and is used by many affiliated stores for a long time. It uses the KIOSK that shows a dramatic increase in demands due to the recently-increased needs for an unmanned system. To secure both devices, we need to sign a partnership with Daewon POS and ChanYul. And we need to equip the Index QR code payment system of the Rhea Protocol to the devices. In other words, we need to provide payment services by connecting them to POS and KIOSK devices of every payment platform that supports existing QR code payment.

Table showing features of transmitting and receiving information using QR code

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The QR code payment system is the most commonly used simple payment system in China. And there is an increasing number of payment platforms using the QR code system in many countries to improve convenience and scalability. Therefore, as countries use Rhea Protocol’s Index QR code payment system by using these platforms, there will be a dramatic increase in the number of affiliated stores using Rhea Protocol.

If so, there is a high possibility of most projects using the QR code payment system. Also, there are other methods, such as Qshing and QRL Jaking, to hack into the QR code system due to its convenience. To provide differentiated service from other projects, Rhea Protocol has collaborated with ‘Doobitnaraesoft’ and obtained a patent for an innovative security technology that prevents cyberattacks toward QR code payment. Also, it supports a safe virtual asset payment service. Based on its strong security, it provides innovative service experiences, such as payment, identity authentication, and remote payment, to customers.

QR code payment data process 16

Rhea Protocol is designed to give the least effect within the payment process rather than directly resolving the price volatility, which is the biggest obstacle for moving towards the virtual asset payment service. In other words, it focuses on resolving the volatility at the point of using the payment rather than virtual asset price volatility. This is because most virtual asset payment projects are paying attention to resolving virtual asset price volatility, which results in various cases of swapping and a longer time to apply the project to the existing financial system.

Thus, Rhea Protocol will not use the Rhea token, which is issued on its own, as the payment method. The protocol will use the BTC and ETH, the virtual asset within the SWEPT network, as the payment method. So, rather than wasting time and money to apply virtual assets they have issued, it would be better to immediately pay with virtual assets using the popularized cryptocurrency or credible virtual assets, which have gone through verifications of cryptocurrency exchanges.

Various types of existing simple payment services are creating unique ecosystems with the lowest fees. Competing with these systems or ensuring the lowest fees are not the goal for Rhea Protocol. Its goal is to use the current virtual assets as payment. It is not a project that develops new technology for a long time. It is an innovative project that connects virtual assets with the real economy through the SWEP network and QR code-based payment technology, which is a patent technology.

2.2 System concept of SWEPT Network

If you are familiar with conventional financial transactions, you may have heard about SWIFT (Society for Worldwide Interbank Financial Telecommunication). SWIFT is a data communication regulation that forms a network of each country’s major banks and handles remittance tasks between banks.

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SWIFT exists to resolve issues of overseas remittance or payment that occur due to the different work systems and foundational situations for financial transactions. With SWIFT, we can remit from our country to overseas and receive remitted money from overseas.

And SWEPT (Society for Worldwide Exchange Payment and Transfer) is the project that tries to introduce these globally shared communication regulations to virtual asset transactions. SWIFT handles overseas financial tasks comprehensively as the conventional financial market’s shared language. Just like that, in terms of virtual assets, SWEPT plans to introduce one globally-shared network and allow people to remit and receive virtual assets through the network.

The SWEPT Network supports fast and safe transactions to all types of transactions, such as remittance between exchanges or payment. This seems quite similar to the role of SWIFT in the conventional financial market, but in fact, SWEPT takes more advantage here than SWIFT. Although SWIFT allows overseas transaction by using the shared communication regulations, it requires complicated procedures, a relatively long time, and high fees. However, as we already know, the virtual asset is suitable for global transactions from its initial design. Compared to the legal tender, the virtual asset is much easier and quicker to use and requires lower fees.

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For example, it would take two weeks on average to finalize a payment when handling an overseas financial task through SWIFT1. But if we use cryptocurrency, the entire transaction and payment settlement process will be completed within a few seconds or a few minutes. Not to mention that it requires much lower fees than the legal tender transaction. Therefore, introducing a shared network like SWIFT to the virtual asset will allow higher efficiency than the existing financial system.

The strength of SWEPT is not just at establishing virtual asset-version of SWIFT. SWEPT can manage a system that has automated all legal and financial regulations, which is the hurdle that future VASPs must establish. This system fundamentally blocks the virtual asset’s limits, which can be used as an illegal fund, and guarantees complete transparency of financial transaction records.

But, to do that, there is something that needs to be fulfilled first. And that is the connection with the conventional financial system. It would be impossible to achieve this if you just take advantage of loopholes in the law or staying in the grey area. The cryptocurrency transaction should be able to satisfy the same level of reliability, safety, and severity of the legacy financial transaction’s requirements. Only then virtual assets would become recognized as the actual asset, just like the existing ones. Furthermore, after meeting the standards, we could eventually witness more mass adoption of virtual assets.

That is why SWEPT has focused on achieving the complete ‘transparency’ of transaction records, which will allow virtual assets to be recognized at the same level as the existing assets. And currently, this has partly been realized. In short, it succeeded in connecting virtual assets and legacy financial transactions, which is the innovation that the entire world failed to achieve. Just like the conventional financial system, the SWEPT Network transparently records the information of the parties to a transaction, whose identifications are authenticated. In addition to that, the network also perfectly records the financial flow, source, and the final destination. This satisfies the strict standard of the current government administration to the highest level. If it is possible to ensure the transparency of transaction information and the reliability of traces to the level the existing financial market and the government requires, not only domestic exchanges but also global overseas exchanges could trust and use SWEPT.

After connecting cryptocurrency transactions and the existing financial transactions, SWEPT Foundation has focused on the following three aspects as priorities.

1 It is a technology that has integrated the previous Hot wallet and Cold wallet. By adding the hybrid verification to the previous Hot wallet, it has adopted a method that can easily and safely save one’s assets.

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The first aspect is establishing reliable SWEPT Blockchain Network. This means that we need to establish a comprehensive blockchain network that global exchanges and businesses can rely on as the global hub of cryptocurrency transactions.

Second, the same level of an authentication system as the system applied in the existing financial market should be ensured. This is the system that guarantees a safe use environment without the dangers of hacking, copying, or extortion and includes exchange information, user identification, and device validations. These requirements need to be fulfilled to allow global users to use the remittance and payment service of virtual assets as a daily service, just like the existing financial services. General consumers still have doubts about the cryptocurrency transaction. If safety is not guaranteed, we thought that no virtual asset services would be useless.

The third aspect is the practicality from the perspective of users, which includes securing large affiliated stores. If securing the safety level at the same level as the conventional financial system is the hardware premise of virtual assets, securing large affiliated stores and practicality from the perspective of users is the software premise that allows consumers to feel the effectiveness of virtual assets. In other words, safety becomes the foundation, and practicality becomes the direct motivation that attracts customers. In a way, hardware factors seem to be in the area that doesn’t appeal to consumers. The inner structure of the cryptocurrency system is of little importance to consumers. Rather than that, consumers want to know whether they can purchase products in the store right now with their cryptocurrency. If the structure is complicated and difficult to use, it would just end up becoming an interesting toy to some early adopters. Also, if there are not enough affiliated stores to allow consumers to use the system wherever they want, it would end up being a meaningless task. That is why it is essential to secure user-centered accessibility so that anyone can easily use the system and to secure a vast number of affiliated stores. The user-centered practicality refers to the same practicality of payment tools used in the current financial market. That is, consumers should be able to experience the same level of convenience as they felt using the major payment services, such as Kakao Pay, Naver Pay, or Samsung Pay.

A Joint venture for SWEPT Network

There is no need to explain any more about how important these three conditions are for the virtual assets to be acknowledged as an “asset” with actual meaning, used by consumers, and actively used throughout the financial market, considering the market situation after enacting every enhanced regulation. Unfortunately, the perfect blockchain project satisfying all these conditions did not exist throughout the globe. This was true until the advent of SWEPT.

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Then, how can SWEPT realize these difficult challenges? In fact, it was impossible for a single subject to solely achieve the plan of establishing a unified platform that allows from remittance to payment services as a financial hub of global cryptocurrency exchanges. To achieve that goal, it should already be equipped with the financial transaction system that allows incorporating into the legacy financial transaction market. In addition to that, it should be applied with strict legal systems including Revised Specified Financial Information Act, AML, and Travel Rule. It should also include a vast range of tasks such as automated electronic systems, supervision systems, accounting and tax settlement systems, security authentication, user experience (UX), etc. Obviously, this is not a task that can be done by a single business person without plans. Thus, SWEPT will jointly conduct the project with various subjects who are securing specialized technologies.

Design of Doobitnaraesoft’s real economy connection platform

Although the requirements of companies and exchanges, which are the connection with the conventional financial system, establishment of a reliable blockchain network, and security and safety of applications, should first be fulfilled, Rhea Protocol first considered the perspective of consumers. The basic role of SWEPT is to manage the financial tasks of global exchanges. In terms of individual consumers’ perspective, however, integrated management of virtual assets scattered in each exchange and other financial services, such as remittance and payment, are added. These are possible through the platform and mobile application, Crypto Bank, which will be explained later in detail. As explained in the abovementioned third condition, practicality is the most important aspect for the system to be chosen as a daily service by consumers. Consumers will use Crypto Bank only if there are clear advantages compared to the existing system in terms of virtual asset management. It would only be meaningful if the system ensures excellent user experiences (UX) that allow anyone to use the system quickly and easily, and secures large affiliated stores.

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Furthermore, Doobitnaraesoft secures the technology that integrates and uses each payment company’s separately-existing QR codes through the innovative technology called Index QR. Let’s look at the widely-used payment systems of the N company and K company. Both systems allow easy payment with QR codes. However, because they use different QR codes from one another, N company Pay users should only pay through N company’s system, and K company Pay users should only pay money through the K company’s application. The same goes for the overseas payment companies like China’s WeChat, which boasts a giant market size. It’s like a situation that the smartphone chargers of iPhone and Galaxy are not compatible with each other since they use different types of chargers even though they are both smartphones. The Index QR code technology is the technology that resolved this inefficiency and allowed users to pay using one QR code regardless of payment companies. Doobitnaraesoft secures the patent related to this technology and essential technological partners of the Rhea Protocol project.

The company will be participating in developing the Hybrid wallet2, which manages and is equipped with both virtual assets and the existing financial assets, through the cooperation with TMONET, a company that will be explained later. Once this wallet is developed, it will be included in the Crypto Bank platform, which has already completed its development. With the wallet, consumers will be able to comprehensively manage both the existing financial assets and virtual assets at the same time and use features from payment to remittance within the unified platform.

2 It is a technology that has integrated the previous Hot wallet and Cold wallet. By adding the hybrid verification to the previous Hot wallet, it has adopted a method that can easily and safely save one’s assets.

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Blockchain Network Building by “HANCOM WITH” To achieve the Rhea Protocol’s blockchain technological condition, in other words, the goal of using the reliable SWEPT blockchain network as the virtual asset financial hub, it is necessary to secure a subject with the blockchain-specialized technology that is suitable for the role and status of SWEPT. But to do that, the subject should have some experience of successfully establishing a blockchain network and should be verified with accompanying security technology and other service development abilities. The stable operation of the network developed by the subject should be verified as well. Also, as we can see from the recent C chain’s case of issuance amount fabrication, the company’s past careers and reputations should be reliable as well. C chain was delisted in the U exchange, one of the biggest exchanges in Korea, since it has arbitrarily issued additional amounts of its tokens. This case has destroyed the reliability of the blockchain industry. This shows that the SWEPT network needs more than just securing technological strength to serve the role as the global virtual asset’s hub.

HANCOM WITH is the blockchain technological partner of Doobitnaraesoft, the software company that is in charge of developing the security solution of Hangul & Computer, the legendary Korean IT company that developed Hangul Word Processor, and the holding company of HANCOM. HANCOM WITH was first founded in 1999 and provided PKI and encryption technology-based security solutions and services. And in recent days, the company has actively invested in the 23

blockchain-based project and launched Blockchain Security Suite (BSS), the blockchain-based encryption solution, and Hancom Sledger, the blockchain platform, in 2018. In particular, Hancom Sledger is the representative blockchain platform of HANCOM WITH. It provides user identification service using blockchain technology, such as biometric authentication, PKI, SSO, etc. and boasts excellent security capabilities by providing the data decentralized saving system and improved key management system. Based on these capabilities, HANCOM WITH is collaborating with Doobitnaraesoft to develop blockchain systems and contribute to the blockchain system necessary for Rhea Protocol.

The blockchain technology of HANCOM WITH can establish various blockchain-based systems with its superior scalability and versatility. The technology is evaluated as one of the excellent platforms among all of the blockchain platforms in the market. The company’s passion for trying to integrate blockchain technology with the existing financial market has recently led to the acquisition of Sunhak Gold You, the gold exchange company. The reason for this action was that if the blockchain technology is applied in the gold transaction, it would be possible to increase the level of security and transparency. Like this, HANCOM WITH, the company that secures enough experience, technological strength, safety, and company reliability in terms of the blockchain technology, will contribute to the establishment of the SWEPT Blockchain Network along with the abovementioned Doobitnaraesoft and TMONET, the company that will be introduced later.

Security and identity authentication service design of “TMONET” The security and safe authentication system are the essential technologies required to complete the Rhea Protocol project. After establishing the blockchain network that corresponds to the core, security and safety should be guaranteed when actually using the service. To ensure them, TMONET, the specialized company in the field, will provide the technology with thorough verification to the Rhea Protocol as the Doobitnaraesoft’s security technological partner. TMONET was first founded in 2007 as a company specialized in mobile transportation card payment for bus and subway. It is the company that has developed T-money, which is used in public transportations. Until now, the company has developed the Micro SD module for mobile security authentication and launched services in Korean large company products, such as SK, KT, LG, Payco, and Samsung Pay. In 2018, it developed EasySign 3 , the cloud certification storage service, and led the safe identity authentication security system for websites and mobiles. This has received high praise and is currently being used in the National Tax Service’s Hometax, the governmental institution.

3 An authentication service technology of TMONET that saves and uses encrypted personal authentication on the cloud server.

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Based on these technologies, TMONET is actively performing in the virtual asset consignment service (custody) and the virtual asset-specialized wallet area through its unique virtual asset key management technology. The company will equip the integrated financial asset hybrid wallet, which is jointly developed with Doobitnaraesoft, to the Crypto Bank, the representative partner of Rhea Protocol and SWEPT. The current virtual asset wallet market indeed lacks security and a secure key management system. Therefore, to safely store virtual assets, it is crucial to secure the same security level as the conventional financial sector, and the authentication system. TMONET will lead the safe security system of the SWEPT service with its accumulated know-how and verified technologies. And the automated identity authentication cloud service of TMONET will be applied to the SWEPT Network.

2.3 Rhea Protocol's Extended Services

1) Rhea Payment

Rhea Payment is the gateway service that supports cross payment between two different payment services by replacing the intermediary role with the Rhea Protocol. The previous virtual asset payment could not provide various options to the virtual asset holders because it was only possible in the affiliated stores. The same goes for the legal tender payment. The different affiliated card

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companies or payment methods of each country made it difficult to pay money without affiliated cards. Because of that, it was inconvenient to exchange money due to high fees when people traveled or went on a business trip.

But, if we use Rhea Payment, users could use the payment platforms that they normally use in non- affiliated stores around the world and pay with various types of currencies. Let’s look at the case of China. Currently, more than 90% of simple payment uses QR code payment system. But even if a Chinese person tries to use the QR code payment in Korea and there is a QR code, it would be impossible to pay if the store does not support that particular Chinese payment platform.

Rhea Payment allows consumers to pay in the Korean affiliated stores without forming a partnership with the Chinese payment platform. This means that people can use the domestic services and credit cards they normally use in the overseas stores that support QR code payment. This type of scalability corresponds to the virtual asset project as well. By joining the protocol, the virtual asset project that supports payment allows QR code payment through the Rhea Payment. Consumers can easily pay through the Rhea Payment without developing additional Mainnet or purchasing devices.

Rhea Payment Flow

2) Banking Services Like the virtual asset payment system, multiple projects were providing the existing banking service among virtual asset projects. To operate the next generation banking service, customers who have switched from the existing banks were necessary. But the customers who need banking services required a higher level of reliability to the bank’s operational subject. In terms of the virtual asset project, it was difficult to provide the level of operational subject’s reliability suitable for the customer’s needs. And it was also difficult to deposit one’s assets.

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Rhea Protocol provides banking services through the intermediary role, not through depositing one’s asset in the company’s service. It provides a simple remittance service with enhanced security through QR codes. And this service allows fast overseas remittance regardless of borders, just like the abovementioned payment service.

In addition, we are planning to provide a simple cash withdrawal service of ATMs by using the QR codes on various ATMs. The cash withdrawal service process goes like the following: First, users need to request cash withdrawal in advance on their smartphones. Then, they can withdraw cash by scanning the QR code on the closest ATM. It would be possible to cash virtual assets faster than any other cryptocurrency exchanges by providing easy virtual asset cash service.

3) Other services Since Rhea Protocol is provided through QR codes, it can be applied in various areas that use QR codes. One of the representative areas that can be expanded is the online/offline remote payment and identity authentication area.

It is possible to design the service to allow consumers to scan the QR code provided by an e- commerce store when paying online. This method doesn’t require consumers to provide their credit card information. Also, with the method, consumers don’t have to go through the mobile authentication process. An overseas payment gateway will also be possible offline with this method. You won’t need to provide cash in advance to your friend whose traveling overseas when asking him/her to buy a product. It would be possible to pay money to any overseas stores if your friend transmits the store’s QR code. If the system gets integrated with IoT service, its scalability will be even bigger.

The identity authentication area uses a method that uses the operational principle of sending and receiving encrypted information. When identity authentication is needed in order to use other services, you don’t have to go through any login or authentication processes. The identity authentication process is completed if you scan the QR code provided on a monitor. With Open- API, it provides a versatility that allows people to use the service regardless of affiliated companies and protects user accounts through a simple and safe process.

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Scalability of Rhea Protocol service

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3. Main Service and Technology

3.1 Crypto Bank

Crypto Bank is a strong partner of Rhea Protocol. From the perspective of SWEPT Network, it serves as the hub of virtual financial business. But, what users will experience from the perspective of consumers is the role of a mobile application. Thus, it is possible to say that Crypto Bank is the application service that allows convenient management, remittance, and payment regardless of time and location based on the financial work system among exchanges established through the SWEPT Network.

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Crypto Bank

Equipped with the automated program applied with AML, Travel Rule, and SFTS Act. Connects exchanges and financial companies.

Within the Crypto Bank, wallets and coins that are used by exchanges will be applied the same. Therefore, there is no need to go through a separate process of linking the coins from each exchange. If consumers go through the initial authentication process that the Crypto Bank requires, they can conveniently manage and remit virtual assets while meeting every condition required by the domestic law as if they are using the conventional financial business application. It boasts a high level of convenience since users can comprehensively manage all of their assets in a single application without actually visiting each exchange.

3.2 Index QR system

Ensure convenience and safety with Index QR Scan

The Index QR is the automated QR system that allows users to use other payment companies’ QR codes without the need for separate QR codes or platforms. For example, let’s say that a Kakao Pay user purchased a Chinese service during his/her business trip to China. In general, the user can 30

purchase a Chinese service only if he/she has a QR code or platform, such as WeChat Pay, that can be used only in China. However, if the user uses the Index QR system, he/she can pay using the QR code system of Kakao Pay (in other words, by using the money in the Kakao Pay account). Also, the affiliated store owner doesn’t have to install multiple paper QR code or terminal for each payment company. The owner just has to install one Index QR to allow payment of various existing payment companies. This eventually will attract customers easily. Currently, there are many payment companies around the globe. But no company can be used regardless of the platform.

<4 problems of the Korean simple payment market>

This is the uniqueness of the Rhea Protocol. It will give a powerful impact on the global market and the overall industry in the future. It will not only allow users to comprehensively use the remittance system of every exchange around the world only with Crypto Bank. In addition to that, it will allow users to handle various financial tasks, including payments, in a single application.

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4. Rhea Token

4.1 Token Economy

Fig 11. Rhea Protocol Token Economy

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In most cases, various types of token economies designed for practical service operation fails to reflect reality. The biggest reason for this failure is because virtual assets that are issued as tools to use services are mostly used in cryptocurrency exchanges without actually being used. If the service is launched as soon as possible after listing on the cryptocurrency exchange, this issue can be resolved. However, virtual assets are issued to procure developmental funds in most cases. So, it takes a very long time for the service to be launched.

The same goes for the virtual asset payment projects. The project issues its own virtual assets that can be used as a method of payment. But there are no practically available payment platforms, which leads to the loss of its role as the currency. In addition, due to the impractical financing of the token distribution plan to develop payment platforms, the project has fallen apart before realizing a proper token economy.

Based on the experiences in these industries, the plan is to design and provide a token economy that is simple and suitable for payment platforms. The token economy of Rhea Protocol is designed by the partners who participate in the ecosystem, or other words the participants that play the most important role in the project, affiliated stores, or partners who form the payment ecosystem.

The issued Rhea token will not be used as the payment method of the Rhea Protocol. It will be used as the usage fees for the QR code-based virtual asset payment patent system and prepaid gift vouchers. An increase in the number of places that use the Index QR system, such as POS company or KIOSK terminal, will increase the demands for Rhea token. Thus, it will create a token economy that raises the token value.

The main participants of Rhea Protocol are the payment system affiliate store and cryptocurrency exchange that proceeds immediate virtual asset settlement. The benefits they can acquire are as follows.

4.2 Benefits for the stores

Despite the existence of credit cards, the need for virtual asset payment is continuously increasing. This is because the number of virtual asset-securing holders are continuously increasing and because there is the need for payment and remittance through assets deposited in exchanges. To this end, affiliated stores will have an opportunity to secure not only legal tender payment customers but also potential customers of the virtual asset market.

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To secure potential customers of the existing virtual asset market, it was required to purchase new devices or introduce payment solutions. Unlike this, Rhea Protocol does not require additional actions since the virtual asset payment is made based on the existing payment system. At the point of payment, other projects had to pay paying charges and had risks of being exposed to high volatility. However, the Rhea Protocol can easily benefit from virtual asset payment since it does not get exposed to the volatility at the point of payment.

Also, there is a high possibility of the people who are using the virtual asset payment being global customers. With them, it is possible to take the high ground of the market in terms of attracting tourists. To encourage the participation of affiliated stores, Rhea Protocol provided Rhea tokens through various promotions. And this allowed current business models to provide additional business opportunities.

4.3 Cryptocurrency Exchange

When a virtual asset exchange joins the SWEPT Network, it is possible to acquire exchange fees that occurred during the virtual asset settlement process as the number of Rhea Protocol affiliated stores increases. It will be possible to increase the Rhea Protocol’s virtual asset liquidity within the exchange through the automatic trading/remittance system. It will also be possible to turn exchanges into banks without going through the existing bank computer networks by connecting with stable coins.

4.4 Token Distribution

To use Rhea Protocol, you can use independent wallet services or Rhea Protocol-affiliated wallet services. When using the wallet service affiliated with the independent service, you need to input information to comply with regulations like KYC and AML.

Most of Rhea Protocol’s virtual assets are going to be distributed in a promotional format to secure affiliated stores and other various places that use them. And to prevent price volatility, its amount will be adjusted according to the lock-up schedule. The lock-up schedule has been set considering the increased number of users and affiliated stores following the project sales capabilities according to the timeline. During the proper lock-up period, participants, affiliated stores, and partners will establish the ecosystem of Rhea Protocol and rapidly commercialize it within their position so that users can easily use the system wherever they want.

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Rhea Protocol supports QR codes and POS/KIOSK payment, which are systems that are widely used these days. So, the value of its token is going to be maintained or incinerated by buying back virtual assets in the market through the fees occurring in the corresponding device. With that, it will strengthen its value as an asset. And from now on, it will be granted with values using various methods.

The total number of virtual assets that are issued by Rhea Protocol is 600,000,000. Simple payment of virtual assets will be possible simultaneously with the launch of the service. Key distribution bases are as follows.

Category Distribution amount % ICO(2019.11.11) 38,500,934 6.42% Reservation 21,499,066 3.58% Marketing 60,000,000 10.00% Operation 30,000,000 5.00% Ecosystem 120,000,000 20.00% Partner 120,000,000 20.00% Team 30,000,000 5.00% Advisor 30,000,000 5.00% Treasury 150,000,000 25.00% Table 1. Rhea Protocol virtual asset allocation (modifiable)

구분Category ICO(2019.11.11)

리져브Reservation

마케팅Marketing

운영Operation

에코Ecosystem시스템

파트너Partner 팀Team

어드바이저Advisor

Figure 12. Rhea Protocol virtual asset allocation (modifiable) 35

According to the abovementioned table, 6.42% out of the total issued amount (100%) will be distributed to the investors through Token Sales and form the initial circulation amount. The lock- up is lifted in terms of the corresponding amount.

The Rhea Protocol is planning to prevent the decrease of token value by establishing the 4-year plan to build an ecosystem (affiliated stores, users), and by incinerating the amount, which has been distributed one by one to the affiliated stores and strategic partners in order to establish the ecosystem in a long-term perspective, from the amount of foundation-secured Treasury (25%). To this end, the lock-up of the amount that is distributed to the Ecosystem (20%) and Partners (20%) will be lifted for 4 years 1/48 out of the corresponding amount at a time every month starting from the ICO date (Nov. 11th, 2019).

The lock-up of the amount that is distributed to the Team (5%) and Advisor (5%) will be lifted for a year 1/12 out of the corresponding amount at a time every month after a year from the ICO date (Nov. 11th, 2019). The Team and Advisor mentioned here refer to the personnel specified in rheaprotocol.io.

In terms of Marketing (10%) and Operation (5%) amounts, continuous marketing, and steady operation are required to vitalize the payment platform. So, the two categories will be managed and used in a vesting form. Also, the lock-up of the amount that is distributed to the two categories will be lifted for a year 1/12 out of the corresponding amount at a time every month starting from the ICO date (Nov. 11th, 2019).

Just like the abovementioned details, the plan is to make the best effort in expanding the base through long-term token distribution and management to establish a market-friendly/ecosystem.

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5. Business Schedule of Rhea Protocol

5.1 Roadmap of Rhea Protocol

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6. Partners

6.1 Partners of Rhea Protocol

7. Disclaimer 38

Disclaimer statement

Prior to the explanation of the RHEA PROTOCOL, the recommendation is to be acquainted with the following information. Please make sure to carefully read through every detail of the Disclaimer clause specified in the Whitepaper. If you are not clear about your future actions, it is recommended to consult professionals in legal, finance, tax affairs, etc.

Legal authority

RHEA PROTOCOL shall have no liability with respect to the information specified in the Whitepaper. This document is written with the purpose of introducing the details of the virtual asset payment service of RHEA PROTOCOL. The entire distributed details do not show any properties of a contract.

Duty of disclosure

The project-related coins specified in this document do not correspond to financial investment instruments, such as stocks. And its issue does not correspond to the subscription or recommendation of the subscription of financial investment instruments. This document specifies the fact that the soft cap amount should be set when proceeding with the project-related financing, and the entire purchased amount of virtual assets can be returned and suspended if the issued amount of the virtual asset fails to reach the soft cap.

The purpose of this document is to provide necessary information to the people who are willing to participate in the project, not to recommend investments. The technologies and expressions specified in the document do not correspond to the promise of the issuer, and they do not have a legally binding force on the parties concerned, such as the issuer.

The details of the Whitepaper may be changed or updated without prior notice. This document only specifies contents that can be demonstrated. In the case of changes in the plans or policies when proceeding with the project due to unavoidable situations, the changes will be notified through the website or the terms and conditions of use.

The document is distributed for project-related reference purposes only as of the time of writing. The details of the document may be revised or changed. The information in this document represents the best information currently available at the time specified on the cover. And please note that this is not the final version.

After the specified date, the information in this document, such as business operational status or financial status of the project, may be changed. The details of the Whitepaper may be occasionally updated. No one is legally mandated to sign a contract or an agreement with a legally binding force that is related to the trading of project-issued tokens. No one should accept money based on this document. 39

The purpose of the project-issued tokens is not to form a unit of stocks or business trusts or to form a unit of collective investment schemes. The definitions of each concept follow the specified definitions in the equivalent regulations of the other jurisdictions. Thus, this document is not provided as a business plan, prospectus, or proposal, and it shall not be interpreted as an investment proposal or recruitment of stocks, business trusts, or collective investment schemes’ unit in any jurisdictions.

The project-issued tokens shall not be used concerning the product by the buyers or be understood, interpreted, categorized, or treated as the opportunity to receive the return on investment/income/amount/payment/profit or a part of the amount. The specified methods of issuing coins/tokens shall not copy, distribute, or spread the entire or a part of this document at the regulated or banned jurisdiction. The information has not gone through the revision, screening, or authorization of the regulatory authorities. These measures have never been and will be taken in any jurisdiction.

If a person is willing to purchase the project-issued tokens, it shall not be understood, interpreted, categorized, or treated as the following. If there are currencies other than cryptocurrency, bonds or stocks issued in a certain institution, or authorities, options, derivative products, guaranteed return on investments or loss aversions related to these bonds or stocks, or if there are acts of impersonating vesting contracts for the mentioned purposes, limiting authorities under other contracts, collective investment scheme, distribution and spread of stock units like business trusts, or derivative products, or distributing and spreading the entire or a part of this Whitepaper, all of the abovementioned actions may be banned or restricted according to the certain jurisdiction’s legal or regulatory requirements.

If restrictions are applied, you should acquaint yourself with the restrictions, which can be applied by the Whitepaper, ask for legal advice, and abide by them. In the case of browsing or possessing the document, one shall not share, allow, or make a contribution to the sharing of the Whitepaper or its contents with the third party by distributing, copying, or using any other methods regardless of the purpose.

Certain expressions specified in the document imply predictability statement about the project’s future, future affairs, and prospects. These statements are not based on historical facts. They can be identified as similar expressions as ‘plan,’ ‘assumption,’ ‘trust,’ ‘prospect,’ and ‘expectation.’ Besides this document, these future prediction statements can be included in presentation materials, interviews, videos, and other disclosed materials. The future prediction statements in this document include but are not limited to the project’s future results, performances, and achievements. They also include various risks and uncertainties.

As of the date of writing this document, the RHEA PROTOCOL project is not completed or is being

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fully operated. This document is created under the assumption that the project-issued tokens are going to be fully operated after the completion of the RHEA PROTOCOL. However, this shall not be interpreted as a guarantee or promise of completing the platform or its full operation.

It is recommended to carefully read through the following details and analyze and understand the related-factors and risks before deciding the purchase or participation of the project-issued tokens. The risk of becoming restricted to access the project-issued tokens due to loss of identification information and buyers making storage-related mistakes, such as losing essential personal key for a digital wallet. The risk of changing values after issuing the token in the project due to the changed global market and economic situations. The risk of changing regulatory environment of a nation operating businesses, such as changes in the political, social, and economic environment and changes in the stock or virtual asset market environment. And the change-related risks of the project’ s ability to survive or compete in terms of the mentioned environmental changes. A specific jurisdiction can apply existing/new regulations related to the blockchain technology that is disadvantageous to the project-issued tokens.

The project-issued token has a risk of lacking interests of companies, individuals, and other organizations about its platform and services, and a risk of having limited public interests about the creation and development of the distributed application. The risk of applying considerable changes to the key features and standard of the project-issued tokens or the platform before launching or implementing the RHEA PROTOCOL. Although the project intends to match the function of the project-issued token with the details of this Whitepaper, these changes may be applied.

The project-issued token has the risk of being involved in a competition with other services that can potentially have adverse effects. (ex. A case that a business fails to achieve success or its prospect is gloomy due to the competitor project.)The occurring disastrous cases, such as irresistible natural disasters, could affect the operation of the affiliated companies or other uncontrollable factors.

Due to mining attacks or attacks of hackers or other individuals, there may be occurring cases of being robbed or losing the profit from the project-issued token or the token itself, or disruption of ecosystem development capabilities. The project-issued tokens or other virtual assets are the new technologies that have yet been verified and are continuously developing. The functions of the project-issued token are not completely developed and there is no guarantee of its completion. As technology develops, the development of encryption technologies and methods and changes in the settlement algorithm can be the risk in terms of the token ecosystem and its usage.

The methods of handling tax and accounting of tokens issued from this project are uncertain and can differ from jurisdiction to jurisdiction. Purchasing the project-issue tokens may harm handling taxes. Therefore, it is recommended to receive individual accounting advice. Beyond the

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abovementioned risks, there are other risks that cannot be predicted by the project or the affiliated companies. In addition, there could be a risk of unexpected combinations or changes. In the case that the abovementioned risks and uncertainties become realized, the business, financial status, operation result, and prospect of the project can be adversely affected. Changes of the project- related policies (statute, ordinance, regulation) Technical limitations related to the realization of the project, changes in the project operation policy, range of a project that is newly being applied, unavoidable issues and changes of the schedule, legal compliance-based. This Whitepaper is created based on the statute, policy, and ordinance at the time of creation.

Among other details of the project, the following details may change according to the nation’s regulation that year. Authentication and process for digital currency remittance and exchange services with other countries. Conditions to use exchanges (real-name account, OTP, KYC). Exchanging information with the bank that manages checking and escrow accounts (insurance, registered name, financial policy). Changing information between the company’s exchange and affiliated exchange (customer information, market price information, transaction information). Standards and authentication of payment terminals (radio wave authentication, liability insurance). Tax reports according to the product and service sales (year-end tax adjustment, income report, additional tax report). Whether to store or disclose personal information (location data, access authority).

Writing and distributing this Whitepaper is only allowed within the RHEA PROTOCOL. If the act of forging this document results in any harm to the project or the participants, we will take legal actions against it.

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