A Convertible Note with a Dynamic Discount Rate

To encourage early participation and reward those who take action first, we have designed the EPOS (Easy Payment On Shares) system, a convertible note mechanism with a dynamic discount rate.

How It Works

Your investment grants you a discounted conversion rate at the moment the company sets its valuation. The earlier you invest, the greater your discount.

Example:

• Suppose the company’s valuation is set at €1 per share.
• If you invest €100 with a 20% discount, your conversion rate would be €0.80 per share, granting you 125 shares instead of 100.
• As more funds are raised, the discount progressively decreases, rewarding early investors with better conversion rates.

Additionally, investors who help bring in new participants receive bonus discount rates, further enhancing their conversion advantages.

How the Discount Rate is Defined

The EPOS system operates with a progressive discount structure, which is defined as follows:

1. Base Discount:
   • When you invest, a base discount rate is applied.
   • The maximum discount starts at 10% and gradually decreases as more capital is collected, reaching a minimum of 5% once the funding target is close.
   • This means that early investors get a better discount, and as risk decreases over time, the discount rate lowers accordingly.
2. Multiplying Your Discount:
   • The EPOS system also rewards investors who bring in others:
     • Invite 2 investors, and your discount is doubled.
     • Invite 5 investors, and your discount is tripled.
   • This incentivizes community-driven growth, ensuring that those who actively contribute to expanding the investor base are rewarded with even better conversion terms.