EFTA01734786

I5ILedgerX Series B Confidential EFTA01734786 Bitcoin's Needs: Regulation and Volatility Management Bitcoin is a fundamentally new asset class that requires no middlemen or third-party to process transactions. • Bitcoin peer-to-peer network: New universal settlement layer and global open- access financial network • Bitcoin currency: A more efficient collateral asset Wall Street banks are scrambling to get into Bitcoin and the blockchain. But they need regulation and a way to manage volatility. LedgerX's regulated options exchange will let institutions manage volatility. Our clearinghouse has built a bridge between Bitcoin and the traditional financial system, and regulatory approval will activate this bridge. © October 2015 LedgerX Confidential 2 EFrA_R1_00013227 EFTA01734787 The Future of Money Old Money MO: Cash in circulation M1-M2-M3: Commercial bank money lent via traditional ledgers S Financial institutions manage cash volatility risk via CFTC-regulated FX trading :CME Group ice © October 2015 LedgerX New Money MO: Bitcoin blockchain as a settlement layer M1-M2-M3: Commercial bank obligations on top of the blockchain (via sidechains, smart contracts, etc) Financial institutions manage bitcoin volatility risk by trading on LedgerX's CFTC-regulated options exchange iffilLedgerX Confidential cdi [sr.' di. KS lie "R3Cev [...] convened the April meeting at Bank of America, which was attended by more than 75 people from 15 financial institutions" — NYT article on blockchain tech U.S. COMMODITY FUTURES TRADING COMMISSION 3 EFTA_R1_00013228 EFTA01734788 Professional Investors and Speculators Want Bitcoin GOMM Sachs Morgan'Stanley OJPMorganChase TIGER 0 II DOR SOROS Soros Fund Managemen. © October 2015 LedgerX "We see investing and trading bitcoin as one of the first major applications of crypto currency..." — Wedbush Equity Research • • • • • Investment Banks Bitcoin-specific Prop Traders Macro-Funds Multi-strategy Hedge Funds Family Offices • • • • • Buying Ability Shorting Ability Liquidity Market- Making Arbitrage • • • No Oversight Unexperienced Professionals Complex Banking Arrangements • • • • • • U.S. Federal Regulation U.S. Banking Trusted Clearing Safe Collateral Storage Easy API Access Experienced Governance Confidential 4 EF1A_R1_00013229 EFTA01734789 Hedgers Need Bitcoin Options Consumers Merchants Expedia d:S11 overstock.com Merchants convert BTC to fiat © October 2015 LedgerX Consumer Businesses CIRCLE coinbase Payment Processors Confidential bitpay Bitnet EFTA01734790 LedgerX Approach Fiat Institutions tir BNY MELLON CEMI , K1BRIDGE Sorot Fund Mortage.mil October 2015 Ledger% Federal Regulator (CFTC) Confidential bitpay Bitcoin Companies O CIRCLE Genesis coinbase Tei BitFury EFTA_R1_00013231 EFTA01734791 Existing "Options" Mostly inferior products like binary options, cash-settled forwards, or other less-efficient hedges. Coinut X X X X Singapore Bitstamp X X X X Slovenia Bitfinex X X X X Hong Kong Over-the- counter options X X X New York CME X Chicago Tera X X X New York LedgerX New York © October 2015 LedgerX Confide ,tial 7 EFrA_R1_00013232 EFTA01734792 LedgerX: The Trusted Solution U.S. Based U.S. Banked U.S. Regulated Experienced Operators Derivatives Trading Bitcoin Specialization © October 2015 LedgerX Co ntidertial EFrA_R1_00013233 EFTA01734793 Milestones Series A Jan 2014 May 2014 Formal Application Submissions: Swap Execution Facility") Derivatives Clearing Ore LedgerX Exchange Approved. CFTC Asserts Jurisdiction Sep 2014 Sep 2015 — CFTC Enforcement Action against Derivabit, Sep 17, 2015 (1) A Swap Execution Facility ("SEF") is a derivatives trading platform designation under the CFTC. A SEF license enables a company to list for trading swaps and options on currencies and / or commodities. (2) A Derivatives Clearing Organization ("DCO") is a clearing designation under the CFTC. A DCO license is the only regulated way that a company may hold customer funds and collateral in order to effect settlement and delivery for derivatives on currencies and / or commodities. © October 2015 LedgerX Confidential 9 EFrA_R1_00013234 EFTA01734794 Highly Experienced Team 41 ) Mark Wetjen DTCC Fmr. CFTC Acting Chairman Jim Newsome Fmr. CFTC Chairman NYMEX CEO CME Board Member — Tom Lewis Ameritrade CEO Green Exchange CEO © October 2015 LedgerX Paul Chou, CEO Juthica Chou, President & Chief Risk Officer Zach Dexter, CTO Shabana Paul, CFO & COO Kari Larsen, General Counsel & Chief Regulatory Officer Maria Minguez, Chief Compliance Officer Confidential S G0ldnlii s V Sachs fioldman buns Combinator VL XIA CREDIT LOCAL r. Series A Lead L VENTURE PARTNERS Seed Investors SVAngel ventures 10 EFrA_R1_00013235 EFTA01734795 The Real Margins are in Derivatives Clearing The biggest clearinghouses in the world are in derivatives • CM E Mkt Cap: $31B 2014 Rev: $3.1B 2Q15 Net Revenue Mix U.S. Cash Equities Global Derivatives Listings Data Services Other ICE 2Q15 Revenue Mix* Mkt Cap: $25B 2014 Rev: $3.1B `ICE acquired NYSE in 2012 for $118, yet NYSE trading revenue (Cash/ Spot Trading) is still only 11% of ICE's total transaction revenue. The remaining 89% is from derivatives. O October 2015 Ledger)( Confidential 11 EFT=LR1_00C1.3236 EFTA01734796 Derivatives: Finance's Rocket Fuel Co-Evolution of Spot and Derivatives Markets: A Case Study O To O O z 300,000 250,000 200,000 150,000 100,000 50,000 0 2003 2004 2005 2006 2007 Equity Volume Equity Derivatives Volume Source: World Federation of Exchanges (October 2015) © October 2015 LedgerX Confidential 2 EFrA_R1_00013237 EFTA01734797 Bitcoin Volume Projections Monthly Notional ($ millions) 500 450 400 350 300 250 200 150 100 50 0 © October 2015 LedgerX Jan-16 Mar-16 Jun-16 Spot Derivatives Confidential Dec-16 Dec-17 13 EFrA_R1_00013238 EFTA01734798 Fundraising History Seed: Early 2014 Series A: Mid 2014 Total Raised: —$6M Current Status Raising Series B. Targeting $5M lead check: $30M pre-money, up to $40M post- money Use of Funds ($10M Total) $4M $2M $2M $2M Federally-Regulated Liquidity Cash Flow Retail Clearinghouse Provider Positive License © October 2015 LedgerX Conticiertial 14 EFrA_R1_00013239 EFTA01734799 Disclaimers The information contained herein is confidential and proprietary information of NYBX Inc. ("LedgerX" or the "Company"). By accepting such information, each recipient agrees that it will, and will cause its directors, officers, employees and representatives to, use such information only to evaluate LedgerX's information and not for any other purpose and will not divulge any such information to any other party. Any reproduction of such information, in whole or in part, is prohibited unless permitted in writing by an authorized representative of LedgerX. Circulation must be restricted accordingly. This presentation contains forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. The results or developments anticipated by management may not be realized or even if realized, may not have the expected consequences to, or effects on, LedgerX or the Company's business prospects, financial condition or results of operations. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. The information within this presentation has been compiled by LedgerX for general purposes only. LedgerX assumes no responsibility for any errors or omissions. Additionally, the above information is provided for explanation purposes only, and should not be considered investment advice or the results of actual market experience. This communication is not a recommendation to buy, sell or retain any specific investment. Derivatives and bitcoin trading is not suitable for all investors and involves the risk of loss. LedgerX products and platforms are subject to regulatory oversight and approval. All references to specifications herein are made subject to and are superseded by official LedgerX rules. Current rules should be consulted in all cases concerning contract specifications. LedgerX"" is a trademark of NYBX Inc. All other trademarks are held by their respective owners. © October 2015 LedgerX Confidential 15 EFTA_R1_00013240 EFTA01734800