5LedgerX

5LedgerX Series B Confidential od,..,.. Le.”I EFTA01128556 0 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 EFTA01128557 The Future of Money Old Money MO: Cash in circulation M1-M2-M3: Commercial bank money lent via traditional ledgers Financial institutions manage cash volatility risk via CFTC-regulated FX trading kiCME Group Now the world SelvanCe: ice 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 , LedgerX © October 2015 LedgerX Confidential atf • i'A\M "R3Cev [...J 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 EFTA01128558 Professional Investors and Speculators Want Bitcoin PANTERA U —*" secondmarket ci 6 MorganStanley l'I JPIVIorganChase TIGER 0 I I: DOR SOROS Soros Fund Managemen "We see investing and trading bitcoin as one of the first major applications of crypto currency..." — Wedbush Equity Research Who they are What they want What they don't want The LedgerX Solution i-• • • • • 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 © October 2015 LedgerX Confidential 4 EFTA01128559 M M O Hedgers Need Bitcoin Options Consumers purchase BTC using fiat 4 Consumers BTC I Merchants Expedio- d!sh. overstock.com Merchants convert BTC to fiat © October 2015 LedgerX Consumer Businesses CIRCLE coinbase I \ BTC Price Volatility Risk Payment Processors bitpay Bitnet Confidential EFTA01128560 LedgerX Approach 1 Fiat Institutions SOROS O October 2015 LedgerX KY BRIDGE lLedgerX Federal Regulator LILA- (CFTC) Confidential bitpay Genesis Bitcoin Companies CIRCLE coinbase Teo BitFury 1 BTC 6 EFTA01128561 0 Existing "Options" Mostly inferior products like binary options, cash-settled forwards, or other less-efficient hedges. Regulatory Status Institutional Access Options Expertise Clearing Expertise Bitcoin Expertise Location 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 Confidential 7 EFTA01128562 O LedgerX: The Trusted Solution U.S. Based U.S. Banked U.S. Regulated Experienced Operators Derivatives Trading Bitcoin Specialization © October 2015 LedgerX Confidential 8 EFTA01128563 0 Milestones Series A Formal Application Submissions: Swap Execution Facility(1) Derivatives Clearing Ore Jan 2014 May 2014 Sep 2014 It " • " LedgerX Exchange Approved. CFTC Asserts Jurisdiction Sep 2015 • CFTC • time ...the for the first finds that Bitcoin and other virtual are properly defined as commodities..." — 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 EFTA01128564 Highly Experienced Team Board of Directors Mark Wetjen DTCC Fmr. CFTC Acting Chairman Jim Newsome Fmr. CFTC Chairman NYMEX CEO CME Board Member Tom Lewis Ameritrade CEO Green Exchange CEO Management Team 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 Goldman Sachs Goldman Sachs Y Combinator tutors •r Goldman Sachs ><Green M XI A Da CREDIT GCAL Investors Series A Lead VENTURE PARTNERS Seed Investors SVAngel Google ventures © October 2015 LedgerX Confidential 10 EFTA01128565 O The Real Margins are in Derivatives Clearing The biggest clearinghouses in the world are in derivatives .1 CM E Mkt Cap: $31B 2014 Rev: $3.1B 2Q15 Net Revenue Mix Listings Global Derivatives Data Service, Other ICE 2Q15 Revenue Mix* Mkt Cap: $25B 2014 Rev: $3.1B 'ICE acquired NYSE in 2012 for $118, yet NYSE trading revenue (Cash/Spot Trading) is still only 11% of ICE's total transaction revenue. The remaining 89% is from derivatives. CO October 2015 LedgerX Confidential 11 EFTA01128566 0 Derivatives: Finance's Rocket Fuel Notional ($ billion) 300,000 250,000 200,000 150,000 100,000 50,000 0 Co-Evolution of Spot and Derivatives Markets: A Case Study 2003 2004 2005 2006 2007 Equity Volume Equity Derivatives Volume Source: World Federation of Exchanges (October 2015) (:) October 2015 LedgerX Confidential 12 EFTA01128567 Bitcoin Volume Projections Monthly Notional ($ millions) 500 450 400 350 300 250 200 150 100 50 0 Jan-16 0 October 2015 LedgerX Mar-16 Jun-16 _ Spot Derivatives Dec-16 Dec-17 Confidential 13 EFTA01128568 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 Clearinghouse Liquidity Provider Cash Flow Positive Retail License © October 2015 LedgerX Confidential 14 EFTA01128569 I 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 EFTA01128570