A step-by-step tutorial for the VeADIR interactive research application suite.

   
 


  1. VeADIR

    New User Guide

    VeADIR Setup and Overview

    Before using the VeADIR, you will need to connect it to your wallet account using an interface (i.e. Brave, Chrome, Firefox, Opera, Trust, etc.).  One setup for a desktop computer (MetaMask) and one setup for a mobile device (Trust) follows. Other operable desktop and mobile configurations exist, but are not yet documented here.

    MetaMask [desktop]

    MetaMask is a secure identity vault for Ethereum.  It allows you to hold ETH, VERI, and Ve Tokens, and serves as your bridge to decentralized applications (DAPPs)

    1. From your browser, go to https://metamask.io
    2. Select either Get Chrome Extension (Chrome, Firefox, Opera) or Get Brave Browser and add MetaMask extension [brave://extensions]
      (choose appropriate extension for your browser type)
    3. Click Continue / accept pop-up window(s)
    4. Create Password (or Import with seed phrase)
    5. Accept Terms of Use, Privacy Notice and Phishing Warning
    6. Go to Settings and ensure your seed words are securely backed up
    7. Send ETH (gas) to this account address from an exchange or another wallet
    8. Go to https://dapp.veritaseum.com
    9. Click on the Get Started icon(s)
    10. On the Veritaseum pop-up, click on Get Started
    11. Connect account by clicking on Connect MetaMask
    12. Login to MetaMask by entering your Password, then in response to the Connect Request (“Veritaseum would like to connect to your account”) click the Connect button
    13. Your account number will be displayed; click Next 
    14. Get Verified to obtain KYC approval for your account address; read and agree to the privacy policy, then select Individual or Entity; complete the required data then click Verify
    15. Upon successful Verification and MetaMask connection, a list of available products will be displayed (based on your jurisdiction and local regulations)
      Note:  If you do not complete the Verification process, you can still explore the VeADIR platform in anonymous mode and return later to complete
    16. If the MetaMask connection is disconnected, authentication will be required again; click Authenticate then follow the steps above to reconnect your MetaMask account

    Trust [mobile]

    Trust Wallet is a fast and secure multi cryptocurrency wallet that manages and stores your VeAssets and other digital assets, and connects to the VeADIR using the built-in DAPP access.

    1. Download and install the trust wallet:
      • iOS – Apple App Store
      • Android – Google Play Store
    2. Go to the Settings tab, select Wallets then click + in the upper right corner
    3. Create a new wallet or import your existing wallet
    4. Click the informational “i” and ensure your private key is backed up
    5. Send ETH (gas) to this account address from an exchange or another wallet
    6. Click on the DApps tab and search for https://dapp.veritaseum.com
    7. Click on the Get Started icon(s)
    8. Connect account page will display with your current account number;
      click Next to continue 
    9. Login to MetaMask by entering your Password, then in response to the Connect Request (“Veritaseum would like to connect to your account”) click the Connect button
    10. Your account number will be displayed; click Next 
    11. Upon successful MetaMask connection, a list of available products will be displayed (based on your jurisdiction and local regulations)

    Menu and Navigation

    Click menu icon in upper left corner (3 horizontal bars), then select one of the following options:

    My Currency

    The following currency translations are supported:

    • USD – United States Dollar
    • ETH – Ethereum
    • BTC – Bitcoin
    • EUR – Euro
    • GBP – British Pound
    • CNY – Chinese Yuan
    • JPY – Japanese Yen

    To change your default currency:

    Click menu icon in upper left corner (3 horizontal bars)


    Open dropdown menu and select preferred currency from the list

    VeWallet

    The VeADIR includes a built-in wallet that stores VeADIR digital assets.  You can also easily send and receive assets using a QR code. Click Wallet to display a list of assets contained in your account.  

    Wallet functions: Enabling tokens

    1. Select Wallet in the main menu to open your wallet
    2. Your VeAsset, ETH and VERI balances will be displayed
    3. To be able to send, receive and otherwise use VeTokens you will need to enable your tokens using in the upper right corner
    4. The “Enable tokens” menu will open, click the slide button () behind each token you want to enable
    5. When you have selected all tokens you want to enable, click update
    6. This will make Ethereum transactions which you need to confirm through Metamask, note that this will only cost the gas price (transaction fee), nothing more
    7. Also note that in the above example, 100,000,000 VERI will be enabled. Basically this means, you only have to do this procedure once.
    8. When you have confirmed all transactions, you need to wait until the transactions get confirmed on the blockchain.




    The following list of assets are currently supported in the wallet:

    • VERI – Veritaseum
    • ETH – Ethereum
    • VGLZ1 – Ve Gold Z1 (1 oz)
    • VGLG1 – Ve Gold G1 (1 gram)
    • VSLK1 – Ve Silver K1 (1 kilo)
    • VSLZ1 – Ve Silver Z1 (1 oz)
    • VPMZ1 – Ve Palladium Z1 (1 oz)

    Check back often, as additional assets are added as they become available in the VeADIR.

    Enable Tokens

    Before sending tokens or utilizing them on the VeADIR, you need to authorize Veritaseum smart contracts to receive or interact with them.  Click the Enable tokens button in the upper right corner and a list of assets are displayed with their quantity and current value (displayed in your default currency).  You will need to enable each token that you intend to send or manage.

    Click the slider next to each token that you wish to enable.  The slider will move from its current position to the opposite state.  The position and color will update to reflect the new state (left and grey for not enabled, right and orange for enabled).  The default is not enabled.

    Click Update then Confirm for each MetaMask transaction.  Multiple transactions will be created, with the quantity depending on the number tokens enabled.  Upon successful completion of all the transactions, a notification will be momentarily displayed. Your account is now set up and ready for use.

    Sending and Receiving VeAssets and Tokens Through VeWallet

    Send Feedback  

  2. If you have an issue or require additional assistance, click the Send feedback button.  

    Fill out your information, including email address and your name.  Enter a description of your issue or question.

    Note that your Ethereum address is automatically included, to assist the support team and significantly improve your ticket’s resolution speed.  

    Attach any supporting documentation.  You can also Search Articles to see if your question has been answered before.  

    Click Send Feedback to send your information to Veritaseum support.


    Help  

    Click Help to view this text and tutorial videos.

    Notifications

    User information including the (partial, hover mouse for full) account number, ETH and VERI token balances and values (displayed in default currency) and notifications icon.

  3. New notifications are indicated by a number in a red circle, corresponding to the quantity of new notifications.  Click the bell to display any new notifications. Click on an individual notification to navigate directly to the full notification for that item.

    VeExposure

    Bucket of Assets

    An Exposure is a bucket of digital assets that is researched, purchased, delivered, held or sold on your behalf, all performed automatically by the VeADIR -- a world class peer-to-peer financial machine.

    You simply feed the VeADIR with ETH and VERI tokens or USD currency, and it will automatically open a bucket and fill it with high quality, researched tokens on your behalf.  The VeADIR will manage your Exposure bucket from as little as fifteen minutes, all the way up to ninety-nine years. You always remain in control and can close an Exposure early at any time, either by waiting for the VeADIR to sell the assets at market prices then settling in ETH, or by taking immediate delivery to your account of all the assets in the bucket and closing the Exposure in a few minutes.

    See VeResearch for examples of some of the actual research that the VeADIR utilizes to fill a new Exposure bucket.  You don’t have to understand how to use multiple different exchanges to purchase assets, the VeADIR uses an API (application programming interface) to automatically do it for you.  Opening and closing Exposure buckets takes only a few clicks.

    Open Exposure

    To open a new Exposure:

    1. Navigate to VeExposure via the menu
    2. Click the plus sign in the orange circle
    3. The Open Exposure pane will open from the right
    4. Enter the Amount of VERI that corresponds to the Exposure size you would like to open, with the Exposure Value automatically populating to allow you to adjust and confirm the amount
      Note:  Current minimum Exposure amount is approximately 0.1 ETH with a maximum amount of 10 ETH
    5. Enter the Duration in Hours, Days, Weeks, Months or Years
    6. Click Submit then approve/confirm the transaction
    7. You will receive notifications as the Exposure bucket is opened then filled by the VeADIR; allow sufficient time for the assets to be purchased for your bucket

    View Exposure

    To view a previously opened Exposure:

    1. Navigate to VeExposure via the menu
    2. Click on one of the Opened exposures
    3. The Exposure pane will open from the right

    Click on one of the four tabs to view more information about the Exposure including additional details, asset performance, asset allocation and bucket history.

    Information

    This tab displays the currency, value, fee amount and time period of the Exposure

  4. Performance

    This tab displays the performance of the Exposure in both ETH and the default currency

  5. The Progress is the percent of the duration that has elapsed thus far.

    Allocation

    This tab displays the allocation of each asset within the Exposure

    History

    This tab displays the date of each transaction within the Exposure.  Click the pop-out arrow to view the transaction on etherscan.io.

    Close Exposure

    An open Exposure can be closed at any time by clicking the three dots at the right side, then clicking Close exposure.

    The Close exposure dialog box will open, where you will need to choose a closing strategy:  Wait for ETH or Assets delivery

    Wait for ETH

    This action will sell the assets in the Exposure bucket, returning ETH as each asset sale is completed

    Click the box next to I understand and wish to proceed, then click Continue and approve/confirm the transaction

    Assets delivery

    This action will immediately transfer the assets from the VeADIR bucket to your account, then close the Exposure

    VeRent

    Both ETH and VERI are required to use the VeADIR.  If you have ETH but do not have VERI (i.e. “Renter”), you are still able to open an exposure by renting another user’s VERI (i.e. “Rentee”). In this case you would “Get VERI” to use with your ETH.

    To rent VERI tokens from another user, use the rental facility.  The VERI rentee will receive the agreed-to percentage of profits upon closing of the Exposure.  The ~5% fee is paid in VERI by the VERI rentee, and is retained by the VeADIR to cover the research and platform fees.  

    If the Exposure closes with a profit, the rentee and renter each receive a percentage of the profits paid according to the agreed-to ROI percentage split.  In the event of an Exposure loss, the renter absorbs the full loss (in ETH) and the rentee receives nothing (5% VERI fee is retained by VeADIR). The VERI renter (user with ETH) has the option to close the Exposure early.  In this case the same rules apply as a closure at the duration expiration, except that the renter must settle in ETH and cannot take delivery of the assets. This ensures the rentee will receive an ROI payout (assuming positive ROI) for renting out their VERI tokens.

    Get VERI Tokens

    There are two methods of getting VERI tokens via the rental facility.  You can either accept an existing offer, taking another user’s terms. Or you can submit your own offer with your own terms in it, and wait for another user to accept it from you.

    Accept Existing Offer (Get VERI)

    1. Navigate to VeRent via the menu
    2. Click Get VERI Tokens (tab will highlight with orange bar under text)
    3. Select one of the existing offers by clicking on the shopping cart next to the offer
    4. Read the text, click Confirm to accept the rent offer then approve/confirm the transaction

    Submit New Offer (Get VERI)

    To a new offer to get VERI tokens:

    1. Navigate to VeRent via the menu
    2. Click Get VERI tokens (tab will highlight with orange bar under text) 
    3. Click the plus sign in the orange circle and the Get VERI pane will open from the right
    4. Enter the Exposure Value denominated in ETH
    5. Enter the Price as a % of the exposure ROI you (“Renter”) are willing to pay to the owner of the VERI (“Rentee”) as rent
    6. Enter the Duration
    7. Select Hours, Days, Weeks, Months or Years
    8. Enter how long the exposure will remain open (if not closed early)
    9. [optional] Enter the Expiration (how long the offer will remain open)
    10. Select Hours, Days, Weeks, Months or Years
    11. Click Submit and approve/confirm the transaction

    Your new offer will be listed in My offers, as well as in Offer VERI offers (greyed out and non-purchasable).

    Offer VERI Tokens

    Accept Existing Offer (Offer VERI)

    1. Navigate to VeRent via the menu
    2. Click Offer VERI Tokens (tab will highlight with orange bar under text)
    3. Select one of the existing offers by clicking on the shopping cart next to the offer
    4. Read the text, click Confirm to accept the rent offer then approve/confirm the transaction

    Submit New Offer (Offer VERI)

    1. Navigate to VeRent via the menu
    2. Click Offer VERI tokens (tab will highlight with orange bar under text)
    3. Click the plus sign in the orange circle and the Offer VERI pane will open from the right
    4. Enter the Exposure Value denominated in VERI
    5. Enter the Price as a % of the exposure ROI you (“Rentee”) are willing to accept from the owner of the ETH (“Renter”) as rent
    6. Enter the Duration
    7. Select Hours, Days, Weeks, Months or Years
    8. Enter how long the exposure will remain open (if not closed early)
    9. [optional] Enter the Expiration (how long the offer will remain open)
    10. Select Hours, Days, Weeks, Months or Years
    11. Click Submit and approve the transaction

    Your new offer will be listed in My offers, as well as in Get VERI offers (greyed out and non-purchasable).

    VeAssets

    VeAssets are digital tokens that represent “veritized” (tokenized) physical precious metals.  The assets can be bought, sold, sent and received just like any other digital token. However, the token can also be redeemed to take delivery of the underlying precious metal.  With VeAssets you get the best of both digital assets and physical precious metals.

    Buy

    Pay with bank wire

    1. Navigate to VeAssets via the menu
    2. Click on the asset you would like to purchase
    3. The token pane slides out from the right
    4. Click on Buy at the bottom
    5. Select Pay with bank wire
    6. Enter the Amount to purchase, the Total will be calculated in the default currency
      If you have VERI tokens and would like a discount, select the I want to buy discount check box.  Read the terms of use, then select the I agree checkbox and click Continue 
    7. Review the final order summary, then click Submit and approve the transaction
    8. Once confirmed you will be directed to the purchase overview. When the Ethereum transaction is confirmed on the blockchain, you will be presented the wire transfer information. Use this information to set up a payment from your bank account
      https://lh4.googleusercontent.com/tlJ-dsY02weOReij0SKSZvqq_5VMZxaO2KMLxjIsY6Y-phN6gWW0lkNcnQDqu9uGnQm6AXcuuCwXPbV7feu5QDs8p2t0UPf3FGkRxarIIfX5VLnat_RNWE0Wt2u1ALOZfxZ9q7Vp

    Pay with ETH

    1. Navigate to VeAssets via the menu
    2. Click on the asset you would like to purchase
    3. A detailed information pane opens from the right
    4. Click on Buy
    5. Select Pay with ETH
    6. Review the Purchase with ETH warning, then click Continue
    7. Enter the Amount to purchase, the Total will be calculated in the default currency
      If you have VERI tokens and would like a discount, select the I want to buy discount check box.  Read the terms of use, then select the I agree checkbox and click Continue 
    8. Review the final order summary, then click Submit and approve/confirm the transaction
    9. The ETH (and VERI if you purchased the discount) will be deducted from your account and the tokens will be transferred to you as soon as the transaction is confirmed (usually within ten minutes)

    Click on Purchases to view the purchase orders for every Buy transaction.  Click on an individual transaction to view additional details on the right-hand pane.

    Redeem

    Select Redeem to exchange the token and take delivery of the underlying physical precious metal. You must pay for the shipping using any Ve token or $USD.

    To Redeem an asset:

    1. Navigate to VeAssets via the menu
    2. Click on the asset you would like to redeem
    3. The token pane slides out from the right
    4. Click on Redeem at the bottom
    5. Enter Amount to redeem, then click Next
    6. Enter Shipping information, then click Next
    7. Select the Payment method from the drop-down list, any listed Ve token (with sufficient balance and is unlocked) is valid or $USD (bank wire).
    8. The Fee is automatically calculated for the payment method you selected
    9. Read the terms of use, select the I agree check-box, then click Confirm and approve/confirm the transaction

    Click on Redemptions to view the purchase orders for every redemption and delivery.  Click on an individual transaction to view additional details on the right-hand pane.

    Sell

    Select Sell to sell the token in return for ETH or $USD.

    Sell for ETH

    To Sell an asset for ETH:

    1. Navigate to VeAssets via the menu
    2. Click on the asset you would like to sell
    3. The token pane slides out from the right
    4. Click on Sell at the bottom
    5. Enter the Amount or click max to prefill with the maximum sell Amount
    6. Read and agree to the terms of use, then select the check-box
    7. Click Create Offer then approve/confirm the transaction
    8. After the transaction completes, the ETH will be transferred to your account

    Sell for USD

    To Sell an asset for ETH:

    1. Navigate to VeAssets via the menu
    2. Click on the asset you would like to sell
    3. The token pane slides out from the right
    4. Click on Sell at the bottom
    5. Click Sell for USD
    6. Click token selling form to proceed
    7. Follow the Veritaseum Token Selling Form instructions
      Note:  these instructions will be updated, as soon as the google doc form is replaced with native VeADIR functionality

    VeResearch

    Veritaseum has a team of seven (and growing) Certified Public Accountants (CPA) and Chartered Financial Analysts (CFA) that perform research.  

    To view the research:

    1. Navigate to VeResearch via the menu
    2. Read a report summary, click Open to view the full report (free reports)
    3. For paid reports, click Buy Valuation and follow the instructions

    VeLend

    Product Introduction

    Veritaseum sells gold stable-tokens (VeGLD) that are 100% backed by physical gold - insured and stored in a warehouse. These tokens are redeemable worldwide for physical gold by the token-holder (owner) upon demand or may be sold back to Veritaseum for cash (or fiat) in lieu of redemption.

    Gold has significant stable store of value and inflation protection benefits that can be referenced here (https://veritas.veritaseum.com/index.php/component/edocman/veassets-peer-to-peer-blockchain-based-physical-asset-ownership-in-bearer-form/viewdocument?Itemid=).

    Veritaseum offers additional products and services that enables gold token-holders to generate income returns on their gold via P2P gold lending products. One such lending product is the gold-denominated hard money loan. A hard money loan is simply a short-term loan secured by real estate.

    Veritaseum is a not a party to the transaction between Lender and Borrower and does not have an economic interest in the loan. Veritaseum provides the financial products, expertise, and the technology infrastructure that enable the automatic facilitation, management, and enforcement of the terms and conditions agreed to by the Borrower and Lender per the smart contract deployed on the Ethereum Network.

    Gold-Denominated Real Estate Collateralized Loan “Proof-of-Concept”

    On December 19, 2018 Veritaseum launched the world’s first smart contract gold-denominated peer-to-peer (“P2P”) loan on the Ethereum blockchain.  See video below real-time on-chain digital signature of the loan by the Borrower (E&W Realty Partners, LLC) and Lender (Veritaseum Lending, LLC) (reference video to the right).

    Big Picture: E&W Realty Partners (the “Borrower”) acquired 440 South 17th Street; Newark, NJ property on November 12, 2017 for $65,000 at vacant value and invested approximately $35,000 to improve the property. After reviewing the Borrower’s business plan to make additional $77.6K improvements, Veritaseum (the “Lender”) agreed to provide a residential gold-denominated construction loan at approximately 77% Loan-to-Cost (LTC). Upon the execution of the smart contract by Borrower and Lender on VeLend, the Lender funded the VeGLD tokens into a smart contract on the Ethereum blockchain.

    “While the administrative oversight and management of the loan is very simple, intuitive, and easy to manage for the Borrower and Lender (on the VeLend interface), the structure of the loan is very sophisticated and specialized to the specific loan transaction. Nearly all aspects of the loan agreement for which Borrower or Lender may exercise rights must take place on-chain.”


    Each party, Borrower and Lender, benefits significantly from features smart contracts enable that traditional loan infrastructure outside of the blockchain cannot, in which both capital and decision-making risks and errors are reduced significantly if not removed entirely (this was our goal). Because this is a construction loan, the Borrower can only draw-down on the loan amount proceeds after additional improvement are made to the property through the submission of draw requests (on-chain). This structure protects the Lenders interest by ensuring that its collateral (the real estate property) is always worth more than its loan amount.

    Please reference the next page for full economic terms of the loan agreement. These terms are programmed in the smart contract and the VeLend user interface was designed to enable Borrower and Lender to interact with each other and the contract which resides “on-chain”.

    Loan Smart Contract Terms – “On-Chain”

    Blockchain Gold Loan Benefits to Borrower

    There are many benefits, when compared to the traditional hard money lending marketplace, to the Borrower by obtaining a P2P gold-denominated loans on the Ethereum blockchain.

    1. Loan Issuance – The Borrower was able to obtain a gold-denominated loan, from Veritaseum, when it was unable to source a traditional USD-denominated loan from traditional lenders because these lending markets are underserved. Banks do not have an efficient infrastructure and expertise to provide small loans (less than $1 million) with low maturities (1-year or less) to small regional developers. In addition, hard money lenders are difficult to find, and the structure of the loan and economic terms are often too burdensome for Borrowers to take advantage.  
    2. No Monthly Cash Interest Payments – Instead of paying cash interest monthly, interest accrues and is due at maturity after the Borrower has executed on the property improvement business plan and either (1) refinanced the property, (2) or sold the property. This is a big benefit to a borrower who is cash flow sensitive while the property is not generating any income.
    3. Reduced Counterparty Risk to Lender - Borrower is never at Lender’s discretion when Borrower exercises its rights. For example, when the Borrower submits a funding request and supporting invoices to release Borrower proceeds from the smart contract the Lender is obligated approve or reject the request within 5 days. If the Lender fails to respond, the smart contract automatically processes the Borrowers request. In traditional loan structures Borrowers are at the whim of lenders discretion which can delay project business plans by weeks and months at a time with limited to recourse to the Borrower.
    4. Smart Contract Automation & Administration – All rights exercised by Borrower are exercised and recorded on-chain. The smart contract automates many of the reporting and facilitating aspects of the loan agreement without the need of an attorney, accountant, asset manager, or Borrower administrator. The VeLend user interface allows the Borrower to interact with and monitor the status of the loan and to exercise its rights under the loan contract.
    5. Customization of Loan Terms & Conditions – Veritaseum was able to provide more customization to Borrower’s preferences, when compared to traditional loans, because the loan administration is mainly performed the loan smart contract (developed by Veritaseum) that runs on the blockchain.

    Blockchain Gold Loan Benefits to Lender

    There are many benefits, when compared to the traditional hard money lending marketplace, to the Lender by funding a P2P gold-denominated loans on the Ethereum blockchain.

    1. Income on Gold – Veritaseum offers an opportunity for gold investors to generate a gold-denominated yield (inflation protected) by lending their gold to Borrowers. In today’s global marketplace the opportunity cost of gold is approximately (-0.50% per annum). Income on gold products enable gold owners to generate returns in a stable store of value asset that can not only offset the cost of carry, but also generate income for the first time.
    2. Principal Loan Amount Collateralized by Real Estate – Loans issued by Lender is structured and underwritten to minimize the risk of principal loss for the Lender. Loan structures offered to date include a conservative Loan-to-Cost or Loan-to-Value of the asset which may be negotiated directly by Borrower and Lender.
    3. Reduced Counterparty Risk to Borrower – Loan proceeds are not directly given to Borrower at loan issuance. This reduces Lender risk to Borrower significantly as proceeds are released into a unique smart contract between Borrower and Lender. The Borrower may only access proceeds after submitting funding requests and proving to the Lender that the money requested has already been spent improving the real estate collateral.
    4. Smart Contract Automation & Administration – All rights exercised by Lender are exercised and recorded on-chain. The smart contract automates many of the reporting and facilitating aspects of the loan agreement without the need of an attorney, accountant, asset manager, or Lender administrator. The VeLend user interface allows the Lender to interact with and monitor the status of the loan and to exercise its rights under the loan contract.
    5. Customization of Loan Terms & Conditions – Veritaseum was able to provide more customization to Lender’s preferences, when compared to traditional loans, because the loan administration is mainly performed by the smart contract (developed by Veritaseum) that runs on the blockchain.

    Veritaseum’s Role

    Veritaseum is a not a party to the transaction between Lender and Borrower and does not have an economic interest in the loan. Veritaseum offers its technology and financial services expertise to source the opportunities and structure them. The final terms and conditions of the loan economic and structure is negotiated between Borrower and Lender and any risk taken to issue the loan is borne by the Lender. Veritaseum is a third party that provides the below services to add value to its clients in mitigating risks and uncertainty associated with any gold-denominated loan products.  

    1. Sources Investment Pipeline – Veritaseum identifies potential Borrowers and projects which need financing.
    2. Sources Investor Pipeline – Veritaseum identifies potential hard money Lenders who are looking to generate a return on their gold.
    3. Smart Contract – Veritaseum creates the legal and business smart contract negotiated between Borrower and Lender which is recorded and executed on the blockchain.
    4. Technology Infrastructure – Veritaseum provides the user interface that enables Lender and Borrower to interact with each other on-chain, enabling each party to execute its rights per the contract in accordance with the agreed upon loan agreement. The user interface displays the initial terms and conditions of the loan as well as the current status of loan - on the Ethereum network.
    5. Purchase and Sale of Gold – Veritaseum sells gold to the investor who chose to lend the gold to a Borrower to generate a return on investment. Upon origination of the loan, the Lender delivers its VeGLD to the loan smart contract, or the Borrower (depending on the loan agreement) who will eventually require the liquidation of the gold tokens for cash. Veritaseum will facilitate the sale of gold and delivery of cash to Borrower’s possession upon Borrower’s instruction per the smart contract.
    6. Sale of Gold Derivatives – Veritaseum may provide products and services that assist Lender or Borrower to minimize or reduce (hedge) any gold price risk associated with the gold-denominated loan product. These products are lender, borrower, and product specific.  



    User Interface – Smart Contract Launch

    Summary: Includes Lender and Borrower public address, loan amount (in grams), maturity date, loan maturity settlement amount, loan extension period terms, and late payment terms.

    Privacy: This specific loan screen terms and conditions is visible only to the Borrower and Lender who control the private keys of the Borrower and Lender who are party to this transaction.

    Customization: This screen can be customized to include any terms and conditions that is relevant to each party per the (1) loan agreement, (2) type of loan, (3) structure of loan. Each Borrower or Lender has flexibility to negotiate terms and conditions that are important to them.

    Live Interface: This user interface screen information updates automatically as the Borrower or Lender exercises its right over the term of the loan and as the status of the changes (interest rates, loan amount outstanding, etc.).

    Security: Information expressed in the user interface is pulled from the smart contract that sits on the Ethereum network. It has the security benefits of the blockchain.

    Borrower Consent

    After the loan agreement is fully negotiated and finalized between Borrower and Lender, the loan smart contract is launched by the Administrator (VeAssets, LLC), revealed by the status “Created” (to the right in the below image). On the VeLend user interface the contract it is only accessible for view to the specific Borrower and Lender of the loan smart contract. Each party can only access the loan smart contract by logging into their Ethereum public address wallet (using their private key).

    The Borrower must use login to its Ethereum wallet to execute the loan smart contract on-chain.  Once the Borrower signs the loan smart contract on-chain through the VeLend platform, the Lender is notified and must also provide its consent to fund the gross proceeds of the loan.

    Borrower Consent Transaction Hash – Upon Borrower’s consent of the loan the signature is recorded into the smart contract on-chain, as reflected by the following transaction hash https://etherscan.io/tx/0x73b659bbd9d3c2252673af0dbcd2a4f762b2a202ffd6abc92ebfb2aadebc9e88. Upon Borrower’s consent and signature, the Loan must also be signed by the Lender before the smart contract is effect and funded.

    Borrower Consent Transaction Fee – As reflected by the attached transaction hash, Lender paid $0.02 to record its consent transaction (signature) on-chain.   

    Lender Consent

    After the loan smart contract is launched by the Administrator (VeAssets, LLC) and the Borrower has provided its consent on-chain (transaction hash referenced below) the status of the contract is updated to “BorrowerConsent”. The Lender must use login to its Ethereum wallet to execute the loan smart contract on-chain. This is seamlessly done after each party logs into Veritaseum platform to access the VeLend interface. Below is a screen that is only available to the Lender after the Borrower has already provided its consent to the smart contract.   

    After clicking the consent button above, the following Lender consent dialog appears (bottom left). Once the Lender selects to “Proceed” a MetaMask dialog box appears authorizing the Lender to set a gas price to record the transaction on-chain (below right).

    Lender Consent Transaction Hash – Upon Lender signature of the loan the transaction is recorded into the loan smart contract on-chain, as reflected by the following transaction hash https://etherscan.io/tx/0xb5c8d8f1bb6acd10943156790d9ec263880c49c2d59e3e28336459ebebc42735. Upon Lender consent (signature) the Loan is automatically funded with 61 ounces of gold (VeGLD tokens) and the smart contract is officially in effect between the two parties.

    Lender Consent Transaction Fee – As reflected by the attached transaction hash, Lender paid $0.03 to record its consent transaction (signature) on-chain. When a transaction is authorized by a party on the Ethereum network, they must set a not-to-exceed gas price. The screen shot to the right is what appeared in the VeLend user interface after Lender clicked “Proceed” to authorize the transaction on-chain. A gas limit of no more than $0.48 was set by Lender, but the actual gas price charged was $0.03. This and other smart contract on-chain transactions are facilitated directly on Veritaseum’s VeLend user interface platform.

    Binding Contract on Ethereum Network

    Once the smart contract has been digitally executed on-chain by both parties it is instantaneously binding, as reflected in the below status “Binding” (top right of the image). This view is available to Lender and Borrower only on the VeLend interface. VeLend user interface enables Borrower and Lender to monitor all aspects of the loan as its status changes throughout the loan term. The signing of the contract is just one example of how the interface informs each party of the status.

    Funding Request by Borrower

    Funding Request Approval by Lender

    Sale of VeGLD from Smart Contract and Delivery of Cash to Borrower

    Loan Product Summary

    Veritaseum incorporated this loan structure and product to meet the specific needs of residential real estate fix-and-flip developers. Features of the gold-denominated loans can be modified to meet the need of borrowers and lenders depending on the specific asset and risk tolerance.  



    VeLend and Etherescan

    Veritaseum gold-denominated smart contract can be verified and tracked by Etherscan, a leading BlockExplorer that allows users to easily lookup, confirm and validate transactions that have taken place on the Ethereum Blockchain. Transaction hashes reveal limited information about the activity and actions between the Borrower and Lender of the loan smart contract (enabling a certain level of privacy). The capabilities and user interface ability of these tools is very limited when compared to the capabilities of Veritaseum platforms such as VeLend. VeLend incorporates tools like Etherscan within its user interface to represent the authenticity and validity of each transaction that takes place in a Borrower’s or Lender’s wallet, while also providing a full summary of the account status, balances, and other rights and privileges exercised by each party as allowed and enforced by the smart contract designed and created by Veritaseum. Transactions on Etherscan rank from last transaction on top to first transaction on bottom. A total of 7 have taken place (loan details to the right).

  6. Loan Collateral Improvement to Date

    Before improvements were made the property was acquired for $65,000.

    To date, the Borrower has invested over $40,500 of the loan proceeds into the property. Approximately 24.3213 ($32,186) ounces of gold remain undrawn in the loan smart-contract.

    Borrower Loan Proceeds Summary

    The Net Borrower Proceeds fluctuate because of the fluctuation in gold price. Below is a summary of the Borrower Proceeds on the date of closing compared to the estimated value of the proceeds as of February 1, 2019. As shown below the Borrower has submitted to draw requests (which were approved by Lender) and the smart contract sold gold from the smart contract and distributed the cash proceeds to the Borrower’s bank account.

    The Borrower market value of the undistributed loan proceeds in the smart contract is worth more that it was at closing due to the rising price of gold. To date the borrower has an unrealized gain caused by rising gold prices of 2.13%.

             

    This gain may need to be offset with the cost of purchasing the gold loan amount price risk (via hedge) outlined below.



    Hedge Gold Price Risk Derivative Products

    It may be necessary and desirable for the Borrower to hedge its notional gold price risk. When the Borrower must repay the gold-denominated loan on the maturity date the Borrower will need to purchase gold ounces at the market price of gold and deliver the gold ounces to the Lender. If the price of gold goes up it will increase the effective cost of the loan to the Borrower. Therefore, the borrower may wish to hedge this risk by purchasing a hedging contract from Veritaseum. The cost of the net hedge is approximately $3,000 (or 3.86% of the Gross Proceeds Loan amount).  

Add comment


Security code
Refresh

Request Access

IMPORTANT!

You must be holding more than 3,333 VERI, be an identifiable accredited investor, or be a member of a family office or qualified purchaser ($5M in assets or higher) to gain access to VeADIR beta.