QYK TOKENSALE

BUSINESS WHITEPAPER

Your personal bar, on the cloud!

WORLD’S FIRST DECENTRALIZED PLATFORM TO BUY, STOCK &

CONSUME ALCOHOL BASED ON PATENTED BLOCKCHAIN TECHNOLOGY

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 DISCLAIMER:

This is a conceptual document (“Business White Paper”) describing our proposed

QYK Business Overview and QYKTrade Blockchain and its related workings. The
QYKTrade Blockchain concept is based on BIXTrade which is an existing
PATENTED ledgers system already live in production (Please refer to the Patent
& related documentation). There may be changes to the overall design and
concept and QYK application and business processes at any point of time with
no obligation to update the Business White Paper or to provide the recipient
with access to any additional information.

This document is not an offer of securities or a collective investment scheme.

Contributors are advised to read this whitepaper carefully in full and perform
due diligence on their own. Please read terms and conditions before making any
investment decision.

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EXECUTIVE SUMMARY

QYK is a platform to choose, stock, consume and trade alcohol and is based on an existing
Patented blockchain system. It’s an international blockchain loyalty program for everyday
life and your only preferred way in the future to have affordable and fun experience in the
best bars and restaurants across the globe for consuming drinks and spirits. In short – you
would enjoy the same level of service and product experience in your favourite leisure spots
for less, or in credit.
Our main goal is to utilize the global nature of the blockchain idea by bringing it to the bar
and restaurant part of the existing $1.25 trillion alcohol industry in a way that would
significantly improve the overall end-user experience and save money. We are the UBER for
your drinking experience for years to come. After having in-depth conversations with Bar
merchants, we realized there is a tremendous potential of using a new way to stock and
consume alcohol on the cloud. This lead us to start the development of QYK Application that
is already in Alpha mode and moving fast.
Our expansion plans are as ambitious. We are launching in Asia in 1st Quarter of 2018 in
Malaysia, Singapore and Indonesia, Thailand, Japan, Australia by the mid of 2018. We would
be expanding to Europe and US in early 2019. Most of the proceeds from ICO are destined
for Business Development and Marketing to support those ambitions.
The QYKTrade Blockchain concept is based on BIXTrade which is an existing PATENTED
blockchain system already live in production (Please refer to the Patent & related
documentation). It may be amended or replaced at any point in time with no obligation to
update the Technical White Paper or to provide the recipient with access to any additional
information. QYK Tokens described in this Technical Whitepaper are not intended to
constitute securities or any other regulated product in any jurisdiction. This Technical White
Paper does not constitute a prospectus nor offer document of any sort and is not intended
to constitute an offer or solicitation of securities or any regulated product in any
jurisdiction.

This Technical White Paper does not constitute advice in relation to whether you should
participate in QYK Crowd sale (Pre-Sale and Token Generation Event) or buy any QYK
Tokens, nor should it be relied upon in connection with any contract or purchasing decision.

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TABLE OF CONTENTS:

1. GLOBAL ALCOHOL INDUSTRY SNAPSHOT:

1.1 Global Alcohol Market: Snapshot ............................................................... 6

2. QYK BAR: FOR CONSUMERS

2.1 What’s the Problem? .................................................................................. 8
2.2 What is QYK Bar’s bet? .............................................................................. 9
2.3 How it Works? .......................................................................................... 10
2.4 How it Helps? ........................................................................................... 11

3. QYK BAR: FOR MERCHANTS

3.1 What’s the Problem: For Bars ................................................................... 13
3.2 Bar Industry Pain Points ........................................................................... 14
3.3 How it Works: For Bar Merchants.............................................................. 16
3.4 Benefits to Bars ........................................................................................ 17

4. QYK DIGITAL CREDIT CARD

4.1 Introducing: QYK Digital Credit Card ......................................................... 20
4.2 How it Works: User Onboarding ................................................................ 21
4.3 How it Works: Payments ........................................................................... 22
4.4 How it Helps? ........................................................................................... 23

5. HOW WE MAKE MONEY

5.1 How we make money?.............................................................................. 26

6. PROJECT TIMELINES
6.2 Project Timelines ..................................................................................... 28

7. WHY BUY QYK TOKENS?

7.1 Why invest in us? ...................................................................................... 30

8. QYK Team, Advisors & Partners .................................................................... 32

9. APPENDIX 1: QYK USER & MERCHANT APP SCREENSHOTS .......................... 36

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1. GLOBAL ALCOHOL INDUSTRY SNAPSHOT

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1.1 Global Alcohol Market: Snapshot

The global alcoholic beverages market has witnessed impressive growth over the last couple
of years driven by a number of favourable factors. Growing urban population coupled with
rising disposable incomes in emerging economies is leading individuals to explore new forms

of entertainment such as night parties and spending time at bars, lounges. Furthermore,
young adults with high family incomes, high social media influence, and easy access to
alcoholic drinks are other prominent factors driving sales of alcoholic beverages.
In urban areas, high-pressure jobs and the perception that alcohol is relaxing to the mind is
leading to the increased consumption of alcoholic drinks.
Manufacturers of alcoholic drinks are
continuously launching new products with
added flavours. Curiosity among consumers
especially among millennials is attracting them
to try these products, which is having a positive
bearing on the alcoholic beverages market.
According to a report by Transparency Market
Research, the global alcoholic beverages
market is likely to expand at a CAGR of 6.4% vis-
à-vis revenue between 2017 and 2025, for the
market to become worth US$ 2 Trillion by the
end of 2025.

The global alcoholic beverages market is

estimated to be worth US$1.25 Trillion by the end of 2016.

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 2. QYK BAR: FOR CONSUMERS

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2.1 What’s the Problem?

Below are some major pain points for consumers visiting bars frequently:
1. High prices of drinks at bars unless you stock bottles or buy in bulk
Consumers are forced to pay 6-8 times the cost of a drink as they buy in small

quantities. The only choice for regular partygoers or people wanting to visit bars
regularly is to keep a stock bottle with bars in order to get discounts.

2. Forced to prepay & stock bottles at bars to enjoy low prices

Additionally, in order to enjoy discounts, one has to buy full liquor bottles or 10 glasses
of beer which they might not be able to consume in one sitting, and hence are forced
to revisit the bar again to finish their remaining alcohol stock. Not just that, consumers
have a fixed timeline (usually 1 month) to consume the stock.

3. No freedom of ordering partial bottles and still enjoy same discount rates
One has to buy a full bottle which has to be consumed at the same bar only. This way
Bars ensure that customer is coming to them again. There is no choice for customer to
order half or ¼ of a bottle and stock it at bar.

4. No way of buying bulk alcohol with freedom to consume it at any bar of their
choice at any time without price shock
Consumers don’t get an option of buying any quantity of alcohol that they can
consume at different bars of their choice anytime, anywhere.

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2.2 What is QYK Bar’s bet?

QYK Bar is a revolutionary concept where a consumer is allowed to stock his favourite
alcohol in the cloud and is able to choose a bar/pub/restaurant of his choice to consume his
stock anytime.

Consumers gets the flexibility to stock any amount of alcohol and to consume it anywhere
without having to worry about different prices at different bars.

In essence, a consumer gets to stock any amount of his favourite alcohol (half or full or
quarter bottles of wines, spirits or any number of glasses of beers). And he pays the
standard price at each type of bar he visits. The bars are categorized into two classes and
prices of all alcohol is same in a particular category of bars.
This way consumer knows that his stock is worth the same quantity and price at any bar he
visits under a particular category class.

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2.3 How it Works?

Below are the various steps through which a consumer can stock and consume alcohol with
QYK Bar:

1. Select: User can discover wide varieties of liquors, beers & wines on app. He/she can
then choose various brands and quantities on the app and check the related prices per
unit of a particular brand.
2. Stock: Once the choices are made; the drinks can be confirmed for stocking on the app
itself.
3. Get Discounts: Users can see what discounts they get when they choose different
quantities of drinks. The next step is to pay special discounted prices for you purchase.
4. Pay: Once the user selects the required quantities, he can then choose to pre-pay on
the app. This way he can build his own virtual bar. Payment can be done via Crypto
currencies, Netbanking, Cards on the app itself. QYK also provides a Virtual Credit card
to get instant credit at Bar counter for enjoying drinks. User can apply for QYK credit
card via the app directly.
5. Consume: User can now access the app to consume his stock at multiple affiliated
locations. Any unused stock can be traded back with other on QYK platform or can be
returned to the QYK pool for a refund.

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 2.4 How it Helps?

Stock drinks in small volumes on the cloud

Buy any drinks in any quantity at really low
prices and stock them on the cloud. Ready
to be consumed at multiple locations

Return unused drinks to cloud: Not

able to consume all the drinks,
Always Happy Hours:
return your drinks stock back to the
Enjoy great offers on select drinks
cloud pool to get your money back
anytime and at any location you choose

Virtual Credit Card for Payments: Order at home:

Use QYK Bar virtual credit card to make Use QYK Bar to order drinks at Duty
payments at bars and enjoy additional Free prices at your home anytime
discounts. Pay us Later.

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 3. QYK BAR: FOR MERCHANTS

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3.1 What’s the Problem: For Bars

From an individual bar perspective, there are a lot of issues in running day to day inventory
checks, ordering supplier, reaching out to customers and controlling losses in handling.
Below are some of the major concerns that bars have from inhouse operations perspective:

Bars don’t see any significant consumer loyalty

unless bottles are stocked with them and a
customer has to return again for consuming his
stock. Lack of repeat customers leads to lesser
revenues and more marketing costs to bring new
customers into bars. bars for future consumption

Bars have to absorb huge losses in over-

pouring and spillage which occurs normally
when the inventory tracking is either slow
or not done at all

Bars have no way of automating their

inventory tracking and management to
identify top movers and dead stock and
order supplies instantly

There is no way of combining individual

bar orders with other bars to get bulk
pricing from suppliers/distributors directly

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3.2 Bar Industry Pain Points:

Inventory Tracking:

Overall alcohol industry is plagued with the problem of overpouring, lack of

control on spillages, inventory consumption while serving. Huge losses on
account of over-pouring & spillage occur regularly and is one major area of
concern for bars.
Further, there is no automated way of taking inventory stocks and everything
is either left for manual/visual check and noting down or adding data on excel sheet which is
time consuming. This inventory tracking process takes around 2-3 hours for each bar and is a
daily routine work for them.

Inventory Stocking

Alcohol stock is the most significant recurring cost for any bar and
huge investment goes into stocking 1000’s of varieties of alcohol. Having
this kind of variety itself costs bars hundreds of thousands of working
capital money.
For bars, there is no way to understand how to track their fast-
moving stocks versus their dead stocks and how to keep the inventory optimized. Usually they
tend to stock up on the high moving items and other types are not even considered for sock
keeping which results in lower revenues.

High Inventory Costs

Distributors monopolize the global alcohol supply market and usually cover
large geographic areas. This kind of arrangement helps alcohol brands to
optimize their supply logistics and also have a single point of contact for their
regional operations. But for bars, this means that distributors charge huge
margins and are usually not open to discount. This kind of monopolized and
centralized purchasing and closed buying process results in high costs of
inventory for bars.

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Slow Order Fulfilment

Bars talk to 8-10 distributors weekly to get particular supplies

of their alcohol brands, and there is no centralized purchasing
process where they can get orders fulfilled by engaging on a
single platform.
Lack of centralized or bulk purchasing process for bars means
moving around multiple orders and invoices for each brand of alcohol that they need to
purchase which results in tremendous loss of time and money.

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3.3 How it Works: For Bar Merchants

1. Visibility: QYK Bar helps users to discover and explore new bars around towns and
cities without any risk of paying higher prices since the pricing is standard and
guaranteed on the app. When more users find new bars to redeem their stock using
QYK. Bars get more footfalls and hence increased sales.

2. Payments & Settlements: QYK uses its own backend payments option to customers
for any transaction done on the app. So, in a way acting as a merchant acquirer for
bars. Customer pays QYK to settle his bill and QYK in turn settles payments with bars
on a T+2 basis.

3. Inventory Management: Bars can track and manage their Inventory using QYK. QYK
provides a simple inventory tracking and reporting capability where the level of
alcohol in the bottle can be noted and calculated on app using a simple up and down
swipe.

4. Stock Analytics: Bars can use QYK analytics to find better-performing stocks and make
sure that those are ordered in optimum quantity and also in bulk to get better rates.
QYK also helps find the dead stock and can match bar’s dead inventory to user
requirements and help bars push out their dead stock or slow movers to consumers
who are willing to consume them at better rates.

5. Bulk Procurement: QYK provides a platform to bars where bars can send out their full
orders and have other bars add on top of those to create bulk orders which can be
viable to suppliers. This way bars can get better rates by cutting out intermediaries
and directly connect with alcohol supplier.

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3.4 Benefits to Bars

1. Increased Sales

QYK allows bars to host their inventory on the cloud thereby letting consumers
buy more and try out new bars at the same time without having to worry about
the prices across bars. More footfalls result in increased sales for bars affiliated
to QYK platform.

2. Inventory Tracking & Ordering

QYK lets bars track and manage their inventory stock with a simple yet cutting
edge technique of noting down inventory by swiping up/down on bottle’s
page. Efficient inventory tracking helps to understand which orders should be
placed in advance in order to get stocks on time. This improves the stock
performance as QYK lets bars order directly with their existing suppliers or new
ones by converting inventory reports into orders.

3. Faster Payments

QYK offers bars to lure customers with a credit payment mechanism where
QYK pays bars on customer’s behalf and collects money from them later. Bars
get to drive in additional revenue and also get paid faster for their bills at the
same time.

4. Reduce Wastage

With QYK’s simple yet effective swipe mode of taking inventory, the whole
process takes only 15 minutes and hence can be done on a daily basis. This
ensures inventory getting tracked closely and regularly leading to a reduction
of waste due to spillage and over-pouring by the staff.

5. Decentralized Buying & Fulfilment

QYK blockchain platform will be able to open up the ecosystem by connecting

Bars, Distributors and Suppliers bringing in cost transparency and supply chain
efficiency. This will lead to increased margins for everyone involved by cutting
out the intermediaries, and will also ensure faster supply chain and payment
settlements without any risks or errors.

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6. Customer Connect

QYK provides insights on fast movers and dead stocks and helps bars to target
customers with latest offers and promotions based on their consumption
patterns. Moreover, bars can run different campaigns on QYK to pitch the
newer stock to the consumers and also allow special deals based on targeted
audience.

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 4. QYK DIGITAL CREDIT CARD

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 4.1 Introducing: QYK Digital Credit Card

We are reinventing the credit card with QYK Digital Credit card. The card and underlying
technology comes pre-integrated with QYK Bar app.
The user can log in to the app and apply for QYK credit card in under one minute by providing
his particulars on the app. QYK then sends the data query to its Credit Check partners for
confirmation on applicant’s credit history.
The application is approved/rejected within 3-4 hours and credit limits are assigned for the
successful application.

Comes pre-integrated with

QYK bar Mobile App

We pay to merchants on
Provides shopping micro
user’s behalf, and collect
credit right at the Bar
money from user on a
counter

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4.2 How it Works: User Onboarding

User Onboarding Process

1. Apply for credit: It takes 1 minute to apply for credit on app. QYK collects 6 data
points during the application stage. We ask for:
 Name
 Phone
 Address
 National ID card scan
 Bank Account Details
 Address ID

2. Credit Check: QYKBAR checks for customer’s credit-worthiness instantly. All inputs
are bulk queried to a central database of a credit check agency which QYK has tied up
with. The partner agency provides full results based on applicant’s data. QYK receives
the following results from credit check process:
 Address
 ID verification
 Legal actions
 Existing loans
 Bankruptcy record
 Legal suits
 Credit applications pending
 Payment history for loans

3. Accept/Reject & assign credit limit:

The application is then accepted or rejected based on the info

provided by credit check partner. QYK then assigns a credit limit to
the customer based on his existing liabilities and loan payments
history.

4. Credit approved: Once the limit is in place, user can see his credit
being approved within 2-3 hours of application being accepted.

5. Usage: One the credit is assigned, user can start utilizing QYK card
anywhere across the affiliated bars. QYK pays bars on user’s behalf
and then settles the bill with the user on a monthly basis.

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4.3 How it works: Payments

QYK user can pay with his virtual card at any bar on QYK network using the following simple
steps:

Customer enters bars and find out QYK

01 QR code sticker at bar counter or on bar
table.

Customer scans the QR code sticker

02 on his QYK mobile app

QYK sends the info about the

customer to the bar on QYK
Merchant app. Bar is now ready
03 to serve the customer.

Once the order is completed, bar

04 sends the bill to consumer on his
app and consumer pays it instantly

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4.4 How it Helps?

Table below gives a brief comparison on how QYK virtual credit card benefits bars in various
use cases vis-à-vis other payment methods like Credit card, Netbanking or Mobile Wallets.
With QYK, bars are able to collect crypto and credit payments instantly with 100% success
rate and the settlements are done within 2 days of transaction processing. Also, the

repayment risks are handled by QYK so bars don’t have to worry about how QYK collects
payments from users.
Besides that, QYK provides actionable demographic data to bars so they can target customers
using QYK campaign management tool. Overall the payment mechanism is almost equal to
what bars pay for credit cards or mobile wallets based payments.

Checkout time: Shortening the purchase

funnel

QYK ensures faster and pain-free payment

checkout process for bars and consumers. This is
different from a typical procedure where in user
has to wait for 2-3 minutes for a credit card
transaction to be processed. Further the risk of
sharing a card with an unknown person is always
there in the mind of consumer.

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With QYK virtual credit card
mechanism, merchants are able to
avoid dependencies on payment
processors, merchant acquirers and
the network losses or delays. Not to
mention the costs of operating card
swipe machines and related
maintenance and support costs.
QYK provides a one-touch checkout
and payment mechanism where there
is no delay in a transaction and no
failure as there is no third party
involved in the processing of payment.
This is because the transaction in this
case is simply a record of money that is
to be paid by QYK to bar and which is to
be collected later on form consumer.

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 5. HOW WE MAKE MONEY?

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5.1 How we make money?

1. User makes payment at Bar with Crypto, Netbanking, Credit cards or QYK credit and
settles payments with QYK once in 15 days (in case of using QYK credit card)

2. QYK pays merchant automatically T+2 days. API automates refund and returns

QYK commissions:
For every 100$ paid by customer, QYK
takes 10% fee from total order. This
fee also includes 3% Merchant
Acquirer fee that Bars pay out to card
processors.

3. QYK provides bulk ordering platform and related credit to Bars for ordering supplies
through it. QYK settles with suppliers for Bar supplies and collects payments from Bars
in T+15 days.

4. Bars order bulk supplies via QYK. QYK collects its fee from the bar for both customer
payments and bulk orders made to suppliers.

QYK commissions:
For every 100$ paid by Bars to
Suppliers, QYK takes 5% fee from the
total order. Bars get cheaper rates,
and Suppliers get higher revenues by
cutting out distributors.

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 6. PROJECT TIMELINES

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 6.1 Project Timelines
Q2 2017: BIX Patent
Received
• Patent No: US 9,635,000 B1
received on Apr 25, 2017
• 3 more Patents filed
• Development on BIX Trade
ledgers Beta version and QYK
Bar application started
Q2 2018:
Marketing & Partnerships
• Partner with top 500 Bars and Pubs
in Malaysia & Singapore
• Reach out to 100,000 users
• Online & Offline marketing in full
swing
• Field Sales team to be hired
• Settle operations for 2 countries and
plan for expansions into Australia,
Thailand, Indonesia, Japan &
Philippines
Q2 2019: Results
• Get 1,000,000 loyal customers on
app across APAC & plan expansions
to other regions in Europe & US
• Settle operations in all main
regions, i.e. US, Europe, APAC
• Target next big jump to become
the UBER for Alcohol
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Q2 2016: Concept Stage
• Work started on BIXTrade system
concept
• Technical concept development and
filing of Patent Applications for BIXTrade
system
• Concept of QYK Bar discussed and
validated with bars
Q4 2017: MVP Launched!
• Patented BIX Trade technology live
in Beta.
• Pilot completed with Bars
• Live Apps for QYK Bar for Users &
Bar merchants launched
• Merchant Acquirer License applied
for Malaysia & Singapore entities
• PCI Certifications completed
• Backend Bank integrations for Cards
and Net banking completed
• Integrations completed with Credit
Check agencies
Q4 2018: Growth Strategy
• Expand operations into Thailand,
Australia, Indonesia, Philippines,
Japan
• Fully commercialize QYK Trade
Blockchain
• Create loyal user base of
authenticated users
• Get more of commissions
revenues by partnering exclusive
deals with Bar merchants
• Start work for expansion into
Phase 2 i.e. global domination
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 7. WHY BUY QYK TOKENS?

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7.1 Why you should invest in us?

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 8. TEAM, ADVISORS & PARTNERS

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8.1 QYK Team:

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8.2 QYK Advisory Board:

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8.2 QYK Brand Partners:

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 APPENDIX 1:
QYK USER & MERCHANT APP
SCREENSHOTS

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QYK User App Screenshots:

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QYK Merchant App Screenshots

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