TAGZ GROUP

WHITE PAPER
v1.3

COPYRIGHT © 2019 TAGZ GROUP PTY LTD

CONTENTS
1. Our Mission and Executive Overview……………………………………… 4
2. Problems with Unregulated Exchanges……………………………………. 5
2.1. Regulated Exchanges VS Unregulated Exchanges…………………...5
2.2. The Solution………………………………………………………………..6
2.3. Identity Policy………………………………………………………………7
2.4. Security Foundation……………………………………………………….7
2.5. Artificial Intelligence………………………………………………………. 8
2.6. Greater Liquidity…………………………………………………………...8
3. The Platform…………………………………………………………................. 9
3.1. Dual Gateway Exchange…………………………………......................9
3.1.1. What is a Dual Gateway Exchange (DGE)? ………........................... 9
4. Trading Environment………....................................................................... 10
4.1. Traditional, Futures/Derivative and Index Trading …….................... 10
4.1.1. Traditional Pairs.................................................................................. 11
4.1.2. Futures Pairs...................................................................................... 11
4.1.3. Trading Indexes………....................................................................... 12
4.2. Benefits of a DGE including Margin Trading………............................ 13
4.3. Fee Structure………........................................................................... 13
5. Affiliate Program……….............................................................................. 14
5.1. Affiliate Commissions………............................................................... 14
6. TAGZ Token………………………………………………………..................... 15
6.1. Token Utility………………………………………...……….....................15
6.2. Crowdsale………………………………………….……………………… 16
6.2.1. Referrals…………………………………………………………………... 16
6.2.2. Crowdsale Pre-ICO Details………….…………………………………... 17
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 6.2.3. Crowdsale IEO………………...………………………….……………….17
6.2.4. Fund Allocation and Token Distribution………………………….……..18
7. Legal…………………………………………………………….………………… 19
7.1. Company Registration & ASIC Exchange Licensing………………… 19
7.2. AUSTRAC Reporting and AML/CTF Policy…………………………... 20
7.3. KYC Regulatory Requirements………………………………………… 21
8. Roadmap…………………………………………………………………………. 22

DISCLAIMER
The information set forth in this Whitepaper may not be exhaustive and does not imply any elements of a contractual relationship. The
content of this Whitepaper is not binding for Tagz Group (“Company”) and is subject to change in line with the ongoing research and
development of the Tagz Platform (“Platform”) and Tagz Protocol (“Protocol”), hereinafter together referred as “Project”. This Whitepaper
does not constitute investment, legal, tax, regulatory, financial, accounting or other advice, and is not intended to provide the sole basis for
any evaluation of a transaction on acquisition of TAGZ tokens, hereinafter together referred to as “Tokens”. Prior to acquiring the Tokens, a
prospective purchaser should consult with his/her own legal, investment, tax, accounting, and other advisors to determine the potential
benefits, burdens, and other consequences of such a transaction. Nothing in this Whitepaper shall be deemed to constitute a prospectus of
any sort or a solicitation for investment, nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any
jurisdiction. This document is not composed in accordance with, and is not subject to, the laws or regulations of any jurisdiction which
prohibit or in any manner restrict transactions in respect to, or with use of, digital tokens. Certain statements, estimates and financial
information contained in this Whitepaper constitute forward-looking statements or information. Such forward-looking statements or
information involve known and unknown risks and uncertainties which may cause actual events or results to differ materially from the
estimates or the results implied or expressed in such forward-looking statements or information. Tokens are not being offered or distributed
to, nor can be resold or otherwise alienated by their holders to, citizens of, natural and legal persons, partnerships, having their habitual
residence or domicile, location or their seat of incorporation (i) in the United States of America (including its states and the District of
Columbia), Puerto Rico, the Virgin Islands of the United States, or any other possessions of the United States of America, or (ii) in a country
or territory where transactions with digital tokens are prohibited or in any manner restricted by applicable laws or regulations. If such a
restricted person purchases Tokens, that person has done so on an unlawful, unauthorized and fraudulent basis, and in this regard shall
bear any negative consequences. The Company doesn’t carry on any regulated activity in the Republic of Korea, in the People's Republic of
China or in other countries and territories where transactions in respect of, or with use of, digital tokens fall under the restrictive regulations
or require from the Company to be registered or licensed with any applicable governmental authorities. Each purchaser of Tokens is
reminded that this Whitepaper has been presented to him/her on the basis that he/she is a person to whose attention the document may be
lawfully presented in accordance with the laws of the purchaser’s jurisdiction. It is the responsibility of each potential purchaser of Tokens to
determine if the purchaser can legally purchase Tokens in the purchaser’s jurisdiction, and whether the purchaser can then resell the
Tokens to another purchaser in any given jurisdiction. This English-language Whitepaper is the primary official source of information about
the Project. The information contained herein may from time to time be translated into other languages. In the course of such a translation,
some of the information contained herein may be lost, corrupted, or misrepresented. The accuracy of such alternative communications
cannot be guaranteed. In the event of any conflicts or inconsistencies between such translations and this official English-language
Whitepaper, the provisions of this original document shall prevail.

3
Our Mission…
To create a trusted trading environment and liquid Dual Gateway Exchange
that allows users to confidently trade with an enhanced experience by
removing all pitfalls of the unregulated cryptocurrency space and
regulating transactions on a stable and sustainable platform.

1. Executive Overview

It is mostly well known and common knowledge that within the cryptosphere a vast
majority of online exchanges offering crypto trading services are purely unregulated.
This presents a huge cause for concern as unregulated exchanges are high-risk to
both the average investor, day and swing traders and are a fantastic target for
hackers.

In addition to the above, cryptocurrency is a very fragile and volatile market and
cryptocurrencies such as Bitcoin have begun to evolve into mainstream adoption
providing for Futures Markets to arise with Derivative Trading aswell as Traditional
Crypto Markets

This is where TAGZ aims to ‘kill two birds with one stone’ in an effort to solve this
problem by creating an environment where Regulation, Security and Liquidity is
paramount and both markets on one platform is also achieved.

We call this a Dual Gateway Exchange (DGE) which allows for both traditional
trading of cryptocurrencies while also offering futures trading in form of derivatives, all
whilst being 100% regulated and eliminating any risk to users.

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2. Problems with Unregulated Exchanges
2.1. Regulated Exchanges VS Unregulated Exchanges

There is big need for regulation in the industry with the call of official government
bodies and regulators such as SEC and ASIC cracking down on unregulated
exchanges. This is due to ‘shady practices’ and questionable behavior being
orchestrated by some of the most well-known exchanges still being used today.

❖ Our aim is to clean up the ‘bad taste’ in the industry and focus on setting a
clear benchmark for others to follow.

Our regulation method will aim at protecting users from some of the top flaws and
irregularities caused from unregulated exchanges including:

FLASH CRASHES
Sudden downward spike in price usually caused by panic-
selling and excessive volatility.

SPOOFING
Spoofing is a form of market manipulation by placing an order
which the user doesn’t plan to actually execute to influence
traders.

FAKE VOLUME
Artificially inflated volumes from illegal wash trading.

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 LACK OF DUE DILIGENCE
Minimal or non-existent identity checks on customers from
unregulated exchanges.

PUMP & DUMPS

Pump and dump schemes artificially and rapidly increase the
trading volume and price of specific asset.

SECURITY HACKS
Exchanges not having a tight and stringent security policy in
place.

2.2. The Solution

Identity Policy Artificial Security TAGZ Token

Intelligence Foundation
Tight KYC and
AML procedures to Smart (AI) Engine By design, security Greater liquidity &
prevent money enforces policy and is the foundation of reduced exchange
laundering, fraud preventative action. our platform. trading fees.
and corruption.

6
2.3. Identity Policy

Customer
KYC Transaction
KYC submits ID
with KYC USER Application AML reporting to
is accepted AUSTRAC
application

2.4. Security Foundation

Server goes into

protection mode if
IP is temporarily threat is too large.
blocked and threat
AI spots security neutralized.
threat in real time
and threat is
accessed.

7
2.5. Artificial Intelligence

Discovery

Requests User Activity

Price Event Transactions Past History

2.6. Greater Liquidity

Profits
• Providing more • Bringing in
liquidity from • 20% of company liquidity by
Market Makers profits allocated to connection to
liquidity pool other exchanges

Market Makers API’s

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3. The Platform
3.1. Dual Gateway Exchange
3.11. What is a Dual Gateway Exchange (DGE)?

A Dual Gateway Exchange referred to as a DGE allows for both Traditional Trading
of an asset in what’s commonly known as an Order Book and the market of Futures
Trading where a Derivative is being traded and not the actual asset itself.

The order book lists the

availability of a specified asset
(cryptocurrency) with asking
prices both for buy orders and
sell orders with the ability for a
customer to fulfill an order at the
current best market price. The
price is always determined by
the last sale and is marked
toward the exact asset that is
being traded.
Example of an Order Book (Left)

A derivative is a contract that derives its value from the

performance of an underlying entity. This underlying entity can
be an asset, i.e. Bitcoin or an Index.

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4. Trading Environment
4.1. Traditional, Futures/Derivative and Index Trading

The TAGZ platform will allow inter-trading of all main pairs including Bitcoin, Ethereum
and Altcoins as well as custom indexes and derivatives.

CRYPTO DERIVATIVES
.

ALTCOINS
INDEXES
BITCOIN

❖ All of the below cryptocurrencies will be offered through pairings of USDT &
TAGZ and are the first of many that will be added to our platform. They will NOT be the
only cryptocurrencies available to trade as our agenda is to add at least 2 new coins
to our exchange every 30 days.

❖ As part of our strict criteria and due diligence process our team will only be
selecting the best cryptocurrencies that we feel will benefit from our platform and hold
up true to our high standards.

❖ In order to add new cryptocurrencies to our platform we will ask users of our
platform and community to vote in allowing us to select the right asset to be added.

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4.11. Traditional Pairs

Upon launch we will be listing the following 8 main cryptocurrencies:

4.12. Futures Pairs

Upon launch we will be listing the following 4 main cryptocurrencies:

NOTE: Our Platform will allow any user to trade both markets at the same time
allowing for increased liquidity on the exchange.

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4.13. Trading Indexes

Upon launch of our full-scale platform we will be releasing the following 2 Indexes.

Bitcoin Ethereum
(BTC) (ETH)

TAGZ 5
Litecoin
(LTC)

Ripple Bitcoin
(XRP) Cash
(BCH)

Bitcoin Ethereum
(BTC) (ETH)

TAGZ 10
Ripple Bitcoin
(XRP) Binance
Cash (BNB)
(BCH)

Litecoin EOS Tether Stellar Cardano

(LTC) (EOS) (USDT) (XLM) (ADA)

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4.2. Benefits of a DGE including Margin Trading

Futures will allow maximum Margin

Trading leverage of upto 200x.

➢ Enhanced asset volatility

➢ Increased market momentum

✓ TAGZ will be the first to offer 200x Margin Trading against crypto assets.
✓ Margin Trading option between 0 – 200x is offered.

✓ There will be NO FEES when trading 200x on any asset.

4.3. Fee Structure

➢ First 90 Days: There will be NO FEES charged for the first 90 days after
official exchange launch on both Traditional & Futures on any asset.

0.0005%
➢ Next 90 Days: After the initial 90 day period
has lapsed, our fees are only:

0.0010%
➢ Day 181 - 240: In this next period our fees
remain ultra-low and are only:

0.0015%
➢ Day 241 - 365: This period will mark 12
months in operation and our fees are only:

➢ Low Fees Forever: The above fees are on all TAGZ pairs and our exchange
fees are among the lowest in the industry, if not the lowest!

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5. Affiliate Program

In order for our userbase to grow it is important to deploy an Affiliate Program to

incentivize users to be part of our exchange and to encourage others to do the
same.

Most other exchanges have deployed the same philosophy either through paying out
referral commissions upon new user signups or paying out a set amount on trading
activity over a specified time period.

It is with the same intention in mind of running a successful incentive program like
others have that we believe our Affiliate Program has one of the absolute highest
paying commission structures on the internet, if not the highest.

5.1. Affiliate Commissions

Each user on our platform is automatically

25%
approved with an Affiliate Account.

✓ Paid every 30 days

✓ Perpetual trailing commissions

✓ Commission paid on all trading activity fees from each user you bring!
✓ Make a healthy ongoing income from active traders just for telling them about TAGZ.

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6. TAGZ Token

Name: TAGZ
Ticker: TAGZ
Maximum Total Supply: 500,000,000
Contract: 0x5d8cE06A40fB101895bE5b6560931b92a1b3444F
Decimals: 8

6.1. Token Utility

As part of our business model, the TAGZ Token was created to reduce exchange
trading fees for all of the users of our platform aswell as increasing the net worth of all
TAGZ Tokens through achieving higher market capitalization.

With this in mind and through the pairings of both USD & AUD, the introduction of the
TAGZ pair against cryptocurrencies offered on our platform provides a clear path to
market.

❖ NOTE: Please see 4.3. Fee Structure for exchange fees in the first year.

➢ After the first year of trading any user that maintains holdings of at least 3,500
TAGZ Tokens and trading against any TAGZ pair will save 50% on all fees.

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6.2. Crowdsale

TAGZ will be holding a worldwide Crowdsale in an effort to hit our goal of raising
enough funds to meet our Hardcap in order to build our exchange platform and
progress ahead in line with our roadmap. To successfully launch we must at least hit
our Softcap.

➢ Softcap: 1,100,000USD ➢ Hardcap: 7,500,000USD

6.2.1. Referrals

10%
Every user that signs up using your referral link and
contributes during our Crowdsale will receive an extra
10% Bonus and so will you!

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6.2.2. Crowdsale Pre-ICO Details

Extra Bonus: 40%

PRE Price Discount: 25%

ICO
USD Price: $0.1031
Tokens: 10,000,000
Start: 17-APR-2019 9AM
End: 31-MAY-2019 11:45PM

6.2.3. Crowdsale IEO

Extra Bonus: NILL

DOBI Price Discount: 20%

IEO
USD Price: $0.1100
Tokens: 325,000,000
Start: 01-JUN-2019 10AM
End: 08-JUN-2019 11:45PM

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4.2.4. Fund Allocation and Token Distribution

Fund Allocation

Platform Development
Marketing & Advertising
Security Maintenance
Regulatory Compliance

0% 10% 20% 30% 40%

Regulatory Compliance Security Maintenance
Marketing & Advertising Platform Development

Token Distribution

Distributed
Reserved Funding
Founders & Team
Advisors

0% 20% 40% 60% 80%

Advisors Founders & Team
Reserved Funding Distributed

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7. Legal
7.1 Company Registration & ASIC Exchange Licensing

❖ We are fully registered

with the Australian Securities
and Investment Commission.

❖ The Australian
Securities and Investment
Commission is commonly
referred to as ASIC.

❖ ASIC is the governing

body for all Australian
companies and securities.

❖ ASIC is the equivalent

to SEC in USA.

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7.2 AUSTRAC Reporting and AML/CTF Policy

❖ We are fully registered and licensed with the Australian Transaction Reports
and Analysis Centre.

❖ The Australian Transaction Reports and Analysis Centre is commonly referred

to as AUSTRAC.

❖ TAGZ is regulated and required duties are to report transactions to

AUSTRAC.

❖ We also have an Anti Money Laundering Policy in place with reporting

responsibilities to AUSTRAC.

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7.3 KYC Regulatory Requirements

❖ To maintain AML/CTF compliancy we are required by law to verify the identity

on each customer we transact with on our exchange platform.

❖ This is known as KYC which stands for Know Your Customer.

❖ The KYC processes is important for the purpose of ensuring compliancy.

❖ TAGZ is partnered with world leading identity solutions provider; Jumio.

❖ All verified identity and customer details are held on record for 5 years.

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8. Roadmap

Official ICO ICO Platform

2019 Kickoff
2019 Completed
2019 Development
MAY JUN and Funds JUL (Alpha)
Allocated

Platform Trials Platform Platform

2019 (Alpha)
2019 Launch
2019 Upgrade (Beta)
AUG SEP (Alpha) OCT

Mobile App Full-scale Continual

2019 Launch
2019 Platform
2020 Improvement
NOV DEC Adoption JAN

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GET IN TOUCH
See what we’re all about by visiting our website:

www.Tagz.com