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1. Be simple
Be your own banker
Content
Financial industry upgrade ...............................................................................1
Opportunities in industry upgrade ....................................................................3
A global lending network of operators..............................................................6
Business Model ..............................................................................................10
How to establish a lending network................................................................11
Our Clients .....................................................................................................15
Income Distribution.........................................................................................16
Risk Management ..........................................................................................17
Competitor Analysis .......................................................................................18
Compliance Management ..............................................................................20
Blockchain Technology and Loan Protocol ....................................................21
More Financial Services for Financial Institutions ..........................................26
Ecology Governance Mode of Separation of Powers ....................................27
Reward System in HNC Ecology....................................................................29
HNC Foundation.............................................................................................30
Roadmap........................................................................................................31
Disclaimer.......................................................................................................32

2. 1
Financial industry upgrade
Internet Finance
In recent years, internet finance has been influencing our lives in various ways. Internet finance is an emerging
financial mode based on internet tools, which makes the transition from offline to online to manage the wealth.
Internet finance modes include: third-party payment platform, P2P network micro-finance model, big data-based
financial service platform, fundraising, internet insurance, and finance products online sale.
Blockchain Finance
The rapid development of blockchain technology has drawn the attention of governmental departments, financial
institutions, technology corporates and capital markets. On January, 2016, the British government published a
blockchain research report, promoting the application of blockchain in the finance industry and government
affairs. In order to enhance the financial activities' efficiency, convenience and transparency, the people’s bank of
China held a cryptocurrency seminar to discuss the feasibility of using blockchain technology to issue crypto
currency. In Sept. 2018, the New York Financial Service Authority approved stablecoins of GUSD and Pax,
allowing USD-pegged cryptocurrencies to be issued under the governmental supervision, and permitting fiat
currencies to be circulated across the whole world. STO can turn all traditional assets into security tokens that
adapt to governmental supervisions and still have some attributions of cryptocurrency. The emergence of STO
can change the essence of investment since the company financing does not need to rely on investment banks,
security exchanges and other middlemen. With blockchain technology, stock assets will change into crypto
assets with global fluidity, while fiat currency assets will change into crypto currency assets. These two forces will
promote a new pattern of global finance.

3. 2
The above are all examples of blockchain finance, or namely, blockchain-based finance mode. Blockchain
finance is a brand-new financial mode, a financial systematic upgrade after internet finance.
Future Digital Economy
According to the consensus of the 2015 World Economic Forum, by 2025, 10% of global GDP will come from the
use of blockchain technology. More accurately, 10% of global GDP will be booked in cryptocurrencies equivalent
to fiat currencies in the real world, which will change the process of fiat currency-based issuance, circulation,
contract signing, and valuation. This shift is what the future digital economy will be like——not only enhancing the
economy digitalization, but also focusing more on economic appreciation followed with accurate digitalization of
currency issuance, on free competition with national currencies, and on high efficiency and equitableness in
social wealth distribution.

4. 4
Opportunities in industry upgrade
The Gap Between Crypto World and Real World
Along with the digital era has sprung up thousands of cryptocurrencies showing two main features:
• Globalization: cryptocurrencies are held by global users
• Decentralization: crypto assets are kept on blockchain
The development of cryptocurrency has brought us to new users and new financial technology systems.
However, some financial institutions have neither accessed users in need, nor combined with public blockchains
with crypto assets to conduct financial business. Therefore, the crypto currency world and the fiat currency world
become parallel.
Opportunities for Financial Institutions
Robert Shiller, the winner of the Nobel prize in economics, mentioned in his book Finance and the Good Society,
that the financial system has to be further expanded, democratized and humanized; also, the supervisor shall be
more technology-based and no one shall refuse finance and its new forms, because it is what the finance can
contribute to the good society.

5. 4
The rapid development of blockchain has left users with a great amount of idle crypto assets. However, financial
institutions neither provide crypto assets holders with corresponding services, nor take the advantage of
blockchain to create more expanded services such as crypto asset-based custody, crypto-backed mortgage loan,
blockchain-based payment, etc.
To construct a brand new financial system with the original characteristics like risk control, compliance, capital
management, and fund cost, financial institutions will have to make great use of blockchain finance in the
following two aspects:
• Access to users holding cryptocurrencies: digital assets can be managed as the world’s most liquid assets, and
be used more effectively.
• Access to blockchain technology system: conduct financial services on blockchain, deal with risk and
compliance issues by smart contract, make it possible for self-running finance with programmable currency.
An Upgrade of Loan Business
The traditional loan institutions’ failure in covering the global users is due to four factors: difference in credit rating
standards(collateral audit), trouble in disposal of cross-border collateral, time-consuming lending, and high costs
of business.
In the future of the digital economy explosion, financial institutions are expected to provide financial products for
crypto assets. Crypto-backed loan is considered as the first area to get started. Crypto asset, which enables
cross-border economy flows and real-time settlement, has higher liquidity compared with any other traditional
financial product. Therefore, crypto asset is one of the most recognized financial products all over the world. In
addition, crypto asset breaks through the traditional limitations in aspect of time, space and value consensus,
pushing the industrial level to new heights.
Greatly lower the
credit threshold
The current mainstream crypto
assets are the only type of
financial assets that is
recognizable worldwide. By using
BTC, ETH or cryptocurrency as
the collateral, users will no longer
be limited by credit controls. The
risk can be hedged by fully-paid
collateral. Such a design has little
risk exposure except for the
systematic risks (e.g. financial
crisis)
Realize cross-border
mortgage
The traditional collateral cannot
reach cross-border validity. For
example, US real estate property
cannot be used in the mortgage
loan in China. Even if the process
continues, the Chinese lending
institutions are unable to conduct
pre-valuation and post-
implementation of American
properties. But cryptocurrencies
can achieve value transfer of
internet through blockchain
technology, which means, the
collateral of the mainstream
cryptocurrencies can be
transferred to any corner of the
world.
Accelerate the
lending process
To reduce risks, the traditional
lending process is time
consuming because it requires
credit evaluation and collateral
audit before lending. However,
crypto-backed loan business only
requires short time and zero cost
to conduct the same two parts,
which greatly speeds up the
lending process.

6. 4
Technology Upgrade
The traditional financial institutions’ settlement system is based on old account mode, which asks for high costs.
Nevertheless, blockchain peer-to-peer technology, a decentralized trust mode (a distributed ledger) can play as
the replacement. Institutions can embrace the public blockchain, link to the blockchain assets, and construct a
financial business including deposit, loan, remittance there. Such a design can achieve real-time settlement,
greatly lower the operating cost, and promote the financial industry upgrade.
Take Ripple as an example, it has introduced the blockchain technology into the remittance system and
successfully reduced the operating cost by 60%.

7. 4
A global lending network of operators
Financial Operator Model
In light of the success of the platform business model adopted by Taobao and Uber, we start to consider the
possibility of building an integrated platform in the financial industry worldwide, a place where financial institutions
can conduct their loan business. Each independent financial institution, more like a business node, will contribute
to form a huge lending network that benefits 7 billion people.
Best Practical Case
The current global payment system is neither a globalized system, nor a real system due to the high cost in
cross-border payment and low efficiency. Ripple, by contrast, is a decentralized global banking network
constructed together by global banks which played as payment nodes. Ripple’s design has become a huge
success by making the bank-to-bank remittance available and changing the payment mode of traditional banks.
HNC Lending Network
The successful model of Ripple in the field of payment can also be applied to the global loan business. With
blockchain technology, we create an open global lending network, a fundamental platform specially built for
financial institutions. In our network, the financial institutions that provide lending business in the HNC system
are called “financial operators”. Operators can conduct mortgage loan business worldwide, serving for global
users with crypto assets in hand. The service is automatically controlled by smart contract and the collateral is
100% well-managed online, which facilitating the loan business to be globalized, simplified, and high efficient in
asset management, mortgage, lending, disposal of NPL. Such a design also greatly reduces the operating time,
cost and risk.
Crypto-backed Loan
HNC offers a unique global lending service. It allows users to instantly get fiat currency by mortgaging their crypto
assets in HNC platform. More specifically, through mortgaging BTC or ETH in HNC platform, a borrower can
receive USD, CNY or Euro from the lender(s) without risk or geographic restriction. The collaterals are
redeemable as long as the borrower pays the principal and interest under schedule.
HNC
Platform

8. 4
Operator Provides Fiat Funding
As the first open decentralized globe lending network, we establish a standard protocol to offer a unified loan
business for users across the world. Users can apply for a loan on HNC network freely. Their applications will be
auto-matched with fiat fundings supported by compliance financial institutions. Through the competition among
network operators, users can get low-cost capital within seconds. The whole operation is as simple as using Uber
all around the world.
Market Scale of Mortgage Loan
From May. 2013 to Sept. 2016, the whole market value of cryptocurrency has increased from＄1.5 billion to ＄12
billion. Till 2018, this number has reached a maximum of over＄500 billion, almost a 350-fold increase in the past
five years. Based on this market volume, there will be a constant growing demand for crypto-backed loans.
Lending Network Evolution
In addition to providing a global lending network, HNC also allows individuals and institutions to innovate and
operate cryptocurrency-based financial products. We offer operators completed infrastructure facilities and
application foundations to let them conduct more innovative financial businesses on our platform, as simple as

9. 4
running online stores. Such a design will greatly simplify the business process, lower the cost, enhance the global
fluidity of financial products, and construct a good society Robert Shiller described.
We have three stages to realize our goal of establishing a smart financial service ecology.
• Phase one: Provide decentralized loan services; serve for physical economy
• Phase two: Provide crypto asset issuance and financing service; construct the primary market of crypto assets
• Phase three: Provide decentralized transaction services; construct the secondary market of crypto assets
Finally, we will connect services of payment, credit loan, wealth management and other services that are
frequently used in the real world, to offer users a one-stop continuous financial service. We hope to redefine the
new financial order through building a financial market on our own.
HNC
Smart Finance

10. 4
Business Model
We are a global lending
network connecting financial
institutions worldwide
In terms of financial lending service, we can also
build a Taobao-liked platform that connects financial
operators to offer loan services, including capital
access, capital integration, and investors guidance
through a large-scale, globalized lending network.
Each operator plays as a service node to construct
an immense lending network covering 7 billion
people’s financial demands, breaking the traditional
Give users access to borderless loan and global financial services
There is always a big concern for users to get loans on a global scale. The main reason is that users’ credit or
collateral cannot reach a unified standard all around the world. For instance, Susan, who came from the
Philippines and works in the United States, is unable to get loans and other financial services for low credit
points and unqualified value of her collateral, because the auditing process of house property cannot be
conducted by US banks.
When it comes to the crypto-backed loan, things are totally different. The crypto-backed loan can standardize
the global lending. Therefore wherever users live or work, they can enjoy lending services provided by local
financial institutions. The whole operation only takes 10 minutes, as simple as shopping at local market.
Difference in global interest rates will be flattened; users can
enjoy low-cost borrowing
The concept of financial liberalization was raised by R.J McKinnon and E.S. Show in the 70s. They pointed
out the pain point of the financial repression, reckoned that the reason why the developing countries were
stuck in undeveloped economy is caused by financial repression, and thus they advocated those countries to
realize financial deepening in means of financial
liberalization to stimulate the economic growth.
For a long time, interest rate liberalization has
been considered as its main content.
HNC enables users to enjoy the standard crypto-
backed loan in each country, improving capital
cost imbalances of global borrowing. On this
ground, a global campaign of interest rate
liberalization is emerging, and users will finally get
loans with low cost.

11. How to establish a lending network
From Global Exchange to Global Lending
The current global exchange, though not perfect enough, has already been accepted across the world. Can
global lending be as simple as global remittance?
The rapid development of digitalization of assets such as gold, corporate stocks, housing estates and property,
will generate a growing demand of global lending among asset holders. Borrowers can not only get loans from
their home country, but also match funds in a global scale. This shift will change the rules of the financial industry
and make the globalization of finance easier. The world has gradually become a global village. The era of global
lending is coming around the corner.
• Accept borderless collateral
The borderless nature of crypto assets makes it the best collateral. We believe that the blockchain technology
has the ability to digitalize everything in the future.
• Connect global financial institutions
We connect global financial institutions that conduct loan business in order to form a lending network providing
fiat funding and local loan-matching services.
• Establish loan standards with smart contract
Everyone can apply for loans in our network; and any individual and financial institution can offer funding. Smart
contract matches the debit and credit automatically and guarantees the contract performance. Global financial
institutions can access to our network seamlessly.
Network Participants
HNC global lending network consists of borrower, investor, operator, gateway and HNC platform. Operator,
gateway and HNC platform are network providers, borrower and investor are network users. Our lending network
is jointly built by all participants who will, of course, obtain benefits from their contributions.

12. 12
Our Solution
Crypto assets flow into HNC lending network through the side chain, and fiat currencies make it through financial
institutions. Due to the global coverage of HNC network, we promote the regional crypto-backed loan service to a
global scale. The fiat funds in all types and the high-quality credit assets of various countries are seamlessly
connected through the smart contracts of HNC lending network, and they are automatically controlled and
hedged.

13. 13
How Operators Access Our Network
Lightweight access Self-development access Embedded access
Feature
Suitable for operators
to access quickly; no
need for technical
development.
Suitable for financial
institutions; require self-
development access.
Support operators to
achieve fast access and
APP integration.
Type
Operators who own
currency holder
resources and do not
want to focus on
technology input only
need to turn traffic into
loan demands to make
profits.
Operators having their
own loan platform,
reaching credit assets
through accessing HNC
network, providing users
with capital matching
service and conducting
mortgage loan business.
Operators owning
currency holder
resources and their own
APP or Website,
providing users with an
extra loan service and
earning profits from this
Operation
Download JAR file
through the official
channel and extract it
into the Web server,
configure JSON file and
bind the domain, then
the operation of loan
business can be
conducted.
Download the source
code of operating web
given in “HNC lending
network” directly and
access HNC public
blockchain, then the
operation of loan
business can be
conducted.
Call API interface to
realize a direct jump to
the H5 loan service page
HNC provides from their
own APP, thus making it
possible to complete
users’ loan application.
Advantage
Easy operation and
high efficiency in traffic
monetization; greatly
lower the access
threshold for crypto-
backed loan business.
Operators can combine
HNC network and self-
owned loan platform
based on their demands,
and thus offer users a
consistent experience.
Easy operation and
traffic monetization;
greatly enhance user
stickiness with value-
added services; no need
for operating; no need
to run their own crypto-
backed loan business.

14. 14
Our Strengths
HNC global lending network based on blockchain technology is fully transparent, open and trustworthy. Here,
everyone can initiate their loan request, make the investment and obtain returns through the standardized
lending smart protocol.

15. 15
Our Clients
All income of the mine here are all cryptocurrencies generated by mining, but the cost of mining machines as well
as the energy consumptions have to be paid in fiat . This brings a large demand for crypto-secured loan.
Basically, the project party (other token issuers or entrepreneurs) whose project financing is mainly based on
cryptocurrency is required to cover daily expenses in fiat currency. However, most of them are firm believers who
would not sell their tokens easily, and thus creating demand for the crypto-secured loan.
The crypto asset holders are reluctant to sell the digital assets because they expect an increase in the value of
crypto assets. Those people can use their crypto assets as collaterals to satisfy the needs of fiat currencies.
Once a chance occurs to ETH, they can mortgage BTC to borrow USDT, then buy in ETH with them, and repay
all USDT after earning profits.
The commission incomes in exchange are denominated in cryptocurrencies while its daily operating expenses
need to be paid in fiat, which leads to the demand of crypto-secured loan.
Passive hedge funds, while holding BTC's long open positions, amplify trading leverage through mortgage chips,
improve capital utilization, and capture high returns.

16. 16
Income Distribution
HNC, a blockchain-based lending network and a open financial platform, is constructed and managed together by
all participants. All participants are able to share our benefits.
Charaters Crypto currency Fiat currency
Operator — — Defined by operator
Investor — — Interest income
HNC platform Service fee: 0.0%-1% — —
*Subject to notification presented by operator. The calculation is based on each loan amount.
Suppose Susan borrows＄10,000 for a six-month period with an annualized interest rate of 10%, an operator fee
rate of 1%, and a platform fee rate of o.5% (platform fee can be distributed to referrer and lending node), so
during the whole process, she will pay interests of＄500 and service fees of＄150 in total.
HNC Platform

17. 17
Risk Management
There are two main risks of the mortgage loan business: default risk and mortgage risk. Since cryptocurrency is
highly volatile, a good performance in risk management is particularly important.
1.Past-due payment: if borrowers’ default on payment, their collateral would be disposed to cover
risk exposure
2.Depreciation of collateral: if the value of collateral depreciates, the risk would be controlled by mortgage
rate maintaining and mandatory liquidation.
The essence of finance is to operate risks. For these risks above, HNC provides a set of risk-control mechanism
automatically executed by smart contract, which can effectively lower risks while earn income. To deal with the
single borrowing risk and market systematic risk, we also offer two risk-control methods.
Collateral Risk Control
We adopt a margin call risk-control system and define mortgage multiple = collateral value / loan amount. When
the feed price changes, the value of collateral fluctuates correspondingly. To balance the risk and protect
investors’ interests, we design a liquidation threshold and a warning threshold to make sure the mortgage is paid
in full.
Systematic Risk Control
A systematic risk explosion in the market is usually followed with large-scale default events, which would further
trigger a breach in lending contracts. To avoid this, HNC introduces a triple systematic risk-control mechanism.

18. 18
Competitor Analysis
Indicators HNC Salt Nexo ETHLend
Business Model
Operator lending Self-running Self-running Self-running
Borrowing
Options
Fiat and crypto
currency
Fiat currency Fiat currency Cryptocurrency
Collateral
Options
BTC, ETH, BNB,
XRP and other
mainstream
cryptocurrencies
BTC, ETH BTC, ETH, etc.
Cryptocurrencies
on Ethereum
Supportive
Currencies
CNY, PHP, USD,
SGD, etc.
USD USD, EURO None
Compliance
Coverage
Worldwide
(through global
operators)
Regional Regional Unsupervised
Blockchain
Self-owned financial
public blockchain
Centralized
website
Centralized website Ethereum
Financial
Institutions
Open access to
HNC network
Cooperation only Cooperation only No participation

19. 19
Competitor Analysis
• Business Model
HNC operates under the “operator lending model” with the licensed lending operators from around the world
acting as lending nodes. Any financial institution or individual has free access to the network for investment and
borrowing. Other platforms adopt the "self-operated model", each of which is fighting alone, unable to take
advantage of scale, and it is difficult to adapt to future financial globalization.
• Loan Mode
On HNC platform, most mainstream cryptocurrencies can be used as collateral, and borrowers are free to choose
the credit enhancement measures. Such process greatly lowers the threshold for borrowers. On many other
platforms, however, only ETH or ETH20 Tokens are supported.
HNC investment supports cryptocurrencies and different fiat currencies, enabling the crypto-secured lending
business to expand to the real world, and finally to support the financial innovation under the digital economy.
• Compliance
Currently, most crypto-secured loan platforms are out of regulation. Only few projects like SALT are complaint in
limited regions. As a local project in American, SALT is compliant only in certain states, not in most states of
America.
HNC meets the compliance requirements though the licensed compliant operators on HNC platform. Therefore,
we ourselves circumvent the complex compliance matter.
• Blockchain
HNC adopts Graphene technology, DPOS consensus, and conduct all financial services on our own public
blockchain. For other platforms, they rely on Ethereum network or canalized website, which has more limitations.
• Partner Financial Institutions
Financial institutions can access HNC platform through standard protocol and join HNC lending network
anywhere and anytime. This mode greatly improves the expanding speed and quality of lending business and
enabling operators to build their own digital banks on HNC platform. Operators compete each other under the
rule of the survival of the fittest, which helps to optimize the competition structure of HNC ecosystem and push
HNC lending network improve itself.

20. 20
Compliance Management
Compliance Management for Fiat Lending
On HNC platform, fiat currency of the investment is provided by the financial operators which are the legally
licensed institutions. So the operators have capabilities to match compliant fiat currency funds for global users.
Management Procedure
HNC committee is authorized to conduct the regular audit on the compliance of financial operators, and, at the
same time, the committee offers the service of arbitration and coordination for users’ disputes and complaints.
The compliance of operators’ operation is managed through smart contract. For example, the loan rate charged
by operators can not exceed the local legal interest rate. If the borrower defaults, the operator must pay investors
the principal at the guaranteed rate before the operator disposes the collateral. HNC sets the upper limit for the
service fee charged by operators to protect borrowers. The risk reserve is not allowed to be withdrawn directly,
etc.
Compliance Design for Mortgaging Crypto Assets
The legality policies of crypto assets vary greatly from country to country. Therefore, the way to deal with the
crypto assets of the mortgage，the legal relationship between the borrowers and the borrowers, and the disputes
arising after the breach of contract are of vital importance.
1. For countries (like China) in which the cryptocurrency transaction is not allowed, we adopt the loan
guarantee mode, which means the loan is guaranteed by a local legal guarantee company whose parent
company is a overseas licensed guarantee company, and is able to dispose the crypto NPL oversea.
2. For countries(like Japan) legally allow cryptocurrency transaction, the local operators can either dispose
the NPL directly, or to cooperate with a local guarantee company who will help them conduct the
disposal of NPL.
HNC Platform

21. 21
Blockchain Technology and Loan Protocol
HNC Blockchain
HNC Blockchain, an open financial infrastructure, builds the distributed ledger for both loan business and fiat
lending financial institutions. With the decentralized methodology, HNC establishes a decentralized financial
service ecosystem, builds up various smart finance products, and provides basic services, including feed price,
gateway and financial smart contract.
Graphene Blockchain
HNC system is built on the basis of Graphene technology, supporting the key blockchain services such as block
format, consensus algorithm, network, data base, user and permission management, and asset management.
The Graphene is an underlying framework for blockchain with high availability, great performance and low
latency. Given the fact that the Graphene technology has been operating steadily for almost 4 years, such
technology has achieved extensive use in various public block-chains. Contingent on the DPoS consensus
mechanism, we have significantly improved the average transaction confirmation time of 1.5 seconds and the
maximum TPS up to 10,000, which guarantees the assurance of the instant payment or transfer of
cryptocurrencies.
Digital Identity
On HNC blockchain, users are allowed to create their own digital identities and CVs. The ownership of user’s
information is protected by timestamps, the public key and private key, etc.
HNC provides ID authentication service which supports providing users identity pool for third-party application.
Users can log into third-party application using HNC ID and corresponding private key. The digital signature can
be generated without interacting with HNC servers. Users can also manage their assets in third-party applications
which completed the simple integrated development.

22. 22
Sidechain
HNC applies sidechain technology to make crypto assets transfer between HNC blockchain and
other blockchains. Users can transfer their crypto assets to or from HNC.
Sidechain services make the cross-chain exchanging of crypto possible, without the participation of third parties.
The two-way-peg sidechain technology solves the circulation problem with BTC, ETH and other cryptocurrencies.
The deposit funds are locked in the multi-signature address. Bitcoins held in HNC platform can be transferred on
the HNC blockchain with higher efficiency and safer transaction standard.
Consensus
HNC adopted the consensus of Delegated Proof of Stake (DPoS), which greatly increases the transaction speed.
Some unnecessary steps in the block signature process can be removed by trusting a small number of integrity
nodes which are responsible for collecting various transactions information broadcast by the network at run time,
packing the transactions in order and producing blocks. After a round of block generation through random shuffle,
the nodes will enter the next round to generate new block.

23. 23
HNC Account Pattern
HNC account uses unique string of characters as account name which is more intuitive to use compared to wallet
address. Due to the fact that the distributed ledger maintains the account balance, system resource consumption
is not negligible. However, we take certain measures to balance the cost and resource consumption, through
which ordinary users can register account free of charge and premier users are offered more permissions.
Private Key
Owner Keys
Owner Key has the highest permission of the account, and it is used
to overwrite other permissions.
Active Keys
Active Key provides the permission for transaction and small change
management.
Memo Keys Memo Key is used to interpret the memo of the transaction.
Login mode
There are two login modes:
• Wallet mode: Pack all the private keys of all user accounts in HNC wallet into a document, and set an unlock
password. Account owner is the only one holding this private key document, and it is unable to be stored by
anybody or anywhere on the network.
• Account mode: Account mode builds the connection between account name and private/public keys. Users can
log into the account through the account name which is set by user himself/herself and easy to remember.
Transfers and transactions based on blockchain between accounts are supported, and it has nothing to do with
the public key(address) or private key.
Assets Management Mode (Multiple signature)
As the basic unit in HNC network, the HNC account may
belong to a natural person, or a company with thousands
of people. The multiple-signature mode is adopted for the
purpose of company management, which means a
Account Name Weight
CEO.COMPANY 51
CFO.COMPANY 51
transaction shall be confirmed by the co-signing of
multiple private keys, or the transaction cannot be done.
Every role of the account can be managed jointly by
multiple public keys: (i) setup a total minimum threshold
as well as the weight of each public key; (ii) the sum of
the weights of these public keys shall be more than the
minimum threshold; (iii) the one with public key has the
permission for the account.
Minimum Threshold 50
CEO and CFO both have the independent
payment rights for the account.

24. 24
Loan Protocol
In the crypto world, a traditional financial institution can provide cryptocurrency holders with the lending service
on HNC platform without knowing about how to mortgage and how to dispose the crypto assets, and even
without changing their internal process. Thanks to HNC standard loan protocol and its corresponding loan
process, compliance, security and technology, financial institutions can access to the global loan network and
provide global users with lending service.
Loan Contract Protocol Standard
In global lending business, the crypto-asset-backed
loan request will be matched and executed
automatically with global investments, as easy as
the crypto payment or crypto trading. Through loan
agreement protocol, users, like individuals, financial
institutions, exchanges and wallets, are able to
involve themselves in the global loan business,
without concerns about the geographical limitation
or matching problem.
Loan Contract Data Standard
The standardization of loan agreement will help
to form the loan agreement for every matched
loan request. Meanwhile, the loan agreement will
be executed automatically through smart
contract. So HNC made the standard data for the
loan agreement: Loan contract data standard.
Actions in loan business include borrow, invest, pay,
dispose NPL, call margin.
Fiat Gateway Access Protocol
Standard
Operator Access Protocol Standard
HNC is an open global lending network, which
allows any person or institution operator to get
access to the lending network. As long as owning
the permission, operators can run their business on
HNC network. The requirements for an operator
include HNC membership, HNC token deposit. The
proposal for an operator will take effect in real time
once the committee votes it on.
Fiat gateway is the “infrastructure” on HNC
lending network. The gateway can be a financial
institution, or an operator. Once a gateway gets
the permission to operate at HNC network, such
gateway is entitled to get the share from the
profit of loan business, which is allocated
automatically by smart contract with real time
settlement, and the process is open and
transparent. The requirements for a gateway
include membership of HNC and token deposit.
The proposal for a gateway will take effect in real
time once the committee votes it on.
Loan protocol makes the global borderless loan on blockchain possible.
Either financial institution or individual can access to the loan network
and match the global loan requests, and finally build a global autonomous
loan network.

25. 25
Financial Service
Here are several typical financial basic services.
• Connecting Crypto Assets
To better serve the crypto financial services for cross-chain assets, HNC provides two channels to make the
mainstream cryptocurrencies (like BTC, ETH, LTC, DASH, etc.) flow into the ecology. One is sidechain
technology, while the other is the gateway issuance model.
• Feed Price Service
To ensure the exchange rate of crypto assets on HNC platform is in sync with the exchanges, we adopt the feed
price model. HNC uses algorithms to deal with exchange rate information collected from reliable exchanges, thus
protecting the market from the obvious intervention of certain centralized institution. Feed price, of which
information offered by “Trustees” who are voted on to maintain the best interests of the system, is the exchange
rate from the exchanges. Usually, trustees combine the exchange rate information from different resources to
generate a feed price, and update it regularly. Since the system uses the median of all feed prices, it is difficult for
any trustee or agency to control the feed price, unless they have a significant degree of collusion. The feed price
and trustees’ behaviors are publicly reviewed, and a trustee can be voted out by HNC holders at any time.
• Gateway Service
The crypto gateway adopts the sidechain mode. The initial deposit funds are locked in the address with multi-
signatures. Bitcoin blockchain is the best choice for funds long-term deposited in cold storage. But for Bitcoins
that are transferred frequently, putting on HNC blockchain have more advantages.
HNC cooperates with financial institutions for fiat currency gateway service. Users can transfer various currencies
to the HNC blockchain. Unlike Bitcoin gateway, the fiat currency gateway requires AML and KYC authentication,
which are required by all financial institutions. After the remote face-to-face authentication to verify user data,
users can transfer fiat currency within the HNC ecosystem at any time.
• Financial Smart Contract
To build financial basic infrastructure and provide financial operators with the open services, we introduced
financial smart contracts which can offer more financial service templates than general smart contract can do.
Financial applications are complicated. The traditional way of developing financial services on smart contract is
time-consuming and irreversible. Therefore, HNC established a set of smart contract templates for financial
services that are more advanced and executable. For instance, in a loan business where the borrower has paid
the collateral in full, when the market fluctuates and influence the price of the collateral to an insufficient level, the
smart contract will automate itself to close the position. In another case as to the management of operators’ risk
reserves, if the collateral cannot cover the risk exposure, the risk reserve operators charged in the loan business
will be used to pay the investment of investors to protect their benefits. Since the disposal of risk reserve and
debt fund allocations are automatically conducted by smart contracts, users can access to HNC platform that has
instant services, decentralized operation, characteristics of efficiency, convenience and low risk.
• Monitor Witness’s Packing Capacity in Real Time
HNC monitors the packet loss rate in real time. If the loss rate exceeds the threshold, HNC will block the
witness from sending packets in order to maintain the stability of the HNC blockchain

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More Financial Services for Financial
Institutions
Credit System
We will work together with other financial institutions to build the credit system in near future. By developing
DApp credit applications, more credit users can benefit from HNC ecosystem.
Users are encouraged to accumulate and share their credit when making transactions on HNC platform. The
platform provides lenders (like banks, small lending companies, or small micro-lenders) and borrowers with
the credit information of HNC users, creating a credit trading market without any intermediary. Users’ credit
information will be priced by network consensus and traded with authorization. Trading credit information on
chain will also promote the accumulation of users’ credit, which eventually helps to form a credit chain sharing
system. This will reduce credit risks and achieve revenue sharing.
HNC believes in the Pareto Optimal Theory and insists that global credit-sharing mechanism will promote
borderless lending and optimize the allocation of credit funds in the scenarios of HNC lending, HNC payment
and HNC trading. For example, the low-cost funds in Europe and the US can be instantly matched with the users
in Zambia, Pakistan, Bangladesh and other countries, which realizes the borderless flow of credit assets and
reduces the financing cost in less developed countries. Moreover, this is also the innovative practice of Yunus’s
theory of micro-credit and micro-finance.
Payment System
Due to technical restrictions, the existing cryptocurrency blockchains cannot carry out high-frequency trading,
which greatly limits the development of payment scenario of cryptocurrency.
With the side-chain technology, HNC can achieve the real-time payment of cross-chain assets, paving the way for
massive application of crypto payment. For instance, if a user wants to buy an item with BTC while the merchant
wants to charge USD, the user can directly pay BTC in HNC platform. The money will be converted into USD
immediately, and the merchant can receive the USD with the settlement service provided by the payment
company.
Under the tradition account mode, HNC also developed a micro-payment account for users to make a micro-
payment without keying in password, which is easier and more convenient. Meanwhile, the operators can be
authorized to deduct money from users’ micro-payment accounts, by which the usability of cryptocurrency is
great enhanced.
HNC
Chain

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Ecology Governance Mode of Separation of
Powers
A blockchain ecology, just like a country, can grow up and create a prosperous economy through a democratic
governance structure. As a global autonomous lending network, HNC introduced a governance mode to the
complex economy business for the first time, which are the separation of three powers- management autonomy,
operation autonomy and distribution autonomy. First of all, HNC sets up the three powers of autonomy.
Blockchain Network Management Autonomy
HNC adopts the committee system (decentralized autonomous company) to manage the community. The
parameters can be flexibly adjusted to suit the changing market demands(e.g. Gas fee, the number of nodes) by
committee system without hard forks. Any members of the committee may initiate a proposal for modification,
and all committee members vote on the decision. After the proposal is passed, the system will automatically
modify the corresponding parameters.
Members of the committee are voted in by HNC Token holders, in order of voting precedence.
Lending Business Operation Autonomy
HNC lending network is operated by operators. All the lending operators on the HNC network are form the
operation governance community, the lending committee. We authorize the members of lending committee to
make decision on operation strategy which will be written into blockchain contracts and take effect in real time
once it’s voted through by committee members.
Decision Making Process: Operator raises the operation strategy and generates the proposal, and the operator
committee votes on it. The proposal takes effect and is executed automatically.
The operators for each lending currency can form an independent lending committee, which has the full authority
to decide and maintain the lending business of that currency on loan rate, overdue penalty interest rate, service
fee distribution rate, etc. Such a lending committee achieves the decentralized management and professionalism
of lending committee members, and allow operators to adjust the operations in time according to the market.

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Profit Distribution Autonomy
The HNC network profits of lending will be distribute to workers and HNC Token holders based on a democratic
budget decision.
HNC Token holders are able to apply to be the candidates of HNC budget committee. The formal committee
members will be voted on by full users in order of the rank.
Each community member can be a worker of HNC, making proposals and solving problems for HNC.
Workers submit the budget to the committee, and once it is voted through, the budget funds will be
automatically transferred to the worker's address if the budget is approved to encourage people to build up
their own HNC community and make it evolvable and smarter.
Budget committee members supervise the actual progress of Worker’s projects, and vote to terminate the budget
in advance if they find any deviation from Worker’s promise.

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Reward System in HNC Ecology
Free Economy Mode
Free economy is a typical mode of Internet economy. However, the hacking problem makes it difficult to use in
the field of blockchain. In order to enable 90% of users to enjoy free access to HNC network, we developed a
couponing function that gives each user 10 HNC monthly, which can support 100 transactions and is adequate to
cover users’ demands for borrowing, lending and other daily transactions.
Worker Reward
We firmly believe that a good public blockchain depends on the joint efforts of all community members. HNC has
designed an evolvable governance structure with all rights and interests authorized by community voting, by
which to build a community of all users, by all users and for all users.
We’ve designed a budget system providing community contributors(Worker) with rewards. Community users can
initiate and submit valuable budget proposals for the community, which will be reviewed and released by budget
committee.
All the rewords are from the budget pool, which consists of 10% of the total supply of HNC tokens and the
service fees charged by the platform. We are the world’s first platform to introduce the multiple reward
mechanism (a multi-currency budget system), which means besides of HNC tokens, there are also other
cryptocurrencies in the budget pool, like ETH or BTC that are paid by users to the platform as the service fee to
buy HNC Tokens.
Packing Node Reward
HNC generates one block every 3 to 5 seconds. The total amount of HNC Tokens in node reward pool is 700
million. Meanwhile, all gas fees (GAS) generated from transactions will also be put into the pool. In initial stage,
every block will produce 10 HNC Tokens, which will be deducted from node reward pool.
Lending Node Reward
In HNC network, the one who provides operation service for borrowers is called the “lending node”. A proportion of
commission charges each loan yields is rewarded to the lending node, in order to motivate them to make more
contributions to our network. The rewards are distributed according to the business contribution, and the amount
of the reward is proportional to users’ loan volume on the lending node.

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HNC Foundation
Distribution of HNC Tokens
The total supply of HNC tokens is 7 billion, among witch 20%(1.4billion) for node and user rewards,10% (0.7
billion) for worker contribution rewards, 30% (2.1 billion) for exchange, 20% (1.4 billion) for HNC Foundation
management, 20%(1.4billion) for HNC team. Details are shown in the following chart:

31. 31
Roadmap
Project Progress
• HNC lending platform’s development is completed, and realized the functions for loan business
and standardized loan contract.
• Underlying blockchain ledger and voting system are built, ready for the financial institutions to access
HNC platform. And the self-governance of the ecology is also realized.
• Lending service network is built, covering three countries.
• HNC team and advisors from the financial institutions in China and the World Bank are working on the
HNC promotion to attract more financial institutions to join our global lending network.
2018.01
•HNC Kick Off
2018.Q3
•Global
recruitment of
operators
2018.09
•HNC mainnet
beta launching
2018.10
•HNC smart
lending services
launching
2018.12
•Open Entry for
Global Operators
2019.Q2
•HNC ecosystem
is fully open
2019.Q3
•Sidechain release
2019.Q4
•Other Financial
Services Launch

32. 32
Disclaimer
This document serves only the purpose of conveying information. The contents of this document are for
reference only and do not intend to create any suggestions or invitations to solicit interest in or purchase stock or
securities.
HNC team will continue to perform reasonable tests to guarantee the authenticity and accuracy of the
information in this white paper. During the development process, the platform may be updated. The updates
include, but are not limited to, platform mechanisms, electronic tokens and their mechanisms, and distribution of
electronic tokens. Some document contents may be adjusted accordingly in the new white paper with the
project’s development. The team will make public the changes to the white paper through an announcement or
by posting the updated white paper on its website. The participant must get the latest white paper and adjust
their expectations accordingly. HNC will not assume any losses by the participant caused by: the participant
relying on the contents of the white paper; information inaccuracy in the white paper; or any behaviors caused by
the white paper. As HNC Token is an important tool for the HNC platform to perform efficiently. However, HNC is
not a security, and owning HNC does not mean that its owner has been afforded with the proprietary right,
controlling right, and/or policy-making right regarding the TRON platform. As an encrypted token used in HNC,
HNC does not belong to any of the following categories:
(a) currency of any type;
(b) securities;
(c) stock rights of a legal entity;
(d) stocks, bonds, bills, warrants, certificates, investment contract, or other instruments affording similar rights.
Whether HNC will appreciate or not is determined by the market and the demands after application fulfillment. In
some cases, HNC may have no value at all. The team will make no commitments about its appreciation and will
assume no responsibilities for consequences caused by an increase or decrease in its value. To the maximum
extent allowed by law, the team shall assume no responsibilities for any damages and/or risks arising from token
distribution participation, which include, but are not limited to, direct or indirect personal damages, loss of
commercial profits, loss of commercial information, and any other economic damages.