Shipowner.

io
The World's First Distributed Ledger Platform
Focused on Maritime Assets & Services

Be a SHIP Owner
Anyone . Anywhere . Anytime
 LEGAL DISCLAIMER
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 the SEA was not
meant to be
CONTROLLED

the sea was meant

to be SAILED
- JON ACUFF
03 MISSION

04 EXECUTIVE SUMMARY

AN INTRODUCTION TO THE
07
MARITIME INDUSTRY

10 MARITIME ASSETS MARKET

12 MARITIME SERVICES MARKET

14 THE PROBLEM

OPPORTUNITY & VALUE

20
PROPOSITION

21 COMPETITIVE ADVANTAGES

23 TECHNOLOGY

27 ECONOMICS

25
30 SUCCESS & ROADMAP

31 LEGAL CONSIDERATIONS

35 CREW
33
39 APPENDICES
mission
we deploy CUTTING EDGE TECHNOLOGY

to

facilitate WIDER ACCESS and participation in

the maritime industry,

enabling

our stakeholders to achieve portfolio

DIVERSIFICATION, superior LIQUIDITY and an
EQUITABLE SHARING of benefits,

while

TRAILBLAZING industry TRANSFORMATION

towards greater accessibility, efficiency,
rationality and transparency.
PAGE 4

executive
summary If cross jurisdictional
transactional complexities, a
lack of liquidity, financing
constraints, poor price
discovery under certain
conditions and a perceived lack
of transparency between
various intermediaries will not
wear you down, be ready to
face a mostly irrational
commission based structure at
various points in the chain,
pushing up overall costs for
participants and the end
customer.

"A small skiff has the same rights to fair winds and smooth seas as a mighty galleon"
- Anonymous

ship owning has been an activity reserved

for the select few...
if a lack of liquidity,
financing constraints, poor
price discovery and a lack
of transparency won't wear
you down, be ready to face
an irrational commission
based structure
Since time immemorial, ship owning has been an activity reserved for
the select few. High barriers to entry in terms of capital requirements,
operational know how and commercial acumen have meant that this
lucrative activity has remained in the hands of few people and
organizations with access to, or control over, global supply chains. In
this industry, many aspire but only a few acquire. Not least because
the business of participating in marine assets and associated
maritime services, involves a war of attrition against massive
inefficiency.
If cross jurisdictional transactional complexities, a lack of liquidity,
financing constraints, poor price discovery under certain conditions
and a perceived lack of transparency between various intermediaries
will not wear you down, be ready to face a mostly irrational
commission based structure at various points in the chain, pushing
up overall costs for participants and the end customer.
PAGE 5

...unfortunate that this pulmonary artery

of global trade is clogged
with inefficiency in the flow of capital, goods & services
and most importantly ... the flow of information.
It is thus no surprise, that big firm or
oligarchic or state sponsored
capitalism has thrived in this
industry in almost every major
geography. Meanwhile, the
entrepreneurial form of capitalism
has remained conspicuous by its
absence. Even well established
corporate structures which tout their
"skills" in nimbleness have little to
show in terms of breakthroughs in
technology or innovation. The
maritime space, on average,
generates higher revenues per dollar
invested versus comparable illiquid
avenues such as real estate. Despite
this, the industry ends up bleeding
at various points in the value chain
with the end customer ultimately
footing the bill. In today’s world
where technology is trailblazing
improvements at breakneck
speed, it is rather unfortunate that
this pulmonary artery of global
trade is clogged with inefficiency
in the flow of capital, goods &
services and information.
Shipowner.io will change this
unacceptable situation.
Therefore, the promoters of
shipowner.io embarked on
applying a combination of
fractional participation

shipowner.io will change this

unacceptable situation
by creating the best conditions for participation.
and blockchain technologies to the
maritime marketplace: To
enable Anyone, Anywhere, at Any
time to become SHIP owners and
participate in this $2.5 Trillion
industry. Our platform which runs
on SHIP (Shipping Industry
Participation) tokens is an
Ethereum Smart-Contracts
governed ecosystem. It focuses on
creating the best conditions for
participation in the maritime
marketplace by eliminating costs
related to unnecessary
intermediaries, providing
transparency, much needed
liquidity, alleviating inefficiencies
and easing cross-border
transactions.
Now is the chance to transform this
industry, so that it may benefit the
majority and not just the pre-
selected few. If you want to make a
difference ask yourself this - Are
you a SHIP owner yet?
 sharing of benefits in an equitable way;

rewarding efficiency, rationality and fairness;

destroying the scourge of cronyism;

taming an army of unnecessary intermediaries;

upstaging the inefficient allocation of capital;

These are not pipe dreams. Now is your chance to

transform this industry, so that it may benefit
anyone, and not just the pre-selected few.

you want to make a difference, ask yourself

" Are you a SHIP owner yet? "

PAGE 7

an introduction
to the maritime If cross jurisdictional
transactional complexities, a
lack of liquidity, financing
constraints, poor price

industry discovery under certain

conditions and a perceived lack
of transparency between
various intermediaries will not
wear you down, be ready to
face a mostly irrational
commission based structure at
various points in the chain,
pushing up overall costs for
participants and the end
customer.
"... and the great shroud of the sea rolled on, as it rolled 5000 years ago"
- Herman Melville (Moby Dick)

the first truly global industry now

representing >90% of global trade
Shipping stretches its roots back to
at least 5,000 B.C. It is fascinating to
think that people were
using seaborne transportation even
before the rise of major civilizations.
While it wasn’t such a highly
complex, international and capital-
intensive business back then, it
was still vital for development of the
human race. Over time, shipping
allowed humans to circumnavigate
and spread around the world, to
prosper. Think of all the great
seafaring nations; the Phoenicians,
Egyptians, Vikings, Greeks, Romans,
Portuguese, Spanish, British and
many more. Exploring the
world looking for new discoveries,
they took the first steps for
globalization. What most probably
started off as a simple floating today, if one can enjoy
platform made out of carved wood,
has now evolved into one of the
a German draft beer,
most global industries in the world, sitting on an Italian sofa,
connecting civilizations, allowing
for discoveries and making global
watching a game on a
trade possible. Thanks to television manufactured
discoveries in physics and new
technologies, small wooden boats in China, with parts
with paddles and traditional sails coming from all around
have evolved into ocean going
vessels with steel hulls, equipped the world, one owes the
with large engines allowing them
to cross the oceans on machine
gratitude to shipping.
power.
PAGE 8 Source: AlphaSeas Research, UNCTAD

~3x growth in cargo carried & cumulative

fleet between 1980 and 2016
Until the second half of the 20th
Century, the most common way to
transport goods via ships was Break
Bulk Shipping. The process was
rather cumbersome and very time
consuming as individual cargoes
were loaded and unloaded in small
parcels using barrels, sacks or
of up to 500,000 dwt. The end of Dry Bulk Fleet in Million Dwt
World War II and the high 900
acceleration in industrialization with
675
increasing global trade also boosted
450
the demand for dry bulk cargoes
(iron ore, coal, grains, 225
etc.) boosting the need for 0
dedicated Dry Bulk Vessels.

80

90

00

10

20
19

19

20

20

wooden crates from the ship to land
and vice versa. With the development become standardized over time.
of the standard intermodal container
by Malcolm McLean in 1955 and
development of Container Vessels,
carriage of parcel cargoes embarked Iron Ore
on a fast-paced journey to
standardization and an upscaling in
vessel size which allowed for better
economies of scale, more efficient
ways of loading and unloading parcel
cargoes and thereby spending
significantly less time in port.
The first Tankers built for carrying
crude oil, commenced
transportation during the end of the
18th century and in 1954, the
first tanker dedicated to the carriage
of liquid chemicals was built in the
US, introducing the specialized
Chemical Tanker. Following the
closure of the Suez Canal in
1956, vessels were forced to sail via
the Cape of Good Hope. The
resulting increase in voyage
distances coupled with an increase
in oil demand, led to oil tankers
growing in size rapidly.The 100,000
dwt tonne mark was hit in the early
1960s, and with recognition of huge
profits, owners doubled the size up
to 200,000 dwt. Early 1970s
20
These have also grown in size and
1980: 2.5 Billion Tonnes of Cargo The Oil industry marked a milestone
Grain with the drilling of the first "out of
4% sight" offshore well in Gulf of Mexico
Coal in 1947. By 1949, there were already
10% 6% eleven Offshore Oil and Gas Fields
in Gulf of Mexico and with increased
activity in Offshore drilling, the
necessity for dedicated vessels to
work in the offshore waters
increased. Although the fishing
vessels and retired World War II
ships were utilized to carry the huge
Oil
amounts of equipment, by 1955 the
80%
first dedicated Offshore Supply
2017: 6.5 Billion Tonnes of Cargo Vessel (OSV) was launched. With
increasing requirements for
Grain
Iron Ore Offshore drilling in different
3% Coal
23% geographies, the OSV market has
17%
grown dramatically with various
types of vessels build to serve the
Oil and Gas industry.
Tanker Fleet in Million Dwt
600
Oil
57% 450
In addition to being used in the 300
global trade of commodities, 150
dedicated vessels have been built to
0
serve the Offshore Oil and Gas
80

90

00

10

20

welcomed the Ultra Large Tankers industry.

19

19

20

20

20
PAGE 9
> 90,000 ships; ~US$ 1.5 trillion asset
value; > US$ 19 trillion of cargo value
Today greater than 90% of global
trade is carried by sea making
shipping one of the most important
industries globally. World seaborne
trade figures i.e. the amount of
goods carried by ships have
increased considerably since the
80‘s and stood at around 10.2
billion tonnes as of 2016. Charts in
the previous page illustrate the
dramatic increase in volumes of
main cargo streams transported by
ships and the corresponding fleet
growth for Dry Bulk Carrier and
Tanker sectors.
~ 1.5
trillion
Dollars
of
Asset
Value
Currently,the ship owning Industry is a
circa. US$ 1.5 trillion market where
>US$19 trillion of cargo value was
carried by around 94,000 ships in
2016. Seaborne trade is expected to
grow by 2.1% p.a. on average over the
next 10 years to reach ~13.5 billion
tons by 2026 driving a corresponding
need for fleet expansion on top of
replacement needs. The maritime
offshore industry is another US$ 530
billion market where circa. 10,000
offshore support vessels serve the Oil
& Gas industry for exploration,
production and storage. With a
> 90,000 ships
~ 90%
of
global
trade
> 60 sectors
Source: AlphaSeas Research, UNCTAD
nascent recovery seen in the Oil &
Gas market, after the oil price crash
of 2014, CAPEX spending is
expected to return to historical
levels of US$ 70 billion by 2018.
Furthermore, this figure is
expected to nearly double by 2027,
increasing the demand for
operating rigs and for the vessels
supporting this activity. Whether its
for supporting the exploration and
production of oil or an ever
increasing share of natural gas,
offshore vessels stand to benefit
either way, in the medium term.
~ 19
trillion
Dollars
of
Cargo
Value
 PAGE 10
maritime
assets
market
"Catch the trade winds in your sails.
Explore . Dream . Discover"
- Mark Twain
the ownership pattern for marine assets
has hardly changed over the centuries
As one of the most capital-intensive
industries with relatively high
barriers to entry, ship
owning has naturally remained a
traditional conservative ecosystem.
Compared to it's relative size, the
industry has been in the hands of
a small group of international
conglomerates or family run
businesses, with access to capital,
cargo contracts and relationships.
There has been very little change in
this situation over centuries.
The modern ship finance era started
in the 1850s with the increasing
number of steam driven ships.
These vessels were registered
under companies with sixty-four
shares allowing individual investors to
hold a part of a ship. Although, the
system allowed for the nascent
beginnings of fractional ownership,
in practice, most of these ships (>90%)
were wholly owned by one
individual investor for their own
account. The remaining 10% were
owned by trading partnerships and
joint stock companies .
The second half of the nineteenth
century saw joint stock companies
becoming widely used to raise
substantial sums of capital to buy
ships. Nevertheless, most investor
participation was distributed between
a handful of wealthy influential
families. By the 1950s & 60s, with the
rapid growth of post-war industrial
economies and global trade, the
‘’industrial shipper’’ started to
emerge. Increasing demand for
international seaborne
transportation from large oil and
steel companies allowed for charter
backed finance as a common way of
raising financing from the American
capital market. However, capital
markets were still only available
to ship owners that had access to
finance relationships and cargo
contracts. This helped most of those
companies expand their fleet very
rapidly with little to no initial equity
contributions. On the back of a
charter security (visible cash flows
for a defined period from a credit
 PAGE 11 Source: AlphaSeas Research, Maritime Economics - Dr.Martin Stopford

advent of asset backed financing changed

the view on ships as an asset class
worthy company), owners were able in the U.S. capital markets and off- obtain any means
to raise 95% to 100% financing from balance sheet money raised from of reasonable traditional financing for
American Banks. Norwegians (who KG structures in Germany & KS small to medium sized ship owners.
trebled their fleet in the 1950s) & structures in Norway are examples. This, especially at a time when there
Greeks were quick to exploit this is a genuine need for capital, to
opportunity and grew their fleets Although there are various avenues refinance existing loans, enable
considerably. Charter backed finance of capital sources presumably opportunistic purchases and
became less common in the 1970s, as available to shipping, the collapse of facilitate restructuring /
the crude oil and iron ore trades Lehman Brothers followed by a reorganizations of distressed
stopped growing. Some well prolonged downturn in shipping, companies. In addition to the
known charterers began defaulting led to a sharp decrease in economic factors that are pushing
and voyage by voyage contracts availability of capital, making it even banks to scale down in their
(spot market) began providing better harder for new entrants. portfolios due to large legacy non-
opportunities. performance issues, regulatory
Traditional financing with favorable changes with higher capital ratio
Around the same time, during the 70s, terms and low margins continues to requirements are also increasing the
instead of taking charter contracts as be available only for the select few - pressure on the banks to reduce their
a security, lenders started relying on so called ‘’top tier’’ companies while exposures further.
the ships as collateral, developing the it is becoming extremely hard to
asset backed financing scheme in
shipping. This ultimately changed the
Sources of Capital in ship owning
dynamics as the capital was not
directly linked to supply and demand
balance anymore, allowing for
speculative activity, while the lenders
were still providing high loan to value
financing (>80%). With money
pouring into capital markets in the
early 70s, leverage for shipping
companies had increased
significantly, as a backdrop to
massive ordering (mainly tankers).
This phenomenon ultimately caused
significant overcapacity leading
ultimately to a market crash.

After lengthy crises during the 1980s,

the ‘90s, saw other forms of financing
becoming available for shipping.
Corporate lending where the lenders
would take the balance sheet as a
security, Initial Public Offerings (IPO)
PAGE 12
maritime
services
market
the services market is estimated to be
worth US$ 1 trillion per annum
Being one of the most global
industries in the world, shipping
seamlessly connects countries and
customers with goods from all over
the world. Although transport
of goods from point A in Country X to
point B in Country Y, on a ship sounds
simple, it is a process that is well
coordinated and involves several
parties from different industries and
jurisdictions. Growing seaborne trade
volumes coupled with a higher
number of ships have significantly
increased the size of the associated
shipping services market, while
making significant direct and indirect
contributions to the global economy.
"On life's vast ocean, diversely we sail.
Reasons the card, but passion the gale."
- Alexander Pope
Despite the sheer size of this market,
estimated to gross more than US$ 1
trillion per year, the services market introduction of the
has been slow in deploying new
technologies to increase efficiency &
internet may have
transparency, just like its larger improved the flow
counterpart, the ship owning market.
Numerous layers of service
of communication,
providers exist with several but the supply
intermediaries in various links of the
process. Most of the time, one chain still remains
party isn't even aware of highly fragmented,
the involvement of the other in
certain parts of the value chain. inefficient and
Inefficiency also creates a high
number of international transactions,
somewhat opaque.
thereby increasing banking fees.
 PAGE 13 Source: AlphaSeas Research

despite it's size, the services market has

been slow in deploying new technologies
resulting in poor transfer of information and inefficient flow of working
capital, a situation aptly exploited by intermediaries, but paid for by the
end consumer.
See the illustration below which demonstrates the breadth of parties involved in servicing the marine industry with the
flow of capital heavily controlled by the banking market. One certainty though is that the end customer always pays for
these extra layers & associated intermediary fees. One certainty though is that the end customer always pays for these
extra layers & associated intermediary fees.
Breadth of the maritime service industry
PAGE 14

the
problem(s)

"Every problem is an opportunity in disguise."

- John Adams

capital availability, transparency, liquidity,

diversification & trust - core issues today
The global maritime industry is the backbone of global trade,
representing >90% market share. The International Maritime
Organization (IMO) has predicted that total available tonnage on
the water will nearly double by 2030 based on estimations of
the IMO predicts a doubling
demand growth and capacity utilization. In order to reach those of the global fleet by 2030
figures some very core issues which affect the flow of capital,
goods & services and information through the industry, need to based on demand growth
be addressed immediately. These are:
estimates.....
1. A lack of capital availability for maritime assets and services. but core issues in the flow of
2. A lack of transparency at various points in the value chain.
capital, goods & services and
information need to be
3. A lack of liquidity & a low possibility of "true" portfolio
diversification. addressed immediately
(for that to happen)
4. A lack of simplicity, convenience & trust.
PAGE 15
a lack of capital available to assets,
associated infrastructure and services
is the single biggest threat to the industry, as the financial system that
has supported it so far, now exacerbates its woes.
During the hey days of 2005-2008
when the Federal Reserve unleashed
a low interest rate policy despite 500
signs of an overheating global
economy, they sowed the seeds of
375
trouble not just for the global
financial system but also for the
maritime industry. 250
In the aftermath of the great
recession of 2008, finance became
increasingly scarce due to new
regulations which were expected to
control excessive risk taking. The
result was that people and systems
with limited or no knowledge
of industry nuances were asked to
formulate capital requirements that a
bank would need to hold when
exposed to the maritime industry.
Metrics involved were so convoluted
that the easy thing for banks to do
was to either stop lending to
shipping or maintain existing client
relationships without increasing
exposure.
Despite the industry needing to grow
on the back of increasing cargo
volumes, many entrepreneurs remain
deterred by the lack of funding
available. The current crop of banks
which are still in shipping are either
reducing exposure or not increasing
exposure or getting out completely,
leaving ship owning companies in
limbo regarding their cash positions
and ultimate survival.
Source: AlphaSeas Research, Petrofin Research
Top 40 banks ship financing (billions)
125
0 2025.
2013 2014 2015 2016
Shipping companies that did manage
to hold on to funding sources only
strengthened their hegemony over
trade routes, thereby affecting freight
pricing and exacerbating oversupply
situations.
But did that solve the problem of
excessive risk taking? Absolutely not.
As an example, one of the largest
container shipping companies in the
world recently went bankrupt,
supposedly overnight. They were an
investment grade company, a month
before they went belly-up. In fact, they
were fed by their finance masters, led
by their own hidden agendas, until
the very end – a complete waste and
mis-direction of a funding resource
which could have been better spent
on a more efficient and deserving
operation. This situation has also led
to a lot of vulture funds entering
the funding
gap stands at
160 billion in
2017 and
could increase
to as high as
250 billion by
2017
the market and charging ridiculous
returns even on debt products.
There are a lot of desperate ship
owners who love their industry and
who know nothing else but to run
ships. Unfortunately though, many
have not had access to bank
financing either because they did not
“wine & dine” with the right bankers,
or did not fit into the banker’s
agenda to boost non-risk weighted
fees. These folks typically fall prey to
vulture fund type of predatory
financing. The finance industry calls
these products “loans to own” i.e
financial institutions will ultimately
end up owning those assets because
net cash flow is clearly
unsustainable, and then sell those
assets at a fraction of their fair market
value which will negatively affect the
valuation of the whole industry.
PAGE 16 Source: AlphaSeas Research, Petrofin Research

a lack of transparency plagues this cross

jurisdictional, trans-national industry
groups operate in secretive clubs; full disclosure is hardly ever made
public & pricing leverage is created where there should be none.

Shipping is a global business which
transcends national boundaries and
jurisdictions. A typical example is
that of a Greek ship owner owing a
vessel built in China or Japan or
Korea, flagged in Malta, managed
by Indian and Filipino crew
members, classed under American
Bureau of Shipping, managed on
shore by a company in the UK, with
a Norwegian equity partner,
financed by a Dutch bank, carrying
cargo picked up in South East Asia
and destined for ports in South
America. This is not an outlier case.
It is quite “normal” in shipping to
have such a structure and in fact,
this structure is welcome because it
demonstrates how close the
shipping industry has reached in
terms of reaching that elusive goal
of truly global markets. This level of
cross border collaboration is hardly
witnessed in any other industry.
However, when such an extent of
cross jurisdictional connection is
required to make a voyage happen,
there’s bound to be intra chain
competition. Since the industry is
capital intensive, the one who
controls the purse strings is usually
the winner, in many cases at a loss
to the overall value chain. Crew
members view their sailing time as
an arms-length contract which will
expire in 3-6 months (typical
contract duration on a ship). They
are thus forced to feel no more or no
less loyal than to the extent of their
salaries paid onboard. Similarly,
Flag States and Classification
Societies compete with their own
rivals for market share, sometimes
wavering from their own benchmark
for quality of services.
PAGE 17 Source: AlphaSeas Research, Petrofin Research

flow of critical information is withheld by

vested interests to the detriment of the
entire value chain
Equity partners are driven by their
own opportunity costs and are
known to walk away when market
conditions are tough. Debt
providers are constantly trying to
second guess what the ship owner
is up to. In many cases, they get
critical information a lot later than
the actual event such as a
bankruptcy. Even in distressed
situations, they keep assets alive by
artificially resuscitating them with
fresh liquidity – good money after
bad – which ultimately leads to a
lack of capacity rationalization and
also reduces available funds for
more deserving candidates.
Similarly, port agents, ship
chandlers, manning agencies,
spares and stores suppliers, repair
yards, dry docks and ship yards, all
have their own agendas which can,
in many cases, run counter to the
goal of the whole value chain and
make it weaker. To top it all, there
are brokers at various points in the
chain who exacerbate the problem
of lack of transparency, by
remaining aligned only to certain
ship owners, charterers, repair
yards, dry docks and ship building
yards to earn their patronage. They
operate in secretive clubs where
deals and requirements for ships are
the most prized pieces of
information. They control prices in a
relatively illiquid space and full
disclosure on their deals is hardly
ever made public. What are they
driven by? It depends on which
little part of the chain they
represent.
Some sectors have also formed
huge alliances to counter the
downside risks that were
associated with recession.
However, they also made sure that
their own vessels would be the first
ones to get the cargo versus a non-
alliance member, thereby implicitly
undermining fleet deployment
efficiency and also creating and
exploiting price leverage where
there should be none. In many
jurisdictions that sort of behavior is
called collusion.

But who ends up paying for all this

inefficiency that is driven by a lack of
transparency?
In most cases – it's the end customer
– it's YOU.
PAGE 18 Source: AlphaSeas Research, Petrofin Research

a lack of liquidity has meant that "true"

portfolio diversification has been elusive
sale & purchase transactions average ~10,000 to 20,000 per year, a
figure pathetically low for an industry with a $1.5 trillion balance sheet
Maritime assets are expensive
pieces of kit. A typical brand new
large crude oil carrier can cost
upwards of US$ 80 - 90 million.
Yards may offer discounts if ship
owners order a series of similar
vessels or if market conditions are
tough for ship builders.

Due to the expensive nature of

these assets, an average ship
typically changes hands once every
5-7 years. Interestingly, this time
frame coincides with balloon
repayments on initial bank financing
– there’s bound to be a cash flow
connection there.
The average useful life span of a
ship is 20 – 25 years, although well
maintained ships are known to last
much longer. This means that the
average ship changes hands only 4 -
5 times during its lifetime.
There are approximately 40,000
ocean going vessels and up to
90,000 if you include smaller and
inland water vessels, with an
average age of 8 – 10 years. Based
on today’s fleet numbers, the total
number of transactions possible is
anywhere between ~150,000 (for
ocean going vessels) and ~300,000
for all global vessels during the next
15 years. That translates into an
average transaction volume of
between ~10,000 and ~20,000 per
year – a figure that is pathetically
"diverisifcation without critical mass is irrelevant"
low for any form of price discovery
in an industry whose balance sheet
stands at US$ 1.5 trillion.
Furthermore, market cycles across
various marine sectors are not
concurrent. Hence, the industry,
through the various commodity
chains that it services, offers
participants an option to diversify
their portfolio. If one has enough
money to build a portfolio, one
could, in theory, build a fleet of
diversified ships. The problem there
is that for commodity shipping to be
profitable, you need a certain critical
mass of similar commodity carrying
vessels spread geographically. This
is to ensure that they may act rapidly
when any new cargo opportunity is
available in any specific region.
Therefore, diversification is now left
to very large companies, that can
buy series of similar type vessels
and achieve geographical presence,
to make their operations profitable.
Small and mid-sized players hardly
stand a chance.
But what if vessels could be
broken down (figuratively) into
the smallest fractions and those
fractions could be traded real time
between buyers and sellers?
Surely that would enhance
liquidity, improve price discovery
and allow for true diversification
without any discriminatory
barriers. It could even unleash the
potential to unlock ship
valuations, which are currently at
the mercy of a broker's whim or
unscientific valuation methods.
PAGE 19 Source: AlphaSeas Research, Petrofin Research

simplicity, convenience & trust - 3 traits

that need to be built into this industry
currently, individual participants have to rely on an army of legal advisers,
extensive paperwork and hands on administration to be successful
The current marketplace of maritime Hence an army of specialist trust this person to follow through
assets and services is anything but shipping lawyers should always be on what they are promising they’ll
simple. The number of available. There is even more achieve.” How easy it would be if
intermediaries involved in a typical complexity involved when multiple you as an individual participant
finance or cargo or manning owners are involved – the key issue didn’t have to rely on advisers at
contract transaction means that the being that of trust. Many old school every step, only to get a simple deal
paperwork and administration investment bankers honed done?
involved is not straight their skills on this particular
forward. Legal requirements differ requirement – “My analysis shows
across regions. that this deal works but can I really

Imagine what it would be like if participating in shipping was a simple,

convenient and trustworthy exercise ...

... something that could be achieved from the comfort of your home or in your
spare time?
 PAGE 20

opportunity
&
value proposition

"A good trade happens when the value you get,

far exceeds the price you pay"
- Warren Buffet

simplifying and streamlining participation

in assets and services
under a unifying & transparent flow of capital & information
The advent of blockchain technology has heralded an By participating on shipowner.io, users stand to
era like no other. The crew at shipowner.io immediately benefit from true portfolio diversification and will
saw the benefits of adapting it to solve our industry’s drive the need for equitable sharing of benefits, by
most pressing needs. Our platform which is based on demonstrating how easy it is to achieve.
Ethereum powered decentralized ledger technology
tackles inefficiencies in the maritime space by
simplifying and streamlining participation in assets and
services under a unified and transparent flow of capital drive the need for
and information. Shipowner.io includes an online store
where one can buy tokenized assets and services and
equitable sharing of
we are working on developing an online exchange benefits, by
where users of our platform will be able to freely trade
these fractions. By doing this we will be in a position to
demonstrating how
fulfill our mission’s guiding principles of accessibility, easy it is to achieve
efficiency, rationality and transparency.
PAGE 21
a solid business model that faces little or
no challenge from the status quo
well-rehearsed processes and services through an existing set up
Shipowner.io is a project developed
and supported by AlphaSeas
Management Limited, a multi-
functional, inter disciplinary business
serving the maritime
industry. AlphaSeas manages
portfolios of Fortune 500
conglomerates' global marine
businesses. Additionally, it runs a
successful ship management
company and a marine strategy,
consulting and brokerage firm. The
principals in this business, who are
also directly involved in day to day
operations at shipowner.io, have been
involved in setting up several
shipping companies & commercial
competitive
advantage
"It is not the ship so much as the skillful sailing
that assures a prosperous voyage."
management platforms from
scratch (with current Net Asset
Values > $675 million) and
designed and delivered a large
number (>50) of sale and leaseback
structures. AlphaSeas' core team
comprises of professionals with a
very intimate knowledge of the
maritime industry including
experience in operations,
maintenance, ship building,
finance, risk management, strategy,
law, commercial and technical
management functions.
shipowner.io is an extension of that
value-added service by exploiting
the latest technologies and making
- George William Curtis
the business scalable. This
commitment is visible from the fact
that AlphaSeas has fully funded the
development of shipowner.io from
its own operations and shareholder
commitments, with no funds
generated from any external
source to pursue this goal.
In total, principals of AlphaSeas
have invested over Eur 750,000 to
support the development of the
shipowner.io ecosystem, so
that the business of SHIP owning is
made accessible to everyone.
PAGE 22 Source: AlphaSeas Research, Petrofin Research

high levels of customization with a low cost

structure is possible
and so is a level playing field and true price discovery for maritime assets
and services.
The blockchain based business
model has numerous advantages
versus the status quo, in terms of
supporting the marine industry.
While existing models have been
pushed towards the boundaries of
inefficient capital deployment via a
HIGH Costs & LOW
Customization model, shipowner.io
aims to push the frontier of LOW
Costs and HIGH Customization. As
we evolve and our community of
users and asset / service owners
matures, we will receive live
feedback on what sells and what
doesn’t. This information will help
us break the status quo and provide
a level playing to all asset and
service owners & users, who
support the maritime industry, while
chasing the goal of true price
discovery for every listed asset and
service, irrespective of whether they
are bespoke or commoditized.
PAGE 23

technology

"The effect of sailing is produced by a judicious arrangement of sails

to the direction of the wind." - William Falconer

a custom built independent P2P network

powered by Ethereum Virtual Machine
implementation, enforcement and validation using universally accepted
ERC20 compliant tokens and smart contracts.
The shipowner.io platform is a custom recipient of digitized assets or the permutation / combinations that
built independent P2P network which issuer of digitized assets. can be deployed, it has steadily
was created specifically to address the climbed to becoming the most
need for digitizing capital and We use an array of technological established blockchain based
informational structures in the marine concepts to execute on our distributed ledger computing
industry, in a decentralized fashion. technological vision as described ecosystem. The EVM powers the
The Ethereum Virtual Machine (EVM) in the illustration on the following digitization, marketplace,
powers this platform and it is page. exchange mechanism and
governed by Ethereum smart contracting aspects of the
contracts and ERC20 compliant It is no surprise that the Ethereum shipowner.io platform.
tokens that, implement, enforce and Virtual Machine (EVM) has now
validate the rules for various become the “standard to beat” in You can find more information on
counterparties interacting on the smart contract functionality. Due the Ethereum platform
platform whether related to the to its ease of use and the list of at https://ethereum.org/
PAGE 24
deploys the same cloud based technology
implemented by Fortune 500 companies
data management, distribution, processing, abstraction and delivery in a
secure cloud computing environment
Built on its own architecture, the
platform executes all aspects of data
storage and management,
distribution and processing,
abstraction and separation of duties
in the secured cloud
network maintained by Amazon
Web Services (AWS). AWS is the
Source: AlphaSeas Research, Petrofin Research
Technological Concepts Array
cloud computing service of choice
when it comes to a one-stop shop
approach for managing all aspects
of a high performing platform with
security standards that are par
excellence. Fortune 500 companies
implement the same cloud
computing technology and
shipowner.io is proud to be in that
league, bringing the same level of
service to our users. The platform
also seamlessly integrates and
implements Ethereum smart
contracts that are executed by the
EVM and the Shipowner node that is
deployed in the blockchain.
PAGE 25
software components developed using the
latest cutting edge technology stack
each component has been selected after careful consideration with the
ultimate goal of enhancing the user experience
Technology Stack
Shipowner.io software components
were developed using the following
technology stack:-
1. Go
2. Solidity
3. Truffle Framework
4. Open Zepplin
5. Ethereum Blockchain
6. Javascript
7. NodeJS
8. ExpressJS with PassportJS
9. web3.js
10. PHP/Laravel
11.JQuery and JqueryUI
12. HTML5, CSS3, Bootstrap
Each technology component has an
important role to play in the ultimate
goal of providing an enhanced user
experience. We’ve deployed the
best industry standards to achieve
that goal.
The system comprises of 3 major
components – A web portal, RESTful
API and the Ethereum blockchain.
The Ethereum smart contract family
is written in the Solidity language
which is native to the EVM. The
development, management and
deployment of Smart Contracts are
managed by Truffle Framework.
The abstraction layer is developed
using NodeJS framework
with supported libraries like
Source: AlphaSeas Research, Petrofin Research
ExpressJS for providing secured
RESTful APIs for interaction with web
application, Passport JS and JWT for
token based authentication.
Apart from the blockchain
development aspects, another
important area of our focus was on
Web client development. This was
purposefully done to achieve mass
adoption of the platform, thereby
benefiting early adopters and new
users alike. Furthermore, it simplifies
use of shipowner.io for users who are
new entrants to the blockchain space
and those needing guidance. The
web based application (website) and
the administrator customer
relationship management (CRM)
tools are created using Laravel
framework, PHP, JQuery, JQueryUI,
Vanilla JavaScript and helper libraries
to work with EVM contracts, and
communicate with the core node
running the shipowner.io network.
Software Components &
Functionality
The shipowner.io platform comprises
the following software components:-
1. shipowner-node (Go/Geth)
2. shipowner-restapi (NodeJS)
3. shipowner-contracts (Solidity &
Truffle Framework
4. shipowner-webapp (Laravel,
JQuery)
The shipowner-node or core node
software, driving the
implementation of the Ethereum
node using Go/Geth, is responsible
for running the P2P network and
managing data flow, thereby
establishing a core communication
tier of the shipowner.io platform
with the Ethereum blockchain.
Shipowner-restapi directly
communicates with the shipowner-
node and represents the abstraction
tier of the platform. The restapi
abstracts the underlying blockchain
and communicates to the
blockchain through the shipowner-
node that, in turn, interacts with the
EVM.
The shipowner-contract application
has been employed to create our
smart contracts. This application
also incorporates a smart contract
register. It is responsible for
interaction with the EVM via
shipowner-node for deployment of
tokens and other smart contracts.
Once the contract is created, the
administrator records the
transaction data onto our
administration panel of the CRM
module for records and to enable
the shipowner.io management team
to map and further enhance user
experience.
PAGE 26 Source: AlphaSeas Research, Petrofin Research

security protocols employ the best industry

practices
but we are constantly chasing the efficient frontier for security without
compromising on enhanced user experience.
Web client communicates with the The shipowner-node & shipowner- Security
shipowner-restapi nodes for restapi work together. All other
complete functionality. Nodes will components described earlier are Security is of paramount importance to
continue to operate independently separate standalone entities us as reflected in our security
as standalone applications deployed in different environments protocols:-
powering the shipowner network & infrastructures for enhanced
even after the planned full-featured scalability, and to secure the overall 1. A thorough security audit from an
release of platform’s web version in architecture against any unintended independent third party. Audit
1Q2018. downtimes or interruptions. results will be studied and suitable
action plan implemented to tackle
findings if any.

2. Escrows to add an additional layer

protecting users.

3. Shipowner.io implements two factor

authentication for enhanced login
security.

4. The HTTP communication happens

over SSL for better transport level
security.

5. An abstract RESTFul service layer

between web application and
ethereum blockchain.

6. Customized token based security is

implemented for communication
between web application and RESTFul
service.

7. All software components are

deployed on AWS secured cloud.

Our security considerations don't end

with this list. We are constantly chasing
the efficient frontier for security and
enhanced user experience.
 PAGE 27

economics

A nation is not made wealthy by the childish accumulation of shiny metals,

but by the economic prosperity of it's people. - Adam Smith

demand for SHIP token primarily driven by

user interest in the marketplace
listing various marine assets & services; up to US$ 200mn commitment
already received before launch with a target of US$ 14 billion by 2023
Demand Dynamics in SHIPs. The price is converted from the underlying
asset's or service’s fiat market value.
SHIP is an ERC20 compliant utility based token which
enables users to access and transact in our maritime 2. Pay for transaction fees while exchanging one
marketplace. Users will purchase SHIPs during our tokenized asset or service with another.
crowdsales at pre-defined prices or from the secondary
market. We are currently in discussions to develop an 3. Pay for transaction fees related to ad hoc client
exchange of our own. SHIPs may be listed on other services available on the platform such as 3rd party
cryptocurrency exchanges that adhere to KYC/AML and asset or service research reports / subscription
liquidity criteria. SHIP owners are expected to use SHIPs services (over and above the ones freely available).
for the following activities:-
Primarily, the demand for SHIPs will be driven by the
1. Pay to buy tokenized participations of assets and user’s interest in purchasing and trading
associated services listed on the maritime marketplace participations in maritime assets and associated
platform. All tokenized assets and services will be priced services listed on the platform.
PAGE 28 Source: AlphaSeas Research

by 2023, transaction volumes may reach

US$ 15 trillion
technology absorption effects and liquidity generation could further
boost this figure.
We already have approx. US$ 200
million of assets and services
committed to the platform. Our asset
onboarding growth strategy is
visualized in the graph below. In 5
years (by 2023), we conservatively
expect US$ 14 billion of assets
onboarded and tokenized on our
store. This emulates the growth
trajectory of current ship finance
organizations which have, of course,
not benefited from the liquidity that
SHIPs bring to participation.
Depending on the leverage that
users decide to employ in their
trading activities, we believe
transactions will mirror large OTC
exchanges for currencies where
velocity can exceed 90x per month or
1,000x per year. This could build
transaction volume to nearly
US$ 15 trillion per annum by 2023. An
improved speed in asset onboarding
due to technology absorption effects
and liquidity generation effects could
easily help the transaction volume
surpass the US$ 15 trillion mark.

Asset Onboarding in US$ (millions)

$14,500

$10,875

$7,250

$3,625

$0
18

18

19

19

20

20

21

21

22

22

23
20

20

20

20

20

20

20

20

20

20

20
1Q

3Q

1Q

3Q

1Q

3Q

1Q

3Q

1Q

3Q

1Q
PAGE 29 Source: AlphaSeas Research

total supply of 1.5 billion SHIPs, of which

825 million available in phased sales
reserve SHIPs frozen for a period of 5 years following which a controlled
and transparent emissions rate is applied
Supply Dynamics charge any fee upon issuance of SHIP based on asset and user onboarding so
tokens. Users will incur a minimal gas as to avoid volatile price swings.
The total number of SHIPs available fee for use of the blockchain during
is 1,500,000,000. Of these 30% will SHIP issuance to be paid in ETH. All Crew tokens will remain frozen until
be kept in a frozen reserve issued SHIP tokens will be usable on satisfactory completion of the online
(450,000,000) and 15% our online store upon completion of marketplace exchange (exp. 1Q2019)
(225,000,000) will be sent to the first two phased crowdsales. Frozen and will be allowed to be released at a
crew pool. The remaining 55% reserve tokens will only be released maximum rate of 20% of each team
(825,000,000) will be distributed after a 5 year period starting on the member’s holding per quarter i.e max
during our 4 token sale events 5th anniversary of the SHIP token accumulated 45,000,000 per quarter.
(Officer of Watch, Lieutenant, Master launch date (24th January 2023). The Any SHIPs that the platform collects in
& Commander, Fleet Admiral), based exact rate of emission (not exceeding fees (for SHIP to tokenized asset /
on the rounds shown in the 0.2% per day of remaining frozen service transactions) will be made
illustration below. We will not tokens) will be decided at the time, available for purchase via exchanges.

Phased Supply of SHIPs

STARTS 1Q 2018
25,000,000 SHIPS PHASE 1: OFFICER OF WATCH
@ 1 ETH = 500 SHIPS

STARTS 2Q 2018
175,000,000 SHIPS
PHASE 2: LIEUTENANT
@ 1 ETH = 475 SHIPS

STARTS 2H 2018
275,000,000 SHIPS PHASE 3: MASTER & COMMANDER
@ 1 ETH = 450 SHIPS

STARTS 1H 2019
350,000,000 SHIPS PHASE 4: FLEET ADMIRAL
@ 1 ETH = 425 SHIPS
PAGE 30

success & roadmap

shipowner.io

"its not our going out of, but our coming in to port, that
has determined the success of our voyage"
- adapted from a quote by Henry Ward Beecher
PAGE 31
"If one does not know to which port one is sailing,then no wind is favourable"
total market capitalization for crypto is
higher than corporate heavyweights
and hence, it's evolution into becoming a regulated space is inevitable
Background
Blockchain traces its origins to the
aftermath of the financial crisis of
2008. Bitcoin, a radical solution to
ensure trust in financial transactions,
something that was lost at the height
of the crisis, is a creation of
anonymous inventor Satoshi
Nakamoto. What started off as an
experiment to establish a distributed
ledger keeping track of all Bitcoin
transactions has now
metamorphosed into a
US$550 billion market cap (Source:
CoinMarketcap.com) of
legal
considerations
- Lucius Annaeus Seneca
which Bitcoin represents
nearly 35%. Ethereum, with its smart
contract functionality providing for
the creation of “stores of value”
alongside “stores of information” is
being rapidly adopted globally. It’s
market capitalization at the time of
writing this paper stands at nearly
19% of total capitalization for crypto
markets. To put it in perspective,
the total market capitalization is
now higher than the likes of
corporate heavyweights such as
Siemens, Boeing, McDonalds,
Bayer or Nike and banks such
as Goldman Sachs, Santander,
Mitsubishi UFJ, Citigroup and
HSBC. Even nominal GDPs of
well-established economies
such as Taiwan (1x), Norway
(1,4x), Singapore (1.9x) and
Luxembourg (9.3x) are no
match for the size of the crypto
market. By 2025, the size of this
market could easily surpass the
market caps of the largest
private companies in the world
and GDPs of countries such as
Austria, the Netherlands and
Switzerland.
PAGE 32
shipowner.io has pre-emptively applied
for a full service securities dealer license
boosting the spirit of transparency, in order to induce long term
sustainability for our users, unlike many other recent market entrants
The Future & Our Strategy
It is therefore, no surprise that this
market has attracted the attention of
global regulators. While regulations
are still being formulated on a
country by country basis, we at
shipowner.io believe that the crypto
market’s evolution to becoming a
regulated space is inevitable. In
order to avoid mishaps such as a
forced abandonment of token
sales by national regulators, as has
been seen in certain ill-prepared
ICOs and token sales, shipowner.io
has adopted a strategy, whereby, the
company applies for a clear license,
ahead of commencing any token
sales to the platform's users.
To keep the spirit of transparency
throughout, and to preempt any
security regulations that may be
implemented on asset tokenization
markets, the company has
collaborated with the Financial
Services Commission in the Republic
of Vanuatu to scrutinize the business
plan in the most detailed manner.
The process of acquiring a full
service securities dealers license,
that allows dealing in a wide
spectrum of instruments including
equities, debt, commodities,
currencies and their various
derivatives is underway. This is
above the threshold for what is
required in our business as per legal
opinions we have received. Vanuatu
Financial Services Commission is
Source: AlphaSeas Research, shipowner.io
the financial regulatory authority of
Vanuatu. It was created by an act in
1993, and regulates banking and
financial services in the nation, along
with the Reserve Bank of Vanuatu.
Dealing in securities is regulated in
Vanuatu by the Vanuatu Dealers in
Securities (Licensing) Act [Cap 70 of
the laws of Vanuatu]. It was
amended under Act 11 of 2017 to
further strengthen scrutiny of license
holders and applicants.
Simultaneously the company has
already begun the process of
acquiring the relevant license from
an A-List member and signatory to
the “Multilateral Memorandum Of
Understanding Concerning
Consultation And Cooperation And
The Exchange of Information” issued
by the International Organization Of
Securities Commissions (IOSCO).
Some notable members of IOSCO
are:
# The Securities & Exchange
Commission USA (SEC),
# Commodity Futures Trading
Commission USA (CFTC),
# Bundesanstalt für
Finanzdienstleistungsaufsicht
Germany (BaFin),
# Swiss Financial Market Supervisory
Authority Switzerland (FINMA),
# Commission de Surveillance du
Secteur Financier Luxembourg
(CSSF),
All operating procedures in the
company are designed to fulfill
IOSCO requirements. The core
objectives of IOSCO members are as
follows:
1. to cooperate in developing,
implementing and promoting
adherence to internationally
recognized and consistent standards
of regulation, oversight and
enforcement in order to protect
investors, maintain fair, efficient and
transparent markets, and seek to
address systemic risks;
2. to enhance investor protection
and promote investor confidence in
the integrity of securities markets,
through strengthened information
exchange and cooperation in
enforcement against misconduct
and in supervision of markets and
market intermediaries; and
3. to exchange information at both
global and regional levels on their
respective experiences in order to
assist the development of markets,
strengthen market infrastructure and
implement appropriate regulation.
More information on IOSCO’s
objectives and principles of
securities regulation can be found at
www.iosco.org/library/pubdocs/pdf/I
OSCOPD561.pdf
PAGE 33 Source: AlphaSeas Research

the SHIP token is also a KYC & AML

gatekeeper of our marketplace
a project of an existing business, where core elements of product
delivery already exist, and which is now embracing blockchain tech
Business processes (described
in Appendices), demonstrates the
utility value of SHIP tokens.
Specifically, SHIPs are not to be
purchased with the view of value
appreciation themselves but rather
utility / use case appreciation over
time. They do not represent any
investment contract on shipowner.io.
There is no explicit or implicit
representation made to suggest that
they represent what falls under the
definition of a common enterprise.
No expectation of profit exists from
the efforts of others. In fact, any
transfer / use decisions that are made
on shipowner.io are conducted
solely by the SHIP owner and those
decisions are independent of
other SHIP owners or the
management team of
shipowner.io. Furthermore, this is a
project conceived by an existing
business where elements of product
delivery already exist. That existing
business model has embraced
blockchain technology and the final
product i.e the online marketplace is
already being populated with
products that can be purchased by
redeeming SHIP tokens.
Following the DAO case in July 2017,
the SEC provided some guidelines on
evaluating tokens (security vs utility).
Shipowner.io's internal assessments
using guidelines from the Howey Test
demonstrate the SHIP token as being
highly unlikely to be a security.
Nonetheless, any potential user is
encouraged to derive his/her own
conclusion in this regard and not rely
on the results of the internal
assessment of the company.The core
purpose of the SHIP token is to be the
gatekeeper for accessing our
services by connecting the
ownership of the token to mandatory
KYC / AML processes, and to be able
to subsequently transact on our
online store and private secondary
market exchange. In that respect,
these tokens are analogous to
membership cards where their
underlying value can also be
redeemed for products on an online
store.
SHIPs do not grant the owners any
legal right to equity in shipowner.io,
neither the right to make any
decisions on behalf of shipowner.io
or its affiliates and subsidiaries. All
users, whether they are individuals,
corporate entities or others are
expected to conduct their own due
diligence and weigh the risks and
rewards of buying SHIPs.

Following is our country specific strategy on SHIP sales based on current knowledge of legal requirements and
litigation cases involving blockchain businesses. These strategies are likely to evolve but we feel it is prudent that our
users and potential users are fully aware of these strategies so that they can make informed decisions.

YOU MAY NOT ACQUIRE A SHIP TOKEN IF YOU ARE A CITIZEN, RESIDENT (TAX OR OTHERWISE) OR GREEN CARD
HOLDER OF THE UNITED STATES OF AMERICA, OR A CITIZEN OR RESIDENT OF CANADA, OR ALGERIA, OR BOLIVIA,
OR BANGLADESH, OR CHINA, OR DOMINICAN REPUBLIC, OR ECUADOR, OR KYRGYZSTAN, OR NEPAL, OR SOUTH
KOREA.
PAGE 34 Source: AlphaSeas Research

our distribution strategy is based on

country specific situations
as legal requirements on token sales vary across jurisdictions and we
have taken a view that each of these must be respected and satisfied

United States & Canada

Until further notice, SHIP token sales, to citizens and residents of the United States of America and Canada,
is prohibited by the company. We are working on a comprehensive strategy to make SHIPs available to residents and
citizens of these countries in the near future. Further background regarding the reasons for our US & Canada strategy
can be found in links below:

https://www.sec.gov/litigation/investreport/34-81207.pdf

http://www.osc.gov.on.ca/documents/en/Securities-Category4/csa_20170824_cryptocurrency-offerings.pdf

Algeria, Bolivia, Bangladesh, China, Dominican Republic, Ecuador, Kyrgyzstan, Nepal, South Korea

Until there is further guidance from regulatory authorities, SHIP sales to citizens or residents from any of the above
mentioned countries is banned by law. Some guidance information can be found in the links mentioned below:

https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
https://www.coindesk.com/bolivias-central-bank-bans-bitcoin-digital-currencies/
http://www.circ.gov.cn/web/site0/tab6554/info4080736.htm (Chinese)
https://www.coindesk.com/chinas-ico-ban-a-full-translation-of-regulator-remarks/ (Unofficial English Translation)

Country specific regulations in the blockchain / fintech space are a fast-moving target at the moment, and it is prudent
that anyone planning on purchasing SHIPs and / or using them on our platform should conduct their own due
diligence. A good resource to keep up to date with regulations and their implications is http://bitlegal.io/ .

The company does not endorse, nor authenticates the validity and accuracy of information provided on any of the
web links or any other part of this paper. You must exercise your own due diligence on country specific legal and/or
other considerations, and not rely on the informational guidance provided in this section.
PAGE 35

crew

"The wind and the waves are always on the side of the ablest navigators"
- Edmond Gibbon

our crew, our greatest asset, is driven by

a common sense of purpose
driven group of individuals with deep domain expertise and an
unwavering focus on delivering the best service to our stakeholders
It is well documented that the sea is a These solutions are not generated the aggregate effort is worth
master at creating inconceivable by an elite squad, but by a bunch of many multiples of the sum of it's
challenges and constantly testing ordinary but highly committed individual parts.
competent, passionate seafaring individuals, who overcome great
teams. Many of these individuals and odds. They are driven simply by a Shipowner.io is privileged to be
groups have faced adversity powerful common sense of working with a similar group of
together and were thus united in the purpose, whether it is to protect individuals, who place the
common quest for survival and glory. their fortress - the ship, or to rejoice company's mission above their
in the power of innovative own individual motivations and
In the face of the unpredictable sea, solutions and say - yes, they did have created something
out of the box thinking and solutions what no one else had the guts to fantastic for the shipowner.io
that challenge the perceptions of do. In their moments of glory, they community - our customers, our
conventional wisdom were seen to transform their own individual users and our stakeholders.
be swiftly replacing the status quo. action into a collective force, where
PAGE 36 Source: shipowner.io

MITUL DAVE, "SHIP's Commander - Strategy & Vision Implementation"

Co-founder of AlphaSeas Group which includes a successful marine consultancy

firm in the EU and a vessel management company in the UK. Former Head of Risk
(Marine Business) at GE Capital; Head of Research & Strategy and SVP Investment
Management at DVB Bank SE; Site Engineering Manager for new ship building
projects in China & Japan; Chief Engineer on-board merchant marine vessels. MBA
in Finance, Strategy & Supply Chain Management from Lancaster University
Management School, Chief Engineer's License from the Maritime & Coastguard
Agency UK and Global Strategic Management from Harvard Business School, USA.

ERDAL ULUDAG, "SHIP's Lieutenant - Assets & Services Management"

Co-founder of AlphaSeas Group which includes a successful marine consultancy

firm in the EU and a vessel management company in the UK. Former Chief
Commercial Officer for Marine and Offshore Finance at GE Capital; VP, Strategic
Management and Restructuring at DVB Transport US LLC and DVB Bank SE; Tanker
Chartering Broker and Vessel Operations; Sailed onboard merchant marine vessels.
MSc degree in Maritime Economics and Logistics from Erasmus University,
Netherlands and a BSc degree in Maritime Transportation & Management
Engineering from Istanbul Technical University, Turkey.

CAPT. VINIL GUPTA, "SHIP's Lieutenant - Marketing & Stakeholder Engagement"

Co-founder of AlphaSeas Management Limited, a successful vessel management

company, Glasgow Maritime Academy, a leading maritime training services provider
and World Yachts, a luxury yacht management company in the UK. Finalist for
Entrepreneur of the Year Award 2017, UK. Extensive command experience in
shipboard operations for deep sea & coastal vessels and shore based ship
management, MCA surveyor and maritime examiner experience. BA in Tertiary
Higher Education from University of Stirling (Scotland), Diploma in Nautical Science
(Glasgow), Masters License from the Maritime & Coastguard Agency UK.

TEJAS DESAI, "SHIP's Gunner - Blockchain & Enterprise Infrastructure"

Software Developer/Architect with over 14 years of experience in design &

development of large scale enterprise software. Web technologies expert and
blockchain disciple. Experience in industry leading products such as Lexis Advance
from LexisNexis - An online legal research SAAS application; Microsoft Research
Bing Translator workbench - Natural language machine translation tool, GE
Healthcare Universal Viewer - the first zero footprint web medical exam viewer. BSc
from Mumbai University, India; Microsoft Certified Programmer.
PAGE 37 Source: shipowner.io

PARTH TRIVEDI, "SHIP's Armourer - Enterprise Infrastructure"

Software Engineer, Solutions Architect, and Systems Administrator. Ethereum Blockchain

Researcher and Developer; AWS Consultant, Cloud Architect, and Deployment Strategist. BEng
in Computer Science from Sardar Patel University, India. Former TCS developer, systems and
database administrator. ITIL v3 in IT Service Management, Oracle DB SQL Certified Expert.

CAPT. PETER SINCLAIR, "SHIP's Sub-Lieutenant - Stakeholder Engagement"

Over 35 years industry experience. Quality & Safety Manager at AlphaSeas & World Yachts.
Curriculum Manager at Glasgow Maritime Academy. Former Operations Manager for a major
UK port operator's short sea shipping and EU project cargo. Harbour Master and in-charge of
marine port operations. Master's License from Maritime & Coastguard Agency UK

Dr. (CAPT.) IVICA TIJARDOVIC, "SHIP's Sub-Lieutenant - Stakeholder Engagement"

Over 38 years industry experience. General Manager & Chief Security Officer at AlphaSeas
Management Limited. Former ship builder, ship manager, a leading maritime educator and
author of several maritime books & journals. PHD in Geodesy & Cartography (Navigation), MSc in
Transport Technology, BSc Nautical Science, Master Mariner, Member of The Nautical Institute.

CAPT. SHAYNE WOODWARD, "SHIP's Sub-Lieutenant - Asset Management"

Over 20 years industry experience. Designated Person Ashore for AlphaSeas and World Yachts.
Curriculum Manager at Glasgow Maritime Academy. In addition to extensive seaborne
experience, shore based experience dealing with marine insurance, flag, class societies and port
state authorities. Master's License from Maritime & Coastguard Agency, UK, BSc & HND in
Nautical Science. Associate Fellow at The Nautical Institute.

CAPT. VISHNU SHANKAR, "SHIP's Sub-Lieutenant - Asset Management"

Over 17 years industry experience. Designated Person Ashore for AlphaSeas. In addition to
extensive seaborne experience, shore based experience dealing with marine insurance, flag,
class societies and port state authorities. Extensive experience in operational safety and
security systems. Master's License from Maritime & Coastguard Agency, UK, HND in Nautical
Science.

CHARLOTTE PARK, "SHIP's Enterprise Purser"

Accountancy professional with experience in Payment Gateway set ups, Sage and Payroll
systems. Reporting to and advising senior management on aspects of budgeting, taxation,
forecasts and financial risk. Blockchain enthusiast. Accountancy from City of Glasgow College,
UK.
PAGE 38 Source: shipowner.io

PIYUSH JAIN, "SHIP's Sub-Lieutenant - Services Management"

Over 23 years industry experience. Technical Director at AlphaSeas UK. In addition to extensive
seaborne experience, shore based experience dealing with technical issues as superintendent,
management of maintenance issues, procurement, repairs, dry docking and inventory. Chief
Engineer's License from Maritime & Coastguard Agency, UK, BSc (I.T) & HND in Marine Eng.

DARSHAK SATHAVARA, "SHIP's Armourer's Mate - Front End UI Development"

Front End Engineer with >5 years experience in designing highly creative, user-friendly,
graphically intuitive and responsive web designs. Expert in using advanced web technologies
like SASS, LESS, CSS3, Bootstrap, JQuery and diversified application architecture. BEng in
Computer Science from the Gujarat Technological University, India.

KISHEN MAKADIA, "SHIP's Armourer's Mate - Blockchain & Backend Development"

Expert Web Developer and programmer in Java, Python, PHP, Laravel, NodeJS, Javascript, and
jQuery. Expertise in developing finance platforms, management systems, CRM systems, Content
Management Systems and web applications on blockchain technology. BEng in Computer
Science from Gujarat Technological University, India.

SAGAR BHAYANI, "SHIP's Armourer - IT Analysis & Resource Management"

Business analyst with vast domain knowledge in different industries including finance,
manufacturing, and operations. Successful entrepreneur in software and renewable energy
space. BEng in Computer Science from Sardar Patel University, India and MBA in Finance from
Nirma University, India.

Additional guidance from:

AlphaSeas' Maritime Law partners

IT Technical Advisory Contributors

Blockchain Law Advisory Contributors

AlphaSeas' Corporate Structuring and Fiduciary Advisors

Board Advisors
PAGE 39 Source: shipowner.io

appendix 1 (a)
assets tokenization stages
Assets Tokenization usually takes around 3.5 - 5 weeks and involves the following stages. We will
constantly strive to reduce this time frame even further.
INITIATION (48 HOURS)
Customer approaches shipowner.io to list their assets for tokenization. They fill out a simple questionnaire on
their assets, tokenization and structure targets.
After satisfactory preliminary market fundamentals / regulatory / asset liquidity checks, shipowner.io will issue the
current asset owner a confirmation to begin the tokenization process.

VERIFICATION (1 WEEK)
Shipowner.io will use its management and data resources assess the character / reputation of the current asset
owner in the maritime market place.
Shipowner.io will assess the asset owner’s capital structure and their “skin in the game” from technical and
commercial perspectives.
Shipowner.io will assess the asset owner’s capacity to honor their obligations during the deal tenure and their
ability to honor the back ended put / call option.
The asset owner will provide a valuation of the underlying asset by selecting a broker from a panel of
approved shipowner.io brokers.
Shipowner.io will also procure an independent valuation from another broker on the same list. If the difference
between the valuations is greater than 5%, a third broker will be used and the valuation will be set at the average
of all 3 values. If the difference is less than 5%, the valuation of the underlying asset will be set at the average of
the 2 valuations – asset owner + shipowner.io.
Shipowner.io will assess the operating environment for the underlying asset and reserves the right to suspend the
tokenization process if there is an expectation of a material adverse change in market conditions.
Upon successful completion of above mentioned steps, shipowner.io will send a confirmation to the asset owner
with an indicative term sheet.

TOKENIZATION (2-4 WEEKS)

Marine assets are then tokenized by writing and deploying deal specific smart contracts, as per asset owner’s
requirements.
Tokenization process is usually kept open until tokenization threshold is reached or the timeframe for
tokenization is reached, whichever comes first. These tokenized assets are priced in SHIPs at the prevailing SHIP /
fiat market rate based on the asset price in fiat.

MARKETPLACE (12 HOURS)

Tokenized assets are listed on the online market place (USE SHIPs) for SHIP owners to purchase.
PAGE 40 Source: shipowner.io

appendix 1 (b)
services tokenization stages
Services Tokenization usually takes around 2 - 2.5 weeks and involves the following stages. We
will constantly strive to reduce this time frame even further.

INITIATION (24 HOURS)

Customer approaches shipowner.io to list their services for tokenization. They fill out a simple questionnaire on
their services.
After satisfactory preliminary market regulatory checks, shipowner.io will issue the service owner a confirmation
to begin the tokenization process.

VERIFICATION (1 WEEK)
Shipowner.io will use its management and data resources assess the character / reputation of the service
provider.
Shipowner.io will assess the service provider’s ability to deliver the service as promised.
Shipowner.io will assess the service provider’s capacity to honour their obligations during the service.
Shipowner.io will assess the operating environment for the underlying service and reserves the right to suspend
the tokenization process if there is an expectation of a material adverse change in market conditions.
Upon successful completion of above mentioned steps, shipowner.io will send a confirmation to the service
provider with an indicative term sheet.
TOKENIZATION (1-2 WEEKS DEPENDING ON COMPLEXITY)

Marine services are then tokenized by writing deploying specific smart contracts.
There is usually no fixed threshold for tokenizing services. Each service token is priced in SHIPs at the cost of the
service in fiat and converted to SHIPs at prevailing market rates. However, service providers may choose to issue
a fixed number of tokens which are valid for a fixed time frame and which give access to the service providers
services. Shipowner.io will facilitate the token issuance based on each service provider’s requirements.

MARKETPLACE (12 HOURS)

Tokenized assets are listed on the online market place (USE SHIPs) for SHIP owners to purchase.

Users of the platform will be issued with specific contracts related to

tokenized assets & services which they may purchase by redeeming
SHIPs. They will be able to withdraw these specific contracts into their
ERC20 compliant wallets, upon completion of the asset or service sale.
PAGE 41 Source: shipowner.io

appendix 1 (c)
sources & references
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John M. Hobson (2004), "The Eastern Origins of Western Civilisation", Cambridge University Press.
Martin Stopford; "Maritime Economics"; (3rd edition, 2009).
"Maritime Labour Convention", www.ilo.org, International Labour Organization, 2017.
Wijnolst, Niko; Wergeland, Tor (2009). "Shipping innovation". Amsterdam: IOS Press.
"Review of Maritime Transport 2014", United Nations Conference on Trade and Development, 2014.
"Alphaliner - TOP 100", 2017-12-20. Retrieved 2017-12-20.
Ridley, Jonathan; Patterson, Christopher (2014; "Ship Stability, Powering and Resistance"; Reeds Marine
Engineering and Technology.
Sergiu George (2014-10-01); "The World's Ten Richest Ship Owners"; www.movehub.com; Retrieved 2017-07-03
Lee Kuo Chuen, David (2015); "Handbook of digital currency : bitcoin, innovation, financial instruments, and big
data"; Amsterdam.
Iansiti, Marco; Lakhani, Karim R. (January 2017); "The Truth About Blockchain". Harvard Business Review. Harvard
University.
Antonio Madeira (2018-01-12). "Why is Ethereum different to Bitcoin?"; CryptoCompare.
"Vitalik Buterin on Ethereum and The Decentralized Future"; Future Thinkers Podcast; 2015-04-21; Retrieved
2017-06-02.
Braga, Matthew (13 Oct 2016); "Change Agents 2016: Vitalik Buterin, Ethereum"; Canadian Business; Retrieved
2017-06-06.
"Initial Coin Offerings (ICOs): Risks, Regulation, and Accountability"; Regulation of Financial Institutions Journal:
Social Science Research Network (SSRN).
ConsenSys (23 June 2016). "Ethereum, Gas, Fuel, & Fees"; ConsenSys Media; Retrieved 15 June 2017.
Peck, Morgan (2 March 2017); "Corporate Titans Unite to Build an Enterprise Version of the Ethereum
Blockchain"; Institute of Electrical and Electronics Engineers (IEEE). Retrieved 15 June 2017
"Short Paper: Formal Verification of Smart Contracts". www.microsoft.com; Microsoft; Retrieved 9 June 2017.
Bordet, Julián (21 March 2016); "Decentralized Autonomous Organizations: Ethereum Sparks Up Googles of
Tomorrow"; The Cointelegraph; Retrieved 06 August 2017.
Tradewinds News (www.tradewindsnews.com) articles.
Lloyds List (www.lloydslist.com) articles.
International Organization of Security Commissions (www.iosco.org)