CRYPTO-ASSET WHITE PAPER – [ILV]
Version Number: 1.0
Document Type: White Paper
Document Author Offeror: OKX Europe Limited
Document Status: APPROVED
Language: English
TABLE OF CONTENTS
I. DATE OF NOTIFICATION
II. STATEMENTS
III. WARNING
IV. INFORMATION ON RISKS
Offer-Related Risks
Issuer-Related Risks
Crypto-Assets-Related Risks
Project Implementation-Related Risks
Technology-Related Risks
Mitigation Measures
V. GENERAL INFORMATION
A. Information of the Offeror or the Person Seeking Admission to Trading
B. Information of the Issuer
C. Information about OKX Europe Limited (“OKX”)
VI. INFORMATION ABOUT THE CRYPTO-ASSET
D. Information about the Crypto-Asset Project
E. Information about the Offer to the Public of the Crypto-Asset or Its Admission to Trading
F. Information about the Crypto-Assets
G. Information about the Rights and Obligations Attached to the Crypto-Asset
H. Information about the Underlying Technology
I. Information on the Principal Adverse Impacts on the Climate and Other Environmental-Related Adverse Impacts of the Consensus Mechanism Used to Issue the Crypto-Asset.
VII. GLOSSARY
I. DATE OF NOTIFICATION
The notification date of this Crypto-Asset White Paper is [YYYY-MM-DD].
II. STATEMENTS
A. This Crypto-Asset White Paper has not received approval from any regulatory authority within the European Union. The responsibility for the content of this document lies solely with OKX Europe Limited.
B. To the best of the management’s knowledge, this Crypto-Asset White Paper complies with Title II of Regulation (EU) 2923/1114, presenting fair, clear, and non-misleading information without omissions that could impact its significance.
C. It is noted that the ILV token may not be transferable or liquid and could potentially lose its value, either partially or entirely.
D. The Utility Token discussed herein may not be exchangeable for the promised goods or services, particularly in cases where the Crypto-Asset Project fails or is discontinued, which is a verified statement.
E. The Crypto-Asset described in this White Paper is not protected by any investor compensation schemes under Directive 97/9/EC of the European Parliament and of the Council.
F. The Crypto-Asset referenced in this document does not come under the deposit guarantee schemes established by Directive 2014/49/EU of the European Parliament and of the Council.
III. WARNING
A. This summary should be read alongside the entirety of the Crypto-Asset White Paper.
B. Prospective purchasers are advised to base their decision to buy this Crypto-Asset on the full content of the White Paper rather than solely on this summary.
C. The public offering of this Crypto-Asset does not constitute a solicitation to acquire financial instruments and such offers can only be made through a prospectus or other relevant documents as dictated by applicable national law.
D. This Crypto-Asset White Paper does not serve as a prospectus as defined in Regulation (EU) 2017/1129 of the European Parliament and the Council or any other offer document under European Union or national law.
E. The Illuvium (ILV) token is an ERC-20 utility token created on the Ethereum blockchain, designed to operate within the Illuvium gaming ecosystem, which features a decentralized, open-world fantasy battle game. ILV token holders are granted governance rights through the Illuvium DAO and can earn rewards by staking their tokens.
F. The ILV token enables holders to participate in governance decisions of the Illuvium protocol and to earn a portion of the revenue generated within the gaming ecosystem. Token holders can engage in staking to vote in council elections and receive rewards from the Illuvium Vault, which gathers fees from in-game activities. The token does not provide rights for the redemption of a predetermined amount of goods or services. The ILV token is designed for free and instant transfer, utilizing the standard processes of the underlying blockchain network.
G. This whitepaper is specifically issued in relation to the trading admission of the ILV token on the OKX Europe Limited trading platform. There has been no public offering or exchange of the crypto-asset for fiat currency or other cryptocurrencies before its listing. The crypto-asset will be available for trading through OKX Europe Limited, a licensed crypto-asset service provider (CASP) operating in the European Union. This trading admission does not involve any subscription, sales, or fundraising activities. The aim of this document is to deliver critical information regarding the crypto-asset’s characteristics, governance, rights, and associated risks, ensuring that users and market participants can make informed decisions in the context of its trading admission. Access to the crypto-asset on the trading platform may be subject to user verification, platform conditions, or applicable legal restrictions based on jurisdiction.
IV. INFORMATION ON RISKS
1. Offer-Related Risks
This whitepaper is submitted by OKX Europe Limited exclusively for the purpose of the admission of assets for trading. No public offering of ILV tokens is being made by the issuer or OKX Europe Limited. Risks associated with this trading admission include: Service-related Interruptions: Holders may experience difficulties accessing the utility due to technical, operational, or regulatory issues. Jurisdictional Limitations: The availability of ILV services or token utility may be restricted in certain jurisdictions. Platform Dependency: Access is contingent upon third-party infrastructure (such as wallets and platforms), and service disruptions may impact token utility. Limited Liability: OKX Europe Limited does not assume responsibility for the issuer’s project continuation, and token ownership does not provide contractual rights or guarantees. Unexpected Risks: In addition to the risks outlined in this whitepaper, there may be unforeseen risks that can arise from unexpected events or changes that could significantly and negatively influence the crypto-asset, the project, or involved parties.
2. Issuer-Related Risks
Operational Risks: The issuer may encounter financial or operational challenges, potentially impacting the ongoing development or availability of services linked to the ILV token. Counterparty Risks: Risks may emerge if the issuer is reliant on third-party service providers or technology partners. Reputational Risks: Negative media coverage or the loss of key personnel could harm the ecosystem surrounding the ILV token. Competition Risks: The issuer might face increased competition or shifts in market conditions that could hinder its objectives. Regulatory Risks: The issuer may be subject to investigations or regulatory changes that could impact the token’s legal status in various jurisdictions. Disclosure Risks: The issuer might not be required to share financial statements, which may limit ILV token holders’ visibility into the financial health of the issuer/project. Key Person Risks: The success of the project and/or token may depend on a limited number of key individuals; if these individuals were to leave, the project’s direction and stability could be adversely affected.
3. Crypto-Assets-Related Risks
Market Volatility: The ILV token could experience significant price fluctuations and may lose value quickly due to market conditions or other factors (issuer-related, technological, or project implementation risks). Utility Risk: The utility of ILV tokens relies on access to certain services, and changes or discontinuation of those services could diminish the token’s associated utility. Smart Contract Risk: The ILV token may function through smart contracts that could possess vulnerabilities, even if they have undergone audits, and protocol upgrades or governance changes may affect functionality. Liquidity Risk: There may be periods of low liquidity, especially if demand for the token or its use case diminishes, which could negatively affect the token’s price and future applications. Holding Concentration Risk: A small number of holders possessing a large share of the circulating supply may introduce risks related to security concerns, price manipulation, abrupt sell-offs, or influence over key governance decisions.
4. Project Implementation-Related Risks
Scalability Issues: There is a possibility that the project may not be executed or scaled as intended. Technical limitations or infrastructure bottlenecks could obstruct the anticipated scalability of the project, particularly if user demand surpasses network or protocol capacity. Governance Risk: The project may be subject to governance processes involving on-chain voting or community proposals. Misaligned incentives, low participation, or malicious actors could disrupt governance outcomes and hinder the project’s roadmap. Centralization Risk: Similar to governance risks, centralization within the governance process or among validators could lead to a lack of decentralization in the network, which poses future risks regarding trust in the project and its roadmap in reflecting the interests of the broader user base.
5. Technology-Related Risks
Blockchain Performance Risk: The Ethereum blockchain, which hosts the ILV token, might face downtime or congestion, potentially delaying or preventing token transfers or the use of utilities. Consensus Failure Risk: A breakdown in the blockchain’s consensus mechanism could lead to halted transactions, unexpected behaviors, or loss of network integrity. Smart Contract Vulnerabilities: Despite adhering to standard or audited smart contract frameworks (ERC-20 standard), hidden bugs, exploits, or implementation errors could compromise functionality and security. Upgradeability Risk: If the token or related contracts are designed to be upgradeable and have designated “owner” addresses, this could create a central point of failure that malicious actors might exploit. Third-Party Infrastructure Dependency: Interaction with the token or project may depend on external infrastructure (APIs, wallet services, off-chain governance voting) and outages or attacks may disrupt access to token-related services. Interoperability Risk: If the token interacts with other chains, bridges, or oracles, failures or exploits in those systems could impact the token’s operations. Protocol-level Risk: Upgrades or forks of the underlying protocol may affect the token, leading to compatibility problems or unexpected token behavior. Emerging Technology Risk: Innovations in computing or undiscovered vulnerabilities in cryptographic algorithms could present long-term security risks to the blockchain or associated smart contracts.
6. Mitigation Measures
Blockchain Performance Risk: The Ethereum blockchain has adopted a Proof-of-Stake consensus mechanism to enhance network scalability and reduce latency. Continuous upgrades aim to improve transaction throughput, and gas fees help prioritize transactions during high load. Consensus Failure Risk: The Ethereum Proof-of-Stake consensus mechanism includes incentives for validators, penalties for malicious activities, and finality checkpoints to uphold network integrity. The validator set is extensive and globally distributed, which strengthens the decentralization of the network. Smart Contract Vulnerabilities: Smart contracts on Ethereum are immutable by design unless explicitly made upgradeable. The ecosystem encourages open-source code, independent audits, and community input. Standardized libraries like OpenZeppelin minimize coding errors by reusing tested components. Upgradeability Risk: While Ethereum does not enforce upgrade functionalities in smart contracts, it allows for their technical implementation. Risks tied to upgradeable contracts can be managed through standard practices, such as time delay triggers or multi-signature wallets. Third-Party Infrastructure Dependency: The Ethereum ecosystem supports decentralized indexing and querying via various protocols, reducing reliance on centralized third-party data services. Interoperability Risk: Measures to mitigate cross-chain bridging risks include utilizing audited bridges and token locking mechanisms. Protocol-level Risk: Ethereum follows a public roadmap and a structured governance process, where significant updates undergo thorough testing and community reviews. Emerging Technology Risk: Ethereum developers remain vigilant regarding potential threats from emerging technologies and are actively pursuing quantum-resistant solutions. The network’s modular design allows for future cryptographic upgrades if necessary.
V. GENERAL INFORMATION
A. Information of the Offeror or the Person Seeking Admission to Trading
A.1 Name: N/A
A.2 Legal Entity Identifier (LEI): N/A
A.3 Legal Form, if applicable: N/A
A.4 Registered Office, if applicable: N/A
A.5 Head Office, if applicable: N/A
A.6 Date of Registration [YYYY-MM-DD]: N/A
A.7 Legal Entity Number: N/A
A.8 Contact Telephone Number: N/A
A.9 E-Mail Address: N/A
A.10 Response Time (days): N/A
A.11 Members of Management Body: N/A
A.12 Business Activity: N/A
A.13 Newly Established: N/A
A.14 Financial Condition for the past Three Years: N/A
A.15 Financial Condition since Registration: N/A
A.16 Parent Company, if applicable: N/A
A.17 Parent Company Business Activity, if applicable: N/A
B. Information of the Issuer
This section is to be filled out only if the information differs from that in section 1.
B.1 Is the Issuer different from an offeror or person seeking admission to trading?: TRUE
B.2 Name: Illuvium Labs Pty Ltd
B.3 Legal Entity Identifier (LEI): No information was available at the time of drafting this whitepaper.
B.4 Legal Form, if applicable: Proprietary Limited Company
B.5 Registered Office, if applicable: L 17 383 Kent St Sydney, NEW SOUTH WALES, 2000 Australia
B.6 Head Office, if applicable: L 17 383 Kent St Sydney, NEW SOUTH WALES, 2000 Australia
B.7 Date of Registration [YYYY-MM-DD]: 2021-07-06
B.8 Legal Entity Number: 651 740 537
B.9 Members of the Management Body: Line ID 1: Identity: Aaron Keith Warwick, Business Address: Greater Sydney Area, Australia, Function: Director
B.10 Business Activity: Illuvium Labs Pty Ltd is the primary development entity for creating and maintaining the Illuvium gaming ecosystem, including associated smart contracts, user interfaces, and game clients.
B.11 Parent Company: No information was available at the time of drafting this whitepaper.
B.12 Parent Company Business Activity: No information was available at the time of drafting this whitepaper.
C. Information about OKX Europe Limited (“OKX”)
This section is to be filled out only if OKX has prepared the Crypto-Asset White Paper.
C.1 Name: OKX Europe Limited
C.2 Legal Entity Identifier: 54930069NLWEIGLHXU42
C.3 Legal Form, if applicable: Private Limited Company
C.4 Registered Office, if applicable: Piazzetta Business Plaza, Office Number 4, Floor 2, Triq Ghar il-Lembi, Sliema, SLM1562, Malta
C.5 Head Office, if applicable: See C.4
C.6 Date of Registration: 2018-09-07
C.7 Legal Entity Registration Number: C 88193
C.8 Members of Management Body: Line ID 1: Identity: Erald Henri J. Ghoos, Business Address: See C.4, Function: Director
Line ID 2: Identity: Fang Hong, Business Address: See C.4, Function: Director
Line ID 3: Identity: Joseph Portelli, Business Address: See C.4, Function: Director
Line ID 4: Identity: Wei Man Cheung, Business Address: See C.4, Function: Director
C.9 Business Activity: OKX Europe Limited is licensed as a Crypto-Asset Service Provider by the Malta Financial Services Authority under license number OEUR-24352, authorized to provide crypto services in compliance with the Markets in Crypto-Assets Act, Chapter 647, Laws of Malta. It operates a trading platform for crypto-assets as per Article 3(1)(18) of Regulation (EU) 2023/1114 (MiCA).
C.10 Reason for Crypto-Asset White Paper Preparation: This crypto-asset whitepaper has been created following Regulation (EU) 2023/1114 (MiCA) for the purpose of facilitating the admission of ILV to regulated platforms, starting with the OKX Exchange. As a licensed CASP, OKX Europe Limited aims to meet the obligations outlined under MiCA and the relevant MFSA guidelines, including notifying this whitepaper to the MFSA, public publication of the whitepaper, and ensuring its registration in the MiCA register maintained by the European Securities and Markets Authority (ESMA). This document has been prepared to provide transparent, accurate, and fair information to prospective token holders and regulatory authorities in accordance with MiCA principles.
C.11 Parent Company: OKC International Holding Company Limited
C.12 Parent Company Business Activity: The primary business activity of the parent company is investment holding.
VI. INFORMATION ABOUT THE CRYPTO-ASSET
D. Information about the Crypto-Asset Project
D.1 Project Name: Illuvium
D.2 Crypto-Assets Name: See F.14
D.3 Abbreviation: See F.14
D.4 Crypto-Asset Project Description: Illuvium is a fantasy battle game set in an open world, built on the Ethereum blockchain. The project merges exploration elements with player-versus-player (PVP) combat. Players can capture, collect, and utilize creatures known as “Illuvials” within the game world. Governance of this ecosystem is structured through a decentralized autonomous organization (DAO), with the ILV token as its core component.
D.5 Details of all individuals or entities involved in the Crypto-Asset Project implementation: Name: Kieran Warwick, Role: Co-founder at Illuvium, Business Address: Sydney, New South Wales, Australia; Name: Aaron Keith Warwick, Role: Co-founder at Illuvium, Business Address: Greater Sydney Area, Australia; Name: Grant Warwick, Role: Co-founder at Illuvium, Business Address: Sydney, New South Wales, Australia; Name: Danny Wilson, Role: CFO at Illuvium, Business Address: Sydney, New South Wales, Australia; Name: Rogier van de Beek, Role: Art Director at Illuvium, Business Address: The Hague, South Holland, Netherlands; Name: Richard Reyes, Role: Head of Community at Illuvium, Business Address: San Luis Obispo, California, United States; Name: Alexandre Belbari, Role: Head of Animation at Illuvium, Business Address: Australia; Name: Varto Zaitounian, Role: Head of Finance at Illuvium, Business Address: Sydney, New South Wales, Australia; Name: Florian Charnacé, Role: Head of Design at Illuvium, Business Address: France; Name: Nicolas Martigne, Role: Head of Sound at Illuvium, Business Address: Paris, France; Name: Illuvium Labs FZCO, Role: Core Contributor, Business Address: UAE; Name: Illuvium Labs
