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Democratizing Hollywood

Dionysus: Delivering the Hollywood boardroom to the blockchain

http://dionysus.studio

http://dio.studio/

Contents

2white paper version1.0

Last Updated Jan 31,2019

Overview...............................................................................................3

Cryptocurrency Overview .............................................................4

Advantages of Investing with Cryptocurrency.................... 6

About Dionysus.Studio....................................................................7

Our Team.................................................................................................8

Dionysus.Studio’s Business Objectives....................................10

How the Cinema Token Sale Works ...........................................12

Token Sale Timeline………............................................................13

Two Token Business Model..........................................................13

Token Status and Privileges........................................................16

Dionysus Ecosystem……………………...............................................18

Dionysus Second Phase…………………….............................................21

Data and Machine Learning.....................................................23

Risk Disclosure for Cinema Token Crowdsale.......................…28

Overview

Dionysus Studio is the brainchild of a group of accomplished

Hollywood moviemaking and financeprofessionals.

We want to use Blockchain to open the inner workings of the

Hollywood boardroom, enabling people from all walks of life to

participate in the exciting world of entertainment production.

Our goal is to bring Hollywood movies and network television

shows onto the Dionysus platform so we can fund projects

while they are still in the pre production phase.

Before we explain how Cinema tokens and our funding

platform work, we’ll cover how the Ethereum cryptocurrency

and Blockchain work together to enable our investors to get

in on the ground floor of financing the latest and most

exciting Hollywood projects.

The backbone of our idea is the Cinema token, a new form of

cryptocurrency that will fund these projects or lead to other

tokens created later for specific projects. The Cinema token is

tradeable, just like Bitcoin and other cryptocurrencies such as

Ethereum, on whose platform the Cinema token is built.

The Cinema Token will allow Dionysus members to effectively

be Virtual Producers on the Dionysus Platform.

Before we explain how Cinema tokens and our funding

platform work, we’ll cover how the Ethereum cryptocurrency

and Blockchain work together to enable our investors to get

in on the ground floor of financing the latest and most

exciting Hollywood projects.


CryptocurrencyOverview

Almost everyone has heard of Bitcoin, the first cryptocurrency.

Bitcoin was introduced to the world in 2009.

Bitcoin was invented by Satoshi Nakamoto, who described a

new form of currency that uses cryptography to control its

creation rather than agovernment.

Bitcoin “mining” is the process of decoding the underlying

algorithm to create more Bitcoin. Mining Bitcoin is a

competitive and complex process, and requires highly

specialized equipment and programming tools to make it

profitable—or even possible.

This extreme level of dificulty prevents just anyone from

creating an unlimited number of Bitcoins, which would result

in a rapid decrease in value.

Bitcoins are bought and sold on exchanges, just like any “real”

currency such as US dollars, Japanese yen or British pounds

sterling. The exchange rate for Bitcoin can change based on

demand.

As of this writing, the exchange rate varies from about $3200

to $3600 US dollars to 1 Bitcoin. One of the earliest Bitcoin

transactions recorded was 10,000 Bitcoins for two Papa

John’s pizzas. At today’s exchange rates, those two pizzas

cost the buyer at least $23 million in lost growth.

Since the introduction of Bitcoin, several other

cryptocurrencies have been introduced. The most promising

of these is the Ethereum Ether, which can be used to create

tradeable digital tokens such as the Cinema token from

Dionysus.Studio.


Advantages of Cryptocurrency

Cryptocurrencies such as Ethereum Ether run on decentralized

platforms known as blockchain. Blockchain is a shared global

infrastructure that can move value between parties.

The Ethereum blockchain has two groundbreaking capabilities:

It keeps an encrypted perpetual record of every transaction

performed anywhere in theworld.

This perpetual record also tracks the ownership of all

units of thecryptocurrency.

Second, the blockchain technology supports the use of “smart

contracts” which can be used to create markets, store records

of debts or promises and move funds in accordance with

instructions such as the terms of a contract.

Because no single party has control over the records or

transactions of cryptocurrency and blockchain, there is no

capacity for nefarious parties to commit fraud.

Applications on blockchain run exactly as programmed

without any possibility of downtime, censorship, fraud or

third-party interference.

As a result, user data remains secure and private, but

decentralized so it is not subject to corruption or single

point failures.


Advantages of Cryptocurrency

This unique combination of technologies enables

Dionysus.Studio to attract studios and production houses,

fund film and TV projects and receive royalties quickly,

securely and privately.

Tokenholders could participate in exciting Hollywood projects

that would otherwise be closed to them by using Cinema

tokens and the Ethereumblockchain.

Cinema token owners may also have the opportunity to

trade tokens for memorabilia or experiences associated with

the movie or TV projects launched. This may include

clothing or prop items that appeared onscreen or visits to

selected production sets.

Using Ethereum, companies like Dionysus.Studio can create

tokens and contracts to fund projects and bring them to

fruition.

All of this is possible without requiring lawyers, centralized

arbitrators, clearing houses or having to trust any party you

don’t know.

Presently, there are more than

92,000,000ether in circulation. The daily trading

volume averages about $1billion.

1 Ether =$120Ethereum is the second most valuable

cryptocurrency available today, with a

market cap of more than $12 billion dollars


About DionysusStudio

Cinema Token TeamThe Cinema token team is made up of world-class investors, Hollywood

advisors, finance experts, technologists and Ethereumprogrammers.

Skills and ExpertiseThis broad range of skills and expertise enabled us to develop the concept

and platform for changing the way Hollywood projects receive funding.

Investors Hollywood

Advisors

Finance

Experts

Technologists Ethereum

programmers


Our team

Dean Anastos

Led by innovative entrepreneur

Dean Anastos as CEO, Dionysus is

on track to become a major player

in Hollywood. Dean’s expertise isin

writing, finance, programming and

cryptocurrencies.

Jit Singh

the Chief Information Oficer at

Dionysus is driven by his passion

for technology. He has been a

successful leader in tech for nearly

30 years.

Max Garza

is a blockchain investor, trainer

and ICO advisor. Co-founder

and managing partner for

Bitfundza, AAI Global

Solutions & many more, he has

provided 20+ years of

commercial financial services

for international ICO clients.

.

Luke Daniels

is a producer, known for The

Taking of Deborah Logan(2014),

Yoga Hosers (2016) and Under

the Silver Lake (2018)..

Elizabeth Kosky

Elizabeth Kosy has an

extensive history of executive

leadership for both startups

and established corporations.

Her experience includes

setting up very successful

animation and entertainment

companies both in india and

in the U.S..

Nick Spanos

is the inventor of the

multibranched blockchain, and

blockchain voting. Bothpatents

have been granted. Nick was

featured in the Netflix hit

Banking on Bitcoin. Nick is the

Blockchain advisor for the

Dionysus project.

The Dionysus Team has varied and electric backgrounds that

will propel the Cinema token concepts to success.


Our team

Andrew Se

Andrew has been involved for

many years in the cryptospace.

His contacts will be invaluable in

reaching out to the Asian

crypocurrency network.

Dylan Vigil

Dylan Vigil is our Creative

Director based out of Los

Angeles. Founder of

VERI.DESIGN, his knowledge of

graphic & webdesign lends itself

to the Dionysusbrand.

Cole Kornell

is an experienced and versatile

filmmaker/actor, hailing from

Cleveland, Ohio. An honors

graduate of Ringling College of

Art & Design with a B.F.A. in

Film, Cole won 2 awards for his

latest short, Unending Love.Cole

is also currently working as a

director with Dean Anastos on

the documentary called Rise of

the ICOs.

Max Decker

was born on September 18, 1976

in McAllen, Texas, USA as

Maximillian Alexander Decker.

All My Children (1970) and The

30th Annual Daytime Emmy

Awards (2003).

Roy Doobay

is our project manager.With

over 20 years in project

management. Roy canmeet

strict deadlines.




Balbir JudgeLloyds of London- Managing syndicated funds - looking after a total of £120 million insurance book.

Barclays Trust -Managing investments portfolios -£200 millions assets undermanagement.

Hsbc- Managing teams of investment portfolios of corporate clients - £300 million

Our team

Ozzie Kalil

Ozzie Kalil has 28 years of

entrepreneurial experience,

including 17 years in private

equity. He has co-founded and

been involved in several start-

up companies which has

strengthened his background in

both sales and corporate

finance.

Peter Vallely

Peter is the Chief Business

Development Officer of Crypto

Currency World and a Co-

Founder of Bitkiosk Ireland.

Peter is a crypto-currency

enthusiast with a demonstrated

history of working in several

sectors. Skilled in negotiation,

business planning and sales

with an MBA focused in

Business from UCD.

Steven Ponsler

Steven Ponsler has spent over

30 years in Corporate Finance

with several Global Companies,

including Merrill Lynch, UBS,

Paine Webber and Proctor &

Gamble. He has been involved

in various public and private

offerings and is experienced in

market valuations, both in the

funding and acquisitions.

Ciaran Magee

Ciáran is the Chief

Communications Officer of

Crypto Currency World and a

Co-Founder of Bitkiosk Ireland.

Ciáran is a crypto-currency

enthusiast with a strong track

record in business along with

an interest in fitness. Ciáran

also has a degree in

biochemistry from Dublin

Institute of Technology.

International trade advisor for

KHK Holdings Media and the

Brave Federation.

Eugene O’Brien

Eugene is the Founder &

CEO of Crypto Currency

World, a software

development company that

specialises in distributed

ledger technologies. He

identifies opportunities to

capture long-term

outperformance and capital

appreciation through

technological innovations

such as Blockchain, cloud

computing and big data.




Dionysus Studio’s Business Objectives

We’re about democratizing Hollywood, and

giving a platform for the people to crowdfund

and support their favorite film and TV projects,

without the lack of accountability and

burdensome fees of traditional

Now, even without the

usual deep pockets of

Hollywood moguls,

millennials and

cryptocurrency investorsof

any generation can have a

seat at the table and help

determine which worthy

projects get the funding

needed for production.

The reins of financing entertainment projects

have been held in the hands of a few executives

in Hollywood and New York, but with Cinema

tokens, anyone anywhere in the world can

become part of the exciting world.

Because the funding for new

film and TV ventures has

been controlled by a handful

of network executives and

the top streaming sites, the

independent filmmaker with

a smaller scale but

potentially highly profitable

project frequently gets

overlooked in favor of

Hollywood blockbusters and

franchise projects.


How the CinemaToken Sale Works

The official ICO will launch after the

PRE-ICO phase ends. 1100MM total

Cinema tokens will be available for sale

for a period of up to 365 days. Any

unsold tokens will be burned out of

circulation

Producers will have the first opportunity to

purchase sub-project tokens. This wouldbe

the equivalent of a private presale in

standard ICOs. Producers will be able to

purchase at a discount below the amount

that will eventually be sold to the public.

A portion of profits made from

projects will be used to purchase back

Cinema tokens and remove them

from circulation.

After producers have theopportunity to

purchase sub-project tokens, boardmembers

and assistant producers will have their

opportunity before the public does.

The Cinema crowdsale will be divided into

two segments. One sale occurring within

the borders of the United States via a

REG-D ofering and a simultaneous token

ofering sale via the Bahamian Company

Dionysus

Cinema.

Executive producers, who arelooking for

funding can submit project proposals for film

and television onto the Dionysus platform.

The submission will createa sub-project

token specifically toraise the capital needed

for theproject.

The private presale will endin approx. 65

days or when 300MM tokens are sold out.

After that the PRE-ICO begins and it will last

an additional 30 days. There will be 300MM

tokens available in this phase.

Dionysus will raise capital initially

through the private sale of

300,000,000 Cinema tokens . The

private sale will be the lowest

possible entry price.


Token Sale Timeline

Cinema private presale token sales commence.

PRE-ICO forCinema token sales begin.

Official Cinema ICOsale.

Initial funding decisions made and announced.

Projects begin production.

TBD

TBD

TBD

TBD

TBD

Cinema tokens go onpresale on TBD at dionysus.studio. There will be 300,000,000 Cinematokens available in presale.The official launch date will be TBD

The presale will end on TBD or when the300,000,000 tokens have been sold. Anyunsold tokens will rollover to the pre icocrowdsale.

Dionysus management will update the website with the exact number of tokens sold at the conclusion of the sale. After the sale Dionysus willseek to get the token listed for sale on major cryptocurrency exchanges.

Announcements regarding the initially funded production projects will occur during TBD. The Dionysus team will publish regular updates on the success of film projects, potential token oferings and individual film projects.

You can purchase tokens by transferring Ethereum Ether (ETH) to the address announced on dionysus.studio beginning on the day of the token sale. Note that the exact ETH price maychange based on the exchange rate of ETH to USD. The purchase ofCinema tokens is a smart contract supported by the Ethereumplatform.


All Cinema tokens have

been pre-mined and willbe

issued according to the

timeline in this table. 2

Billion additional Cinema

Tokens will be locked in

smart contracts and will

only be released in two

phases. 1 Billion when the

price reaches $20 and the

second when the price

reaches $40.

If fewer than 1,100,000,000

tokens are sold during the

crowdsale phase, the

remainder will be pulled out

of circulation.

After the initial sale period ends,

Cinema tokens will be listed on

various cryptocurrency

exchanges. Cinema Tokens are

built on Ethereum and use the

ERC223 Token StandardInterface,

ensuring the owners’ ability to

trade them on any platform that

allows ERC20 token trading.

Token Sale Pricing

Buyer Group Bonus Cinema Token Quantity available Info

Core Team 400,000,000

Company Reserve 165,000,000

Reserved for Bounties 10,000,000

Pre-Crowdsale525,000,000

First 300,000,00 sold

seed round REG

ICO CrowdsalePhase

1,100,000,000

300,000,000 $.09 perCinema

$.15 per Cinema

$.27 per Cinema

xx

STUDIO

TOKEN


Unique Two Token Business Model

Dionysus Studio will operate on two types of Tokens:

Cinema Tokens and Project Tokens

Cinema Tokens are provided to the public in a crowdsale. Possession of

Cinema Tokens entitle token holders to various levels of control in deciding

which projects receive funding. The highest level of token holder, Producers,

are able to pitch their own ideas. Cinema Tokens are DEFLATIONARY and will

be eliminated from circulationas they are used in some cases.

Project Tokens are issued by the holders of Cinema Tokens when they have a

project that they have greenlit. Project tokens act as securities, and entitle the

holders to access a portion of the profits of the completed film.

Cinema

Tokens

(distributed

in crowdsale)

Virtual Producers

Greenlit

Film A

Greenlit

Film B

Project Token

Film A

Project Token

Film B

Project Funders

(receive a share of film

profits for holding tokens)

Script and Film

Project Ideas

Multiple films approved

on theDionysus platform…

STUDIOTOKEN

PROJECT TOKEN

PROJECTTOKEN


In recognition of the collaborative environment needed to create great films,

Dionysus will build several platforms to allow interaction among our community

members.

Writer’s Guild will be a forum where writers will be able to post their

screenplays/treatments/stories to the platform. In order for Virtual Producers

to view the content posted to the Writer’s Guild, they must stake their tokens to

the level of a Virtual Producer to open the area. Virtual Producers may negotiate

with writers for the rights to produce their screenplay in Cinema tokens. Once

negotiated, the parties enter into a smart contract where they will move to the

next area the Virtual Producer Hall.

Virtual Producer Hall will be a forum where Virtual Producers seek support from

other Virtual Producers on projects they are trying to push through to the

Boardroom. Virtual Producers have access to the Writer’s guild’s

screenplays/stories/treatments so long at their tokens are staked at the required

level.

The Boardroom is the area where projects arrive to receive development phase

funds. The development phase includes creating or refining the script, getting

talent attached and figuring out the exact budget needed.

The development phase funds may come from various sources.

• Development Phase Buckets

• Direct Investment

• Investment by the platform itself.

Development Phase Buckets are special funds created for the specific

purpose of developing projects coming to the platform. Development phase

buckets can be partially funded by the platform itself or by the Dionysus

community. The buckets are created to mitigate overall risk since projects are

considered very risky at this stage. Only certain projects make it to the bucket.

These are selected by an internal algorithm. Projects within a development

bucket may have 100% of their development phase funded or partially funded.

For partially funded projects the balance of the development must come from

either direct investment or by the platform itself.

Dionysus Platform


Direct Investment – this fund is created so the community can directly invest

in developing a specific project. These investors are paid back once the money is

raised covering the entire necessary budget.

Platform Investment – On select projects, the platform itself may invest into

the film’s development phase. These investors are paid back once the money is

raised covering the entire necessary budget.

Development Phase – Once the funds are secured in the boardroom phase, the

development phase begins. This is when the Dionysus team begins using its

resources to develop the project with a professionally written script that is ready

for production, determine the budget, find attachments and if possible get LOI

for distribution.

Main Stage - Once projects complete and come out of the development phase

they are ready to proceed to the Main Stage. Project Tokens are created and are

held in escrow via Smart Contracts for the different parties involved. The tokens

would essentially represent the parties prorate equity share of the project. Those

parties include the party that submitted the original story, the virtual producers, the

development phase funders, the production team and the public investors. The

project tokens that are available for sale to the public are the tokens allocated for

investors. The revenue generated from the sale of project tokens would need to

equal the budget of the film. Once this amount is raised, the development phase

funders are reimbursed and the project goes to the production phase.

Production Phase – The production will be handled by preapproved production

teams. Initially the productions will be hand selected by the Dionysus platform. As

the platform grows, production teams would need to stake Cinema tokens in order

to be considered as options for producing Dionysus content.

Dionysus Platforms


Dionysus will create the Take Two Exchange as a market for trading ofProject

Tokens.

Maria’s List will be a classified ads platform for attracting talent

(screenwriters, set designers, actors, etc) to a project.

Dionysus Connect is a social network for members of the Dionysus creative

community.

Dionysus Platforms


The Dionysus Studio Ecosystem

Bulletin

Board

Writers submit

screenplays

The Dionysus project life cycle begins

with the writer’s guild members called

“Storytellers” posting their stories for a

fee to a special bulletin board that

virtual producers may only view.

Storytellers must join the Writer’s guild

area in order to participate in the

platform.

VIrtual Producers

Virtual Producers need to stake Cinema

tokens to view the

screenplays/treatment/stories posted to the

bulletin board area by the Storytellers.

Virtual Producers may make an offer in Cinema

tokens for the rights to produce the screenplay.

The Cinema Tokens will be sent to a smart

contract and then converted to USD and

deposited into the storytellers’s account to abide

by the Writer’s guild rules. Once a deal is made

a smart contract will be created to reflect the

terms of the offer.

The smart contract is called a Project Smart

Contract and it will be the base smart contract

that will receive all the funding to produce the

project and will also ultimately be the contract

that receives the proceeds from the box ofice.

CINEMA TOKENS

TO USD

PROJECT SMART

CONTRACT CREATED

DEAL

BULLETIN BOARD

VIRTUAL

PRODUCER

BOARD

MEMBER

VIRTUAL PRODUCER HALL

Virtual producers that have a project

smart contract will need to gain the

support of 5 other virtual producers.

Other virtual producers commit to

the project by staking their Cinema

tokens into the project’s smart

contract.

Once enough support is received the

project is moved to the next area called

the Boardroom for development

funding.

The next step will be the

boardroom for

development funding.


BOARDROOM

BOARD

MEMBER

Once in the Boardroom, the project will

need to raise the development phase

funds via various funding vehicles

available.

The funding vehicles available are

development phase buckets, direct

investment and platform investment.

Virtual Producers need to collaborate to create a social medial strategy to draw attention to their project. Getting the development phase funds is required in order to move the project to the development phase and then onto the Main Stage.

Main Stage

(funding

platform)

MAIN STAGEThe main stage is the area where projects can get funded by the public. Projects will essentially each have their own ICO. Each project will have its own project token and will be disbursed between the original storyteller, the Virtual Producers, the development phase funders, the Production Company, the investors and the Dionysusplatform.

The token has multipleutilities.

First and foremost, the token will

represent a share of interest in the

project.

These project tokens, at the discretion of

the Dionysus platform, may give special

offers in exchange for the them.

Dionysus may get creative in their

offers and offer things like tickets to

the screening of the film, merchandise,

autographs and evenonset visitation

during filming.

Once funding is reached.Dionysus

will return the development phase

capital along with initial return of

investment promised.

The project will move towards the

production phase.

Take Two

Exchange

Project tokens will be listed

on an internal exchangewhere

tokens can be freelytraded.



PRODUCTION &DISTRIBUTION


Dionysus vetted production

companies can bid on the

project .

All projects will require Film

Completion Bonds.

Dionysus will seek

distribution through its

channels to get the project

distributed.

Once film is completed, film

will be distributed with

favorable terms on behalf of

production participants and

project token holders. The net

profits from The various

distribution channels will be

distributed back to the

platform.NET PROFITS

76%24%

DIONYSUS PLATFORM PROJECT SMART CONTRACT

14%Operations

10%Cinema

Token

Buyback

13%Virtual

Producers

+ Original

Storyteller


6%Dev

Phase

Funders

21%Production

Company

36%Project

Investors

Existing film production companies will be able to leverage their expertise by staking Cinema Tokens to work on projects funded by the Dionysus platform

This allows Dionysus participants to leverage the experience and

talent of established film professionals who have been carefully

vetted by the Dionysus corporate team, while allowing existing

film production companies to benefit from the dynamism and

creativity unleashed by the Dionysus platforms

Eventually, the size of the project assigned to the film production

company will depend on the amount of Cinema Token they have

staked - production companies that have acquired and staked

more Cinema Tokens will be able to work on larger projects

Cinema Tokens staked by the production company will be held as collateral in a Smart Contract, until the film project has been successfully produced and completed

Depending on the terms, the film production company will

receive cash compensation and / or Project Tokens which

represent equity in the future of the film

The use of Cinema Tokens as a form of collateral and staking for

film production companies furthers their utility in the Dionysus

ecosystem

Direct Engagement with Production Companies


The IP security provided by blockchain makes it a natural fit for

Video On Demand services

Eventually, entertainment produced on Dionysus Studios

platforms will be encrypted on the blockchain

Viewers will be able to use Cinema Tokens or Project Tokens to acquire content licenses that give them rights to watch a film

These content licenses will be implemented with cryptographic keys and Smart Contracts, restricting the number of times or the amount of time available for a viewer to watch the content

Movie studios can directly use Cinema Tokens to purchase content licenses for showing films supported by the Dionysus Studios platform

This second phase will enable Cinema Tokens to directly be used in accessing content, providing a major boost for the utility of Cinema Tokens in the Dionysus ecosystem

An Angie’s type list will be developed on the platform called “Maria’s list” geared towards the Film and TV industry in where production companies can post job openings and individuals can post their talents.

Dionysus Second Phase


How To PurchaseCinema Tokens

On the opening sales date, set your browser to

dionysus.studio to ascertain the address to send Ether as

payment for Cinema tokens. It is advisable to have a

sufficient quantity of ETH purchased and available well

before the sale opens to avoid delays and

possibly missing out on the number of Cinema tokens you

want to buy.

The link to the buying site will not be live until the sale opens.

Fund Allocations

40%Media Projects

15%Marketing

15%Operations

15%Company Reserve

15%Development


Dionysus will collect data on our users’ funding patterns: the type of films funded by

various geographic, financial, gender and racial demographics.

This data will be provided free of charge to virtual producers on the platform.

Individuals who are not at an Virtual Producer or higher status of CinemaToken

holding can purchase access to this data via a subscription fee payable in

Cinema Tokens.

This data is invaluable to screenwriters and other creatives who wish to target their

work to particular markets, or who wish to know what topics are exciting to

moviegoers at the moment.

Dionysus’ proprietary machine learning algorithms leverage neural networks and

Random Forest decision trees to optimally identify trends in movie funding, allowing

those in our network to have their finger on the pulse of the movie funding

community.

We have already developed Machine Learning techniques using two layer

feed-forward Artificial Neural Networks (shown below) similar to those used by Netflix

and Amazon to accurately identify these funding trends.

Data and Machine Learning

Input Hidden Output


Additional Notes

All film projects produced through Dionysus Studios will be insured by Film

Completion Bonds.

If the future, Smaller budget projects that are not greenlit by the Dionysus executives ,

may still be produced if enough Funder token holders exercise a veto on the

unapproved project. This way, all Cinema Token holders, regardless of level, will be able

to exercise creative control over what projects are supported.

165 million Cinema Tokens will be held in reserve by Dionysus Studio to

compensate Content Creators who work on our projects.


Glossary


Cinema Tokens: The tokens ofered by Dionysus Studios in the ICO/STO crowdsale. Cinema

Token holders will exercise power over which projects are approved by Dionysus Studios.

They can also pitch their own ideas to the Dionysus community and to Dionysus investors.

Project Tokens: Tokens issued on a per project basis for films that have been approved by

Dionysus Studios. These tokens act as securities for the people funding the film, and entitle

their holders to a share of the profits of the film.

Boardroom: The area where projects are looking to raise funds for the

development phase. The boardroom is where the virtual producers meet and

direct the public towards funds that will help get the development funds their

project needs.

Main Stage: A platform that allows investors to purchase Project Tokens in films being

produced by DionysusStudios.

Maria’s List: A portal for advertising open positions on films being produced by Dionysus

Studios. It acts like an “Angie’s List” for Dionysus films.

Writer’s Guild: An area of the Guild Board where storytellers’s must join in order to post

to the bulletin board area. This area is where the lifecycle of a project begins.

Take Two Exchange: A digital exchange for ProjectTokens.

Dionysus Connect: A social network for members of the Dionysus creative community,

attracting screenwriters, performing talent, directors,etc.

Virtual Producers are Cinema token holders that help move the project forward through

the Dionysus platform.

Funders are Project token holders who bought their way into a project on the Main Stage.

Production Company is the film production company that is hired to produce the film

project. The production company may be the Dionysus platform or it may be a third party

hired for the job.

Risk of Losing Access to Cinema Token Due to Loss of Credentials

The purchaser’s Cinema Token may be associated with a Cinema Token account until it is

distributed to the purchaser. The Cinema Token account can only be accessed with login

credentials selected by the purchaser. The loss of these credentials will result in the loss of

Cinema Token. Loss of credentials associated with any third party and or digital wallet

containing and or controlling Cinema Token will result in loss ofCinema Token. Best practices

dictate that purchasers safely store credentials in one or more backup locations geographically

separated from the working location.

Risk Associated with the Ethereum Protocol

Cinema Token and the Cinema Token network are based on the Ethereum protocol. As such, any

malfunction, unintended function or unexpected functioning of the Ethereum protocol maycause

the Cinema Token network or Cinema Token to malfunction or function in an unexpected or

unintended manner.

Risk Associated with Purchaser Credentials

Ether, the native unit of account of the Ethereum Protocol, may itself lose value, which could have

a negative impact on the functioning of the Cinema Token network. More information about the

Ethereum protocol is available at http://www.ethereum.org.

Any third party that gains access to the purchaser’s login credentials or private keys may be able

to dispose of or misappropriate the purchaser’s Cinema Token.

To minimize this risk, the purchaser should guard against unauthorized

access to their electronicdevices.

Risk of lack of adoption or use of the Cinema token Network

While Cinema Token should not be viewed as an investment, it may potentially (but likely will

not) have utility value over time. That value may be limited or nonexistent if the Cinema Token

network lacks use and adoption.

Risk of Dissolution of the Cinema token project

It is possible that, due to any number of reasons, including, without limitation, an unfavorable

fluctuation in the value of Ether (or other cryptographic and fiat currencies), decrease in the

utility value of Cinema Token, the failure of business relationships, or competing intellectual

property claims, the Cinema Token network may no longer be a viable business and the

Company may dissolve or the Cinema Token network may fail to launch.

Risk Disclosure for Cinema TokenCrowdsale Last Updated February 1,2018


http://www.ethereum.org/

Risk of Unfavorable Regulatory Action in One �or More Jurisdictions

Blockchain technologies have been the subject of scrutiny by various regulatory bodies around

the world. The functioning of the Cinema Token network and Cinema Token could be impacted

by one or more regulatory inquiries or actions, including, but not limited to, restrictions on the

use or possession of digital tokens like Cinema Token, which could impede or limit the

development of the Cinema Token network. Funding film and TV projects is a core business of

the Company, have been, and will likely continue to be, the subject of scrutiny by various

regulatory bodies around the world. The legal ability for the Company to operate the Cinema

Token network in some or all jurisdictions could be eliminated by future regulation or legal

actions. In the event that it is not

legal for the Cinema Token network to operate in a jurisdiction, the Company will cease

operations in that jurisdiction. There is a serious risk that the Company will be unable to operate

if regulation makes it dificult to do so.

Risk of Alternative, unoficial Cinema token Networks

Following the sale and the development of the initial version of the Cinema Token platform and

Cinema Token network, it is possible that alternative networks could be established, which utilize

the same open source code and open source protocol underlying the Cinema Token network.

The oficial Cinema Token network may compete with these alternative, unoficial Cinema

Token-based networks, which could potentially negatively impact the Cinema Token network

and CinemaToken.

Risk of Weakness or exploitable breakthrough in the Field of Cryptography

Advances in cryptography, or technical advances such as the development of quantum

computers, could present risks to cryptographic tokens and the Cinema Token platform,

which could result in the theft or loss of CinemaToken.

Risk of an unfavorable fluctuation of Ethereum Ether (“ETH”) and other currency value

The Company team intends to use the proceeds of the Cinema Token sale to fund development

of the Cinema Token network. The proceeds of the Cinema Token sale will be denominated in 12

ETH, and converted into other cryptographic and fiat currencies. If the value of ETH or other

currencies fluctuates unfavorably during or after the sale, the Company team may not be able to

fund development, or may not be able to develop the Cinema Token network in the manner that

it intended or promised.




Risk of Insuficient Interest in the Cinema token or distributed Applications

It is possible that the Cinema token will not be used by a large number of businesses, individuals,

and other organizations and that there will be limited public interest in the creation and

development of distributed applications. Such a lack of interest could impact the development of

the Cinema Token network and therefore the potential uses or utility of Cinema Token.

Risk that the Cinema Token Network, As Developed, Will not meet the expectations of the Purchaser

The Cinema Token network is presently under development and may undergo significant changes

before release. Any expectations regarding the form and functionality of Cinema Token or the Cinema

Token network held by the purchaser may not be met upon release for any number of reasons,

including a change in the design and implementation plans and execution of the Cinema Token

network.

Risk of Theft and Hacking

Hackers or other groups or organizations may attempt to interfere with the Cinema Token

network orthel availability of Cinema Token in any number of ways, including, but not limited to,

denial of service attacks, Sybil attacks, spoofing, smurfing, malware attacks, or consensus-based

attacks.

Risk of Security Weaknesses in the Cinema Token Network Core Infrastructure Software

The Cinema Token network consists of open-source software that is itself based on open-source

software. There is a risk that the Company team or other third parties may intentionally or

unintentionally introduce weaknesses or bugs into the core infrastructural elements of the

Cinema Token network interfering with the use of or causing the loss of Cinema Token.

Risk of an Illiquid Market for Cinema Token

There are currently no exchanges upon which Cinema Token might be resold and such

exchanges may never exist. If ever exchanges do develop, they will likely be relatively new and

subject to poorly- understood regulatory oversight. They may therefore be more exposed to

fraud and failure than established, regulated exchanges for other products.

Risk of Uninsured Losses

Unlike bank accounts or accounts at some other financial institutions, Cinema Tokens

associated with a Cinema Token account are uninsured. In the event of loss or loss of utility

value, there is no public insurer, such as the Federal Deposit Insurance Corporation, or private

insurer, to ofer recourse to thepurchaser.

Unanticipated Risks

Cryptographic tokens are a new and untested technology. In addition to the risks included in this

Risk Disclosure, there are other risks, including those that the Company 0cannot anticipate. Risks

may further materialize as unanticipated combinations or variations of the discussedrisks.


For more information on Cinema Tokens

Visit our Website at

………………http://dionysus.studio

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