Whitepaper Capital — Financing Proposal

Rabbits Black
P&A Bond Structure

A Whitepaper Film Bond proposal for the P&A financing of Rabbits Black, distributed by Briarcliff Entertainment. Prepared for the Rabbits Black team and their prospective investors.

Date

June 2, 2026

Prepared by

Whitepaper Capital

Distribution

Briarcliff Entertainment

Bond rate

5% annual compound

Min. term

4 years

Overview

Finance the film. Hedge your position.

Whitepaper Capital is a capital formation framework that makes film investment more attractive by pairing direct film participation with a structured hedge. We take no IP, no equity, and no backend from the film. Our role is to offer investors the option to run a portion of their commitment through a Whitepaper Film Bond — giving them a contractual return on that portion regardless of box office outcome.

The split is entirely flexible. The example throughout this proposal uses a $500,000 investor choosing to hedge half — $250,000 direct into the film, $250,000 through the bond.

The bond and direct investment are two separate instruments on one commitment. You dial the split based on your risk appetite — more direct for more film upside, more bond for more downside protection.

Structure

One commitment. Two instruments.

Total commitment

$500,000

Illustrative example

Direct to film

$250,000

Full film participation

Through bond

$250,000

Hedged, 5% compounding

Direct film investment

$250,000

Full participation — upside, waterfall, backend.

Goes to film

$250,000

Whitepaper fee

None

Return

Film upside + 20% flat

Waterfall

3rd — P&A

Whitepaper Film Bond

$250,000

Hedged. 5% annual compounding, 4yr min, BTC backed.

Fee (1.5%)

$3,750

Net allocation

$246,250

→ film (60%)

$147,750

→ BTC treasury (40%)

$98,500

Matures (yr 4)

~$303,878

Total capital reaching the film

$397,750

$250,000 direct + $147,750 from the bond's 60% allocation. Without Whitepaper, the same investor puts in $500,000 but carries full downside with no floor.

Bond allocation flow

$250,000 bond — less 1.5% fee ($3,750) = $246,250 net

Allocated below

↓ splits into

$147,750 → film (60%)

P&A waterfall, 3rd position + 20% flat premium

$98,500 → BTC treasury (40%)

Backs the bond return

The 40% treasury allocation is intentionally higher for P&A financing — the film is complete, distribution is locked, and stronger backing makes the contractual return more credible.

Whitepaper's Position

Aligned with every other investor.

Whitepaper participates in the P&A waterfall at the same 20% flat premium as every other investor — third in line, after P&A costs and distributor fees are satisfied. There is no preferred return, no senior claim, no special treatment. The 1.5% fee is charged at close on the bond portion only.

Whitepaper's total take on a $250K bond

In a full recoupment scenario — illustrative

Fee at close

$3,750

Film allocation returned

$147,750

20% flat premium

$29,550

The bond principal is deployed into a Bitcoin treasury position maintained by Whitepaper Capital. A liquidity buffer is retained to service maturity obligations. This is not a film-dependent return — it runs parallel to and independent of the P&A waterfall.

Waterfall

Where you sit in the stack.

Both the direct investment and the bond's film allocation enter the domestic revenue waterfall at the P&A position — third in line. The bond's contractual return is separate and not contingent on waterfall recovery.

Position

Name

Amount

1st

Briarcliff distribution fee

~$200,000

2nd

Guild / talent deferreds, off-the-tops

TBD

3rd

P&A investors — incl. Whitepaper bond allocation + 20% flat premium

$750K–$1M raise

4th

10% filmmaker corridor (retained)

Per agreement

5th

Equity investors

Backend

Bond Terms

Contractual return. Independent of box office.

The Whitepaper Film Bond carries a 5% annual compounded return with a 4-year minimum term. The return is contractual — it compounds regardless of waterfall recoupment. The 4-year minimum gives the Bitcoin treasury sufficient runway to perform and protects both parties from short-term volatility.

Annual return

5% compounding

Treasury backing

40% of net bond allocation in BTC

Minimum term

4 years

Whitepaper fee

1.5% on bond portion only

Return basis

Contractual — not contingent on box office

IP / equity

None — clean capital only

How it works

Early recoupment

If the film recoups through the waterfall before the bond matures, the direct investment is returned at that point. The bond continues independently to its 4-year minimum. Early film recoupment does not trigger early bond redemption.

Film release · Revenue begins flowing

~12–18 months
Direct investment returned via waterfall if recouped

Year 4 minimum · Bond matures — principal + return paid

Year 5 option · Extended term if mutually agreed

Upside Scenario

When the film succeeds,
both instruments win.

For a $500K investor splitting 50/50, a full film recoupment plus the 20% flat premium returns the direct portion at $300K. Meanwhile, the bond matures at approximately $303,878 after 4 years at 5% compounded. Together, that's a total return of approximately $603,878 — a ~20.8% gain on the full commitment.

Direct Film Investment

Principal returned: $250,000

+ 20% flat premium: $50,000

​

$300,000

Whitepaper Bond

Principal (net of fee): $246,250

+ 5% compounded 4yr: $57,628

​

~$303,878

Total return on $500,000 commitment

~$603,878

~$603,878 back on a $500,000 commitment — approximately 20.8% total gain. The direct portion benefits from the film's commercial performance; the bond return is contractual and independent of the waterfall.

Downside Protection

A floor, not just a bet.

Traditional P&A investment is binary. Whitepaper introduces a third outcome: partial recovery through the bond even in a total film loss. For a $500K investor splitting 50/50, a complete underperformance still yields ~61% capital recovery through the bond alone.

Without Whitepaper — film fails

Total committed

$500,000

Film return

$0

Capital recovered

$0

Recovery rate

0%

Investor relationship

Burned

With Whitepaper — film fails, bond runs 4yr

Total committed

$500,000

Film return

$0

Bond matures to

~$303,878

Recovery rate

~60.8%

Investor relationship

Preserved

In the upside scenario, the direct $250K participates fully in the film's economics. A successful film means the investor wins on both instruments.

Positioning

What Whitepaper is not.

On this deal, Whitepaper Capital takes no IP, no equity, no producer credit. We structure the bond, charge a 1.5% fee on the bond portion, participate in the P&A waterfall at the same 20% flat premium as all other investors, and step back from all creative decisions.

Not a studio deal

No IP, no backend, no producer credit on Rabbits Black.

Not a lender

We're not putting in capital. We structure the raise.

Not equity

No dilution. The bond sits in the P&A waterfall like any other P&A investor.

Not gap financing

No senior position, no personal guarantees. A 1.5% fee and the same 20% flat premium as everyone else.

🎬 Associate Producer Credit — proposed

Whitepaper Capital requests an Associate Producer credit on Rabbits Black as acknowledgment of our role in structuring the financing. This is a screen credit only — it carries no creative authority, no backend participation beyond the waterfall position already described, and no IP rights. It is proposed for mutual recognition and can be discussed as part of the deal terms.

Whitepaper Capital

Ready to move. Let's put it on paper.

The Whitepaper Film Bond gives P&A investors something the film industry rarely offers: a way to participate in a film's upside while carrying a contractual floor. For Rabbits Black, this structure will help close capital that might otherwise hesitate — without adding complexity to the waterfall or diluting existing positions.

Whitepaper Capital

Ali Webb, CEO · Carlos Flores, CCO & Bitcoin Strategist

whtppr.studio

Bond Calculator
Model your own split.
Total Commitment
Bond Allocation — 50%
10% Bond90% Bond
Bond Annual Rate — 5%
3%8%
Bond Term — 4 years
2yr7yr
Direct film investment$250,000
Bond allocation$250,000
Whitepaper fee (1.5%)$3,750
Bond growth to maturity
2yr
$271,491
3yr
$285,065
4yr
$299,318
5yr
$314,284
6yr
$329,999
7yr
$346,498
Success scenario — film recoups + bond runs to maturity
Direct returned (principal + 20%)$300,000
Bond matures to (yr 4)$299,318
Total return on commitment
$599,318
+19.9% total gain
Downside scenarios
Film fails completely
Without Whitepaper$0
Bond still returns (yr 4)$299,318
Capital recovery rate59.9%
Film breaks even
Direct: principal returned$250,000
Bond matures (yr 4)$299,318
Total returned$549,318

Whitepaper Capital · whtppr.studio · Ali Webb, CEO · Carlos Flores, CCO & Bitcoin Strategist

Illustrative projections only. Not financial advice.