ADA Risk

CARDANO (ADA)

INTRODUCTION
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‍There have been no expressed opinions by a regulatory authority in Canada about Cardano or any of the other Crypto Contracts or Crypto Assets made available through Satstreet Inc., including an opinion that Cardano itself is not a security and/or derivative. There may be sudden changes without notice to applicable laws that may adversely affect the value, use, transfer, or exchange of any of your crypto assets.The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other provinces and territories of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement or the Satstreet Inc. Services Risk Statement. The below provides a summary of risks associated with Cardano and is not a complete list of all risks and does not take into account an individual’s specific risk tolerance or situation. Investors are encouraged to conduct their own research prior to trading any crypto asset. Satstreet Inc. clients should read the Satstreet Inc. Services Risk Statement for the general risks associated with crypto assets made available through Satstreet Inc.
A copy of the Satstreet Services Risk Statement is available at https://satstreet.com/services/risk-statements
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DESCRIPTION

Cardano is a decentralized blockchain platform that was developed by Input Output Hong Kong (IOHK) and founded by Charles Hoskinson, one of the co-founders of Ethereum. Launched in 2017, Cardano aims to provide a secure and sustainable platform for the development of decentralized applications and the execution of smart contracts. It distinguishes itself through its scientific approach and emphasis on peer-reviewed research to ensure robustness, scalability, and security.

The development of Cardano is driven by a philosophy of sustainability and inclusivity. The project aims to provide financial services to underserved populations and regions by fostering economic identity and interoperability. Cardano also emphasizes the importance of formal methods and academic research to enhance security and provide verifiable assurances for the platform. With a strong focus on scalability, interoperability, and sustainability, Cardano seeks to establish itself as a leading blockchain platform for the future.

Cardano (ADA) Whitepaper: https://docs.cardano.org/introduction/
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RISKS
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Any investment in cryptocurrency and digital assets, such as Cardano, can include the following general risks:
(i) volatility risk and liquidity risk
(ii) short history risk
(iii) demand risk
(iv) forking risk
(v) code defect risk
(vi) regulatory risk
(vii) electronic trading risk
(viii) cyber security risk

For additional information of risks associated with cryptocurrency and digital assets, you may refer to the Satstreet Inc Services Risk Statement. In terms of specific risks, as Cardano has no central working group or authority to disclose material information to the public regarding Cardano. Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be a complete overview of all such risks and, in addition, there may be other risks that come with exposure to Cardano. We encourage all users to perform their own due diligence to assess the risks associated with Cardano and to determine whether this level of risk is acceptable to them. Neither Cardano nor Satstreet guarantees the value of Cardano, and holders of Cardano will not have any recourse to Cardano or Satstreet if the value of Cardano declines for any reason whatsoever.

SATSTREET EVALUATION OF CARDANO

Satstreet Inc. has reviewed and assessed Cardano prior to making it available through our services and has concluded that Cardano is not a security or derivative under Canadian securities legislation; however, there is a risk that this conclusion could change in the future and that, in such event, Satstreet will be required to halt, suspend, and then remove Cardano from its platform as described in the Satstreet Inc. Services Risk Statement. Further, as indicated above, no Canadian securities regulatory authority has expressed an opinion about Cardano, including an opinion that Cardano is not itself a security and/or derivative. Based on publicly available information Satstreet has reviewed Cardano, including, but not limited to, a review of the following: The creation, governance, usage, and design of Cardano, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created Cardano. The supply, demand, maturity, utility, and liquidity of Cardano. Material technical risks associated with Cardano, including any code defects, security breaches and other threats concerning Cardano and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them. Legal and regulatory risks associated with Cardano, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of Cardano, and (ii) statements made by any securities regulatory authorities in Canada, other regulators in IOSCO-member jurisdictions, or the regulator with the most significant connection to Cardano about whether Cardano, or generally about whether the type of crypto asset, is a security and/or derivative.

STAKING OF ADA

Some clients may be entitled to staking all or some of their ADA balance.
To find out more information about ADA staking please contact your account representative.
Further details of ADA Staking can be found on this page here: https://satstreet.com/services/ada-staking-risk

Last Updated: June 2023

Risk Statements

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