ARB Risk

ARBITRUM (ARB)
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DESCRIPTION

Arbitrum (ARB) is a layer 2 scaling solution for the Ethereum blockchain, designed to improve scalability and reduce transaction costs. Developed with the aim of addressing Ethereum's scalability challenges, Arbitrum employs optimistic rollups to increase throughput and lower gas fees on the Ethereum network.One of the key features of Arbitrum is its optimistic rollup technology, which aggregates transactions off-chain and submits a single proof to the Ethereum mainnet. This approach enables faster transaction processing and significantly reduces gas fees compared to executing transactions directly on the Ethereum blockchain.ARB token serves as the native token of the Arbitrum network, facilitating various functions within the ecosystem. Holders of ARB tokens may participate in governance processes, propose and vote on protocol upgrades, and contribute to the security and decentralization of the Arbitrum network.

Arbitrum (ARB) Whitepaper: https://docs.arbitrum.io/welcome/get-started
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RISKS OF ARB

Any investment in cryptocurrency and digital assets, such as ARB, can include the following general risks:(i) Volatility risk and liquidity risk(ii) Regulatory risk(iii) Security risk(iv) Market risk(v) Smart contract risk(vi) Governance risk(vii) Technological riskFor additional information on risks associated with cryptocurrency and digital assets, you may refer to the Satstreet Inc Services Risk Statement. 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 there may be other risks associated with exposure to ARB. We encourage all users to perform their own due diligence to assess the risks associated with ARB and to determine whether this level of risk is acceptable to them. Neither ARB nor Satstreet guarantees the value of ARB, and holders of ARB will not have any recourse to ARB or Satstreet if the value of ARB declines for any reason whatsoever.
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SATSTREET EVALUATION OF ARB

Satstreet Inc. has reviewed and assessed ARB prior to making it available through our services and has concluded that ARB 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 ARB 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 ARB, including an opinion that ARB is not itself a security and/or derivative. Based on publicly available information, Satstreet has reviewed ARB, including, but not limited to, a review of the following: The creation, governance, usage, and design of ARB, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created ARB. The supply, demand, maturity, utility, and liquidity of ARB. Material technical risks associated with ARB, including any code defects, security breaches, and other threats concerning ARB 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 ARB, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ARB, 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 ARB about whether ARB, or generally about whether the type of crypto asset, is a security and/or derivative.

Last Updated: Mar 2024

Risk Statements

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