AVAX Risk

AVALANCHE (AVAX)
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DESCRIPTION

AVAX, short for Avalanche, is a cryptocurrency and a blockchain platform that was launched in 2020 by Ava Labs. It was created by a team of researchers led by Emin Gün Sirer, a well-known computer scientist. AVAX aims to provide a highly scalable, secure, and decentralized platform for building decentralized applications (DApps) and enabling the creation of new financial instruments.

The AVAX cryptocurrency serves as the native token of the Avalanche platform and is used for transaction fees, staking, and governance within the network. With its focus on scalability, interoperability, and speed, AVAX aims to provide a platform that can support a wide range of decentralized applications and decentralized finance (DeFi) solutions. It has gained attention for its potential to address the scalability limitations of existing blockchain networks and its ability to facilitate the creation of new financial instruments and decentralized exchanges.

Avalanche (AVAX) Whitepaper: https://www.avalabs.org/whitepapers
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RISKS OF AVAX

Any investment in cryptocurrency and digital assets, such as AVAX, 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 AVAX is one of the longest-standing crypto assets and its community base is widely decentralized, there is no central working group or authority to disclose material information to the public regarding AVAX. 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 AVAX. We encourage all users to perform their own due diligence to assess the risks associated with AVAX and to determine whether this level of risk is acceptable to them. Neither AVAX nor Satstreet guarantees the value of AVAX, and holders of AVAX will not have any recourse to AVAX or Satstreet if the value of AVAX declines for any reason whatsoever.

SATSTREET EVALUATION OF AVAX

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

Last Updated: June 2023

Risk Statements

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