AXS Risk

AXIE INFINITY (AXS)
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DESCRIPTION

Axie Infinity Shards (AXS) is the native governance and utility token of the Axie Infinity platform, a blockchain-based game and ecosystem. Axie Infinity is a play-to-earn game where players can collect, breed, and battle digital creatures called Axies. AXS serves as a fundamental component of the Axie Infinity economy, providing various functionalities within the game and allowing players to participate in governance decisions.

AXS holders have the ability to participate in the governance of the Axie Infinity ecosystem by voting on proposals and shaping the future development of the platform. Additionally, AXS can be staked to earn rewards and participate in the platform's decentralized finance (DeFi) features, such as yield farming and liquidity provision. AXS has gained significant attention and value due to the popularity of Axie Infinity and the growing interest in play-to-earn gaming.

AXIE INFINITY (AXS) Whitepaper: https://whitepaper.axieinfinity.com/axs
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RISKS OF AXS

Any investment in cryptocurrency and digital assets, such as AXS, 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 AXS 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 AXS. 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 AXS. We encourage all users to perform their own due diligence to assess the risks associated with AXS and to determine whether this level of risk is acceptable to them. Neither AXS nor Satstreet guarantees the value of AXS, and holders of AXS will not have any recourse to AXS or Satstreet if the value of AXS declines for any reason whatsoever.

SATSTREET EVALUATION OF AXS

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