BTC Risk

BITCOIN (BTC)

INTRODUCTION

‍There have been no expressed opinions by a regulatory authority in Canada about Bitcoin or any of the other Crypto Contracts or Crypto Assets made available through Satstreet Inc., including an opinion that Bitcoin 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 Bitcoin 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
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Bitcoin is a decentralized digital currency protocol that was first introduced in 2008 by an anonymous person or group of individuals using the pseudonym Satoshi Nakamoto. It operates on a distributed ledger that records verified transactions made across the network. Unlike traditional currencies issued by governments, Bitcoin is not controlled by any central authority, such as a central bank. The protocol relies on a peer-to-peer network of computers to validate and process transactions.

Bitcoin was created with the aim of providing an alternative to traditional financial systems, offering a secure and transparent method of transferring value digitally. Bitcoin transactions are stored on a distributed ledger, also known as a blockchain, ensuring transparency and immutability. One of the features of Bitcoin is its limited supply, with a maximum of 21 million Bitcoins that can ever be released. Bitcoin has gained attention for its potential to provide financial services to the unbanked and underbanked populations worldwide, as well as its potential to improve settlement between traditional financial intermediaries.

Bitcoin (BTC) Whitepaper: https://bitcoin.org/bitcoin.pdf

RISKS

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

SATSTREET EVALUATION OF BITCOIN

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