CVX Risk

CONVEX (CVX)
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DESCRIPTION

Convex (CVX) is a decentralized autonomous organization (DAO) and governance token associated with the Convex Finance protocol. Convex Finance is a yield optimization platform built on the Ethereum blockchain that aims to enhance the returns of users who participate in staking and liquidity providing activities in various DeFi protocols. Launched in 2021 by the Convex team, the protocol focuses on maximizing rewards for users while reducing the complexity and costs associated with managing multiple positions.

CVX serves as the governance token of Convex DAO, enabling holders to participate in the decision-making processes and shape the future development of the protocol. CVX holders have the ability to propose and vote on governance proposals, such as changes to parameters, upgrades, or new feature implementations. Additionally, CVX holders can stake their tokens to earn additional rewards, encouraging community participation and aligning incentives.

Convex (CVX) Whitepaper: https://www.convexfinance.com/
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RISKS OF CVX

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

SATSTREET EVALUATION OF CVX

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