DOT Risk

POLKADOT (DOT)

INTRODUCTION
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‍There have been no expressed opinions by a regulatory authority in Canada about Polkadot or any of the other Crypto Contracts or Crypto Assets made available through Satstreet Inc., including an opinion that Polkadot 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 Polkadot 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

Polkadot is a multi-chain blockchain platform that aims to enable interoperability and communication between different blockchains. It was created by Gavin Wood, co-founder of Ethereum and founder of Parity Technologies. Launched in 2020, Polkadot introduces a unique framework that allows multiple blockchains, known as parachains, to operate in parallel and securely exchange information through a central relay chain called the Polkadot Relay Chain.

The Polkadot network employs a novel consensus mechanism called nominated proof-of-stake (NPoS), which combines elements of both proof of stake (PoS) and delegated proof of stake (DPoS). NPoS allows token holders to nominate validators who secure the network and participate in the consensus process. The platform also provides a set of standardized tools and protocols, making it easier for developers to build and deploy their own parachains and customize their functionalities.

Polkadot (DOT) : https://polkadot.network/whitepaper/
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RISKS OF DOT

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

SATSTREET EVALUATION OF DOT

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

STAKING OF DOT

Some clients may be entitled to staking all or some of their DOT balance.
To find out more information about DOT staking please contact your account representative.
Further details about DOT staking can be found on this page here: https://satstreet.com/services/dot-staking-risk

Last Updated: June 2023

Risk Statements

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