FIL Risk

FILECOIN (FIL)
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DESCRIPTION

Filecoin is a decentralized storage network and cryptocurrency that was launched in 2020. It was developed by Protocol Labs and led by Juan Benet, the founder of Protocol Labs and creator of the InterPlanetary File System (IPFS). Filecoin aims to provide a secure and efficient solution for storing and retrieving data by utilizing unused storage space on participants' computers and creating a decentralized marketplace for storage services.

In the Filecoin network, users can store and retrieve data by paying with the native cryptocurrency, Filecoin (FIL). Miners on the network contribute their storage capacity and computational resources to host and provide data storage services. This storage market operates on a decentralized blockchain, where participants can bid on storage contracts and earn Filecoin by storing and retrieving data for users. Filecoin employs a proof-of-replication and proof-of-spacetime consensus mechanism to ensure data integrity and security within the network.

Filecoin (FIL) : https://filecoin.io/filecoin.pdf
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RISKS OF FIL

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

SATSTREET EVALUATION OF FIL

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