FLR Risk

Flare (FLR)
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DESCRIPTION

Flare (FLR) is the native utility token of the Flare Network, a decentralized blockchain designed to enable interoperability between blockchains and provide smart contract functionality to assets that do not natively support it. The FLR token plays a central role in the Flare ecosystem, being used for transaction fees, governance participation, and facilitating decentralized applications (dApps). FLR holders can participate in the network's governance by voting on protocol upgrades and other key decisions, as well as staking their tokens to earn rewards and secure the network.In the Flare ecosystem, FLR tokens serve as a medium of exchange, powering transactions, incentivizing participation, and supporting the execution of smart contracts. The token also facilitates interoperability solutions, such as the bridging of non-smart contract assets onto the Flare Network, unlocking new use cases for those assets. FLR holders play a critical role in shaping the network's development through governance and economic participation.

Flare (FLR) Whitepaper: https://flare.network/whitepapers/
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RISKS OF FLR

Investing in cryptocurrency and digital assets, such as Flare (FLR), carries inherent risks, including but not limited to: (i) Volatility risk and liquidity risk
(ii) Regulatory risk
(iii) Security risk
(iv) Market risk
(v) Smart contract risk
(vi) Governance risk
(vii) Technological riskFor additional information on risks associated with cryptocurrency and digital assets, you may refer to the Satstreet Inc Services Risk Statement. 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 there may be other risks associated with exposure to FLR. We encourage all users to perform their own due diligence to assess the risks associated with FLR and to determine whether this level of risk is acceptable to them. Neither FLR nor Satstreet guarantees the value of FLR, and holders of FLR will not have any recourse to FLR or Satstreet if the value of FLR declines for any reason whatsoever.

SATSTREET EVALUATION OF FLR

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

Last Updated: November 2024

Risk Statements

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