HBAR Risk

Hedera (HBAR)
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DESCRIPTION

HBAR is the native utility token of the Hedera network, a decentralised platform designed to provide fast, secure, and scalable solutions for distributed applications. As a core component of the Hedera ecosystem, the HBAR token facilitates various activities including transaction processing, network governance, and payment for services within the Hedera platform. HBAR holders benefit from network participation, access to platform features, and incentives for contributing to network security and stability.Within the Hedera ecosystem, HBAR tokens are utilised for paying transaction fees, participating in consensus, and engaging in governance decisions. The token also plays a crucial role in incentivizing network validators and developers, ensuring that the Hedera platform remains operational and efficient. HBAR holders have the opportunity to influence the direction of the network through governance mechanisms, contributing to the ongoing development and enhancement of Hedera's capabilities.

Hedera (HBAR) Whitepaper: https://hedera.com/papers

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

‍SATSTREET EVALUATION OF HBAR
Satstreet Inc. has reviewed and assessed HBAR prior to making it available through our services and has concluded that HBAR 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 HBAR 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 HBAR, including an opinion that HBAR is not itself a security and/or derivative. Based on publicly available information Satstreet has reviewed HBAR, including, but not limited to, a review of the following: The creation, governance, usage, and design of HBAR, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created HBAR. The supply, demand, maturity, utility, and liquidity of HBAR. Material technical risks associated with HBAR, including any code defects, security breaches and other threats concerning HBAR 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 HBAR, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of HBAR, 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 HBAR about whether HBAR, or generally about whether the type of crypto asset, is a security and/or derivative.
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Last Updated: August 2024

Risk Statements

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