LINK Risk

CHAINLINK (LINK)

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

Chainlink (LINK) is a decentralized oracle network that acts as a bridge between smart contracts and real-world data. It enables smart contracts on various blockchain platforms to securely interact with external APIs and off-chain data sources. Chainlink aims to provide reliable and tamper-proof data to smart contracts, enhancing their functionality and enabling them to execute based on real-world conditions.

Chainlink was created by Sergey Nazarov and Steve Ellis and was launched in 2017. It addresses a significant limitation of smart contracts, which typically lack direct access to real-world information. By connecting smart contracts with a network of decentralized oracles, Chainlink seeks to validate that data from external sources, such as market prices, weather data, and sports scores, can be securely and accurately incorporated into smart contract execution. Chainlink's decentralized oracle network relies on a reputation system, multiple data sources, and cryptographic techniques to verify and validate the accuracy of data, in the hope of providing high-quality and trustworthy data inputs for smart contracts.

Chainlink (LINK) : https://chain.link/whitepaper
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RISKS OF LINK

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

SATSTREET EVALUATION OF LINK

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