LRC Risk

LOOPRING (LRC)
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DESCRIPTION

Loopring is a decentralized exchange (DEX) protocol built on the Ethereum blockchain that enables users to trade cryptocurrencies in a secure, efficient, and non-custodial manner. It aims to overcome the limitations of traditional centralized exchanges by providing a decentralized and transparent trading experience. Loopring leverages a combination of off-chain order book management and on-chain settlement to enhance scalability and reduce transaction costs.

The protocol introduces the concept of "zkRollups," a layer 2 scaling solution that allows Loopring to process a large number of transactions off-chain and settle them on the Ethereum blockchain as a single aggregated transaction. This approach significantly increases throughput and reduces gas fees, making Loopring an attractive option for traders. LRC is the native token of the Loopring ecosystem, serving as a medium of exchange and providing users with various benefits, such as fee discounts and governance rights.

Loopring was launched in 2017 by Daniel Wang with the vision of creating a decentralized and efficient trading infrastructure. Since its inception, the protocol has gained recognition for its technical innovations and commitment to improving the user experience of decentralized exchanges. Loopring continues to evolve and expand its capabilities, aiming to foster greater adoption of decentralized finance (DeFi) and contribute to the growth of the broader blockchain ecosystem.

Loopring (LRC) : https://loopring.org/resources/en_whitepaper.pdf
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RISKS OF LRC

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

SATSTREET EVALUATION OF LRC

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