MATIC Risk

Polygon (MATIC)

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

Polygon, formerly known as Matic Network, is a layer-2 scaling solution for Ethereum that aims to enhance scalability, interoperability, and usability of the Ethereum network. It was founded in 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, with the goal of addressing Ethereum's limitations in terms of transaction speed and high fees. Polygon achieves this by providing a framework for building and connecting scalable sidechains to the Ethereum mainnet, known as Polygon PoS (Proof of Stake) Chain.

Polygon (MATIC) : https://whitepaper.io/coin/polygon
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RISKS OF MATIC

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

SATSTREET EVALUATION OF MATIC

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