OP Risk

OPTIMISM (OP)
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DESCRIPTION

Optimism (OP) is a layer 2 scaling solution for Ethereum blockchain, designed to enhance scalability and reduce transaction fees. Developed with the aim of addressing Ethereum's scalability challenges, Optimism utilizes optimistic rollups to increase throughput and decrease transaction costs on the Ethereum network.One of the distinctive features of Optimism is its optimistic rollup technology. By aggregating transactions off-chain and submitting a single proof to the Ethereum mainnet, Optimism enables faster transaction processing and significantly reduces gas fees compared to executing transactions directly on the Ethereum blockchain.OP token serves as the native token of the Optimism network, facilitating various functions within the ecosystem. Holders of OP tokens may participate in governance processes, propose and vote on protocol upgrades, and contribute to the security and decentralization of the Optimism network.

Optimism (OP) Whitepaper: https://community.optimism.io/
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RISKS OF OP

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

SATSTREET EVALUATION OF OP

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

Last Updated: Mar 2024

Risk Statements

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