Risk Statements

Satstreet Inc. Services Risk Statement

Last Updated: July 2023

By opening an account with Satstreet Inc. (“we”, “us”, “our”, or “Satstreet”) and using services from or related to Satstreet Inc. you have accepted the terms of services outlined in the client agreement. You acknowledge and understand there are substantial risks when transacting with crypto assets.

No securities regulatory authority has expressed an opinion about the Crypto Contracts (as defined below) or any of the crypto assets made available through Satstreet Inc., including any opinion that a crypto asset is not a security and/or derivative.

Satstreet is offering Crypto Contracts in reliance on a pre-registration undertaking given to the OSC on March 24, 2023 and has submitted an application for registration and application of relief under securities legislation of certain jurisdictions of Canada with the expectation that Satstreet will become registered as a restricted dealer under the securities laws of the provinces and territories of Canada and will receive an exemption from the prospectus requirement for such Crypto Contracts. However, there is no guarantee these applications will be granted and Satstreet is not currently registered under the securities or derivatives legislation of any jurisdiction of Canada and has not been granted an exemption from any requirements of securities or derivatives legislation of any jurisdiction of Canada.

BLOCKCHAIN TRANSACTIONS ARE FINAL, IRREVERSIBLE AND IRRECUPERABLE. YOU NEED TO BE CAREFUL WHEN SENDING CRYPTO ASSETS TO OR FROM SATSTREET WITH YOUR OWN WALLET OR TO PARTIES THAT YOU TRUST, AND NOT TO UNTRUSTWORTHY BUSINESSES OR PEOPLE YOU DO NOT PERSONALLY KNOW. ONCE TRANSFERRED OUT OF SATSTREET, SATSTREET HAS NO CAPABILITY TO ACCESS OR RECOVER YOUR CRYPTO ASSETS IN ANY WAY.

This Risk Statement does not disclose all of the risks or relevant considerations of entering into a Crypto Contract with Satstreet Inc. to buy, sell and hold Crypto Contracts. In light of the risks involved in buying, selling and holding Crypto Contracts you should undertake such transactions only if you understand the contractual relationship with Satstreet Inc., and the extent of your exposure to the risks associated with trading in Crypto Contracts.

It is recommended that you always conduct your own research and due diligence before making a purchase or investment decision so that you can understand the specific risks associated with each crypto asset. Satstreet Inc. does not provide any investment advice and all transactions must be self directed.

What Are Crypto Contracts?

The Canadian Securities Administrators (“CSA”) has provided guidance that the contractual relationships entered into by Satstreet Inc. and its users in connection with their purchase and sale of crypto assets using the Platform constitute “crypto contracts.”

Pursuant to the Joint Canadian Securities Administrators and Investment Industry Regulatory Organization of Canada Notice 21-329 – Guidance for Crypto Asset Trading Platforms: Compliance with Regulatory Requirements (“CSA SN 21-329”), the term “crypto contract” is used by the CSA to refer to “a contractual right or claim to an underlying crypto asset” in situations where a crypto trading platform “only requires users to transfer ownership, control and possession from the Platform’s wallet to the user’s private wallet upon the user’s later request.”

Based on Satstreet’s understanding of CSA SN 21-329, the contractual relationships entered into by Satstreet and its users in connection with their purchase and sale of crypto assets using the Platform may constitute “crypto contracts.”

Crypto Contract Custody

Crypto Contracts that you have purchased will be held in trust for you, in pooled accounts that are in the name of Satstreet Inc. at one or more third-party custodians independent of Satstreet or in "cold wallets" administered by Satstreet.
The holding of your Crypto Contracts with a third party custodian may increase certain risks when compared to you holding your assets on a private wallet. In particular, you may be exposed to insolvency risk (credit risk), fraud risk or proficiency risk on the part of Satstreet. You may also face risk in permitting Satstreet to have access to crypto contracts owned by you that are held with Coinbase Custody, in the event that crypto assets could be accessed improperly and misused.

Volatility Risk and Liquidity Risk

Crypto Assets market prices can be very sensitive to news and industry developments. Since the industry is in an early stage and has yet to reach maturity, any change in market sentiment can induce large swings in volume and price changes. Crypto Asset prices on trading services have been and continue to be volatile and subject to influence by many factors, including the levels of liquidity, public speculation on future appreciation in value, swings in investor sentiment and the future growth of alternative Crypto Assets that may gain market share. In some circumstances, it may become difficult or impossible to assess the value of your Crypto Assets.

Short History Risk

As a relatively new open source technology, it is expected that there will continue to be technical developments in blockchain technology, which could impact the value of a Crypto Asset. Due to this short history, it is not certain whether the economic value, governance or functional elements of Crypto Assets will persist over time. The Crypto Asset community has successfully navigated a considerable number of technical and political challenges since the onset of Crypto Assets, which Satstreet believes is a strong indicator that it will continue to engineer its way around future challenges. That said, the continuation of a vibrant Crypto Asset community is not guaranteed, and insufficient software development, contribution rates, community disputes regarding the development of the network and scaling options, or any other unforeseen challenges that the community is not able to navigate could have an adverse impact on the price of a Crypto Asset.

Demand Risk

Crypto Assets represent a new form of digital value that is continually being evaluated by society. Their underlying value is driven by their utility as a store of value, means of exchange, or unit of account. Similar to foreign currencies which are priced by the supply and demand of global markets, Crypto Assets are priced by the supply and demand of global markets for its own utility within remittances, B2B payments, timestamping, etc. Speculators and investors using Crypto Assets as a store of value then layer on top of means of exchange users, creating further demand. If consumers stop using Crypto Assets as a means of exchange, or their adoption slows, then the price may suffer. Investors should be aware that there is no assurance that Crypto Assets will maintain their long-term value in terms of purchasing power in the future or that the acceptance of Crypto Assets for payments by mainstream retail merchants and commercial businesses will continue to grow.

While the value of bitcoin may be derived primarily from its network security, trading volume, and position as first mover, the value of ether relies far more on its use case as a platform for other applications. The ethereum blockchain is intended to allow people to operate decentralised applications using blockchain technology that do not rely on the actions of a centralised intermediary. Ether, which is the primary currency of the ethereum blockchain, can then be used to compensate for the effort of others to power these decentralised applications and ensure that any transactions that occur on these applications are recorded in the blockchain. Accordingly, the long-term value of ether may be tied to the success or failure of the blockchain technology and the decentralised applications built upon the ethereum blockchain.

Forking Risk

Both the bitcoin and ethereum blockchain networks are powered, primarily, by open source software. When a modification is released by developers, and a substantial majority of “miners” consent to the modification, a change is implemented and the blockchain network continues uninterrupted. However, if a change were to be introduced with less than a substantial majority consenting to the proposed modification, and the modification is not compatible with the software in operation prior to its modification, the consequence would be what is known as a fork (i.e. a split) of the blockchain. One blockchain would be maintained by the pre-modification software and the other by the post-modification software. The effect is that both blockchains would operate in parallel, but independently. There are examples of such forks having occurred. In some cases, rollbacks may occur where a blockchain is brought back to a previous state. Some forks result in rollbacks. In the future, further forks could occur again, and affect the viability or value of a Crypto Asset. Satstreet may choose not to support any future fork of the underlying blockchain of the Crypto Assets available through our Satstreet services, in which case you will not receive the new Crypto Assets that may be created as a result of that fork.

Code Defect Risk

In the past, flaws in the source code for Crypto Assets have been exposed and exploited, including flaws that disabled some functionality for users of the impacted blockchains, exposed their personal information and/or resulted in the theft of their Crypto Assets.

Although the bitcoin and ethereum blockchains have demonstrated resilience and integrity over time, the cryptography underlying either one could, in the future, prove to be flawed or ineffective. For example, developments in mathematics and/or technology, including advances in digital computing, algebraic geometry and quantum computing, could result in the cryptography of the blockchain network being vulnerable to attack. This could negatively impact the value of Crypto Assets being traded or held.

Regulatory Risk

Federal, provincial, territorial or foreign governments may restrict the use and exchange of Crypto Assets, and regulation in Canada (and internationally) is still developing. Legislative and regulatory changes or actions may adversely affect the use, transfer, exchange, and value of Crypto Assets.The regulation of Crypto Assets continues to evolve in Canada (and in foreign jurisdictions), which may restrict the use of Crypto Assets or otherwise impact the demand for Crypto Assets. There may be limitations on the ability of a securities regulator in Canada to enforce Canadian laws on foreign entities, and foreign rules that apply to Crypto Asset activities which occur in other jurisdictions may not necessarily be enforced in that jurisdiction. Furthermore, banks and other financial institutions may refuse to process funds for Crypto Asset transactions, process wire transfers to or from Crypto Asset trading platforms, Crypto Asset-related companies or service providers, or maintain accounts for persons or entities transacting in the Crypto Assets.
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Electronic Trading Risk

There are risks associated with using an internet-based trade execution software application including, but not limited to, the failure of hardware and software. Satstreet maintains an independent and secure ledger of all transactions to minimise loss, and maintains contingency plans to minimise the possibility of system failure. However, Satstreet does not control signal power, reception, routing via the internet, configuration of your equipment or the reliability of your connection to the internet. The result of any failure of the foregoing may be that you are unable to place an order, your order is not executed according to your instructions, or your order is not executed at all. Other caveats also apply, as described in the client agreement and or terms of use. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a particular Crypto Asset suddenly drops, or if trading is halted due to recent news events, unusual trading activity, or changes in the underlying Crypto Asset system. The greater the volatility of a particular Crypto Asset, the greater the likelihood that problems may be encountered in executing a transaction. In addition to normal market risks, you may experience losses due to one or more of the following: system failures, hardware failures, software failures, network connectivity disruptions, and data corruption.

‍Cyber Security Risk

The nature of Crypto Assets may lead to an increased risk of fraud or cyber attack. A breach in cyber security refers to both intentional and unintentional events that may cause Satstreet to lose proprietary information or other personal information subject to privacy laws, suffer data corruption, or lose operational capacity. This in turn could cause Satstreet to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to Satstreet’s digital information systems (e.g. through “hacking” or malicious software coding), but may also result from outside attacks such as denial-of-service attacks (i.e. efforts to make network services unavailable to intended users). In addition, cyber security breaches of Satstreet’s third-party service providers (e.g. the custodians and hot wallet providers) can also give rise to many of the same risks associated with direct cyber security breaches. As with operational risk in general, Satstreet has established risk management systems designed to reduce the risks associated with cyber security.

Clients are permitted to transfer into their account Crypto Assets purchased outside the Satstreet Platform and obtain delivery from Satstreet of any Crypto Assets in which they have an interest. Consequently, you may also be exposed to certain risks, including receiving Crypto Assets that may have been stolen or otherwise have been “tainted” and which could subject you to a third party claim in relation to those Crypto Assets.

Stablecoin Risks

Some of the crypto assets available through Satstreet are “stablecoins”, which are pegged to the value of a fiat currency or other asset and may be redeemable for a specified amount of such fiat currency or asset. Satstreet conducts due diligence on all stablecoins listed through Satstreet, including by reviewing the sufficiency, segregation and independent verification of the stablecoin’s reserves, whether the assets backing the stablecoin are held at a regulated financial institution, any limitations on the ability of a holder to redeem on demand any conflicts of interest between the stablecoin issuer and any intermediaries and the risk that the stablecoin may be considered a security or derivative under applicable securities legislation. Specific risks associated with each stablecoin are set out in the plain language description of each crypto asset accessible through Satstreet (each, a Crypto Asset Statement).
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Concentration and 51% Attack Risks

Certain Crypto Asset addresses on their networks hold a significant amount of the currently outstanding total supply. If one of these addresses were to exit their positions, it could cause volatility that may adversely impact the price.

Further, if anyone gains control over 51% of the computing power (hash rate) used by the blockchain network, they could use their majority share to double spend their Crypto Assets. If such a “51% attack” were to be successful, this could significantly erode trust in public blockchain networks like bitcoin and ethereum to store value and serve as a means of exchange, which may significantly decrease the value of Crypto Assets in general.
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Lack of Investor Protection Insurance

Satstreet is not a member of the Canadian Investor Protection Fund (“CIPF”) and Crypto Assets purchased and held in an account with Satstreet are not protected by the CIPF, the Canadian Deposit Insurance Corporation or any other investor protection insurance scheme.

‍Volatility Risk and Liquidity Risk

Crypto Assets market prices can be very sensitive to news and industry developments. Since the industry is in an early stage and has yet to reach maturity, any change in market sentiment can induce large swings in volume and price changes. Crypto Asset prices on trading services have been and continue to be volatile and subject to influence by many factors, including the levels of liquidity, public speculation on future appreciation in value, swings in investor sentiment and the future growth of alternative Crypto Assets that may gain market share. In some circumstances, it may become difficult or impossible to assess the value of your Crypto Assets.

Short History Risk

As a relatively new open source technology, it is expected that there will continue to be technical developments in blockchain technology, which could impact the value of a Crypto Asset. Due to this short history, it is not certain whether the economic value, governance or functional elements of Crypto Assets will persist over time. The Crypto Asset community has successfully navigated a considerable number of technical and political challenges since the onset of Crypto Assets, which Satstreet believes is a strong indicator that it will continue to engineer its way around future challenges. That said, the continuation of a vibrant Crypto Asset community is not guaranteed, and insufficient software development, contribution rates, community disputes regarding the development of the network and scaling options, or any other unforeseen challenges that the community is not able to navigate could have an adverse impact on the price of a Crypto Asset.

Demand Risk

Crypto Assets represent a new form of digital value that is continually being evaluated by society. Their underlying value is driven by their utility as a store of value, means of exchange, or unit of account. Similar to foreign currencies which are priced by the supply and demand of global markets, Crypto Assets are priced by the supply and demand of global markets for its own utility within remittances, B2B payments, timestamping, etc. Speculators and investors using Crypto Assets as a store of value then layer on top of means of exchange users, creating further demand. If consumers stop using Crypto Assets as a means of exchange, or their adoption slows, then the price may suffer. Investors should be aware that there is no assurance that Crypto Assets will maintain their long-term value in terms of purchasing power in the future or that the acceptance of Crypto Assets for payments by mainstream retail merchants and commercial businesses will continue to grow.

While the value of bitcoin may be derived primarily from its network security, trading volume, and position as first mover, the value of ether relies far more on its use case as a platform for other applications. The ethereum blockchain is intended to allow people to operate decentralised applications using blockchain technology that do not rely on the actions of a centralised intermediary. Ether, which is the primary currency of the ethereum blockchain, can then be used to compensate for the effort of others to power these decentralised applications and ensure that any transactions that occur on these applications are recorded in the blockchain. Accordingly, the long-term value of ether may be tied to the success or failure of the blockchain technology and the decentralised applications built upon the ethereum blockchain.

Forking Risk

Both the bitcoin and ethereum blockchain networks are powered, primarily, by open source software. When a modification is released by developers, and a substantial majority of “miners” consent to the modification, a change is implemented and the blockchain network continues uninterrupted. However, if a change were to be introduced with less than a substantial majority consenting to the proposed modification, and the modification is not compatible with the software in operation prior to its modification, the consequence would be what is known as a fork (i.e. a split) of the blockchain. One blockchain would be maintained by the pre-modification software and the other by the post-modification software. The effect is that both blockchains would operate in parallel, but independently. There are examples of such forks having occurred. In some cases, rollbacks may occur where a blockchain is brought back to a previous state. Some forks result in rollbacks. In the future, further forks could occur again, and affect the viability or value of a Crypto Asset. Satstreet may choose not to support any future fork of the underlying blockchain of the Crypto Assets available through our Satstreet services, in which case you will not receive the new Crypto Assets that may be created as a result of that fork.

Code Defect Risk

In the past, flaws in the source code for Crypto Assets have been exposed and exploited, including flaws that disabled some functionality for users of the impacted blockchains, exposed their personal information and/or resulted in the theft of their Crypto Assets.

Although the bitcoin and ethereum blockchains have demonstrated resilience and integrity over time, the cryptography underlying either one could, in the future, prove to be flawed or ineffective. For example, developments in mathematics and/or technology, including advances in digital computing, algebraic geometry and quantum computing, could result in the cryptography of the blockchain network being vulnerable to attack. This could negatively impact the value of Crypto Assets being traded or held.

Regulatory Risk

Federal, provincial, territorial or foreign governments may restrict the use and exchange of Crypto Assets, and regulation in Canada (and internationally) is still developing. Legislative and regulatory changes or actions may adversely affect the use, transfer, exchange, and value of Crypto Assets.The regulation of Crypto Assets continues to evolve in Canada (and in foreign jurisdictions), which may restrict the use of Crypto Assets or otherwise impact the demand for Crypto Assets. There may be limitations on the ability of a securities regulator in Canada to enforce Canadian laws on foreign entities, and foreign rules that apply to Crypto Asset activities which occur in other jurisdictions may not necessarily be enforced in that jurisdiction. Furthermore, banks and other financial institutions may refuse to process funds for Crypto Asset transactions, process wire transfers to or from Crypto Asset trading platforms, Crypto Asset-related companies or service providers, or maintain accounts for persons or entities transacting in the Crypto Assets.
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Electronic Trading Risk

There are risks associated with using an internet-based trade execution software application including, but not limited to, the failure of hardware and software. Satstreet maintains an independent and secure ledger of all transactions to minimise loss, and maintains contingency plans to minimise the possibility of system failure. However, Satstreet does not control signal power, reception, routing via the internet, configuration of your equipment or the reliability of your connection to the internet. The result of any failure of the foregoing may be that you are unable to place an order, your order is not executed according to your instructions, or your order is not executed at all. Other caveats also apply, as described in the client agreement and or terms of use. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a particular Crypto Asset suddenly drops, or if trading is halted due to recent news events, unusual trading activity, or changes in the underlying Crypto Asset system. The greater the volatility of a particular Crypto Asset, the greater the likelihood that problems may be encountered in executing a transaction. In addition to normal market risks, you may experience losses due to one or more of the following: system failures, hardware failures, software failures, network connectivity disruptions, and data corruption.Cyber Security Risk

The nature of Crypto Assets may lead to an increased risk of fraud or cyber attack. A breach in cyber security refers to both intentional and unintentional events that may cause Satstreet to lose proprietary information or other personal information subject to privacy laws, suffer data corruption, or lose operational capacity. This in turn could cause Satstreet to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to Satstreet’s digital information systems (e.g. through “hacking” or malicious software coding), but may also result from outside attacks such as denial-of-service attacks (i.e. efforts to make network services unavailable to intended users). In addition, cyber security breaches of Satstreet’s third-party service providers (e.g. the custodians and hot wallet providers) can also give rise to many of the same risks associated with direct cyber security breaches. As with operational risk in general, Satstreet has established risk management systems designed to reduce the risks associated with cyber security.

Clients are permitted to transfer into their account Crypto Assets purchased outside the Satstreet Platform and obtain delivery from Satstreet of any Crypto Assets in which they have an interest. Consequently, you may also be exposed to certain risks, including receiving Crypto Assets that may have been stolen or otherwise have been “tainted” and which could subject you to a third party claim in relation to those Crypto Assets.

Stablecoin Risks

Some of the crypto assets available through Satstreet are “stablecoins”, which are pegged to the value of a fiat currency or other asset and may be redeemable for a specified amount of such fiat currency or asset. Satstreet conducts due diligence on all stablecoins listed through Satstreet, including by reviewing the sufficiency, segregation and independent verification of the stablecoin’s reserves, whether the assets backing the stablecoin are held at a regulated financial institution, any limitations on the ability of a holder to redeem on demand any conflicts of interest between the stablecoin issuer and any intermediaries and the risk that the stablecoin may be considered a security or derivative under applicable securities legislation. Specific risks associated with each stablecoin are set out in the plain language description of each crypto asset accessible through Satstreet (each, a Crypto Asset Statement).
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Concentration and 51% Attack Risks

Certain Crypto Asset addresses on their networks hold a significant amount of the currently outstanding total supply. If one of these addresses were to exit their positions, it could cause volatility that may adversely impact the price.

Further, if anyone gains control over 51% of the computing power (hash rate) used by the blockchain network, they could use their majority share to double spend their Crypto Assets. If such a “51% attack” were to be successful, this could significantly erode trust in public blockchain networks like bitcoin and ethereum to store value and serve as a means of exchange, which may significantly decrease the value of Crypto Assets in general.
‍
Lack of Investor Protection Insurance

Satstreet is not a member of the Canadian Investor Protection Fund (“CIPF”) and Crypto Assets purchased and held in an account with Satstreet are not protected by the CIPF, the Canadian Deposit Insurance Corporation or any other investor protection insurance scheme.

Statutory Rights Under Securities Legislation
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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 Risk Statement or the Satstreet Inc. Services Risk Statement.

Inadequate Due Diligence

Satstreet has established and applies policies and procedures to review crypto assets before making them available for trade. This review includes, but is not limited to, publicly-available information concerning: (i) the creation, governance, usage and design of the crypto asset, including the source code, security and roadmap for growth in the developer community and, if applicable and available, the background of the developer(s) that created the crypto asset; (ii) the supply, demand, maturity, utility and liquidity of the crypto asset; (iii) material technical risks associated with the crypto asset, including any code defects, security breaches and other threats concerning the crypto asset and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them; and (iv) the legal and regulatory risks associated with the crypto asset, including any pending, potential, or prior civil, regulatory, criminal or enforcement action relating to the issuance, distribution or use of the crypto asset. Satstreet will only facilitate crypto assets which have significant supply, demand, maturity and liquidity available for trade. In Satstreet’s experience, crypto assets with these qualities tend to also satisfy the other criteria it evaluates as part of its review. Nevertheless, Satstreet’s review process is robust and flexible in nature and does not prioritize any one factor over another.
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If new details or circumstances emerge that make our initial review of a crypto asset not account for an unacceptable risk to our users, we may determine that it is advisable to discontinue support for trading the crypto asset on the Platform. While Satstreet cannot predetermine with certainty what risks may constitute such unacceptable risks to our users, Satstreet anticipates that those risks would be so severe such that Satstreet will have determined that the relevant crypto asset is very likely to decrease in value over the long-term; provided, however, that under no circumstances shall Satstreet be liable if such a determination proves incorrect. Upon Satstreet making such a determination, Satstreet may further determine to remove other crypto assets that have similar characteristics to the relevant crypto asset. For more information on the steps Satstreet undertakes when discontinuing support for a crypto asset, please see Satstreet’s terms and conditions. Satstreet’s undertaking of these steps may occur concurrently with a rapid decline in the value of the crypto asset(s) in question and may also be a contributing factor to such decline. Users are subject to the risk that there may be very little liquidity in the crypto asset(s) while Satstreet is undertaking these steps and, as a result, users may be unable to liquidate their positions in the crypto asset(s) or may only be able to liquidate their positions in the crypto asset(s) for little to no value.
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Staking Risks

In some circumstances Satstreet may offer staking services to eligible clients that meet specific criteria. These eligible clients are provided with the details, risks, and terms and conditions regarding the staking capabilities of select Proof of Stake (PoS) digital assets. Clients may contact their account representative to discuss staking eligibility.

The staking services provided by Satstreet are further described in the Terms of Service https://satstreet.com/services/terms-of-service. For
more information on the staking risks for a particular crypto asset, please review the Staking Agreement provided to you as well as the Staking Risk Statement for the crypto asset.

As part of its assessment, Satstreet reviews and considers the design and operation of staking crypto assets, including the operation of the proof-of-stake consensus protocol and the details of the validators which are used for staking.

As described above in the Risk Statement, the general risks applicable to buying, selling and holding crypto assets are also applicable to staking crypto assets. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, concentration risk, code defect risk, regulatory risk, electronic trading risk and cyber security risk, and inadequate due diligence risk.

Additional risks associated with staking activities vary by protocol, and may include: bonding and unbonding periods for a staked asset during which the holder cannot sell or otherwise transfer their tokens, but staking rewards are not being earned; and risk of loss of staked tokens due to slashing or jailing penalties imposed by the protocol to penalize a validator (and all tokens staked with that validator) for inactivity (e.g. down time) or potentially malicious activity. Further, the communities which are responsible for developing the proof-of-stake consensus protocols or validators are not under any legal or regulatory obligation to disclose material information to the public regarding their activities. Holders of crypto assets have no recourse to the issuer of these crypto assets or Satstreet if the crypto asset declines in value for any reason. Please see the Staking Risk Statement for each crypto asset for a description of the specific staking risks associated with that asset.

Satstreet has prepared this Risk Statement and the Staking Risk Statements of each crypto asset based on publicly available information. Although Satstreet has taken steps to obtain information from apparently reliable sources, information contained in this Risk Statement and the Staking Risk Statements may be inaccurate, incomplete or out-of-date. We emphasize that this Risk Statement or the Staking Risk Statements are not exhaustive of all risks associated with trading or staking crypto assets. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Staked assets will remain in the custody of Coinbase Custody, an approved staking service provider, or by Satstreet in cold storage hardware devices owned and controlled by Satstreet.

Halting, Suspending, Withdrawing of Crypto Assets

Satstreet monitors crypto assets on an ongoing basis, including by refreshing its know-your-product policies and procedures on an annual basis and following legal and regulatory developments relating to the crypto asset. In the event that a final determination is made by a regulator or court of competent jurisdiction in Canada or in the jurisdiction that has the most significant connection to a crypto asset that the crypto asset is a security or derivative, Satstreet will no longer offer the crypto asset for trading and will require all clients holding that crypto asset in their account, within 30 days of the de-listing to:
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· transfer the crypto asset to a blockchain address off the Satstreet Platform; or
· sell the crypto asset.

After this 30 day period has elapsed, Satstreet will forcibly liquidate such crypto asset from all accounts.
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Risk Statements

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