RUNE Risk

RUNE (RUNE)
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DESCRIPTION

RUNE is the native cryptocurrency of the THORChain platform, a decentralized liquidity protocol that enables cross-chain swaps and liquidity provision for various blockchain assets. Launched in 2019, THORChain aims to create a decentralized and permissionless network where users can easily exchange and provide liquidity for different cryptocurrencies across multiple blockchain networks. RUNE serves as the utility token within the THORChain ecosystem, allowing users to participate in network governance, stake assets, and earn rewards for providing liquidity.
THORChain's unique design eliminates the need for centralized intermediaries and allows for trustless and secure asset swaps. The protocol utilizes an algorithmic mechanism called Continuous Liquidity Pools (CLPs), which ensures that the platform always maintains sufficient liquidity for users to exchange assets seamlessly. RUNE plays a crucial role as the bonding asset for liquidity providers, who can stake their assets in the pools and earn transaction fees and rewards in return.
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RUNE (RUNE) : https://rebase.foundation/network/thorchain/specification-document-walkthrough/whitepaper
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RISKS OF RUNE

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

SATSTREET EVALUATION OF RUNE

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