SNX Risk

Synthetix (SNX)
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DESCRIPTION

SNX is the native utility token of the Synthetix platform, a decentralised protocol that provides on-chain exposure to real-world assets via synthetic assets. The SNX token plays a crucial role in the Synthetix network, enabling users to trade and create synthetic assets (Synths) that mirror the value of various assets, including cryptocurrencies, fiat currencies, and commodities. As a fundamental component of the Synthetix ecosystem, SNX holders can participate in governance, stake their tokens to earn rewards, and contribute to the liquidity of the synthetic assets traded on the platform.Within the Synthetix ecosystem, SNX tokens are used for collateralizing synthetic assets, facilitating trading, and participating in the protocol's governance. SNX holders earn rewards through staking, which involves locking up SNX tokens to back the value of Synths and ensure the integrity of the trading system. Additionally, SNX tokens provide access to protocol upgrades and decision-making processes, allowing the community to shape the future development of the Synthetix platform.

Synthetix (SNX) Whitepaper: https://synthetix.io/

‍RISKS OF SYNTHETIX
Investing in cryptocurrency and digital assets, such as Synthetix (SNX), carries inherent risks, including but not limited to: (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 SNX. We encourage all users to perform their own due diligence to assess the risks associated with SNX and to determine whether this level of risk is acceptable to them. Neither SNX nor Satstreet guarantees the value of SNX, and holders of SNX will not have any recourse to SNX or Satstreet if the value of SNX declines for any reason whatsoever.

‍SATSTREET EVALUATION OF SNX
Satstreet Inc. has reviewed and assessed SNX prior to making it available through our services and has concluded that SNX 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 SNX 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 SNX, including an opinion that SNX is not itself a security and/or derivative. Based on publicly available information Satstreet has reviewed SNX, including, but not limited to, a review of the following: The creation, governance, usage, and design of SNX, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created SNX. The supply, demand, maturity, utility, and liquidity of SNX. Material technical risks associated with SNX, including any code defects, security breaches and other threats concerning SNX 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 SNX, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of SNX, 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 SNX about whether SNX, or generally about whether the type of crypto asset, is a security and/or derivative.
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Last Updated: August 2024

Risk Statements

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