SOL Risk

SOLANA (SOL)

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

SOL, also known as Solana, is a higher throughput blockchain platform designed for decentralized applications and crypto assets. Founded by Anatoly Yakovenko in 2017, Solana aims to address the scalability and speed limitations of existing blockchain networks by utilizing a unique combination of innovative technologies. It employs a proof-of-history (PoH) consensus mechanism, which adds a timestamp to every transaction, ensuring chronological order and allowing for fast confirmation times. Solana also employs a proof-of-stake (PoS) consensus algorithm called Tower BFT, enabling high throughput and low transaction fees. Solana's architecture is built to handle thousands of transactions per second, making it suitable for decentralized finance (DeFi) applications, gaming platforms, and other high-demand use cases. It provides a developer-friendly ecosystem with support for smart contracts and a range of programming languages. The SOL token serves as the native cryptocurrency of the Solana network, used for various functions such as staking, governance, and paying for transaction fees.
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Solana (SOL) : https://solana.com/solana-whitepaper.pdf
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RISKS OF SOL

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

SATSTREET EVALUATION OF SOL

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