STX Risk

Stacks (STX)
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DESCRIPTION

Stacks is a blockchain platform that enables developers to build decentralized applications (DApps) and smart contracts on top of the Bitcoin network. Developed by Muneeb Ali and Ryan Shea, Stacks utilizes a unique design known as the "Stacks blockchain" that connects to Bitcoin and leverages its security and immutability. This approach allows developers to take advantage of the benefits of the Bitcoin network while expanding its functionality with smart contracts and decentralized applications.

The Stacks platform uses a unique consensus algorithm called Proof of Transfer (PoX), where miners on the Stacks blockchain send Bitcoin to the Bitcoin network to secure and validate transactions. This process creates a bridge between the security of Bitcoin and the capabilities of smart contracts on Stacks. The native token of the Stacks network is called Stacks (STX), which is used for various purposes, including participating in the consensus mechanism, accessing DApps, and rewarding developers.
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Stacks (STX) : https://www.stacks.co/
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RISKS OF STX

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

SATSTREET EVALUATION OF STX

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