UNI Risk

Uniswap (UNI)

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

Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain that allows users to trade cryptocurrencies directly from their wallets. It was launched in 2018 by Hayden Adams as an open-source protocol and has since become one of the most popular and widely used DEXs in the decentralized finance (DeFi) ecosystem. Uniswap operates on an automated market maker (AMM) model, which uses liquidity pools and smart contracts to facilitate token swaps without the need for traditional order books.

Uniswap users can easily trade their tokens by selecting a trading pair and specifying the amount they want to swap. Liquidity providers can also participate by depositing tokens into the liquidity pools and earning fees in proportion to their contribution. The platform's native token, UNI, was introduced in 2020 and serves multiple purposes, including governance, liquidity mining rewards, and fee discounts.

Uniswap has played a significant role in the growth and adoption of decentralized finance. Its permissionless and decentralized nature allows users to trade a wide range of tokens while maintaining control over their assets.
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UNISWAP (UNI) : https://uniswap.org/whitepaper.pdf
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RISKS OF UNI

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

SATSTREET EVALUATION OF UNI

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