ZEC Risk

Zcash (ZEC)
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DESCRIPTION

Zcash (ZEC) is a decentralized, open-source, and permissionless digital currency focused on financial privacy. It uses zero-knowledge proofs, including zk-SNARKs, to enable users to send transactions either transparently or in a shielded manner that can protect addresses and transaction amounts from public view. Zcash has a fixed maximum supply of 21 million coins and a monetary model that broadly resembles Bitcoin’s.

How is Zcash used?
Zcash (ZEC) is a privacy-focused digital asset that uses its native token, ZEC, for various purposes within the network. Here are the key ways ZEC is used: Payments: ZEC is used as digital cash for peer-to-peer transfers and payments. Users may transact using transparent or shielded addresses depending on their privacy preferences. Privacy-Preserving Transactions: ZEC enables shielded transactions that use zero-knowledge proofs to help protect financial information while still allowing the network to verify validity. Store of Value: ZEC may be used by holders as a store of value within the digital asset ecosystem. Zcash’s monetary base is capped at 21 million ZEC. Transaction Fees: ZEC is used to pay network transaction fees on the Zcash blockchain. Mining and Network Security: ZEC is issued through block rewards to miners, who help secure the network and validate transactions. As of the current Zcash economic model described by official sources, block rewards are distributed among miners, community grants, and a protocol-controlled lockbox. Selective Disclosure / Viewing Functionality: Zcash supports viewing keys and related tools that can allow users to share transaction visibility in limited ways without giving up spending authority, which may be relevant for auditing, compliance, or operational purposes. Wallet and Ecosystem Use: ZEC is used across wallets, exchanges, and ecosystem applications that support shielded or transparent Zcash transactions.

Zcash (ZEC) Whitepaper / Protocol Specification:
Zcash Protocol Specification: https://zips.z.cash/protocol/protocol.pdf

‍RISKS OF ZEC NETWORK
Investing in cryptocurrency and digital assets, such as Zcash (ZEC), carries inherent risks, including but not limited to:
(i) Volatility risk and liquidity risk
(ii) Regulatory risk
(iii) Security risk
(iv) Market risk
(v) Privacy and compliance risk
(vi) Governance and funding risk
(vii) Technological risk

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

‍SATSTREET EVALUATION OF TAO
Satstreet Inc. has reviewed and assessed ZEC prior to making it available through our services and has concluded that ZEC 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 ZEC 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 ZEC, including an opinion that ZEC is not itself a security and/or derivative.Based on publicly available information, Satstreet has reviewed ZEC, including, but not limited to, a review of the following: the creation, governance, usage, and design of ZEC, including the source code, privacy architecture, security model, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created ZEC. Satstreet also reviewed the supply, demand, maturity, utility, and liquidity of ZEC. Official Zcash materials describe Zcash as an open-source privacy-preserving digital currency with shielded and transparent transaction functionality, unified addresses, and a fixed 21 million supply.Satstreet further considered material technical risks associated with ZEC, including any code defects, privacy implementation risks, security breaches, and other threats concerning ZEC and its supporting blockchain, such as the susceptibility to hacking, wallet implementation risks, network upgrade risk, and the impact of forks or changes to development funding and governance. Zcash’s protocol and ecosystem include ongoing upgrades, developer funding mechanisms, and privacy-related features such as viewing keys and shielded transactions, all of which may create operational, legal, or market risks depending on future developments.Satstreet also considered legal and regulatory risks associated with ZEC, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ZEC, 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 ZEC about whether ZEC, or generally whether the type of crypto asset, is a security and/or derivative. Because ZEC is a privacy-focused crypto asset, there is a risk that it may face heightened scrutiny from regulators, exchanges, financial institutions, counterparties, or service providers over time. This may impact liquidity, availability, custody support, or the ability of platforms such as Satstreet to continue supporting ZEC. The Zcash protocol itself also includes optional disclosure tools, such as viewing keys, but these may not eliminate regulatory or compliance concerns in all jurisdictions.
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Last Updated: April 2026

Risk Statements

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