About this Summary

Ndax Canada Inc. (“Ndax”, “we” and “our”) believes that our users should understand the crypto assets that they are able to trade and stake using our crypto trading platform (the “Platform”). One of the crypto assets we offer on the Platform is TLM. We created this summary to help you understand the basics of TLM as well as some of the risks involved in trading in TLM. While we tried to describe the key features of TLM, this summary isn’t meant to tell you everything you’d want to know before investing in TLM. You should also do your own research on TLM to make sure you are comfortable investing in it.

Description of TLM

History of TLM

First announced in 2020, the first phase of the Alien Worlds NFT game included the metaverse design, the technical blueprint, and the release of the basic functionalities of the blockchain game.

All the metaverse mechanics were created, such as the trilium, NFTs, and planets. Staking and sales of NFTs are also available.

What is TLM used for

Once you begin your journey into the unfamiliar lands to extract Trilium, you'll need reliable tools. Also, you may find interesting artifacts along the way that you'd like to purchase. To get any of these, you'll need TLM to use as currency.

In the Alien Worlds Metaverse, players can participate in the governance of the planets. This gives you a say in adjustments that will be made in the years to come. Moreover, there are plenty of rewards you can earn from the metaverse. However, for you to do any of these, you'll need to stake your TLM tokens.

TLM has high usability outside the Alien Worlds Metaverse and can be migrated between Ethereum, Wax, and BSC. This, along with the game's rising popularity, will increase the value of the tokens over time, making it a good investment opportunity.

How TLM works

Trilium is the native utility token for the Alien Worlds Metaverse. The more Trilium players have at their disposal, the greater their ability to execute in-game functions and participate in governance activities via staking.

Alien Worlds Metaverse uses a highly tokenized approach. As such, while exploring, players will also come across a wide range of artifacts in the form of NFTs. Each of these NFTs plays a unique role in the game and can be used for tools, land, and avatars.

Players also require TLM to purchase and upgrade items, participate in quests and battles, and other in-game-related activities. Active users may earn TLM as participation rewards to develop the in-game ecosystem and activity. Other in-game items are minted as NFTs, which help players to mine TLM, engage in battles, and complete in-game quests.

Risks

Before entering into an agreement (a “Crypto Contract”) with Ndax to buy or sell any crypto assets through the Platform, it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Like other crypto assets, there are some general risks associated with investing in TLM. Each of these risks is described in more detail in the Risk Statement provided to you at the time that you open your account with us and is also available online on the Ndax website and app. You should review the Risk Statement.

While we tried to describe the key risks associated with TLM here and in our Risk Statement, we emphasize that this Crypto Asset Statement is not exhaustive of all of the risks associated with trading in TLM. You should also do your own research on TLM to make sure you are comfortable investing in such a crypto asset.

Regulatory Information  

Ndax is a registered investment dealer under securities legislation in all provinces and territories of Canada, and is a member of the Canadian Investment Regulatory Organization (CIRO) and of the Canadian Investor Protection Fund (CIPF). Ndax is offering Crypto Contracts in accordance with the terms of the Decision Document dated December 19, 2024 that we entered into with the Canadian securities regulators. Any fiat currency held in user's accounts are protected by the CIPF's Investment Dealer Fund in accordance with its Coverage Policy. However, CIPF coverage does not extend to any virtual assets held in user's accounts. These assets are not eligible for deposit insurance or any protection from the Canada Deposit Insurance Corporation (CDIC) or CIPF.

The statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement.

Prior to offering a Crypto Contract on TLM, Ndax assesses whether TLM is a security and/or a derivative under the securities and derivatives laws of Canada. Ndax’s assessment includes a review of the history of the TLM (such as how it was created and its governance structure), its characteristics, its market capitalization, and any regulatory concerns regarding TLM. Based on its assessment, Ndax concluded that TLM is not a security or a derivative. However, there is a risk that this conclusion could change in the future. In that case, Ndax may be required to halt or withdraw TLM from trading on the Platform and stop any future trading of Crypto Contracts based on TLM, and users holding TLM may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in TLM will be notified via the Platform or other electronic means and advised of the options available to them and any applicable period to sell or withdraw their positions in TLM.

No Canadian securities regulatory authority has expressed an opinion about TLM, including an opinion that TLM is not itself a security and/or derivative.