Avalanche (AVAX) - Crypto Asset Statement
PLEASE READ THIS CAREFUL. BY PROCEEDING TO TRANSACT AVAX, YOU ACKNOWLEDGE AND ACCEPT THE STATEMENTS SET OUT BELOW.
About this Summary
Ndax 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 AVAX. We created this summary to help you understand the basics of AVAX as well as some of the risks involved in trading it. While we tried to describe the key features of AVAX here, this summary isn’t meant to tell you everything you’d want to know before investing in AVAX. You should also do your own research on AVAX to make sure you are comfortable investing in it.
Description of AVAX
History of AVAX
Launched in September 2020, the project was initially started in 2018 and was the brainchild of Emin Gün Sirer, a computer scientist and associate professor at Cornell University. Emin also founded Ava Labs in 2018, which built the basis for AVAX and the network before its first testnet launch in April 2020.
A year later, Ava Labs announced the initial coin offering of AVAX. In September of the same year, Avalanche had its mainnet launch and started to release its tokens.
What is AVAX used for
AVAX is the native coin of the Avalanche platform. It is used to pay transaction fees and for staking purposes to secure the network.
Avalanche presents itself as the fastest smart contracts platform in the blockchain industry and has the most validators securing its activity. It is an open, programmable smart contracts platform that can be used to solve various use cases for governments, institutions and enterprises including DeFi, asset issuance, debt financing and digital collectibles.
How AVAX works
Avalanche’s core innovation is it’s composed of three blockchains rather than the usual one. Each blockchain specializes in a task within the broader Avalanche ecosystem instead of having one chain do them all.
Distributing tasks amongst different chains helps keep the Avalanche platform agile, allowing it to achieve the golden trinity of blockchain traits — decentralization, security, and scalability.
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 AVAX. We describe many of these general risks in the risk statement we publish on our website that you have already acknowledged, including risks relating to: (i) short history; (ii) volatility in the price of crypto assets and loss of liquidity; (iii) potential decrease in global demand for crypto assets; (iv) The blockchains on which crypto assets operate may temporarily or permanently fork or halt; airdrops; (v) issues with the cryptography underlying the Crypto networks; (vi) custodial wallet systems; (vii) uncertainty in regulation and future financial institution support; (viii) currency risks; (ix) concentration risks; (x) electronic trading and dependence on the internet; (xi) cyber security risks; (xii) inadequate due diligence; (xiii) Ndax’s reliance on vendors and third-party service providers; (xiv) liquidity constraints; (xv) no voting rights; (xvi) lack of investor protection insurance; (xvii) commissions and other charges for trading; (xviii) no advise; (xix) transfers; (xx) beta features; (xxi) unforeseeable risks; and (xxii) conflicts of interest. We also point out a risk that is specific to AVAX below. While we tried to describe the key risks associated with AVAX here and in our risk statement, these aren’t all of the risks associated with trading in AVAX. You should also do your own research on AVAX to make sure you are comfortable investing in it.
Dependence on Avalanche Developers
While many contributors to the Avalanche platform are employed by companies in the industry, most of them are not directly compensated for helping to maintain the platform. As a result, there are no guarantees that they will continue to contribute to Avalanche.
Adoption Risk
The success of the Avalanche platform is predicated on developers choosing to build and use Avalanche-native applications. There is significant competition between crypto asset networks seeking to offer smart contract platforms for decentralized applications. The price of AVAX is likely to decline in the long run if constructive and meaningful applications are not created, supported and used on the Avalanche platform.
Conflict of Interest Disclosure
Ndax has assessed potential conflicts of interest associated with the offering, and ongoing availability of AVAX through the Platform. As of the date of this statement, Ndax has not identified any actual, material, or reasonably foreseeable conflict of interest that would be expected to impair our ability to act in the best interests of clients or to make fair, objective, and independent decisions regarding AVAX. Ndax maintains policies and procedures designed to identify, manage, and address conflicts of interest on an ongoing basis and will update our disclosures if any material conflict is identified in the future. For additional information about the material conflicts of interest identified by us, please refer to our Conflicts of Interest Statement, the latest version of which can be found on our Website.
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 reliance on a prospectus exemption contained in the exemptive relief decision Re NDAX Canada Inc. dated December 19, 2024 (found here) and under the terms and conditions imposed by CIRO on Ndax’s membership with CIRO (found here). Any fiat currency held in users’ accounts is protected by CIPF’s Investment Dealer Fund in accordance with its Coverage Policy. However, CIPF coverage does not extend to any virtual assets held in users accounts. These assets are not eligible for deposit insurance or any protection from the Canada Deposit Insurance Corporation (CDIC) or CIPF.
Please be aware that the statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada do not apply in respect of a misrepresentation in this Crypto Asset Statement.
Prior to offering a Crypto Contract on AVAX, Ndax assesses whether AVAX 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 AVAX (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concerns regarding AVAX. Based on its assessment, Ndax concluded that AVAX is neither a security nor 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 AVAX from trading on the Platform and stop any future trading of Crypto Contracts based on AVAX, and users holding AVAX may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in AVAX 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 AVAX.
No Canadian securities regulatory authority has expressed an opinion about AVAX, including an opinion that AVAX is not itself a security and/or derivative.
Last Updated: August 11, 2026