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 GALA. We created this summary to help you understand the basics of GALA as well as some of the risks involved in trading in GALA. While we tried to describe the key features of GALA, this summary isn’t meant to tell you everything you’d want to know before investing in GALA. You should also do your own research on GALA to make sure you are comfortable investing in it.

Description of GALA

History of GALA

Founded by Eric Schiermeyer (the co-founder of Zynga and gaming legend), Wright Thurston (one of the first major miners in the cryptocurrency space), and Michael McCarthy (the Creative Director behind viral gaming hits such as Farmville 2), Gala Games was launched in 2020 to redefine both the gaming and blockchain spaces.

The first game released by Gala Games, Town Star, is a deceptively simple looking but incredibly deep farming simulation in which users build a farm to compete in weekly competitions. At various places, NFTs can be used in the game to provide bonuses but are not required to play, have fun, or compete. Mirandus, the MMORPG/Adventure Simulator currently under development by Gala Games is working to completely redefine both the game development pipeline, as well as the gameplay model by putting the power in the hands of the players and giving them ultimate control over the in-game economy.  

What is GALA used for

The decentralized Gala Games ecosystem aspires to blow the doors wide open and give players back the control they deserve. Through decentralization, players not only own their in-games items, but they have a voice in how the Gala Games roadmap develops. Players and node owners are enlisted via distributed voting mechanisms to help determine what games should be added to the platform or what should be funded by the decentralized Gala Games ecosystem.

The GALA token is the digital utility token of the Gala Games ecosystem. It is cryptographically secured and native to the Gala Games ecosystem. GALA is transferable between users, and they have full control over how to use it. GALA powers the Gala Games Ecosystem.

How GALA works

Gala Games is somewhat similar to the Steam store or GOG, in that it features a wide variety of games for users to pick and play. However, unlike these stores, all games are 100% free-to-play and are accessed over the blockchain through a decentralized application (DApp).

GALA is an Ethereum-based cryptocurrency that powers Gala Games. It is a platform that aims to revolutionize the gaming industry by giving players back control over their games.

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 GALA. 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 have tried to describe the key risks associated with GALA 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 GALA. You should also do your own research on GALA to make sure you are comfortable investing in such a crypto asset.

Regulatory Information  

Ndax is offering Crypto Contracts in accordance with the terms of a pre-registration undertaking dated March 23, 2023, that we entered into with the Canadian securities regulators, while our application for registration in certain Canadian jurisdictions is reviewed. Please note that Ndax is not currently registered under securities or derivatives legislation of Canada and there is no guarantee that registration will be granted.

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 GALA, Ndax assesses whether GALA 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 GALA (such as how it was created and its governance structure), its characteristics, its market capitalization, and any regulatory concerns regarding GALA. Based on its assessment, Ndax concluded that GALA 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 GALA from trading on the Platform and stop any future trading of Crypto Contracts based on GALA, and users holding GALA may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in GALA 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 GALA.

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