Shiba Inu (SHIB) - Crypto Asset Statement

PLEASE READ THIS CAREFUL. BY PROCEEDING TO TRANSACT SHIB, YOU ACKNOWLEDGE AND ACCEPT THE STATEMENTS SET OUT BELOW.

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

Description of SHIB

History of SHIB

Shiba Inu was conceptualized and created by an anonymous person(s), Ryoshi, who believed that the power of collective decentralization could surpass the age-old centralized institutions. From the very early days of the coin, the creators became known as the Shib Army, and this soon became the buzzword for the 120,000 SHIB fans who believed in the coin’s potential. Shiba Inu started from the ground up with an enthusiastic aim whose focus was transfixed on creating the best decentralized ecosystem on the planet. 

With this vision, the Shiba Inu token was launched in August 2020 as a part of a three token ecosystem.

What is SHIB used for

As the main utility token of the ShibSwap ecosystem, Shiba Inu (SHIB) can be used to provide liquidity to the DEX’s pools, or it can be traded and staked for rewards. It is also used as a payments method by some sports teams and theatres. 

Shiba Inu has a total supply of 1 quadrillion tokens. 50% of the total SHIB was used to provide liquidity to Uniswap, and the remaining 50% was burned to Ethereum’s co-founder Vitalik Buterin’s wallet. Vitalik used over 50 Trillion SHIB worth $1 billion to donate to India’s covid relief measures.

How SHIB works

Shiba Inu and its anchoring DEX ShibSwap are launched on the Ethereum network and hence use Ethereum’s proof-of-work consensus to process transactions. The token is a part of a three token ecosystem containing $BONE and $LEASH tokens. The ecosystem is anchored by a decentralized exchange (DEX) called ShibSwap that allows users to trade, farm, and stake tokens. Its utility in this ecosystem differentiates Shiba Inu from DogeCoin. 

Holders of Shiba Inu can stake the tokens on the DEX to receive xSHIB liquidity provider (LP) tokens and staking rewards in BONE. $LEASH is the second of the ecosystem, and its tokenomics contradict those of Shiba Inu. LEASH has a total supply of 107,647 tokens. $LEASH and $BONE can also be staked in their respective pools to receive LP tokens and rewards.

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 SHIB. 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 SHIB below. While we tried to describe the key risks associated with SHIB here and in our risk statement, these aren’t all of the risks associated with trading in SHIB. You should also do your own research on SHIB to make sure you are comfortable investing in it.

Conflict of Interest Disclosure

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

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

Last Updated: August 17, 2026