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

Description of APT 

History of APT 

Aptos is a next-generation blockchain platform developed by a team of former Diem engineers with the goal of delivering a secure, scalable, and upgradable blockchain ecosystem. Launched in late 2022, Aptos leverages cutting-edge innovations such as the Move programming language and a novel parallel execution engine to overcome the limitations of traditional blockchain architectures. The platform’s evolution is marked by its focus on reliability and developer-friendly design, positioning Aptos as a potential foundation for a new generation of decentralized applications. 

What is APT used for 

Aptos serves as the native digital asset within its blockchain ecosystem. APT is used to power transactions, pay network fees, and incentivize participation in the platform’s decentralized applications. It functions as both a medium of exchange and a store of value, enabling users to interact seamlessly with the ecosystem and participate in governance decisions. The token’s utility is designed to support an emerging community of developers and users, driving innovation and network growth. 

How APT works 

Aptos operates on a high-performance blockchain that utilizes a Byzantine Fault Tolerant consensus mechanism combined with a novel parallel execution engine, enabling it to process transactions with high throughput and low latency. The platform employs the Move programming language, which is designed to improve safety and resource management for smart contracts, reducing the risk of bugs and vulnerabilities. This architecture ensures that Aptos can scale effectively while maintaining robust security and decentralization. 

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 APT. Each of these risks are 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. 

Specific risks associated with APT may include potential technical vulnerabilities due to the relative novelty of its parallel execution engine and the Move programming language, which, despite its design for enhanced safety, may still face unforeseen bugs or security exploits; adoption risks, where insufficient developer engagement or delayed ecosystem growth could impact liquidity and network usage; and regulatory uncertainties, as evolving legal frameworks for blockchain technologies may affect the classification, trading, or operational aspects of Aptos. Additionally, market volatility remains a risk, as fluctuations in price could rapidly affect the value of APT. 

While we have tried to describe the key risks associated with APT 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 APT. You should also do your own research on APT 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 APT, NDAX assesses whether APT 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 APT (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concern regarding APT. Based on its assessment, NDAX concluded that APT 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 APT from trading on the Platform and stop any future trading of Crypto Contracts based on APT, and users holding APT may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in APT 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 APT. 

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

Last Updated: 2/22/2024