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Avantis (AVNT) Crypto Asset Statement

Avantis (AVNT) Crypto Asset Statement

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

Description of AVNT

History of AVNT

Avantis is a decentralized derivatives exchange that brings global markets on‑chain. It runs on Base – Coinbase’s Layer‑2 network built on Ethereum – and allows users to trade crypto, foreign exchange, commodities and stock indices from a single interface. The project was founded in 2023 by Harsehaj Singh, Brank and Raymond Dong. Their vision was to combine the speed and capital‑efficiency of centralized exchanges with the transparency and self‑custody of DeFi, creating a “universal leverage layer” for the crypto ecosystem. AVNT launched as the native token of Avantis in September 2025 with a fixed supply of 1 billion tokens; approximately 240 million were initially in circulation and the remainder unlocks gradually under vesting agreements. Distribution reflects a community‑driven focus, with 12.5 % of tokens allocated to airdrops and 28.6 % reserved for on‑chain incentives, while the rest is shared among investors, the founding team, advisors and a treasury

 

What is AVNT used for

AVNT is the native utility and governance token of the Avantis ecosystem. It has a maximum supply of 1 billion tokens and serves multiple purposes:

  • Governance: AVNT holders vote on upgrades, fees, burns, and network growth.
  • Fee discounts: Stake AVNT for reduced fees on perpetual trades.
  • Loyalty benefits: Stakers qualify for bigger future airdrops and loyalty rewards.
  • Security module staking: Stake AVNT in the Security Module to support losses; earn rewards/discounts but risk slashing if the vault loses funds.
How AVNT works

Avantis is a decentralized exchange for perpetual futures trading. It operates on Base and supports leveraged trading across cryptocurrencies and real‑world assets (RWAs) such as forex, commodities and indices. Traders can open long or short positions while liquidity providers supply USDC to back trading activity. Key features include:

  • Zero-fee perpetuals & loss rebates: Opening and closing positions incur no fees; a fee is only applied to profitable trades. Loss-rebate incentives are provided for taking the less common side in order to balance long and short positions.
  • Vaults and liquidity tranches: USDC vaults offer senior (lower risk/return) and junior (higher risk/return) tranches. Fees are divided with 60% allocated to liquidity providers and 40% to the protocol treasury for incentives and insurance.
  • Dynamic keeper fees: A decentralized keeper network submits transactions, with fees adjusting according to network conditions to prevent excessive payments.
  • Dual-oracle system: Pyth provides primary price feeds, with Chainlink as a decentralized fallback. Trades are cancelled if the two sources diverge beyond a specified threshold (e.g., 5%).
  • Leverage & synthetic assets: Up to 500× leverage is available on supported markets, with trades executed against pooled liquidity instead of an order book. Profit and loss are settled in USDC, supporting synthetic forex, commodities, and indices.

 

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 AVNT. 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.

In addition to the general risks set out in the Risk Statement, we also point out other specific risks to AVNT below.

  • Market gaps and slippage: Trading RWAs like forex and commodities can result in price gaps, causing stop-loss or take-profit orders to execute at unexpected prices.
  • Protocol risk: As a new Layer-2 DeFi protocol, Avantis may experience technical challenges, governance issues, or attacks affecting AVNT’s value. Token distributions could increase sell pressure and price swings.
  • Regulatory risk: Changing regulations for synthetic perpetuals and RWAs may limit Avantis’s activity or require NDAX to suspend AVNT trading.

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

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

Last Updated: 9/25/2025