Bonk (BONK) Crypto Asset Statement

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

Description of BONK

History of BONK

Bonk is a community-driven meme coin launched on the Solana blockchain, designed to leverage the network’s fast transaction speeds and low fees. Originally introduced in late 2022, Bonk emerged as a playful yet decentralized digital asset aimed at fostering community engagement. Its development was largely organic, with a strong emphasis on community involvement and transparent distribution mechanisms. Over time, Bonk has gained popularity among enthusiasts on Solana, supported by social media momentum and various airdrop campaigns, which have contributed to its rapid growth and evolving market presence.

What is BONK used for

Bonk is designed primarily as a meme coin that serves as both a medium of exchange and a community reward token within the Solana ecosystem. It is utilized for tipping, community engagement, and as a speculative asset that may appreciate in value based on market sentiment. Beyond its use in everyday transactions, Bonk is also intended to promote community-driven governance and participation, offering holders a means to influence decisions regarding its ecosystem’s development and outreach efforts.

How BONK works

Bonk operates as an SPL token on the Solana blockchain, taking advantage of Solana’s high throughput and low transaction fees. As a decentralized asset, Bonk benefits from the efficiency and scalability inherent in the Solana network, which uses a unique combination of proof-of-history and proof-of-stake mechanisms to validate transactions rapidly. This allows for near-instantaneous transfers and a seamless user experience, while also supporting the token’s distribution via community-centric initiatives like airdrops and incentivized engagements.

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 BONK. 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 BONK may include the inherent volatility common to meme coins, as its market price is highly susceptible to speculative hype cycles and rapid shifts in investor sentiment; technical risks related to its operation on the Solana blockchain, where network outages or performance issues could adversely affect transaction processing and token stability; and uncertainties regarding its long-term utility, as the community-driven nature of the project means that sustained adoption and market liquidity are not guaranteed. Additionally, the low barriers to entry for creating meme coins may lead to increased competition and dilution of market interest, further impacting BONK’s stability and value.

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

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

Last Updated: 05/27/2025