Fartcoin (FARTCOIN) Crypto Asset Statement

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

Description of FARTCOIN

History of FARTCOIN

Fartcoin debuted in late 2024 amid a wave of Solana-based meme tokens. Conceived as a tongue-in-cheek community experiment, it minted a fixed one-billion-token supply under the Solana Program Library (SPL) standard. The token quickly gained viral traction on social media thanks to humorous branding, a “gas-fee gag” audio effect baked into its early dApp, and listings on several decentralised exchanges. Although no formal foundation governs the project, a small volunteer DAO coordinates marketing drives, liquidity incentives and periodic token burns to sustain engagement.

What is FARTCOIN used for

Primarily a meme-driven community token, FARTCOIN’s utility centres on culture and social engagement rather than technical necessity. Holders tip content creators, buy novelty NFTs, and vote informally on community polls about future marketing stunts. Several Solana-native yield farms and swap platforms now reward liquidity provision with bonus FART emissions, giving speculators an additional incentive to supply token–SOL pairs. A micro-donation feature “Pass the Gas” lets users send minuscule FART amounts to charity wallets linked to environmental projects, adding a light-hearted philanthropic angle.

How FARTCOIN works

FARTCOIN is an SPL token deployed under the address 9BB6NFEcjBCtnNLFko2FqVQBq8HHM13kCyYcdQbgpump on the Solana blockchain. The contract minted its full 1 billion supply at genesis; there is no further inflation. Tokens reside in Solana accounts and move via standard token-transfer instructions, incurring the network’s minimal transaction fees. A community-run “Flatulence Vault” periodically receives a share of DEX-trading fees; vault managers may burn these tokens or redistribute them to liquidity providers, introducing a quasi-deflationary mechanic. Because Solana finality times average <1 second and costs are fractions of a cent, FART transactions settle quickly, enabling real-time social tipping and micro-payments. No formal staking exists, but third-party yield platforms wrap FART into reward contracts, letting users deposit LP tokens and earn additional FART plus partner tokens.

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 FARTCOIN. 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 FART 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 FART stability and value

Additional specific risks include:

Meme-cycle volatility: Valuation is driven largely by online sentiment; sharp booms and busts are common.
Informal governance: Absence of a registered foundation means roadmap decisions rely on volunteer consensus, which may shift unpredictably.
Liquidity concentration: A handful of Solana DEX pools account for most volume; a sudden exit by major liquidity providers could impair trading.
Smart-contract and bridge exploits: Although FART itself is a simple SPL mint, users often deposit it into third-party farms or bridges that could contain vulnerabilities.

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

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

Last Updated: 6/6/2025