Description of ONDO 

History of ONDO 

Ondo Finance was developed to provide innovative asset management solutions in the decentralized finance ecosystem. The ONDO token was introduced as part of Ondo Finance's mission to democratize access to yield-generating investment strategies and to bridge traditional asset management with decentralized finance. Its creation aimed to align the interests of investors and the platform's growth. 

What is ONDO used for 

ONDO serves as the native token of the Ondo Finance platform. It is used for governance, paying transaction fees, and incentivizing participation within the ecosystem. Additionally, ONDO provides holders with the opportunity to earn rewards through staking and to participate in decisions that shape the future direction of the platform. 

 How ONDO works 

The Ondo Finance platform operates on a decentralized protocol that enables users to invest in managed yield pools and other innovative financial products. The ONDO token is central to this ecosystem, facilitating transactions, staking, and governance. By participating in the platform, users can benefit from professionally managed strategies while also contributing to the security and efficiency of the network. 

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 ONDO. 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 ONDO may include volatility in yield strategies, liquidity risks, and uncertainties inherent in the evolving regulatory environment for decentralized asset management platforms. 

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

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

Last Updated: March 3, 2025