PNUT (PNUT) Crypto Asset Statement

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

Description of PNUT

History of PNUT

Peanut the Squirrel was deployed as an SPL-token on Solana on 24 November 2024 by an anonymous developer who transferred the mint to the “burn” address immediately after creation. The project’s website and social channels went live the same week, highlighting a 1 billion-token fixed supply and a commitment to “no taxes, no team wallets”. Liquidity was added to Raydium and the LP tokens were burned.

What is PNUT used for

Today PNUT functions primarily as a meme & community token:

• Social tipping & micro-payments – tipping bots such have integrated PNUT, allowing users to tip creators or friends across X and Discord .
• Future mini-dApps – the roadmap on pnutsol.com mentions “Pnut Drops” NFT raffles and a browser game in which PNUT will serve as the in-game currency.

How PNUT works

PNUT is an SPL-standard token on Solana with a fixed supply of exactly one billion coins, all minted at inception and permanently capped because the mint and freeze authorities were sent to the Solana “burn” address immediately after launch. Because PNUT conforms fully to the SPL framework, it can plug seamlessly into the wider Solana ecosystem: traders can swap it to routers, holders can wrap it in token-extension accounts.

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 PNUT. 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 PNUT 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 PNUT stability and value.

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

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

Last Updated: 05/30/2025