Sui (SUI) Crypto Asset Statement

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

Description of SUI

History of SUI

SUI is a Layer-1 blockchain built by Mysten Labs, founded in September 2021 by a team of former Meta (Facebook) engineers. Its design focuses on scalability and low-latency blockchain technology, optimized for developers building decentralized applications. It launched its mainnet in 2023 after a series of testnets.

What is SUI used for

SUI serves as the native token within the SUI Network, facilitating transactions within its ecosystem. SUI serves several crucial functions within the network:

• Transaction Fees: Users pay gas fees in SUI to execute and store transactions on the SUI network
• Staking and Network Security: SUI can be staked to participate in the Delegated Proof-of-Stake (DPoS) mechanism, which secures the network. Validators are selected based on the amount of SUI they or their delegators stake.
• Governance: In the future, SUI holders have the abillity to vote on protocol upgrades and important governance decisions

How SUI works

SUI operates on a Delegated Proof-of-Stake (DPoS) mechanism, using validators to process transactions and maintain the blockchain. Users can stake SUI tokens to become validators or delegate their tokens to validators to earn rewards. The network uses an object-based accounting system that allows for efficient transaction management, using Narwhal and Bullshark consensus mechanisms for finalizing complex transactions.

Certain Staking Services Terms Applicable to SUI

You can cancel your opt-in to the staking services for any crypto-asset within the first four hours of your initial opt-in.

In addition to the other staking terms that you agree to when you opt-in to our staking services, please consult the table below for additional terms that currently apply to the staking service for particular crypto assets at this time. Note that the annual percentage yield (“APY”) is an estimate, and terms are subject to change. All terms in effect are maintained on our website.

Example: If you have 100 coins staked at 3% APY, the gross reward will be 3 coins for the year. Ndax will earn a fee of 20%, in this case 0.6 coins, and 2.4 coins will be credited to your account based on the payout frequency.

For purposes of the above table:

“Ndax Admin Fees” refers to the percentage fee on the total amount of the reward generated through staking.

“Bonding Period” refers to the amount of time it takes before you begin to generate staking rewards for that crypto asset from the time you have started staking.

“Unbounding Period” refers to the amount of time you need to hold your eligible staked crypto assets after opting-in to the staking service before you are able to opt-out.

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 SUI. 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 SUI below:

• Complexity of New Architecture: SUI uses a highly innovative consensus mechanism called Narwhal and Tusk, which optimizes for parallel transaction processing. While this architecture provides potential speed advantages, it is relatively new and could face unforeseen challenges in scaling, security vulnerabilities, or technical failures that have not yet been encountered.
• Storage Costs for Users: One unique feature of SUI is its object-based data model, where storage costs are paid upfront by users as part of their transaction fees. As network usage grows, the cost for storing data could become prohibitive for certain use cases, leading to reduced user adoption or dissatisfaction with long-term usage costs.
• Regulatory Risks: As with all blockchain-based projects, regulatory changes can impact the operation and value of the SUI Network and its token.

While we have tried to describe the key risks associated with SUI 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 SUI. You should also do your own research on SUI to make sure you are comfortable investing in such a crypto asset.

Risks specific to Staking SUI

Prior to staking your crypto assets, you acknowledge that:

• given the volatility of crypto assets, the value of your staked SUI when you sell or withdraw it, and the value of any rewards you earn through staking, may be significantly less than their current value;
• there is no guarantee that you will receive any rewards on staked SUI;
• past rewards are not indicative of expected future rewards;
• the rewards you are entitled to may be changed at the discretion of Ndax;
• you may lose all or a portion of your staked SUI if the validator does not perform as require by the network; and
• additional risks can be found in the Risk Statement.

Conflict of Interest Disclosure

Ndax has assessed potential conflicts of interest associated with the offering, and ongoing availability of SUI through the Platform. As of the date of this statement, Ndax has not identified any actual, material, or reasonably foreseeable conflict of interest that would be expected to impair our ability to act in the best interests of clients or to make fair, objective, and independent decisions regarding SUI. Ndax maintains policies and procedures designed to identify, manage, and address conflicts of interest on an ongoing basis and will update our disclosures if any material conflict is identified in the future. For additional information about the material conflicts of interest identified by us, please refer to our Conflicts of Interest Statement, the latest version of which can be found on our Website.

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 reliance on a prospectus exemption contained in the exemptive relief decision Re Ndax Canada Inc. dated December 19, 2024 (found {here}) and under the terms and conditions imposed by CIRO on Ndax’s membership with CIRO (found {here}). Any fiat currency held in users’ accounts is protected by CIPF’s Investment Dealer Fund in accordance with its Coverage Policy. However, CIPF coverage does not extend to any virtual assets held in users accounts. These assets are not eligible for deposit insurance or any protection from the Canada Deposit Insurance Corporation (CDIC) or CIPF.

Please be aware that the statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada do not apply in respect of a misrepresentation in this Crypto Asset Statement.

Prior to offering a Crypto Contract on SUI, Ndax assesses whether SUI 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 SUI (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concern regarding SUI. Based on its assessment, Ndax concluded that SUI 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 SUI from trading on the Platform and stop any future trading of Crypto Contracts based on SUI, and users holding SUI may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in SUI 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 SUI.

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

Last Updated: August 12, 2026