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Uniswap (UNI) - Crypto Asset Statement

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

Description of UNI

History of UNI

Uniswap is a non-custodial cryptocurrency exchange that can be used to swap or trade ERC-20 tokens without the need for intermediaries. Anyone can list tokens on this platform without the need for permissions.

Users can use UNI, the governance token of Uniswap, to vote on platform development decisions. Token holders can also use the token to fund liquidity pools, partnerships, grants, and any other initiatives meant for the development of the platform.

What is UNI used for

How UNI works

Uniswap eliminates the need for the order book model used by centralized exchanges. Instead, the protocol utilizes liquidity pools and automated market makers (AMM).

A liquidity pool is a collection of tokens that are locked in a self-executing digital contract called a smart contract. Liquidity providers fund an equal value of two tokens to create a pool. They then receive special tokens called Liquidity tokens, which are equivalent in value to the funded tokens.

An AMM manages all the pools in the platform. When there is a buyer looking to trade a token, the AMM determines the best price for the token based on demand and supply. The token the trader wants is then drawn from the liquidity pool. Traders are required to pay a fee of 0.3% for using the platform and a part of this fee is used to reward the liquidity providers of the platform.

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 UNI. We describe many of these general risks in the risk statement we publish on our website that you have already acknowledged, including risks relating to: (i) short history; (ii) volatility in the price of crypto assets and loss of liquidity; (iii) potential decrease in global demand for crypto assets; (iv) The blockchains on which crypto assets operate may temporarily or permanently fork or halt; airdrops; (v) issues with the cryptography underlying the Crypto networks; (vi) custodial wallet systems; (vii) uncertainty in regulation and future financial institution support; (viii) currency risks; (ix) concentration risks; (x) electronic trading and dependence on the internet; (xi) cyber security risks; (xii) inadequate due diligence; (xiii) Ndax’s reliance on vendors and third-party service providers; (xiv) liquidity constraints; (xv) no voting rights; (xvi) lack of investor protection insurance; (xvii) commissions and other charges for trading; (xviii) no advise; (xix) transfers; (xx) beta features; (xxi) unforeseeable risks; and (xxii) conflicts of interest. We also point out a risk that is specific to UNI below. While we tried to describe the key risks associated with UNI here and in our risk statement, these aren’t all of the risks associated with trading in UNI. You should also do your own research on UNI to make sure you are comfortable investing in it.

Price Dependence on Uniswap Protocol

As UNI is primarily a utility token insofar as it provides its holders with governance rights in relation to the Uniswap Protocol, UNI’s value is linked to the success of the Uniswap Protocol. In order to be successful, the Uniswap Protocol requires users both to provide liquidity to its liquidity pools and to trade with its liquidity pools. Should demand decline for the Uniswap Protocol, it is likely that the value of UNI will also decline.

Regulatory Risk of Decentralized Exchanges

The regulation of crypto assets and facilities for trading or exchanging crypto assets continues to evolve in North America and within foreign jurisdictions. Governmental authorities may implement new regulatory schemes or enforce existing regulatory requirements in a manner which could restrict the use of the Uniswap Protocol and otherwise impact the demand for and value of UNI.

Competition from Crypto Asset Trading Platforms and Other Decentralized Exchanges

The Uniswap Protocol faces competition from centralized crypto asset trading platforms and other decentralized exchanges. Decentralized exchanges are typically not as easy to use as centralized crypto asset trading platforms, and generally lack the speed and liquidity of centralized platforms. Over time, demand for the Uniswap Protocol may decline if centralized crypto asset trading platforms grow more dominant. In addition, demand for the Uniswap Protocol may decline in the face of competition from other decentralized exchanges, such as the Sushiswap protocol. Should demand decline for the Uniswap Protocol, it is likely that the value of UNI will also decline.

Conflict of Interest Disclosure

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

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

Last Updated: August 17, 2026