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

Description of VET

History of VET

VeChain was founded in 2015 by Sunny Lu, the former chief information officer (CIO) of Louis Vuitton China. What started as a subsidiary of Bitse, one of China's largest blockchain companies, has grown to become one of the few blockchains that already have built a substantial customer base among established companies.

To date, VeChain has expanded its focus to multi-purpose functionality with customizable support for a range of enterprise use cases. On-chain governance, low transaction fees, interoperability with non-blockchain technologies, and regulatory compliance are all priorities for VeChain’s developers. VeChain wants to make all required information from manufacturing to delivery (storage, transportation, and supply) available to all authorized parties for any enterprise business process, that interacts with the VeChain Thor blockchain.

What is VET used for

VET is the VeChain token that is used to carry value or “smart money” from smart contracts. This means that transactions on decentralized applications occurring on VeChain's blockchain will use VET. It is available for investing by the general public.

This token can transfer value across the blockchain and trigger smart contracts. It is also how users pay for transactions on Dapps that function on the VeChain blockchain.

How VET works

VeChain works by giving physical products a unique identity, usually through RFID (radio frequency identification), QR Codes, or NFC (near-field communication). Sensors record information at every stage of the supply chain and are recorded and linked to the product's identity.

The Vechain platform contains two distinct tokens: VeChain Token (VET) and VeChainThor Energy (VTHO). The former is used to transfer value across VeChain’s network, and the latter is used as energy or "gas" to power smart contract transactions.

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 VET. Each of these risks is 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.

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

Regulatory Information  

Ndax is offering Crypto Contracts in accordance with the terms of a pre-registration undertaking dated March 23, 2023, that we entered into with the Canadian securities regulators, while our application for registration in certain Canadian jurisdictions is reviewed. Please note that Ndax is not currently registered under securities or derivatives legislation of Canada and there is no guarantee that registration will be granted.

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

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