Axie Infinity (AXS) - Crypto Asset Statement

PLEASE READ THIS CAREFUL. BY PROCEEDING TO TRANSACT AXS, YOU ACKNOWLEDGE AND ACCEPT THE STATEMENTS SET 
OUT BELOW. 

About this summary 

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

Description of AXS 

History of AXS 

The game is the brainchild of Vietnamese startup Sky Mavis. The game studio developed Axie Infinity with an aim to create a future where work and pay go hand in hand. In 2020, the developer launched the game’s governance token called Axie Infinity Shards (AXS). The token allows users to vote on key decisions. 

What is AXS used for

Axie Infinity Shard (AXS) is an ERC-20 governance token of the Axie Infinity ecosystem launched in November 2020. AXS holders can receive rewards for playing/breeding, voting, and staking the token and will get paid dividends from Axie Infinity's community treasury. 

AXS rewards are given out to the top-ranking players after each season. 

How AXS works

Axie Infinity Shards (AXS) are the glue that binds all Axie community members together. Axie Infinity has two in-game currencies, Small Love Potion (SPL) and Axie Infinity Shard (AXS). SPL is used for trading Axies and can be converted into reallife money. AXS, in turn, is a proposed governance token. When implemented, it will allow players to have a say in game development. 

In addition to being a governance token, the AXS coin also lets holders stake and receive AXS rewards. Rewards come from the Community Treasury, which is filled by marketplace fees and in-game purchases.

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 AXS. 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 AXS below. While we tried to describe the key risks associated with AXS here and in our risk statement, these aren’t all of the risks associated with trading in AXS. You should also do your own research on AXS to make sure you are comfortable investing in it. 

AXS’s Dependence on the Ethereum Network 
As an ERC-20 token, the strength of AXS is dependent on the strength of the Ethereum network. If the Ethereum network were to experience a serious issue, AXS’s price could decline significantly. 

AXS’s Dependence on Axie Infinity 
The success of the AXS is predicated on individuals choosing to play Axie Infinity. While Axie Infinity has seen significant user engagement, there is no guarantee that interest in the game will continue at current levels. The price of AXS is likely to decline 
if Axie Infinity declines in popularity.

Conflict of Interest Disclosure

Ndax has assessed potential conflicts of interest associated with the offering, and ongoing availability of AXS through the Platform. As of the date of this statement, Ndax has not identified any actual, material, or reasonably foreseeable conflict ofinterest 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 AXS. 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 AXS, Ndax assesses whether AXS 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 AXS (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concern regarding AXS. Based on its assessment, Ndax concluded that AXS 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 AXS from trading on the Platform and stop any future trading of Crypto Contracts based on AXS, and users holding AXS may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in AXS 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 AXS. 

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

Last Updated: August 10, 2026