Canton Network (CC) Crypto Asset Statement
PLEASE READ THIS CAREFULLY. BY PROCEEDING TO TRANSACT IN CC, 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 CC. We created this summary to help you understand the basics of CC as well as some of the risks involved in trading in CC. While we tried to describe the key features of CC, this summary isn’t meant to tell you everything you’d want to know before investing in CC. You should also do your own research on CC to make sure you are comfortable investing in it.
Description of CC
History of CC
Canton Coin (CC) is the native utility token of the Canton Network’s Global Synchronizer, a decentralized coordination layer that connects privacy-enabled smart-contract applications and independently operated Canton deployments. The Global Synchronizer and CC went live in 2024 following a test period and approval by the initial Super Validators. Public project materials state that CC launched without a pre-mine, pre-sale or special allocation to founders, venture capital firms or a foundation; instead, circulating CC was minted through participation that provided infrastructure, application services or other network utility. The Global Synchronizer is operated and governed collectively by Super Validators through a Byzantine fault tolerant supermajority process.
What is CC used for
CC is used to obtain traffic credits for submitting transactions through the Global Synchronizer. After CC is converted, the traffic credits are non-transferable and are consumed as messages are submitted. CC also supports network incentives: validators, Super Validators and application providers may mint CC for qualifying infrastructure or application activity, while CC used for qualifying network traffic is permanently burned. Canton-native applications may also choose to accept CC for service payments. Merely holding CC does not, by itself, provide a dividend, interest payment, revenue share or automatic network reward. Ndax’s offering is limited to spot trading and does not include validator operations, staking, minting services or network-reward participation.
How CC works
Canton Network separates transaction validation and data storage at participant validators from encrypted message routing, ordering and coordination through synchronizers. Validators receive and store only data relevant to the parties they host, while the Global Synchronizer processes encrypted messages without storing the underlying transaction content. CC is burned to obtain additional Global Synchronizer traffic at a USD-denominated conversion rate, while eligible network participants may mint CC under the issuance curve and governance-approved reward allocations. Super Validators operate and govern the Global Synchronizer through a Byzantine Fault Tolerant model designed to tolerate up to one-third of Super Validators being faulty or dishonest. Governance may change fees, reward allocations, active Super Validators and other protocol parameters, so CC’s issuance and economic design are not immutable.
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 CC. 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 CC below.
Specific risks associated with CC include validator and infrastructure risk because transaction processing and data access depend on validators, application permissions, key management and adequate operational redundancy. The Global Synchronizer relies on a sufficient honest Super Validator majority; compromise, coordinated action or failures affecting enough Super Validators could impair sequencing, governance or CC operations. Governance and upgrade risk is significant because Super Validators may change fees, reward allocations, tokenomics parameters and protocol configuration. CC also has tokenomics and pricing-input risk: its burn-mint model, USD-denominated traffic conversion rate and evolving issuance settings may produce unexpected inflation, incentive or implementation outcomes and do not guarantee price stability. Although Canton limits unnecessary data dissemination, its privacy-preserving architecture does not eliminate software vulnerabilities, smart-contract or integration errors, validator compromise, custody failures or application-specific defects. CC positions and transfers are publicly visible even where other elements of Canton transactions remain private. CC is also subject to market liquidity, volatility and manipulation risk, and its market value may not track network usage in a stable or linear manner.
While we have tried to describe the key risks associated with CC 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 CC. You should also do your own research on CC to make sure you are comfortable investing in such a crypto asset.
Conflict of Interest Disclosure
Ndax has assessed potential conflicts of interest associated with the offering, and ongoing availability of CC 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 CC. 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 CC, Ndax assesses whether CC 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 CC (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concern regarding CC. Based on its assessment, Ndax concluded that CC 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 CC from trading on the Platform and stop any future trading of Crypto Contracts based on CC, and users holding CC may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in CC 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 CC.
No Canadian securities regulatory authority has expressed an opinion about CC, including an opinion that CC is not itself a security and/or derivative.
Last Updated: 7/31/2026