QUANT (QNT) Crypto Asset Statement

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

Description of QNT

History of QNT

Quant Network, established by Gilbert Verdian, developed the QNT token as part of its mission to connect blockchains and networks on a global scale, without reducing the efficiency and interoperability of the network. It aims to bridge the gap between different blockchains through the Overledger network.

What is QNT used for

QNT is an Ethereum token that powers the Quant Network's Overledger brand of enterprise software solutions. These solutions enable the secure, simple, and cost-effective connection of blockchain networks and existing networks to blockchain, facilitating the efficient creation of multi-chain applications (MApps). QNT tokens are used to access the Overledger network and are necessary for reading from and writing to multiple blockchains.

How QNT works

Overledger is the first blockchain operating system that facilitates the development of multi-chain applications. By connecting different blockchains, Overledger allows for the creation and consumption of services and digital assets across various chains. This includes transferring data, messages, and smart contract invocations from one chain to another, leveraging the strengths of each chain.

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 QNT. 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 QNT below.

Dependency on the Quant Network

The QNT token is used as a means of payment within the Overledger network. The Overledger network appears to be dependent on Quant Network, which created the enterprise software underpinning the Overledger network and collects licensing fees from users of that software. The risks associated with this token are centred on the notion that if Quant Network Limited were to cease operations, it is unclear whether Overledger network would continue to operate and whether QNT would continue to have utility and value.

While we have tried to describe the key risks associated with QNT 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 QNT. You should also do your own research on QNT 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 QNT 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 QNT. 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 QNT, Ndax assesses whether QNT 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 QNT (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concern regarding QNT. Based on its assessment, Ndax concluded that QNT 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 QNT from trading on the Platform and stop any future trading of Crypto Contracts based on QNT, and users holding QNT may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in QNT 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 QNT.

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

Last Updated: August 19, 2026