Vaulta (A) - Crypto Asset Statement

Vaulta (A) Crypto Asset Statement

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

Description of A

History of A

A (formerly EOS, before its rebranding to Vaulta) was designed to simplify the programming and integration of smart contracts and the development of distributed applications. While Ethereum-based apps are created from scratch, A allows developers to deploy various standard applications with minimal effort.

The project was formally launched in 2017 by a blockchain firm called Block.One. Interestingly, the CTO of Block.One is Daniel Larimer, creator of both Steemit and BitShares. He also helped develop the delegated proof-of-stake consensus mechanism that was adopted by the A network.

A began its ICO in 2017, which lasted an entire year. During the year following the launch, over 1 billion tokens were distributed by Block.One. Since the A blockchain was under development at ICO, ERC-20 tokens were issued to the participants. They were later swapped for A tokens.

What is A used for

A allows developers to create highly-scalable blockchain-based distributed applications on its network, but with minimal effort. The A blockchain is powered by A tokens that provide bandwidth and storage to the network. Developers must hold A tokens equivalent to the amount of storage and processing capacity required to run a smart contract on the A platform.

A has partnered with Google Cloud, Galaxy Digital, OSSBERGER, and many more projects to improve its network efficiency in recent years. It’s why the blockchain community has adopted A positively.

A token is currently ranked in the top ten crypto assets by market cap.

How A works

A uses a delegated proof-of-stake consensus mechanism to find a block. Before adding the discovered block to the chain, a bet is placed to validate the block. As soon as the block is appended, the validators receive a reward proportionate to their bets.

Though the A network has similar abilities as Ethereum, the A token is considerably different from Ether. One must hold A tokens commensurate with the RAM processing power and CPU space to execute a smart contract on the A network.

Block.One offered 900 million A tokens in ICO, with a further 100 million tokens allocated to itself over a ten-year vesting schedule. About 200 million tokens were sold during the first five days of ICO sale, and the remaining tokens were split evenly in a 23-hour sale period.

A tokens’ total supply is inflationary at an annual rate of 5% to fund transactions and pay block users.

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

Risks Related to Potential Centralization

There is a heightened risk of centralization with the A.IO Network’s DPoS protocol because the twenty-one delegated block producers exert significant control over the A.IO Network. Delegated block producers are selected through a highly competitive voting process which is held every two minutes, and individuals are constantly voted into and out of the delegate roles. Anyone on the A.IO Network can theoretically be voted in, but block validation requires a powerful computer and an advanced understanding of network RAM usage, so the average person is effectively excluded from participating in A governance. Some individuals or entities are repeatedly voted as delegated block producers, thereby increasing the centralization of the A blockchain protocol. DPoS may make the A.IO Network more vulnerable to security threats if the delegate composition or their validation decisions are influenced by vote buying, collusion or state intervention.

Concentration of A Holdings

The largest A addresses hold a very large portion of the A currently outstanding. Market volatility may result when large holders of A decide to sell significant amounts of their bitcoin positions.

Conflict of Interest Disclosure

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

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

Last Updated: August 19, 2026