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The information contained in this Crypto Asset Statement was last updated on Mar 20, 2024

No securities regulatory authority in Canada has expressed an opinion about INJ or any of the other Crypto Contracts or Crypto Assets made available through Newton Crypto Ltd. (Newton) on the Newton Platform, including an opinion that INJ itself is not a security and/or derivative.  Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Newton is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Newton Crypto Ltd. dated March 8, 2024.  The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other provinces and territories of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement or the Newton Platform Risk Statement.

This overview provides a summary of certain risks associated with INJ and is not an exhaustive description or summary of these risks and, in addition, does not take into account an individual’s particular situation or risk tolerance.  Investors are encouraged to conduct their own research prior to trading any crypto asset.

Newton users should read the Newton Platform Risk Statement for additional discussion of general risks associated with crypto assets made available through the Newton platform. A copy of the Newton Platform Risk Statement acknowledged by you is available in your account in the “Statements & Reports” section.

Token Description & Project Background

Injective Protocol (INJ) is a decentralized finance (DeFi) project that aims to create a decentralized exchange (DEX) protocol capable of supporting derivatives trading and other sophisticated financial products. The protocol operates on the Ethereum blockchain and utilizes a layer-2 scaling solution to achieve high throughput and low latency.

The primary purpose of Injective Protocol is to democratize access to financial markets by providing a decentralized trading platform that supports a wide range of financial products, including spot trading, futures, perpetual swaps, and more. By leveraging blockchain technology and decentralized governance, Injective Protocol aims to eliminate barriers to entry and enable anyone to participate in global financial markets.

Some Key Facts/Features about Injective:

• Layer-2 Scaling: Injective Protocol utilizes a layer-2 scaling solution called "Tendermint Core" to achieve high throughput and low latency for trading operations. This allows the protocol to support a large number of transactions per second without compromising on security or decentralization.
• Cross-Chain Compatibility: Injective Protocol is designed to be cross-chain compatible, meaning that it can support assets from multiple blockchains. This enables users to trade a diverse range of assets without the need for intermediaries or centralized gateways.
• Governance and Staking: INJ token holders have the ability to participate in the governance of the Injective Protocol ecosystem by voting on proposals and protocol upgrades. Additionally, INJ tokens can be staked to secure the network and earn rewards in the form of transaction fees and protocol incentives.
• Partnerships and Integrations: Injective Protocol has formed partnerships with various projects and platforms in the blockchain and DeFi space to expand its ecosystem and increase adoption. 

Risks of INJ

Like an investment in other crypto assets, an investment in INJ includes the following general risks:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk.

For additional information of general risks associated with crypto assets, you may refer to the Newton Platform Risk Statement.  In terms of specific risks, as INJ is one of the longest-standing crypto assets and its community base is widely decentralized, there is no central working group or authority to disclose material information to the public regarding INJ.

Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be an exhaustive discussion pertaining to all such risks and, in addition, there may be other risks that come with exposure to INJ. We encourage all Newton users to perform their own due diligence to assess the risks associated with INJ and to determine whether this level of risk is acceptable to them.  Neither the Injective Protocol team/founders nor Newton guarantees the value of INJ, and holders of INJ will not have any recourse to INJ or Newton if the value of INJ declines for any reason whatsoever.

Newton’s Evaluation Process

Newton has reviewed and assessed INJ prior to making it available on the Newton Platform and has concluded that INJ is not a security or derivative under Canadian securities legislation; however, there is a risk that this conclusion could change in the future and that, in such event, Newton will be required to halt, suspend, and then remove INJ from its platform as described in the Newton Platform Risk Statement.

Further, as indicated above, no Canadian securities regulatory authority has expressed an opinion about INJ, including an opinion that INJ is not itself a security and/or derivative.

Based on publicly available information Newton has reviewed INJ, including, but not limited to, a review of the following:

• The creation, governance, usage, and design of INJ, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created INJ.
• The supply, demand, maturity, utility, and liquidity of INJ.
• Material technical risks associated with INJ, including any code defects, security breaches and other threats concerning INJ and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with INJ, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of INJ, and (ii) statements made by any securities regulatory authorities in Canada, other regulators in IOSCO-member jurisdictions, or the regulator with the most significant connection to INJ about whether INJ, or generally about whether the type of crypto asset, is a security and/or derivative.