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The information contained in this Crypto Asset Statement was last updated on September 29, 2024

No securities regulatory authority in Canada has expressed an opinion about SUI 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 SUI 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 August 15, 2022.  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 SUI 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

SUI is a next-generation blockchain platform designed to provide a secure, scalable, and user-friendly infrastructure for decentralized applications (dApps) and smart contracts. Built with flexibility and high-performance in mind, SUI addresses the complexities of current blockchain systems by offering a robust environment for developers and users to interact with decentralized technologies. The platform integrates cutting-edge consensus algorithms to ensure both efficiency and security in its operations. 

Some Key Facts/Features about SUI:

• Developer-Friendly: SUI focuses on providing an intuitive experience for developers by offering easy-to-use tools and a highly customizable environment for building dApps. Its developer-centric features make it ideal for innovators in the Web3 space.
• High-Performance Transactions: SUI utilizes an advanced consensus mechanism designed to achieve fast transaction speeds and high throughput. This allows SUI to handle a large volume of transactions without compromising security or decentralization.
• Modular Architecture: SUI is built with a modular approach, allowing developers to tailor their applications' functionality according to specific needs. This makes the platform versatile and adaptable across various industries, including finance, gaming, and supply chain.

Risks of SUI

Like an investment in other crypto assets, an investment in SUI 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.  

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 SUI. We encourage all Newton users to perform their own due diligence to assess the risks associated with SUI and to determine whether this level of risk is acceptable to them.  Neither the SUI team/founders nor Newton guarantees the value of SUI, and holders of SUI will not have any recourse to SUI or Newton if the value of SUI declines for any reason whatsoever.

Newton’s Evaluation Process

Newton has reviewed and assessed SUI prior to making it available on the Newton Platform and has concluded that SUI 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 SUI 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 SUI, including an opinion that SUI is not itself a security and/or derivative.

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

• The creation, governance, usage, and design of SUI, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created SUI.
• The supply, demand, maturity, utility, and liquidity of SUI.
• Material technical risks associated with SUI, including any code defects, security breaches and other threats concerning SUI 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 SUI, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of SUI, 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 SUI about whether SUI, or generally about whether the type of crypto asset, is a security and/or derivative.