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The information contained in this Crypto Asset Statement was last updated on October 30, 2024

No securities regulatory authority in Canada has expressed an opinion about PYTH 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 PYTH 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, 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 PYTH 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

PYTH is a cryptocurrency designed to revolutionize the way data is sourced and verified within decentralized finance (DeFi) ecosystems. PYTH operates as an oracle network, specializing in bringing real-world data onto the blockchain with high accuracy and low latency. This allows smart contracts to access reliable data feeds, making it a critical infrastructure component for DeFi and other blockchain-based applications.

Some Interesting Facts and Key Features about PYTH:

• Accurate, Real-Time Data Feeds: PYTH focuses on providing high-quality, real-time data directly from trusted institutional sources. These data feeds support decentralized applications by offering up-to-date information for financial assets, commodities, and other key market indicators.
• Low-Latency Oracle Solutions: Unlike traditional oracles that may experience delays, PYTH emphasizes low-latency data delivery, making it suitable for applications that require immediate information. This is particularly valuable for high-frequency trading and other time-sensitive financial operations.
• Decentralized Verification Process: PYTH uses a decentralized network to aggregate and verify data, reducing the risk of tampering and ensuring reliability. This method allows for a secure, transparent system where data can be trusted by the blockchain community.
• Extensive DeFi Integrations: PYTH is integrated with various DeFi platforms, including lending, borrowing, and trading protocols. Its reliable data feeds enhance these platforms' functionality by enabling secure, data-driven smart contracts.

Background Information:

PYTH was created by the Pyth Network, which includes a collective of institutional players, blockchain developers, and financial data providers. The network is committed to decentralization and transparency, allowing industry experts to contribute data to the platform. The project has gained attention for its emphasis on accuracy and reliability, positioning PYTH as a key player in bridging the gap between traditional finance and decentralized ecosystems.

Risks of PYTH

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

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

Newton’s Evaluation Process

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

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

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