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The information contained in this Crypto Asset Statement was last updated on December 13, 2024

No securities regulatory authority in Canada has expressed an opinion about ONDO 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 ONDO 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 ONDO 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

Coin Description

Ondo (ONDO) is the governance token of the Ondo Finance ecosystem, empowering holders to participate in shaping the platform's future. ONDO enables a decentralized and community-driven approach to decision-making by granting voting rights on critical protocol updates, liquidity management strategies, and other governance matters. Designed to align incentives between stakeholders and the protocol, ONDO supports long-term growth, innovation, and collaboration.

Key Features of Ondo (ONDO):

• Governance Participation: ONDO holders can propose, discuss, and vote on decisions such as protocol upgrades, treasury allocation, and liquidity strategies, ensuring a decentralized and adaptive ecosystem.
• Ecosystem Alignment: ONDO aligns the interests of the community and the protocol, fostering active engagement and incentivizing long-term commitment to Ondo Finance.
• Staking and Incentives: ONDO holders can stake their tokens to earn rewards, driving deeper involvement in the ecosystem while enhancing the platform’s stability.
• Ethereum-Based Integration: As an ERC-20 token, ONDO leverages Ethereum's security and composability, facilitating seamless interaction with DeFi platforms and tools.

Background Information (Issuer, Team, etc.)

Ondo (ONDO) was launched by a team of experts from Goldman Sachs, Andreessen Horowitz (a16z), and other top financial and tech institutions. Designed to bridge traditional finance (TradFi) and decentralized finance (DeFi), Ondo Finance initially gained recognition for its structured yield products, such as fixed and variable yield vaults. The ONDO token enables decentralized governance, empowering the community to shape the platform’s future while fostering innovation, transparency, and long-term growth.

Risks of ONDO

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

Newton’s Evaluation Process

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

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

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