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The information contained in this Crypto Asset Statement was last updated on February 14, 2025

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

FLOKI is a cryptocurrency inspired by the Shiba Inu meme culture and designed to empower a decentralized, community-driven ecosystem. FLOKI aims to combine a strong community base with real-world utility through its decentralized finance (DeFi) platform, NFT initiatives, and metaverse integration, offering broad use cases beyond just a meme token.

Key Features and Interesting Facts about FLOKI:

• Community-Driven Ecosystem: FLOKI has a strong, dedicated community that drives its growth, adoption, and decision-making, emphasizing decentralization and transparency.
• FlokiFi DeFi Platform: FLOKI’s decentralized finance (DeFi) arm aims to provide staking, liquidity pools, and other DeFi services, empowering users with financial autonomy.
• Valhalla Metaverse: FLOKI is developing Valhalla, a play-to-earn (P2E) metaverse where users can earn rewards and experience immersive gameplay using FLOKI tokens.
• FLOKI NFT Marketplace: The project incorporates an NFT marketplace that allows users to buy, sell, and trade digital assets, with FLOKI tokens as the primary currency.

Background Information (Issuer, Team, etc.):

FLOKI (FLOKI) launched in 2021, inspired by Elon Musk’s Shiba Inu named Floki. Initially abandoned by its anonymous creator, the project was revived by the community, evolving into a decentralized, community-driven ecosystem. The project is led by pseudonymous figures “B,” “Sabre,” and “MrBrown Whale,” with Jackie Xu as the lead developer, a known blockchain expert. FLOKI has grown from a meme coin into a platform focusing on decentralized finance (DeFi), NFTs, and the metaverse, supported by its dedicated "Floki Vikings" community.

Risks of FLOKI

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

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

Newton’s Evaluation Process

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

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

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