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The information contained in this Crypto Asset Statement was last updated on May 12, 2026.

No securities regulatory authority in Canada has expressed an opinion about HYPE 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 HYPE 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 25, 2026. 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 HYPE 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

HYPE is the native token of the Hyperliquid network. Hyperliquid is a Layer 1 blockchain network optimized for decentralized trading, including the trading of perpetual futures and spot order books. HYPE is used for network functions such as staking, governance, and as the native gas token on HyperEVM, described below.

Hyperliquid’s architecture is split into two main components: HyperCore and HyperEVM. HyperCore supports the network’s trading system, including spot and perpetual order books, as well as staking. HyperEVM provides an Ethereum Virtual Machine (EVM)-compatible execution environment built as part of Hyperliquid execution and secured by the same HyperBFT (Hyperliquid Byzantine Fault Tolerance) consensus as HyperCore.

HyperEVM can interact directly with parts of HyperCore, including spot and perpetual order books. Hyperliquid uses an on-chain order book model rather than an automated market maker model, with orders, cancellations, trades, and liquidations occurring transparently with one-block finality inherited from HyperBFT consensus.

Two entities are principally associated with Hyperliquid: Hyperliquid Labs and the Hyper Foundation. Hyperliquid Labs is a core contributor to the Hyperliquid ecosystem and is responsible for much of the protocol's development. It is led by Jeff Yan and the pseudonymous co-founder known as Iliensinc, Harvard classmates who previously conducted proprietary crypto market making in 2020 and expanded into DeFi in summer 2022. The Hyper Foundation is a separate non-profit organization that supports the long-term growth and decentralization of the Hyperliquid network. At the HYPE genesis event, the Foundation was allocated a budget of 60 million HYPE (6% of supply) to manage ecosystem updates, validator delegation programs, and general stewardship of the network.

HYPE staking takes place within HyperCore. HYPE may be staked to validators, and Hyperliquid supports delegated proof of stake. The Hyper Foundation describes HYPE as the native token of the Hyperliquid network and states that HYPE enables holders to own, govern, and secure Hyperliquid.

Hyperliquid was created to support a high-performance decentralized trading environment that combines fully on-chain perpetual futures and spot order books with broader application development on the same network.

* Currently, Newton does not provide its users with the ability to participate in the staking and governance functions of HYPE.

Risks of HYPE

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

Newton’s Evaluation Process

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

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

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

Further information about the Hyperliquid project can be found at the following link: https://hyperliquid.gitbook.io/hyperliquid-docs.