About this Statement
Coinsquare Capital Markets Inc. (“Coinsquare”) is offering crypto contracts to purchase and sell Aave in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the exemptive relief decision dated Oct 12, 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 CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.
No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.
Coinsquare has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information. Coinsquare is providing this Crypto Asset Statement on an “as is” basis and makes no representation or warranty as to accuracy or completeness of the contents.
About BNB
BNB was originally launched by Binance as an ERC-20 token on Ethereum, in 2017. In 2019, they migrated the token to their own L1 chain, Binance Chain. In 2020, Binance launched a higher-throughput blockchain called BNB Smart Chain. As of Dec 3rd, 2024, the original Binance Chain has been shutdown and merged with BNB Smart Chain. BNB is the native token and gas payment unit of the BNB Smart Chain.
Risks
As with all assets, investing in BNB is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to BNB below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in BNB.
BNB PoSA Limited Validator Pool
PoSA is a system used to secure a blockchain and validate transactions. The system combines elements of Proof of Stake (staking to qualify) and Proof of Authority (a limited number of trusted validators).
BNB Smart Chain is secured by a group of 21 validators who are chosen every 24 hours by BNB stakers. Validators are responsible for approving transactions and maintaining the network. To become a validator, a candidate must stake at least 10,000 BNB. The selection process happens daily, so the set of validators can change based on how much BNB each candidate stakes. This system encourages community participation and rewards those who stake BNB.
Binance operates several of the top BNB validators, meaning BSC Smart Chain is considerably less decentralized than many other blockchains. The tradeoff here is that this increases transaction speed and reduces costs.
Coinsquare’s Due Diligence for Digital Assets
To be made available for trading on Coinsquare’s platform, a digital asset must pass the following due diligence reviews:
Coinsquare undertakes these three levels of due diligence in order to determine whether the digital asset is compliant with our legal and regulatory obligations, is secure, and has historical data supporting a beneficial business case. Coinsquare’s New Product Committee must provide final approval for a new digital asset to be made available on the platform.
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