What is API3?

API3 is a blockchain protocol that connects traditional APIs with blockchain networks, enabling decentralized applications (dApps) to securely and efficiently access off-chain data. It facilitates direct integration between dApps and real-world data sources without the need for third-party intermediaries, using decentralized APIs (dAPIs) managed by data providers.

API3 aims to provide a transparent, reliable, and scalable solution for data integration across various blockchain networks. By reducing the need for intermediaries, API3 seeks to lower costs and enhance the robustness of data integration. Its compatibility with multiple blockchain environments supports improved interconnectivity and operational efficiency in the blockchain space.

What is API3 token?

The API3 token is an ERC-20 token on the Ethereum network with a fixed supply of 130 million units. API3 plays a crucial role in this ecosystem by providing its holders with voting rights in governance decisions. This structure ensures that the development and operational direction of the protocol are guided democratically by its community of users and stakeholders. The tokens are also used to incentivize the network's participants, including data providers who stake their tokens to offer services, thus ensuring the integrity and quality of the data fed into the network.

Risk Statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.

Wealthsimple has performed an assessment of whether API3 can be supported by Wealthsimple’s platform, including whether API3 is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

We evaluated API3 based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of API3, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created API3;
• The supply, demand, maturity, utility and liquidity of API3;
• Material technical risks associated with API3, including any code defects, security breaches and other threats concerning API3 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 API3, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of API3; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether API3, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to API3 may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support API3.

Like all other crypto assets, there are some general risks to investing in API3. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading API3. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last updated: September 4, 2024