What is Yield Guild Games?

YGG is a decentralized autonomous organization (DAO) that invests in NFTs for blockchain-based play-to-earn games. YGG aims to build a global community of gamers and investors who collaborate to acquire and manage digital assets across various virtual worlds. The organization facilitates players' access to NFT assets by offering rental programs. YGG's model combines elements of decentralized finance (DeFi) and gaming, creating a metaverse economy where members can earn rewards through gameplay and asset ownership.

What is YGG?

The Yield Guild Games (YGG) token is an ERC-20 token operating on the Ethereum blockchain. It serves multiple purposes within the YGG ecosystem, including governance participation, staking for rewards, and accessing exclusive content. The total supply of YGG tokens is capped at 1 billion. As of February 2025, approximately 420 million tokens are in circulation.

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 YGG can be supported by Wealthsimple's platform, including whether YGG is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

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

• The creation, governance, usage and design of YGG, 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 YGG;
• The supply, demand, maturity, utility and liquidity of YGG;
• Material technical risks associated with YGG, including any code defects, security breaches and other threats concerning YGG 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 YGG, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of YGG; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdiction regarding whether YGG, 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 YGG may result in changes to this Crypto Asset Statement and/or Wealthsimple's ability to support YGG.

Like all other crypto assets, there are some general risks to investing in YGG. 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 YGG. 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: February 19, 2025