What is Sui?

Launched in April 2023, Sui is a Layer-1 blockchain built using the Rust programming language. It uses a Delegated Proof-of-Stake (DPoS) system for reaching consensus. Sui's architecture was designed to address limitations in scalability, safety, user experience, and economic sustainability seen in leading blockchains. The platform is designed to support scalable and efficient decentralized applications. Smart contracts on Sui are written in Sui Move, a version of the Move language originally developed for Meta's Libra project.

What is SUI?

The native token of the protocol is SUI, which operates on the Sui blockchain. The token's primary role is to incentivize platform activity, earn more SUI tokens through staking, and participate in the Sui ecosystem. SUI holders can stake their tokens, participate in governance decisions, and use them for transactions within the ecosystem. There are a total of 10 billion units of SUI, and at the time of this publication, there are ~3.33 billion SUI currently 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 SUI can be supported by Wealthsimple's platform, including whether SUI is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

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

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

Like all other crypto assets, there are some general risks to investing in SUI. 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.

Additional Risks / Information

On May 22, 2025, Cetus Protocol, a decentralized exchange on the Sui network, suffered a significant exploit resulting in the theft of approximately $223 million in assets. Although the Sui network itself was not directly compromised, the incident led to a notable decline in the SUI token's price, and a reduction in the network's total value locked (TVL) from $2.13 billion to $1.54 billion. This incident underscores how exploits in associated protocols or applications can impact the broader ecosystem and token valuations, even when the core network remains secure.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading SUI. 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: May 23, 2025