What is Wormhole Protocol?

The Wormhole Protocol is a decentralized interoperability platform that enables communication and asset transfers across different blockchains. Initially launched in 2020 as a bridge between Ethereum and Solana, it has since expanded to support over 30 blockchains. By facilitating cross-chain transfers, Wormhole allows decentralized applications (dApps) and users to interact seamlessly across multiple blockchain ecosystems. Its core technology relies on a decentralized network of validators, known as Guardians, that ensure secure message delivery between chains.

In addition to its core functionality of bridging assets, Wormhole has evolved to offer tools for developers to build multichain applications. The protocol supports messaging, token transfers, and more advanced features like integrating zero-knowledge proofs for enhanced security. Wormhole is developed by a decentralized group of contributors, including teams from Jump Crypto, Wormhole Foundation, and other research partners, making it a foundational piece of Web3's growing multichain infrastructure.

What is W?

W is the governance token of the Wormhole Protocol, launched in 2024 with a total supply of 10 billion tokens. It primarily serves a governance role, enabling token holders to participate in decisions regarding protocol upgrades and the overall development of the Wormhole ecosystem. Through staking W tokens, users can vote on proposals, ensuring a decentralized governance structure. Please note that the W token supported by Wealthsimple is the Solana Program Library token version on Solana.

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

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

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

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

The Wormhole protocol, which supports the W token, experienced a hack in February 2022, resulting in the unauthorized minting of wrapped Ethereum (wETH). The incident was resolved with the restoration of funds by a third-party entity, but the incident highlights the potential vulnerabilities of cross-chain protocols. Although the W token was only launched later in 2024, future security breaches, exploits, or similar incidents involving Wormhole or related platforms could adversely impact the value, liquidity, and perception of the W token.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading W. 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: August 1, 2025