What is Berachain?

Berachain is a Layer-1 blockchain built using a novel consensus design called Proof of Liquidity (PoL). Instead of relying solely on traditional proof-of-stake, Berachain integrates liquidity provision into validator operations, aiming to align incentives between network security and on-chain liquidity. The network is EVM-compatible, which allows developers to deploy Ethereum-based applications while benefiting from the Cosmos interoperability framework. Berachain's design incorporates three native tokens: BERA, the gas and staking token; BGT (Berachain Governance Token), a non-transferable governance token earned through participation; and HONEY, the stablecoin used within the ecosystem.

What is BERA?

The native token of the protocol is BERA, which operates on the Berachain blockchain. It is primarily used to pay gas fees and as part of staking mechanisms that secure the network. Validators and delegators interact with BERA for consensus participation. Holders of BERA can use the token to pay transaction fees, delegate to validators for network participation, and interact with decentralized applications within the Berachain ecosystem. The token has a total supply of 508.64 million, with approximately 126.12 million BERA 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 BERA can be supported by Wealthsimple's platform, including whether BERA is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

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

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

Like all other crypto assets, there are some general risks to investing in BERA. 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 BERA. 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: October 2, 2025