What is Bounce Token?

The Bounce platform is a decentralized auction protocol designed to facilitate different types of token sales and liquidity offerings. The platform supports mechanisms such as fixed-price sales, sealed-bid auctions, and Dutch auctions, allowing projects and users to launch or participate in token distribution in various formats. It was created to address issues of fair access and price discovery in token launches, particularly during the growth of decentralized finance (DeFi). Bounce Token (AUCTION) is the native asset of the platform and functions as the backbone of the Bounce ecosystem, aligning incentives between users, projects, and the protocol.

What is AUCTION?

The native token of the protocol is AUCTION, which operates on the Ethereum blockchain. The AUCTION token serves as both a utility and governance asset within the ecosystem. Holders can use AUCTION to pay for protocol services, stake tokens, and participate in governance by voting on protocol upgrades and parameter changes. The token also provides incentives for participants who engage in auctions or contribute to liquidity. There is a maximum supply of 10 million units of AUCTION, and at the time of publication, there are ~6.09 million AUCTION 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 AUCTION can be supported by Wealthsimple’s platform, including whether AUCTION is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

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

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

Like all other crypto assets, there are some general risks to investing in AUCTION. 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 AUCTION. 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 14, 2025