What is Zama?

Zama is a blockchain-based protocol designed to enable confidential smart contracts using Fully Homomorphic Encryption (FHE). The protocol functions as a modular privacy layer that can be integrated with existing Layer 1 and Layer 2 blockchains, allowing applications to process encrypted data without revealing it on-chain. Unlike traditional blockchains, where transaction data is publicly visible, Zama enables end-to-end encryption of inputs, balances, and state, ensuring that sensitive information remains private even during computation.

What is ZAMA?

The native token of the protocol is ZAMA, which operates on the Ethereum network and serves as the utility and governance token of the Zama ecosystem. It is used to support network operations, including transaction processing, staking by network participants, and governance decisions related to protocol upgrades and system parameters. ZAMA enables payment for protocol services, including operations related to encrypted computation, key management, and transaction verification. The token has a total supply of 11 billion units, with approximately 2.2 billion ZAMA in circulation at the time of this publication.

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

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

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

Like all other crypto assets, there are some general risks to investing in ZAMA. 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 ZAMA. 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 11, 2026