Token Description & Project Background

A parachain of the Polkadot network, Clover Finance is a self-proclaimed “DeFi Hub” that fosters interoperability between independent blockchain ecosystems and decentralized applications.

 According to the project’s documentation, Clover’s cross-chain capabilities are a product of EVM compatibility, which allows developers to seamlessly migrate their Ethereum based applications and ERC-20 assets to the CLV chain. 

Clover operates under a dual chain framework. The CLV chain is composed of two separate entities, the CLV mainnet used for governance and exchange purposes, and the CLV parachain, which houses smart contracts and cross-chain compatible applications, according to Clover Docs. 

Clover’s interoperability is further enhanced by CLV wallet, a non-custodial, multi-platform application that allows users to interact with decentralized applications across blockchain ecosystems.

The protocol’s novel “SVP chain simulation technology” enables inter-chain communications. 

CLV is Clover’s native digital asset. It’s used to pay transaction fees, facilitate protocol governance and secure the network via validator staking.

The project launched in May 2020 with the mainnet of Clover Finance going live in July 2021.

Clover Finance was created by a group of blockchain developers led by Viven Kirby, a former Microsoft Dynamics architect at AXSource.

Risks of CLV

Like an investment in other crypto assets, there are some general risks to investing in CLV. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in CLV is subject to the following specific risks:

• Many projects compete to provide interoperability solutions for Ethereum-based applications. Any potential success associated with CLV depends on its rate of adoption, as well as the continued adoption and security of the Polkadot network.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with CLV. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The CLV community and founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of CLV have no recourse to the CLV community, its founding team, or Uphold if CLV declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing CLV on the Uphold Platform, Uphold performed due diligence on CLV and determined that CLV is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of CLV, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of CLV.
• Any marketing materials put forward by the CLV social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with CLV, including any code defects, security breaches and other threats concerning CLV 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 CLV, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of CLV. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.