DEEP Describes Itself As

A decentralized exchange (DEX) protocol on the Sui blockchain, designed as Sui’s native on-chain central limit order book (CLOB) and intended to serve as a foundational liquidity layer for all DeFi applications on the network.

Project Function

• Fully On-Chain Order Book: All order routing, matching, and settlement occur on-chain, giving users complete visibility into the order flow and depth of the market.
• High Throughput & Low Latency: DeepBook leverages Sui’s parallel execution engine to achieve sub-second trade finality (around ~390 milliseconds per settlement) and to handle high throughput without congestion.
• Composable and Integrable: Rather than a standalone exchange interface, DeepBook functions as a backend liquidity engine that many Sui dApps and exchanges can plug into. It has been integrated by multiple DeFi platforms (e.g. Kriya DEX, Turbo Finance, Aftermath Finance, Cetus Protocol), which use DeepBook’s order book to power their trading interfaces.

Token Utility 

• Fee Payment – DEEP is used as the currency for paying trading fees and certain platform fees (such as pool creation fees) on DeepBook.
• Liquidity Incentives – The DEEP token is integral to DeepBook’s liquidity mechanisms. It provides rebates and rewards to market makers (liquidity providers) and volume discounts to takers to encourage active trading.
• Governance – DEEP tokens confer governance rights that allow the community to participate in certain decisions, particularly at the liquidity pool level.

About The Founders

Deepbook was developed by the team at Mysten Labs, the blockchain infrastructure company which developed the Sui blockchain. Mysten Labs is a team of leading distributed systems, programming languages, and cryptography experts whose founders were senior executives and lead architects of pioneering blockchain projects. The mission of Mysten Labs is to create foundational infrastructure for web3.

Risks of DEEP

Like an investment in other crypto assets, there are some general risks to investing in DEEP. 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 DEEP is subject to the following specific risks:

• DEEP operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with DEEP. 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 DEEP community and DEEP founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of DEEP have no recourse to the DEEP community, DEEP founding team, or Uphold if DEEP 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 DEEP on the Uphold Platform, Uphold performed due diligence on DEEP and determined that DEEP 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 DEEP, 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 DEEP.
• Any marketing materials put forward by the DEEP social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with DEEP, including any code defects, security breaches and other threats concerning DEEP 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 DEEP, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of DEEP.