Token Description & Project Background

Flow Network is a permissionless Proof-of Stake Layer-1 blockchain that relies on a global network of FLOW holders to operate the blockchain. It is designed to provide the necessary infrastructure for developers, large studios, and individuals to create games, applications, and non-fungible tokens (NFTs). 

It was founded by Roham Gharegozlou, Dieter Shirley and Mikhael Naayem and is based in Vancouver, BC. They raised private capital in 2019 and launched the Flow playground (blockchain) in 2020. 

FLOW is the network’s native token and is used for transaction-fee settlements, node-validator compensation, and governance. 

The Flow Network was developed by Dapper Labs. 

Risks of FLOW

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

• The Layer-1 blockchain space faces significant competition. Any potential success will depend on the extent of FLOW’s’s adoption by studios and developers. 
• The Flow network relies on a global network of FLOW holders to operate the blockchain. Any potential success will rely on the efforts of a global community of miners and developers contributing to the network. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with FLOW. 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 FLOW community and core team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of FLOW have no recourse to Dapper Labs, the Flow Network’s core team, developers, or Uphold if FLOW 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 FLOW on the Uphold Platform, Uphold performed due diligence on FLOW and determined that FLOW 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 FLOW, including ensuring the source code being open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of FLOW.
• Marketing materials put forward by the FLOW social team including, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with FLOW, including any code defects, security breaches and other threats concerning FLOW 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 FLOW, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of FLOW. 

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 2, 2023.