Jito Network is a permissionless liquid staking protocol, designed to address the adverse impacts of Maximum Extractable Value (MEV). Jito's primary mission is to equitably redistribute MEV profits among stakers, offering a novel approach to staking and rewards on the Solana blockchain.

Jito enables users to stake their SOL tokens in exchange for JitoSOL, a liquid derivative that symbolizes staked assets, and provides rewards from transaction revenue associated with MEV extraction. Through the Jito Stake Pool, staked assets are delegated to MEV-enabled validators. These validators, by engaging in transaction re-ordering and arbitrage, generate profits that enhance the Annual Percentage Yield (APY) for JitoSOL holders. This integration allows users to enjoy the benefits of staking yields and MEV rewards.

JitoSOL optimizes capital efficiency through its integration with DeFi platforms. Holders of JitoSOL can generate income from validators and simultaneously accrue interest through lending protocols or yield farming. 

JitoSOL undergoes comprehensive audits and operates on a non-custodial basis. This ensures that holders maintain control over their deposited SOL and accumulated rewards, even if Jito ceases operations. The protocol addresses risks associated with validator selection and fee management through a multi-signature process, requiring consensus among the founding team for significant changes.

The JTO token is used for certain elements of governance, allowing token holders to participate in decisions including setting fees for the JitoSOL stake pool, managing the DAO’s treasury, and contributing to the ongoing development of Jito’s protocols and products.

Risks of JTO

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

Jito Network Protocol 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. 

Jito Network relies on a global network of JTO holders, contributors, and validators to develop and operate the network and its associated ecosystem. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with JTO. 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 JTO community and Jito Network’s founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of JTO have no recourse to the JTO community, Jito Network founding team, or Uphold if JTO 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 JTO on the Uphold Platform, Uphold performed due diligence on JTO and determined that JTO 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 JTO, 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 JTO.

Any marketing materials put forward by the JTO social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.

Material technical risks associated with JTO, including any code defects, security breaches and other threats concerning JTO 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 JTO, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of JTO.