Jupiter Describes Itself As

Jupiter is a leading swap aggregation engine built on the Solana network. Initially launched as a liquidity aggregator for token swaps, Jupiter has expanded its product suite to include several defi products, including: limit orders, DCA/TWAP strategies, a bridge comparator for efficient cross-chain transfers, and perpetuals trading. Jupiter is also developing its own stablecoin, SUSD, which is collateralized by Solana liquid staking tokens (LSTs). SUSD not only proposes a more decentralized approach to stablecoins, but serves as a model for interest-free loans, wherein the SOL used as collateral generates yield. 

JUP, the governance token of the Jupiter ecosystem, allows token holders to approve, sanction, and vote on aspects of the platform. JUP has a total supply of 10 billion, with 50% allocated to the Jupiter team and 50% to the community. 40 billion JUP (40% of total supply), is set to be distributed via 4 rounds of airdrops, the first of which took place on January 31, 2024, rewarding the approximately 955 000 wallets that interacted with the protocol prior to November 2, 2023. 

Risks of JUP

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

• Jupiter 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. 
• Jupiter relies on a global network of JUP holders, contributors, and validators to develop and operate the network and its associated ecosystem. 
• The Jupiter team remains anonymous/pseudonymous, with one of the co-founders simply known on X by his handle, “Meow.”

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

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 February 1, 2023.