Token Description & Project Background

Built on the Cosmos blockchain, Kava is a cross-chain Decentralized Finance (DeFi) lending platform. Users deposit assets, borrow stablecoins and earn yield.

KAVA is the platform’s native token used for governance. It also serves as a reserve currency. The KAVA token launched in 2019.

Kava features a  "co-chain architecture" that combines the speed and interoperability offered by the Cosmos SDK with the flexibility and developer support of the Ethereum Virtual Machine (EVM).

Kava Labs was founded by Brian Kerr, Ruaridh O’Donnell and Scott Stuart in 2018. Brian acts as the CEO of the platform, previously hailing from Snowball and DMarket. Kava Labs, Inc. is a Nevada based company.

Risks of KAVA

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

• The DeFi lending space faces intense competition. Any potential success associated with KAVA depends on KAVA’s rate of adoption.
• Kava has never issued a whitepaper.

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

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.