Token Description & Project Background

Numeraire (NMR) is a blockchain-based hedge fund that uses AI and crowd-sourced trading algorithms.

NMR is the protocol’s native currency. It’s an ERC-20 token that helps secure the network via validator staking. The NMR token launched in February 2017.

Backed by Renaissance Technologies co-founder Howard Morgan, the protocol aims to place a decentralized spin on popular quantitative trading strategies, according to Messari. The project’s core offering is The Numerai Tournament, a monthly competition in which users design and submit bespoke trading algorithms designed to predict the stock market. Numerai allows users to stake NMR to the model they feel will offer the best performance.

These models are subsequently scored for accuracy, with the best-performing ones combined to form a ‘meta model’ on which the Numerai Hedge Fund trades the stock market. Users are rewarded with additional NMR for making correct predictions; on the other hand, those who bet incorrectly see their stake burned.

Further NMR is provided to users on account of the fund’s performance. 

Signals is another one of Numerai’s offerings in which participants submit and vote on trading signals. Depending on the signals' level of predictive value, users get rewarded with NMR.

Numeraire was founded in December 2015 in San Francisco by Richard Craib (CEO & Founder). His professional career started with founding Numerai and has taken him to a Forbes 30 under 30 designee position.

Risks of NMR

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

• Any potential success associated with NMR depends on Numeraire’s rate of adoption by users.

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

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 19, 2023.