The ORBS blockchain project is a "Layer-3" public blockchain infrastructure that utilizes  Proof-of-Stake (PoS) consensus.  It is designed to operate as a separate, decentralized execution layer situated between Layer-1/Layer-2 solutions and the application layer, as part of a tiered blockchain stack, without moving liquidity onto a new chain. This setup allows ORBS to enhance existing smart contracts by providing additional capabilities not available directly on L1 or L2 networks. This positions ORBS as a decentralized backend that facilitates better scalability and performance across existing EVM and non-EVM smart contracts.

ORBS uses a multi-chain Proof-of-Stake model that supports staking on Ethereum and Polygon. Its governance involves a community of token holders, Delegators, who can stake their ORBS tokens, selecting "Guardians" to maintain network security and uphold its operational integrity. These Guardians are elected through the PoS mechanism and contribute to the consensus and security of the network​.

ORBS introduces innovative trading protocols, including dLIMIT and dTWAP, designed to emulate traditional financial market mechanisms like limit and time-weighted average price orders within decentralized exchanges (DEXs). 

The ORBS token serves a number of functions within the ecosystem, including: staking, governance, transaction/service fees, and rewards for Delegators and Guardians.

The ORBS mainnet launched in March 2019, and was co-founded by Tal Kol, Uriel Peled, and Netanel Lev. 

Risks of ORBS

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

The Layer-3 space is a competitive, emerging sector within blockchain technologies. ORBS will face a high level of competition, and its potential success is reliant on the extent to which the Orbs Network blockchain is adopted by enterprises, developers, and other users. 

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

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

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