Token Description & Project Background

Phala Network is a decentralized data storage network built within the Polkadot ecosystem. Its creators describe their mission as "tackling the issue of trust in the computation cloud."

Phala Network boasts of being a community-driven, confidential smart contract network.

The network is enabled by a TEE-Blockchain Hybrid Architecture. It runs as a parachain of the Polkadot ecosystem and is based on Substrate.

According to its whitepaper, Phala supports cross-chain integration.

PHA is the network's native asset used for incentivizing security and facilitating governance.

Phala was founded in 2018 by the Phala Network Foundation. The project is led by former Google Software Engineer Hang Yin.

Risks of PHA

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

• Any potential success associated with PHA depends on the Phala Network’s rate of adoption, and the continued growth and security of the Polkadot network.

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

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.