Token Description & Project Background

StaFi (short for ‘Staking Finance’) is a cross-chain, liquid staking derivatives platform for all Proof-of Stake (PoS) chains. 

Users can stake Proof-of-Stake network tokens on StaFi, and gain rewards in the form of 'rTokens’. ‘rTokens’ represents a liquid version of the staked asset, which can be used across the DeFi ecosystem. For instance, if a user stakes XTZ, they will be allocated rXTZ tokens.

FIS is the network’s utility token. It is used to cover transaction costs, mint and redeem rTokens, participate in governance, and secure and validate the network through staking.

FIS was first sold publicly in September 2020.

The project was founded by Young Liam, Tore Zhang & DaJun in 2018.

Risks of FIS

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

• StaFi faces competition from other staking protocols. Any potential success associated with FIS depends on StaFi’s rate of adoption. 

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

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.