Based describes itself as a Web3 consumer app built on Hyperliquid's execution environment that combines perpetuals trading, spot trading, prediction markets, and real-world crypto spending through a Visa Card into one self-custodial interface.

Project Function

Based operates as a trading and spending platform on the Hyperliquid L1 blockchain. Users can trade perpetuals and spot markets, access prediction markets via Polymarket integration, and spend crypto at merchants through the Based Visa Card. The platform uses a proprietary routing engine called BestPath for trade execution across liquidity sources. It is available on Web, iOS, Android, and Desktop.

BASED Utility

The BASED token is an ERC-20 token on Ethereum with a fixed supply of 1,000,000,000. The token is used for staking within the platform and participating in ecosystem rewards and community campaigns. Approximately 235,000,000 BASED (23.5% of total supply) is currently in circulation, with the remainder subject to a vesting schedule extending to 2029.

About the Founders

Based is a product of SHA2 Labs Pte Ltd, a Singapore-registered company. Co-founders include Edison Lim (CEO), who previously served as Application Lead at Zilliqa and holds degrees from Carnegie Mellon University and Singapore Management University, and Zac L., also from Singapore Management University. The company previously operated as Suberra before pivoting to the Based model.

Risks of BASED

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

• No publicly disclosed third-party security audit of the BASED smart contract or the Based platform has been identified. While the token operates as a standard ERC-20 on Ethereum, the absence of a public audit is a notable gap.
• The Exchanger smart contract includes administrative roles (DEFAULT_ADMIN_ROLE and ADMIN_ROLE), indicating centralized control over certain contract functions such as pausing or upgrading.
• The Based platform runs on Hyperliquid L1, which has a more limited and permissioned validator set compared to established Layer 1 networks. Platform infrastructure (front-end, backend, Visa Card integration) remains centralized under SHA2 Labs.
• No formal decentralized governance mechanism for BASED has been announced. Protocol updates and development decisions are managed by the SHA2 Labs core team.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with BASED. 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 BASED community and SHA2 Labs founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of BASED have no recourse to the BASED community, SHA2 Labs founding team, or Uphold if BASED 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 BASED on the Uphold Platform, Uphold performed due diligence on BASED and determined that BASED 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 BASED, 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 BASED.
• Any marketing materials put forward by the BASED social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with BASED, including any code defects, security breaches and other threats concerning BASED 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 BASED, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of BASED.