Crypto Asset Statement: 0x (ZRX)
Last updated: March 30, 2023
About this Statement
CatalX CTS (“Catalyx” or “we”) strives to provide our users with information to assist in understanding crypto assets that are offered for trading on the Catalyx platform (the “Platform”). One of the crypto assets we offer on the Platform is 0x (ZRX). This summary sets out certain key information about ZRX as well as some of the risks involved in trading it. While we tried to describe the key features of ZRX here, this summary doesn’t provide all relevant information on ZRX. We encourage users to perform their own research in order to understand any crypto asset that they intend to trade on the Platform.
History & Characteristics of 0x (ZRX)
What is 0x (ZRX)?
The 0x protocol is the product of a company called ZeroEx Inc., co-founded by Will Warren and Amir Bandeali. It is a decentralized exchange protocol which developers can use to build their own cryptocurrency exchanges. 0x has created a protocol for anyone in the world to operate a decentralized exchange. It is an alternative to traditional centralized crypto trading platforms. However, the purpose of 0x is not just cryptocurrency exchange; 0x’s goal is to power the creation of a tokenized world where all value can flow freely—even assets which are illiquid, like property.
0x seeks to build a global financial system which is more efficient, transparent, and equitable than traditional systems. 0x can be integrated into any existing application where exchange is a feature such as: games with in-game currencies or items, digital wallets whose users wish to exchange tokens, and portfolio management programs.
ZRX is an ERC-20 token and is 0x’s native governance and staking token. With 0x, users can create markets for crypto assets representing any form of value. These can include markets for tokens representing physical real estate, tokens representing shares and bonds, or tokens representing other crypto assets. One of these crypto assets is ZRX. ZRX is used to incentivize 0x users to host and maintain order books. An order book is a ledger containing all outstanding orders where crypto assets are to be purchased off of a creator’s exchange. ZRX is used to compensate 0x users for performing such services.
ZRX is subject to a number of risks that apply to many crypto assets, descriptions of these risks can be found in our Risk Disclosure Statement. We emphasize that this Crypto Asset Statement and the Risk Disclosure Statement do not contain an exhaustive list of all risks associated with trading ZRX, and in addition, do not take into account an individual’s particular situation or risk tolerance. We encourage all Catalyx users to perform their own due diligence to assess the risks associated with ZRX and to determine whether this level of risk is acceptable to them.
How Catalyx determines which Crypto Assets to List
Catalyx has established robust policies and procedures to review each crypto asset offered for trading on the Platform. Among other information, we review available public information relating to the crypto asset on the following topics prior to making a determination on whether a crypto asset will be listed:
The history and characteristics of the crypto asset including whether the crypto asset was launched by ICO;
Analysis of the founders or inventors of the crypto asset/related network and a review of their ongoing involvement with crypto asset/network;
How the crypto asset functions including a review of its utility or purpose;
The market liquidity for the crypto asset;
The current and proposed governance of the ecosystem on which crypto asset operates with a focus on the level of decentralization of such ecosystem; and
The position taken by any regulator with respect to the crypto asset including any enforcement action taken against the crypto asset, the related network, or the founders.
In addition to the above we also conduct an analysis of factors weighing in favor or against the crypto asset being deemed to be a security based on Canadian securities laws.
No securities regulatory authority in Canada has expressed an opinion about ZRX or any of the other crypto contracts or crypto assets made available through the Platform, including an opinion that ZRX itself is not a security and/or derivative. Changes to applicable law may adversely affect the use, transfer, exchange, or value of any crypto contracts or crypto assets you hold on the Platform.
Certain statutory rights under securities legislation in Canada do not apply in respect of this Crypto Asset Statement.