Coinsquare Capital Markets Inc. (“Bitbuy”) is offering crypto contracts to purchase and sell Avalanche in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the exemptive relief decision dated October 12, 2022. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.

No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare Capital Markets Ltd (CCML)’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare Capital Markets Ltd (CCML) has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.

Launched in 2020 by Ava Labs (founded by Emin Gün Sirer, Kevin Sekniqi, and Maofan "Ted" Yin), Avalanche is a layer-one blockchain platform that functions as a highly scalable ecosystem for decentralized applications (dApps) and custom blockchain networks. Avalanche utilizes a unique multi-chain architecture—consisting of the Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain)—to provide high throughput and sub-second finality. This structure allows the network to process thousands of transactions per second with significantly lower fees than legacy smart contract platforms, mitigating issues like network congestion and high gas costs.

As with all assets, investing in Avalanche is not without some general risks. Many of these risks are identified and explained in our Risk Statement.

The relevant sections in the Risk Statement are as follows:

Platform Risk, Short History Risk, Price Volatility, Potential Decrease in Global Demand for Digital Assets, Potential for Illiquid Markets, Transfers of Digital Assets are Irreversible, Concentration Risks, Uncertainty in Regulation, Financial Institutions May Refuse to Support Transactions Involving Digital Assets, Digital Assets’ Blockchain May Temporarily or Permanently Fork and/or Split, Cyber-Security Risk, Airdrops, Issues with Cryptography Underlying Digital Asset Networks, Internet Risk, Open Loop System, Risk if Entity Gains a 51% Share of Digital Asset Network, Possible Increase in Transaction Fees, Possible Increase in Service Fees, Limited Canadian Investor Protection Fund Account, No Voting Rights, Custody of Digital Assets, Custody Risk Insurance, Threats to Bitbuy’s Physical Assets, Covid-19 Outbreak, Use of Leverage, Halting, Suspending, and Discontinuing Digital Assets.

In addition to the general risks, we outline some risks that are specific to Avalanche below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in Avalanche.

AVAX has a capped maximum supply of 720 million tokens. The network employs a deflationary mechanism where all transaction fees are burned rather than paid to validators, permanently removing those tokens from circulation. As of early 2026, over 4.5 million AVAX tokens have been burned. This continuous reduction of the circulating supply relative to the maximum cap may influence the asset's price and long-term scarcity, which should be considered by any potential investor.

The Avalanche platform utilizes a unique mechanism for consensus. The Snow protocol aims to merge the best features of classic consensus protocols with the best properties of the Nakamoto consensus. Since this consensus mechanism is unique to the Avalanche platform, it is important that investors are confident in its ability to remain secure against any attacks.