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Chainlink (LINK)

Trading Term

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Chainlink connects blockchains with real-world data through decentralized oracle networks. LINK, the protocol’s native token, was pre-minted on Ethereum and is used to compensate node operators who retrieve, verify, and deliver external data to blockchain-based applications.

Because blockchains cannot natively access off-chain information, Chainlink supplies reliable data—such as asset prices, market feeds, and other real-world inputs—used by decentralized finance (DeFi) platforms and smart contracts that require accurate pricing or event data.

For example, a smart contract could use Chainlink to access verified flight information and automatically trigger an insurance payout if a delay occurs.

Unlike smart-contract platforms themselves, Chainlink focuses on data infrastructure, enabling decentralized applications across multiple blockchain ecosystems to securely interact with external information.

Some investors view LINK as attractive because it supports many networks rather than being tied to a single blockchain.

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Investing in LINK carries significant risk, including high price volatility driven by broader crypto markets, regulatory uncertainty that could limit its use or trading, and technological risks such as smart‑contract flaws or oracle failures. Additionally, increased competition and slower‑than‑expected adoption of decentralized applications could reduce long‑term demand for the token.

Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. For more information about the risks surrounding the trading of Digital Assets please see the “Disclosure of Risks of Trading Digital Assets“.

IB is not party to any transactions in digital assets and does not custody digital assets on your behalf. All digital asset transactions occur on the Paxos Trust Company (“Paxos”) or Zero Hash LLC (“Zero Hash”) exchanges. Any positions in digital assets are custodied solely with Paxos or Zero Hash and held in an account in your name outside of IB.

Digital assets held with Paxos or Zero Hash are not protected by SIPC.

For more information about eligibility to trade digital assets with Paxos or Zero Hash, please see the FAQ.

Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services.

INTERACTIVE BROKERS LLC IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.

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