Why does my account have Net Purchase Limits and what are they?

Do the limits apply to me?

As required by Canadian regulation, if you live in the following provinces or territories, we must establish appropriate purchase limits on crypto assets:

Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Northwest Territories, Nunavut, and Yukon.

How are the limits calculated?

The limits are defined as "net purchase limits", meaning it tallies up all of your crypto purchases minus your sells (at average cost), over a rolling 12 month period (last 365 days).

Please refer to the table below for the applicable limits.

How are my limits determined?

We are required to ask you a few questions regarding your financial profile to determine whether you qualify as a Retail, Eligible or Accredited investor. Depending on your responses, appropriate limits will apply, pleases reference the table below.

What are the Net Purchase Limits?

If you live in one of the above provinces or territories, the following limits apply, depending on an assessment of your financial profile:

*Net purchase means your total purchases (at purchase price) minus your total sells (at average cost). 

Examples

If you are a Retail Investor, and your Net Purchase Limit is $30,000 CAD, and you purchased 10,000 Chainlink (LINK) at an average cost of $2 within the last 365 days, and you sold 5,000 LINK at the average cost of $1, your remaining limit will be $30,000 - $20,000 + $5,000 = $15,000.

Sells would only deduct against your purchases up to your maximum net purchase limit.

If you are a Retail Investor, and your Net Purchase Limit is $30,000 CAD, and you purchased 10,000 Chainlink (LINK) at an average cost of $1 within the last 365 days, and you sold 50,000 LINK at the same average cost of $1, your remaining limit will still be $30,000.