Dear XXKK User:
The derivative trading services provided by the contract trading platform involve high leverage and high risks. This risk disclaimer aims to inform investors about the risks associated with high leverage in digital asset derivative trading and to assist investors in assessing and determining their own capacity. Due to the inherent investment risks, before confirming this agreement and engaging in contract trading, investors should carefully read this risk disclosure statement and ensure that they fully understand the nature and rules of contract trading. Investors should make their own decision regarding participation in contract trading based on their investment experience, goals, financial situation, and risk tolerance. Prior to applying for high leverage and engaging in contract trading, investors should consult legal and other independent professional advice.
Suitable Investors
Digital asset derivative trading involves high leverage and high risks, making it suitable only for professional institutional investors or individuals with substantial investment experience who fully understand the risks associated with digital asset derivative trading. These investors must be able to bear the partial or total loss of their account funds due to investment errors.
Existing Risks
1. Price Volatility Risk
Digital currency derivatives, as a special type of investment product, are affected by a variety of factors, and their prices exhibit significant volatility. Investors may find it difficult to fully grasp these price fluctuations during actual trading, which could result in potential investment errors. If risks are not effectively managed, substantial losses may occur, and investors must bear all losses caused by such volatility.
2. Trading Risk
Investors must understand that derivative trading is characterized by high leverage, which can lead to rapid gains or losses. If the market moves against the position taken by the investor, significant losses may be incurred. Depending on the extent of the loss, investors may be required to add digital currency margin or reduce their position. If not, positions may be forcibly liquidated, and investors must bear all losses incurred.
Orders placed on the exchange's trading system are irrevocable once executed, and investors must accept the risks associated with this process.
The exchange does not guarantee profits for investors and does not share in the profits or bear the risks of losses.
3. Policy and Regulatory Risk
Digital asset derivative trading may be subject to regulatory risks in certain jurisdictions. Before engaging in trading, investors should carefully evaluate the regulatory environment of the jurisdiction in which the trading is taking place.
4. Other Possible Risks
When users utilize high leverage, significant risks may arise for both the users themselves and the market. In order to maintain market stability, the platform will monitor the positions of users employing high leverage. If the platform determines that a user’s position may adversely affect market stability, appropriate actions will be taken, including but not limited to communication, risk disclosure, forced reduction of position, and forced liquidation, with a written explanation provided to the user.
The rules governing digital asset derivative markets, including but not limited to adjustment coefficients, expiration dates, and product rules, may be modified according to the platform’s actual operations. In the event the platform needs to adjust product delivery dates (either in advance or delayed), after informing users through the website or SMS notifications, users are required to adjust their positions accordingly. Any resulting losses or gains due to such changes will be borne by the users.
Notice:
Investors must thoroughly understand the basic knowledge of digital currency contract trading, the associated risks, and the business rules of derivative trading platforms before participating.
The risks mentioned in this risk disclosure are not exhaustive and do not fully cover all potential risks of digital asset derivative trading. Before participating in such trading, investors should diligently understand and assess any other potential risks.
We sincerely advise and recommend that investors make prudent decisions about whether to participate in contract trading, based on their actual risk tolerance and financial situation. Investors should carefully allocate their digital assets.