Dear Futures User,
Since the derivative trading services provided by Coinstore involve high leverage and risk, users must agree to the contents of this agreement when engaging in high-leverage derivative trading. This action also indicates that the user fully understands and accepts the risks of engaging in crypto asset derivative trading on Coinstore. In case of any discrepancies, the Chinese version of this Risk Disclosure shall prevail.
Preface
This Risk Disclosure is intended to inform futures users of the risks associated with high-leverage futures trading in crypto asset derivatives and to help investors evaluate and determine their own tolerance levels. Given the existence of investment risks, investors should carefully read this Risk Disclosure before confirming this agreement and conducting futures trading. They must ensure they understand the nature and rules of such trading, and, based on their investment experience, objectives, financial status, and risk tolerance, independently decide whether to participate in futures trading.
Futures users should seek legal and other independent professional advice before applying for high leverage and futures trading.
Applicable Users
Crypto asset derivative trading carries high leverage and high risk. It is suitable only for professional institutions or users with extensive experience in futures trading, or for those who fully understand all risks associated with crypto asset derivative trading and are capable of bearing partial or total losses of their account funds resulting from unsuccessful trades.
Risks Involved
- Price Volatility Risk As a special type of valuable contract product, the prices of crypto asset derivatives are influenced by various factors and are highly volatile. This makes it difficult for futures users to fully control the market in practice. Therefore, investment errors are possible. If risks cannot be effectively managed, substantial losses may occur, and futures users must bear all such losses themselves.
- Trading Risks (1) Futures users need to understand that derivative trading is characterized by high leverage, which may lead to rapid gains or losses. If the trading direction is contrary to market movements, significant losses may occur. Depending on the extent of the loss, investors may be required to add more margin or reduce their positions; otherwise, their positions may be forcibly liquidated, and investors must bear all resulting losses. (2) Within the exchange’s trading system, once a futures user’s limit order is executed, it cannot be revoked, and investors must accept the risks associated with this. (3) The exchange does not guarantee any profits to futures users and does not share in investors’ profits or risks.
- Policy and Regulatory Risks Crypto asset derivative trading may face policy and regulatory risks in certain jurisdictions. Before trading, futures users should carefully assess these risks based on an understanding of the regulatory environment in their trading region.
- Other Possible Risks (1) The use of high leverage imposes significant risks on both users and the market. To maintain market stability, the platform will monitor the positions of users engaging in high-leverage trading. If the platform determines that a user’s positions may have a significant impact on market stability, it will take appropriate measures, including but not limited to communication, risk disclosure, forced position reduction, forced liquidation, order cancellation, early delivery, and settlement. A written explanation will be provided to the user. (2) The trading rules of crypto asset derivatives—such as adjustment factors, expiration dates, and product specifications—may be modified according to the platform’s actual operations. If, due to special circumstances, the platform needs to settle products early or delay settlement, users must handle their positions promptly after the platform fulfills its announcement obligation, and bear all resulting losses or gains.
Important Matters
- Before participating in futures trading, users must have a comprehensive understanding of the fundamentals of crypto futures trading, its associated risks, and the business rules of derivative exchanges.
- The risks mentioned in this Risk Disclosure represent only part of the risks associated with crypto asset derivative trading. They do not cover all possible risk factors. Before participating, futures users should also be aware of and prepared for other potential risks.
- We sincerely hope and advise futures users to carefully consider whether to participate in futures trading based on their actual circumstances (such as risk tolerance) and to allocate their crypto assets rationally.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultancy, or any other related services, nor is it advice to purchase, sell, or hold any assets. The Coinstore Learn provides information for reference purposes only and does not constitute any investment advice. Please ensure a thorough understanding of the risks involved and invest cautiously. All user investment activities are unrelated to this platform.