Risk Disclosure Statement (Futures/Derivatives Trading)
To our valued global Coinmy Users:
The derivatives trading services provided by the Coinmy Contract Trading Platform are characterized by high leverage and high risk. This Risk Disclosure Statement is established to inform investors of the high-leverage investment risks associated with digital asset derivatives trading, and to assist investors in assessing and determining their own capabilities.
Given the existence of investment risks, investors should carefully read this Risk Disclosure Statement before confirming this agreement and engaging in contract trading. Investors must ensure that they understand the nature and rules of contract trading and must independently decide whether to participate in contract trading based on their own investment experience, objectives, financial situation, and risk tolerance. Investors should consult legal and other independent professional advice before applying for high leverage and contract trading.
As a special investment product, the price of digital currency derivatives is influenced by multiple factors and is subject to significant fluctuations, which investors may find difficult to fully grasp in actual operations. Therefore, there is a possibility of investment errors. If risks cannot be controlled effectively, substantial losses may be incurred. Investors must bear sole responsibility for all losses resulting therefrom.
1. Trading Risks
Investors need to understand that derivatives trading is characterized by high leverage, which may lead to rapid profits or losses. If the direction of the trade is contrary to market fluctuations, it will result in significant losses.
Depending on the extent of losses, investors may need to add digital currency margin or reduce positions. Otherwise, their positions may be subject to forced liquidation, and investors must bear all resulting losses.
Once a limit order submitted by an investor in the exchange’s trading system is executed, it is irrevocable, and the investor must accept the risks that this method may entail.
The Exchange does not guarantee profits to investors and will not share gains or jointly bear risks with investors.
2. Policy and Regulatory Risks
Digital asset derivatives trading may face policy and regulatory risks in certain jurisdictions. Investors must exercise careful judgment based on an understanding of the regulatory background in the trading region before proceeding with the transaction.
3. Other Potential Risks
When users utilize high leverage, it poses significant risks to the user themselves and to the market. Therefore, to maintain market stability, the Platform monitors the positions of users employing high leverage. When the Platform determines that a user's position may cause a significant impact on market stability, it will take corresponding measures, including but not limited to communication, risk disclosure, mandatory position reduction, mandatory liquidation, etc., and will provide the user with a written explanation.
The rules for derivatives trading in the digital asset derivatives market, including but not limited to adjustment factors, expiry dates, and product rules, may be amended based on the Platform's actual operating conditions. If the Platform needs to advance or postpone delivery of a product due to special circumstances, after fulfilling its obligation to notify users through an announcement on the official website or via SMS, users must promptly manage their positions. Any potential losses or gains resulting therefrom shall be borne by the user.
Reminder:
Investors must thoroughly understand the basic knowledge and associated risks of digital currency contract trading, as well as all relevant business rules of the derivatives exchange before participating.
The risk items mentioned in this Risk Disclosure Statement are for illustrative purposes only and do not exhaustively list all risk factors related to digital asset derivatives trading. Investors should also diligently understand and master other potential risk factors before investing in digital asset derivatives trading.
We sincerely hope and advise investors to prudently decide whether to participate in this contract trading and rationally allocate their digital assets, based on their actual circumstances, such as their risk tolerance.