The derivative trading services provided by BitDa involve high leverage and high risk. This risk disclaimer is designed to highlight the high-leverage investment risks associated with digital asset derivatives trading and to assist investors in evaluating their own risk tolerance. Given the investment risks, investors should carefully read this risk disclosure before confirming this agreement and engaging in contract trading. They should ensure a full understanding of the nature and rules of contract trading and decide whether to participate based on their own investment experience, objectives, financial situation, and risk tolerance. Investors should seek legal and other independent professional advice before engaging in high-leverage and contract trading.
Suitable Investors
Digital asset derivatives trading, with its high leverage and risk, is only suitable for professional investment institutions, individuals with extensive investment experience, or investors who can fully understand the associated risks and have the ability to bear partial or total loss of their account funds due to investment mistakes.
Key Risks
Price Volatility Risk
Digital currency derivatives, as a specialized product with investment value, are subject to various factors affecting their prices, leading to significant volatility. Predicting the price movements in actual operations is difficult, which poses the risk of investment errors. If risks are not effectively controlled, significant losses may occur, and the investor must bear all losses arising from such circumstances.
2. Trading Risk
Investors must fully understand the high leverage characteristic of derivatives trading, which can lead to rapid profits or losses. If the direction of the trade goes against market fluctuations, significant losses may occur. Depending on the extent of the loss, investors may need to add digital currency margin or reduce their positions. Otherwise, their positions may face forced liquidation, and the investor will bear all losses arising from such situations.
Limit orders submitted in the exchange system are irreversible once executed, and investors must bear the risks associated with them.
The exchange does not guarantee any profits for investors, nor will it share profits or bear risks with investors.
3. Policy and Regulatory Risk
Digital asset derivatives trading may face specific regulatory risks within certain jurisdictions. Investors should make prudent decisions based on an understanding of and evaluation of the regulatory environment of the location where the trading takes place.
4. Other Potential Risks
When users employ high leverage, it may pose significant risks to themselves and the market. To maintain market stability, the platform will monitor the positions of high-leverage users and may take appropriate measures, including but not limited to communication, risk disclosure, forced position reduction, and forced liquidation, if their positions are deemed to significantly affect market stability. Written explanations will be provided to the users.
The trading rules for digital asset derivatives markets, including but not limited to adjustment coefficients, expiry dates, product rules, etc., may be adjusted according to the actual operation of the platform. If the platform needs to adjust the settlement date due to special circumstances, it will fulfill its notification obligation through official website announcements or SMS notifications. Users should adjust their positions promptly. Any potential losses or gains resulting from this will be borne by the users.
Risk Warning:
Investors must fully understand the basic knowledge of digital currency contract trading, the associated risks, and the business rules for participating in derivatives trading before taking part.
The risks listed in this risk disclosure are only a part of the risks involved and do not cover all possible risks in digital asset derivatives trading. Investors should fully understand and assess other potential risks before engaging in digital asset derivatives trading.
We strongly recommend that investors make prudent decisions based on their risk tolerance and other actual circumstances before participating in contract trading and allocate their digital assets accordingly.