Dear 3EX user:
Before using the 3EX exchange, please carefully read this Risk Warning Statement. Digital asset trading involves high risks, and you should carefully evaluate your risk tolerance and make prudent trading decisions. This Risk Warning Statement only outlines common risk factors in digital asset trading and cannot include all possible risk factors. Please understand and consider your own risk tolerance carefully. In case of any discrepancies between the Chinese text of this Risk Warning Statement ("Statement") and any translated version, the English version shall prevail.
Preface
This Statement aims to disclose the high investment risks of digital asset trading to investors and help investors evaluate and determine their own abilities. Given the existence of investment risks, investors should carefully read this Statement before confirming the agreement and conducting futures contract trading, and make sure they understand the nature and rules of futures contract trading. Based on their investment experience, objectives, financial situation, and risk-bearing capacity, they should decide whether to participate in futures contract trading.
Investors should seek legal and other independent professional advice before applying for high leverage contract trading.
Suitable investors
Digital asset trading involves high leverage and high risk, and is only suitable for professional investment institutions, experienced investors, or investors who can fully understand all risks related to digital asset trading and bear the full or partial loss of account funds caused by investment errors.
Genreral Risks
Price Volatility Risk
The price of digital assets is highly volatile and may be affected by various factors such as news, policies, and market sentiment, resulting in significant price fluctuations. This means that the price of digital assets may fluctuate rapidly and may result in significant losses. Investors must be aware of the risks associated with price volatility. Investors should make prudent and rational investment decisions after fully understanding the relevant knowledge of digital assets, market risks, and their risk tolerance.
Trading Risk
Trading digital assets is a high-risk activity. In the digital asset market, prices may be affected by various factors, including but not limited to market and policy risks, information dissemination and technological risks, market liquidity and trading volume risks, among others. During digital asset trading, you may incur partial or total losses, including but not limited to trading fees, handling fees, liquidity costs, market risks, and other losses. Before trading, you should have a comprehensive understanding of the basic information of the relevant digital assets, their price volatility, liquidity, and other basic characteristics, and carefully evaluate your risk tolerance.
2.1 Investors need to understand that futures contract trading has the characteristics of high leverage and high risk, which may lead to rapid profits or losses. If the trading direction is opposite to the market fluctuations, it may result in significant losses. Depending on the amount of loss, investors need to increase digital currency margin or reduce their positions, otherwise their positions may be forcibly liquidated, and investors should bear all losses incurred.
2.2 On the 3EX exchange, investors can submit different types of orders such as limit orders, market orders, conditional orders, etc. However, once the order is executed, it is irreversible, and investors should bear the risks that may arise from this method.
2.3 The exchange does not guarantee investors' profits, and we do not make any form of guarantee or commitment to any investor's trading results. Investors should bear the risks arising from this themselves.
Policy and Regulatory Risks
The derivative trading of digital assets may face policy and regulatory risks from specific jurisdictions. Investors should fully understand the policy and regulatory background of the corresponding regions before trading and make careful judgments and prudent decisions.
At the same time, the regulatory policies of digital assets are constantly changing, and these changes may cause sharp fluctuations in digital asset trading prices, extreme decreases in liquidity, damage to investors' interests, and even lead to the inability of the trading platform to continue operating. Therefore, investors need to understand and comply with the policies and regulations of their jurisdiction and closely monitor the impact of policy changes. Investors should bear the losses that may be caused by policy and regulatory risks.
Technical Risks
On our platform, digital asset trading is carried out through electronic communication tools such as the Internet, which may be affected by various technical issues such as network failures, software and hardware equipment failures, and hacker attacks, all of which may cause losses to investors during trading. We will do our best to ensure the stability and security of the platform, but we cannot guarantee that there will be no technical problems or unexpected situations.
Other Risks
5.1 Liquidity Risk: The digital asset market may experience situations such as price drops and lack of liquidity, which may make it difficult for investors to buy or sell digital assets in a timely manner, resulting in trading losses.
5.2 Fee Risk: Digital asset trading may involve various fees such as transaction fees and withdrawal fees, which will affect the investor's returns.
5.3 Availability Risk: We cannot guarantee that 3EX services will be available at all times or that 3EX services will not experience unplanned service interruptions or network congestion. It is possible that you may not be able to purchase, sell, store, transfer, send or receive digital assets when you want to.
5.4 Security Risk: 3EX cannot eliminate all security risks. It is your responsibility to protect the security of your 3EX account password and to be responsible for all transactions under your 3EX account, whether or not you have authorized them. Transactions in digital assets may be irreversible, and losses due to fraud or unauthorized transactions may not be recoverable.
The risk items mentioned in the above statement are only illustrative, and all risk factors related to digital asset derivative trading are not exhaustively listed. Before participating in digital asset trading, investors should also carefully understand and master other possible risk factors.
Digital asset trading is highly risky and unpredictable, and may be influenced by various uncontrollable factors. Investors should carefully assess their own risk tolerance, reasonably allocate digital assets, make conscious decisions, and bear investment risks on their own.