Futures Trading Risk Reminder

Customer Specialist Team
Updated

Dear CoinEx users, CoinEx futures is a leveraged crypto derivative with high risks. Hence, the user must fully understand the risks involved in futures trading and the trading rules on CoinEx. By using CoinEx Futures trading, you acknowledge that you are aware of and accept all associated risks including but not limited to below.

1. Risk of Price Fluctuation

Cryptocurrency derivatives are special investment products. Affected by various factors, crypto price is subject to wild fluctuations.

Therefore, you are presented with difficulties in comprehensively grasping the market, which may lead to investment mistakes. Should huge losses occur due to poor risk management, the user is solely responsible.

 

2. Risk of Forced Liquidation

The user must understand that cryptocurrency derivatives are highly leveraged with the potential of huge profit and loss over a short period. If the market moves against the users' choice, it may incur significant losses. Depending on the situation, the user should add margins or reduce the position.

Otherwise, forced liquidation may occur and the user is solely responsible for the consequences.

 

3. Risk of Irrevocable Orders

Orders cannot be revoked once executed. The user must accept the risks involved. In addition, CoinEx will not guarantee profits, or share any gains and risks with the user.

 

4. Risk of Regulatory Landscape

In certain jurisdictions, trading cryptocurrency derivatives exposes the user to regulatory risk. Hence, the user should understand the local regulations before making investment decisions.

 

5. Force Majeure

The user is liable for losses caused by failures to fill or execute the order due to any factors beyond our control, including but not limited to force majeure events such as earthquakes, floods, fires, and system failures.

 

6. Other Potential Risks

Trading with high leverage may pose high risks to the market and the users themselves. To maintain market stability, CoinEx will monitor high-leverage positions and take necessary measures, including but not limited to risk reminder, forced underweight, and forced liquidation, supported by written explanations.

Disclaimer: The content provided on this website is for informational purposes only and does not constitute investment advice. The information provided is not intended to be a substitute for professional financial advice, consultation, or recommendations. Users are encouraged to consult with a qualified financial advisor before making any investment decisions. The website owners and authors do not assume any liability for any loss or damage that may result from reliance on the information provided. All investments carry risk, and past performance is not indicative of future results.