Dear contract users:
Since the derivatives trading service provided by Coinstore trading platform is highly leveraged and risky, users are required to agree to the content of this Agreement when activating highly leveraged derivative trading. This action also indicates users' complete understanding of and consent to the trading risks of crypto asset derivatives traded in Coinstore. The Chinese version of this Risk Warning shall prevail for any discrepancies.
The purpose of this Risk Warning is to reveal contract users the contract risks of high leverage in crypto asset derivatives trading, and to help investors evaluate and determine their own bearing capability. In view of the existence of investment risks, before confirming this Agreement and conducting contract trades, investors shall read this Risk Warning carefully, ensure that they understand the nature and rules of relevant contract trades, and decide at their own discretion whether to participate in contract trades according to their own investment experience, objectives, financial status and risk bearing capacity.
Contract users shall seek legal advice and other independent professional opinions before applying for high leverage and contract trade.
Applicable Contract Users
Crypto asset derivatives trading is highly leveraged and risky, and is only suitable for professional contract institutions or users with rich experience in contract trade, or those who can fully understand all risks related to crypto asset derivatives trading and can bear partial or total loss of account funds caused by contract failures.
- Risk of price fluctuation
As a special valuable contract product, the price of digital currency derivatives is affected by many factors with large price fluctuation, which makes it difficult for contract users to fully grasp the market in actual operation. Therefore, there is the possibility of investment mistakes. If the risks cannot be effectively controlled, great losses may be incurred, and contract users must solely bear all the losses caused thereby.
- Trading risk
(1) Contract users need to understand that derivatives trading is characterized by high leverage, which may lead to quick payoff or loss. If the trading direction is opposite to the fluctuation of the market, great losses may be incurred. According to the size of the loss, investors need to add digital currency margin or reduce their positions, otherwise their positions may be subject to forced liquidation, and investors must bear all the losses caused thereby.
(2) In the trading system of the exchange, the limit orders submitted by the contract users are irrevocable once closed, and investors must accept the risks associated with it.
(3) The exchange will not make payoff guarantee to the contract users, and will not share the profits or risks with investors.
- Risk of policy supervision
Crypto asset derivatives trading may face the risk of policy supervision in certain jurisdictions. Before trading, contract users shall make prudent judgments on the premise of understanding the policy supervision background of the trading area.
- Other possible risks
(1) Using high leverage will bring great risks to users and the market. Therefore, in order to maintain market stability, the platform will monitor the positions of users using high leverage. When the platform judges that users' positions may have a great impact on market stability, it will take corresponding measures, including but not limited to communication, revealing risks, forced reduction, forced liquidation, canceling orders, early delivering and settling, etc., and issue the users a written explanation.
(2) Derivatives trading rules in the crypto asset derivatives market, including but not limited to adjustment coefficient, maturity date and product rules may be modified according to the actual operation of the platform. If the platform needs to advance or lag the settlement of product due to special circumstances, users shall deal with their own positions in a timely manner after the platform fulfills its obligation of informing by means of announcement in official website or SMS notification, and all possible losses or gains caused thereby shall be borne by the users.
- Before participating in contract trade, contract users must thoroughly understand the basic knowledge and related risks of contract trade in crypto currency, as well as the business rules related to participating in derivatives exchanges.
- The above-mentioned risk items in this Risk Warning are merely part of all the risk factors related to crypto asset derivatives trading that cannot be exhausted. Before participating in crypto asset derivatives trading, contract users shall also understand and master other possible risk factors.
- We sincerely hope and suggest that contract users prudently decide whether to participate in this contract trade based on their actual conditions such as risk tolerance, and rationally allocate their crypto assets.