Risk

ii) Digital Asset Transfers and Volatility

Trading in Digital Assets can be extremely risky and volatile. Digital Assets may have unique features that make them more or less likely to fluctuate in value. Factors beyond the Platform's control, such as regulatory activity or unexplainable price volatility, may affect market liquidity for a particular Digital Asset. Blockchain networks may go offline as a result of bugs, Forks, or other unforeseeable reasons. As a general matter, you should not engage in active trading on the Platform if you have limited trading experience or low risk tolerance. Speculating on the value of Digital Assets is a high risk, and you should never trade more than you can afford to lose. Understanding Digital Assets requires advanced technical knowledge. Digital Assets are often described in exceedingly technical language that requires a comprehensive understanding of applied cryptography and computer code in order to appreciate the inherent risks. The listing of a Digital Asset on the Platform does not indicate the Platform's approval or disapproval of the underlying technology of any Digital Asset and should not be used as a substitute for your own understanding of the risks specific to each Digital Asset. We provide no warranty as to the suitability of the Digital Assets traded under the Terms and assume no fiduciary duty to you in connection with such use of the Services. You accept all consequences of sending Digital Assets to an address outside of the Platform. Digital Asset transactions may not be reversible. Once you send Digital Assets to an address, you accept the risk that you may lose access to your Digital Assets indefinitely. For example, an address may have been entered incorrectly, and the true owner of the address may never be discovered, or an address may belong to a person that will not return your Digital Assets or may return your Digital Assets but first require action on your end, such as verification of your identity or compensation.

iii) Supply and Value of Digital Assets

The value of Digital Assets may be derived from the continued willingness of market participants to exchange Digital Assets for fiat currency and other Digital Assets, which may result in the permanent and total loss of value of a particular Digital Asset should the market for that Digital Asset disappear. You acknowledge and agree that Digital Assets and/or Services (in whole or in part) available in one jurisdiction may not be available for trading, use or access, as applicable, in another.

iv) Complex Products

Trading of complex products, including but not limited to Futures Contracts and Options Contracts (collectively, "Complex Products"), may not be suitable for all Users. Complex Product trading is designed to be utilised only by sophisticated Users, such as active traders employing dynamic strategies. You should use extreme caution when trading Complex Products and only trade them if you understand how they work, including but not limited to the risks associated with margin trading, the use of leverage, the risk of shorting, and the effect of compounding and market volatility risks on leveraged products. Complex Product trading entails significant risk, and you may feel the effects of losses immediately. Complex Product trading requires the initial posting of collateral to meet initial margin requirements. If movements in the markets for a Complex Product or the underlying Digital Asset decrease the value of your position in such a Complex Product, you may be required to have or make additional collateral available as a margin to ensure that maintenance margin requirements are met. If your Account is under the minimum margin requirements, your position may be liquidated at a loss, and you may lose all of your Assets in your Account. If there are any additional deficits in your Account, you will also be liable for all such deficits. USERS WHO DO NOT UNDERSTAND LEVERAGE OR MARGIN TRADING, OR DO NOT INTEND TO MANAGE THEIR PORTFOLIO ACTIVELY, SHOULD NOT ENGAGE IN COMPLEX PRODUCT TRADING. THE PLATFORM AND ITS AFFILIATES DO NOT TAKE ANY RESPONSIBILITY WHATSOEVER FOR ANY LOSSES OR DAMAGE INCURRED AS A RESULT OF YOUR USE OF ANY COMPLEX PRODUCT TRADING SERVICES OFFERED ON THE PLATFORM OR YOUR FAILURE TO UNDERSTAND THE RISKS ASSOCIATED WITH COMPLEX PRODUCT TRADING.

v) Blacklisted Addresses and Forfeited Assets

The Platform reserves the right to "blacklist" certain addresses and freeze associated Assets (temporarily or permanently) that it determines, in its sole discretion, are associated with illegal activity or activity that otherwise violates the Terms ("Blacklisted Addresses"). In the event that you send Assets to a Blacklisted Address or receive Assets from a Blacklisted Address, the Platform may freeze such Assets and take steps to terminate your Account. In certain circumstances, the Platform may deem it necessary to report such suspected illegal activity to applicable law enforcement agencies and other Regulatory Authorities, and you may forfeit any rights associated with your Assets, including the ability to redeem or exchange your Digital Assets for other Digital Assets or fiat currency. The Platform may also freeze Assets held in your Account in the event that we receive a related order or request from a legal or Regulatory Authority.

vii) Reliance on Third Parties

Your use of the Services and the value of certain Digital Assets may rely on the acts of third parties or the fulfilment of related obligations by third parties. The Platform is not responsible for the acts or omissions of such third parties.

viii) Digital Asset Distributions Not Supported

Certain Digital Assets are built on protocols that support Digital Asset Distributions, including, but not limited to, Forks, Staking Rewards and Airdrops. The Platform is not obligated to support any such Digital Asset Distributions for Users. If you hold these Digital Assets in your Account, you thereby forfeit the ability to claim any Digital Asset Distributions from the Platform. If you hold Digital Assets with proof-of-stake or delegated proof-of-stake consensus algorithms, the Platform may, in its sole discretion, stake these Digital Assets without any obligation to distribute Staking Rewards to you. Staking may subject your Digital Assets to additional risks, and the Platform is not liable for losses you may incur related to staking.

ix) Liquidity Risk.

Markets for Digital Tokens can at times become what is known as “illiquid,” which means there can be a scarcity of persons who are willing to trade at any one time. Thinly traded or illiquid markets have a potential increased risk of loss because they can experience high volatility of prices. In such markets, market participants may find it impossible to liquidate market positions except at very unfavourable prices. There is no guarantee that the markets for any Digital Token will be active and liquid or permit you to establish or liquidate positions in the Digital Tokens when desired or at favourable prices.

x) Derivative Product Market Risk

Derivative Products are new products. There is little experience with these markets from which to judge how they will behave in the future. You should pay close attention to your market positions and holdings. Market positions in Derivative Products can be impacted by sudden and adverse shifts in market trading and pricing. Under certain market conditions, it can be difficult or impossible to protect against the risk of loss from open Derivative Product positions because it may not be possible to enter into transactions, post Margin Collateral, or liquidate positions when desired without significant losses. Contingent orders, such as “stop-loss” or “stop-limit” orders, if permitted at all, may not necessarily limit losses to the expressed amount, and market conditions may make it impossible to execute an order or to obtain the stop price. Under certain market conditions, Derivative Products may trade at prices that do not correlate or are inconsistent with the prices of the underlying Reference Asset. The Platform makes no representations or warranties about whether a Derivative Product will always continue to trade. Any Derivative Product is subject to delisting without prior notice or consent.

ii) Risks Relating to Platform Downtime and IT Maintenance

The Platform may, from time to time, perform maintenance on the Trading Platform, routine or otherwise. This may lead to platform downtime and lack of access to the Trading Platform, potentially resulting in a delay or cancellation of a submitted Order yet to be processed and Orders placed during maintenance or downtime, and the inability for an Exchange User to submit new or change existing Orders.

ii) Regulatory Changes

Legislative and regulatory changes or actions at the domestic or international level may adversely affect the use, transfer, ability to transact in, and value of Digital Assets, or your access to, and our ability to provide, the Services. You acknowledge and accept the risks that such changes may bring and that the Platform is not liable for any adverse impact that you may suffer as a result.

iii) Conflict of Interests

The Platform charges fees for trading and therefore benefits from trading activity (sometimes called volume) regardless of whether the trading is profitable to you. The Platform and its Affiliates have certain actual or potential conflicts of interest related to the decision to support or not support a Digital Token or increase or decrease the scope of the Services made available for such Digital Token. The Platform’s Associates may trade or operate businesses that trade in the peer-to-peer market and use other Services on a proprietary basis or on behalf of others. These offers and trades are not distinguished from other offers and trades in the peer-to-peer market, and the Platform’s Associates may be a counterparty to any trade executed by you without your knowledge. The Platform has no duty to act on your behalf and undertakes no responsibility to do so.

iv) Legal risks.

The legality of Digital Tokens, trading of them, leveraging them, or trading or leveraging them on behalf of others may not be clear and may vary under the laws of different jurisdictions. This can mean that the legality of holding or trading Digital Tokens, entering into related leverage transactions, or engaging in the foregoing on behalf of others is not always clear. Whether and on what basis a Digital Token may constitute the property, an asset, or a right of any kind and what may constitute lawful leverage provision might vary from one jurisdiction to another. You are responsible for knowing and understanding how the laws applicable to you or your property, rights or assets or to lending address, limit, regulate, and tax the Digital Tokens you trade, the leverage you provide, or the trading or funding in a Delegated Subaccount.

ii) the market for Digital Assets is new, uncertain and may not grow;

iii) Digital Assets are highly speculative in nature and are not as established as other asset classes;

iv) Digital Assets are volatile and are traded continuously with no limitations on price fluctuations;

v) trading in Digital Assets may lead to a partial or total loss in your capital;

vi) actions by third parties such as market makers or governments may have a large impact on Digital Assets;

vii) Digital Asset trading is not suitable for the vast majority of people;

viii) although we strive to comply with all applicable laws, rules and regulations, we may not be regulated in all jurisdictions that we operate in; and

ix) there may be other unpredictable or derivative risks aside from the abovementioned.

Please consider your own financial position before using the Services and if necessary, seek independent legal, financial, tax, accounting or other advice.