Dear WEEXer,
The derivatives trading provided by the WEEX futures trading platform features high leverage and carries a high level of risk. This risk warning is intended to highlight the investment risks associated with high-leverage digital asset derivatives trading and to help you assess your risk tolerance. In view of investment risks, you should carefully read this Risk Warning before agreeing to this agreement and conducting futures trading to ensure you fully understand the nature and rules of futures trading. You should carefully consider your investment experience, investment objectives, financial situation and risk tolerance prior to making any high-risk investment. You should seek legal advice and/or other independent professional guidance before engaging in high-leverage futures trading.
Suitable Investor Types
Digital asset derivatives trading involves high leverage and carries significant risks. It is suitable for only certain types of investors such as professional investment institutions, individuals with extensive investment experience, and investors who fully understand the associated risks and are able to withstand partial or total loss of funds in their accounts due to trading mistakes.
Potential Risks
- Price Volatility Risks
- Digital asset derivatives are special investment products that are subject to extreme price fluctuations due to being influenced by multiple factors. Such volatility makes accurate prediction challenging in practice, exposing investors to the risk of investment failures. Failure to implement effective risk controls may result in substantial losses. Investors shall bear full responsibility for the resulting losses.
- Trading Risks
- Investors should be fully aware and acknowledge that derivatives trading involves high leverage, which may lead to rapid profits or losses. If a trader's position is in the opposite direction from market conditions, it would result in a huge loss. Depending on the extent of the losses, investors may have to increase their margin in digital assets or reduce position size or risk liquidation, with investors themselves liable for all resultant losses.
- Limit orders submitted through the exchange’s trading system become irrevocable once they are filled, and investors assume full responsibility for associated risks.
- WEEX neither guarantees profits nor shares profits or risks with investors.
- Regulatory Risks
- Digital asset derivatives trading may be subject to regulatory risks within certain jurisdictions. Investors must make prudent judgments by evaluating the regulatory environment of their jurisdiction.
- Other Potential Risks
- High-leverage usage may amplify risks for both users and market stability. To maintain market stability, WEEX will monitor high-leverage positions and implement measures, including but not limited to communication, risk warnings, partial liquidation, or full liquidation if positions pose significant risks to market stability. WEEX will provide written explanations for any such actions.
- WEEX reserves the right to adjust derivatives trading rules, including adjustment coefficients, expiry dates, and product rules, based on operational requirements. In exceptional circumstances requiring delivery date adjustments, WEEX will notify users via official announcements or SMS. Users must promptly make adjustments to their positions. Any potential losses or profits arising therefrom shall be the sole responsibility of the user.
Risk Warning:
- Investors must fully understand the basic knowledge and associated risks of digital asset futures trading, and product rules prior to engaging in derivatives trading.
- The listed risks in this Risk Warning are non-exhaustive, and do not include all potential risk exposures inherent to digital asset derivatives trading.It's essential for investors to understand the risks and potential consequences of trading derivatives before getting involved.
- Investors are strongly recommended to exercise informed judgement regarding participation in futures trading and manage their portfolios based on their risk tolerance and other personal circumstances.
Thank you for supporting WEEX!
The WEEX Team
Official website/sign-up and download link
WEEX Resources
WEEX video tutorial: https://bit.ly/3IkuVQA
WEEX Help Center: https://weexsupport.zendesk.com/hc/en-us
[Official Channel]
WEEX Official Telegram Group: https://t.me/weex_group
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