Risk Disclosure
Important information about trading risks you must understand
Documentation
Critical Risk Warning
Trading perpetual futures involves substantial risk of loss and may not be suitable for all investors.You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.
You may lose more than your initial investment. Past performance is not indicative of future results. This document does not constitute investment advice.
Understanding the Risks
Market Risk
The value of your positions can fluctuate rapidly due to market volatility.
- • Currency exchange rates are highly volatile
- • Economic events can cause sudden price movements
- • Market sentiment can change rapidly
- • Liquidity can vary significantly
Leverage Risk
Leverage amplifies both profits and losses, potentially exceeding your initial investment.
- • Small price movements can result in large losses
- • Higher leverage increases liquidation risk
- • Margin calls may require additional funds
- • Forced liquidation can occur without notice
Liquidation Risk
Your positions may be automatically closed if margin requirements are not met.
- • Liquidation can happen rapidly in volatile markets
- • You may lose your entire margin
- • Liquidation fees may apply
- • No guarantee of execution at liquidation price
Technology Risk
Technical issues may affect your ability to trade or manage positions.
- • Platform downtime or connectivity issues
- • Order execution delays or failures
- • Data feed interruptions
- • Cybersecurity threats
Specific Risks of Perpetual Futures
Funding Rate Risk
Perpetual futures have funding rates that can result in additional costs or income. These rates can be unpredictable and may significantly impact your returns, especially for long-term positions.
No Expiration Risk
Unlike traditional futures, perpetual contracts don't expire. This means positions can be held indefinitely, but ongoing funding costs and market risks continue to accumulate.
Basis Risk
The price of perpetual futures may deviate from the underlying spot price, creating basis risk. This deviation can be significant during volatile market conditions.
Regulatory and Legal Risks
Cryptocurrency and derivatives trading regulations are evolving and may change without notice:
- • Regulatory changes may affect platform operations
- • Tax implications may vary by jurisdiction
- • Legal status of digital assets may change
- • Cross-border regulatory compliance requirements
- • Potential restrictions on trading activities
⚠️ Before You Start Trading
- • Only trade with money you can afford to lose completely
- • Understand all features and risks before trading
- • Start with small positions and low leverage
- • Develop and stick to a risk management plan
- • Consider seeking independent financial advice
- • Regularly review and understand all terms and conditions
Risk Management Recommendations
Essential Practices
- • Always use stop-loss orders
- • Never risk more than 1-2% per trade
- • Diversify your trading strategies
- • Keep detailed trading records
- • Regularly review performance
- • Stay informed about market conditions
Warning Signs
- • Emotional decision making
- • Increasing position sizes after losses
- • Ignoring risk management rules
- • Trading with borrowed money
- • Overconfidence after wins
- • Neglecting other responsibilities
📚 Educational Resources
We strongly recommend educating yourself before trading:
- • Read our complete trading guide
- • Practice with demo accounts
- • Study market analysis techniques
- • Learn about risk management strategies
- • Join trading communities and forums
- • Consider professional trading courses