This Risk Disclosure Statement (“Statement”) is designed to inform investors about the risks tied to digital asset derivatives products, assisting them in evaluating their personal risk tolerance. Before engaging in highly leveraged futures contracts, investors are strongly encouraged to consult independent professionals or seek legal advice.
By accessing, registering, or utilizing any part of BlockFin.com (“BlockFin”) and its services (“Services”), you confirm that, after obtaining independent professional guidance, you have fully read, comprehended, and accepted all risks associated with trading Digital Assets and their derivatives.
Terms referenced here carry the same definitions and interpretations as outlined in the BlockFin Terms of Use, available at https://blockfin.com/terms.
Who Should Participate
Trading digital asset derivatives involves significant leverage and risk, making it appropriate only for professional investment entities, seasoned investors, or individuals with a thorough grasp of related risks. It is intended solely for those prepared to take full accountability for losses resulting from their investment choices.
Understanding the Risks
PARTICIPATING IN THE TRADING OR INVESTMENT OF DIGITAL ASSETS AND THEIR DERIVATIVES COULD RESULT IN THE COMPLETE LOSS OF YOUR FUNDS, ASSETS, OR POSITIONS, WITH NO GUARANTEE OF RECOVERY OR COMPENSATION.
1. Eligible Investors and Responsibility
Only those capable of bearing the financial consequences of poor investment decisions should engage in digital asset derivatives trading. Losses are entirely the investor’s responsibility.
2. Market Volatility Risk
The value of digital currency derivatives can swing dramatically due to numerous influencing factors, making it challenging for investors to react in real time. Such unpredictability may lead to substantial losses, for which investors must assume full liability.
3. Leverage and Transaction Risk
High leverage in derivatives trading can amplify both gains and losses rapidly. If market movements oppose your position, losses may escalate, requiring additional margin or position adjustments to avoid liquidation. Investors bear all responsibility for resulting losses or forced closures. Once executed, limit orders in the trading system cannot be canceled, and investors must accept any associated risks.
4. Liquidity Challenges
Digital Assets might lack sufficient liquidity, hindering your ability to sell or exit positions when desired. This risk, heightened during sharp price shifts, could lead to significant financial setbacks.
5. 24/7 Market Dynamics
Digital Asset markets operate continuously, 24 hours a day, 7 days a week and digital asset markets experience rapid price changes at any hour, including outside standard business times, adding to monitoring difficulties.
6. Bubble and Confidence Risk
Digital asset markets may face irrational exuberance or sudden drops in confidence, potentially triggering steep and swift value declines.
7. Service Availability
Services may experience unexpected outages or network delays, and we cannot assure constant availability. This could prevent you from trading, transferring, or managing Digital Assets when needed.
8. Fees Impacting Returns
Costs and charges, detailed at https://blockfin.com/fees, may change at BlockFin’s discretion. These expenses influence your overall gains or losses, so familiarize yourself with them.
9. Security Vulnerabilities
While BlockFin strives to maintain security, no system is immune to all threats. You are accountable for safeguarding your account password, and any transactions—authorized or not—under your account are your responsibility. Digital Asset transactions are final, with losses from fraud or unauthorized actions often unrecoverable.
10. Third-Party Involvement
Services may rely on external entities like payment processors or custodians, subject to their terms. You are subject to the terms and conditions of these third parties. BlockFin is not liable for losses caused by these third parties.
11. Communication Uncertainty
Electronic interactions with us may be delayed, insecure, or fail to reach us/you, posing risks to timely decision-making.
12. Regulatory and Policy Shifts
Trading digital asset derivatives might encounter regulatory hurdles in some regions. BlockFin may halt services in response to legal or policy changes, and investors must assess these risks independently, as BlockFin bears no responsibility for such disruptions.
13. Legal and Valuation Impact
Shifts in legislation can unpredictably alter Digital Asset values, with effects varying across markets.
14. Currency Exchange Fluctuations
Changes in exchange rates between currencies can affect your profits or losses.
15. Uninsured Assets
Unlike bank deposits, Digital Assets on BlockFin lack government or private insurance, offering no protection against loss or theft.
16. Tax Considerations
Trading Digital Assets may trigger tax obligations, which can be complex and subject to retroactive changes. Compliance is your responsibility.
17. Nature of Digital Assets
Digital Assets lack status as legal tender and are not supported by governments or physical assets, with their worth driven purely by market forces, heightening volatility.
18. Platform Oversight
BlockFin functions as a crypto trading platform, and is not your broker, dealer, or advisor, potentially reducing user safeguards in disputes or losses.
19. High Leverage Oversight
Excessive leverage increases risks for both users and BlockFin. To ensure market stability, we may monitor and intervene in high-leverage positions—through actions like forced reductions or liquidations—if deemed harmful, with or without prior notice. All resulting outcomes are borne by the user. BlockFin may, but is not obligated to, send any notifications to you on the measures taken.
20. Rule Adjustments
Trading rules, including but not limited to expiration dates or coefficients, may shift/modified based on operational needs. Early or delayed product delivery, announced via website or e-mail, requires prompt user action, with any gains or losses solely the user’s burden.
Important Notes
The risk factors mentioned in this statement are not exhaustive and all risk factors related to digital assets derivatives trading are not listed in detail. BlockFin does not promise profits or share in investors’ risks or gains. Other unforeseen issues may arise, and investors should carefully consider other possible risks before participating.
We sometimes offer factual insights on procedures and risks but do not provide tailored advice. YOUR CHOICE TO USE BLOCKFIN AND SERVICES IS ENTIRELY YOUR OWN. Information from us is not investment, financial, or trading advice. You alone determine if a strategy suits your goals, finances, and risk tolerance. BlockFin holds no advisory role or fiduciary duty, nor do we track if our services align with your objectives. Assessing your financial capacity and risk appetite is your responsibility.
Investors should thoroughly understand digital currency trading basics, associated risks, and BlockFin’s operational rules before proceeding.
Final Warning
BlockFin urges investors to weigh their participation in Digital Asset trading carefully, allocating assets wisely based on their risk tolerance and financial situation. As a platform for crypto products, we emphasize that derivatives trading carries significant risk. Evaluate if BlockFin suits you by reviewing our Terms of Use (https://blockfin.com/terms), Privacy Policy (https://blockfin.com/privacy)