This Risk Disclosure Statement is intended to inform you of certain risks associated with using the "AlphaX" trading platform (hereinafter referred to as the "Trading Platform") and its services (hereinafter referred to as the "Services"). The information provided herein is not comprehensive and does not cover all potential risks or other critical factors you should consider before deciding to use the Services. It is crucial that you assess whether to access or use the Services and consult with independent advisors for any advice you deem necessary, including financial and/or legal counsel.

 

By using or accessing any platform or service provided by AlphaX, you acknowledge and agree that you are fully aware of the risks outlined below. You accept that AlphaX will not be liable for any loss or damage incurred (either directly or indirectly) from the use of or access to the Trading Platform or Services mentioned.

 

  1. Financial Risks

1.1 Trading Risk

You use the Services at your own discretion, including but not limited to Spot and Derivatives services provided by AlphaX. There is no guarantee of profitable returns from using these Services, nor can it be assured that substantial losses will be avoided, or that your goals will be met. Contracts executed on the Trading Platform are margined and settled in digital assets, like BTC and stablecoins.

Contracts executed on this Trading Platform are high-risk derivatives that demand a certain level of relevant expertise. You should only fund your own wallet and trade with digital assets that you own and can afford to lose. There is a risk that you might lose most or even the entirety of your capital. Ensure that you only engage in transactions with assets that are legally yours and whose potential loss you are prepared to handle. There is a significant risk that you might deplete most or even the entirety of your funds. Additionally, the use of some of the Services involves a high risk of loss inherently associated with the contracts that are available for trading. Therefore, you should carefully consider your capacity to handle potential financial losses before deciding to use the Services, especially when it comes to trading derivatives.

The Trading Platform aims to ensure that the maximum risk for users concerning their position(s) does not surpass the digital assets they have committed to the relevant position(s) (including fees, funding, margin and/or premium). A user will have a single net position in any given contract at any time. Should a position be liquidated, the digital assets designated as margin for that position will be lost, potentially to the extent of the user's entire account balance. For details of the forced liquidation process, please refer to the information available on our website and in the Trading Guide.

1.2 Price Volatility

The prices of digital assets often exhibit extreme fluctuations and unpredictability, more so than traditional assets like stocks and bonds. You should not trade digital assets derivatives unless you understand their nature and the extent of your exposure to risk. Any spreads or other fees associated with the contracts may make them more volatile in an unexpected and unpredictable way.

1.3 Liquidity Risk

Digital assets derivatives, including those on this Trading Platform, tend to be riskier, have less liquidity and are more susceptible to a wide range of influences including economic, market, political, industry, regulatory, and more, compared to other types of derivatives. Market liquidity for contracts can vary based on several factors such as supply and demand on the Trading Platform, and both commercial and speculative interests in these markets. Given that these contracts are traded on a closed trading system, there's a possibility of encountering limited trading volume and liquidity. A lack of liquidity in any market for contracts may lead to delays in order execution and some orders may not execute at all; particularly with larger orders.

1.4 Asset Deposit and Withdrawal Risk

It is your responsibility to verify that the address used for deposits, withdrawals, or transfers is accurate and appropriate for the specific digital asset you wish to transfer, and that it is an accepted address for deposits at AlphaX. Any mistakes in the designated address or the digital asset that you attempt to transfer between addresses, may lead to the complete loss of the involved digital assets.

Any digital assets transferred to or between your account(s) can only be used for margin or withdrawal purposes when it has been credited to your account. According to our policies and procedures, digital assets are credited to your account after a certain number of block confirmations. AlphaX reserves the sole discretionary right to decide whether to credit any transfer of digital assets to your account.

The period between block confirmations and the crediting of funds to an account depends on various factors, some of which are beyond our control. We do not guarantee or assure specific timeframes for deposits or transfer to be credited or for a withdrawal to be confirmed.

For example, deposits and/or withdrawals may not be credited or may be delayed in the following situations:

  • Delays, high traffic volume, or technical issues affecting the relevant network;
  • Network fees allocated to a transaction may not be sufficient to ensure that your transaction is confirmed according to your expectations (any network fees we may deduct or suggest for withdrawals is not a recommendation or assurance in respect of the processing time of any transaction(s)).
  • System processing times may increase due to high traffic, technical issues, or other factors.
  • You are believed to be engaging in suspicious activities or violating the Terms of Service.

If a deposit is not credited to your account, and you are unable to control the risk of your position or order, there may be a risk of loss.

The underlying protocols of digital assets may change or cease to operate due to changes in their underlying technology or changes resulting from an attack. These changes include but are not limited to "forks," "rollbacks," and "airdrops." Any such changes or failure to perform any applicable protocol may dilute the value of your digital asset(s) and/or your positions, potentially leading to a total loss. AlphaX does not support such changes (unless the company decides to do so at its discretion). Any assets (or other digital tokens or assets) that you may expect to be distributed or transferred to you may not be credited or transferred to your account, leading to a total loss of those assets, with no right to claim or seek compensation.

1.5 Information Accuracy Risk

While AlphaX strives to keep all provided information as up-to-date and accurate as possible, there is still a risk that some information may be outdated, incomplete, not yet updated, or inaccurately translated.

  1. Regulatory Risk

2.1 General Regulatory Risk

The regulatory environment for cryptocurrencies and other digital assets is continuously evolving. Generally, the application and interpretation of existing laws and regulations are often largely untested, and how they will be applied is still uncertain. New laws and regulations applicable to blockchain technology, digital assets, and related service providers will be enacted in the future, but there is no guarantee that such changes will not adversely impact digital assets or related services in general. It is unpredictable how these changes will affect the price and liquidity of digital asset derivatives, general digital assets, or the Services.

Regulatory actions can negatively affect cryptocurrencies and other digital assets in various ways, such as, for purposes of illustration only, determining that a digital asset or its derivatives, with retrospective or prospective effect, are regulated financial instruments that must be registered or licensed in certain jurisdictions. In such cases, AlphaX would have to prohibit users from trading on the platform based on their citizenship, residence, or location. This action could be commercially unsustainable or legally prohibited and may significantly affect the price and liquidity of cryptocurrencies.

Before using the Services, it is ultimately your responsibility to ensure compliance with all local regulations, directives, restrictions, and laws in your place(s) of residence. We strictly declare that we do not allow users from jurisdictions where the use of such Services is prohibited (including, but not limited to, any restricted jurisdictions that are sometimes listed in US or international sanctions lists such as OFAC, FATF, etc., as having unacceptable risks of money laundering or terrorist financing) to use the Services. We do not offer or solicit the use of the Services to any person located in any of the abovementioned restricted jurisdictions or any jurisdictions where the use of the Services is not authorized or is otherwise prohibited by local laws.

You are responsible for managing your own tax and legal affairs, including submitting any regulatory documents and making payments in compliance with applicable laws and regulations. We do not provide any regulatory, tax, or legal advice.

  1. Cyber Risks

3.1 Cybersecurity Risk

Malicious individuals, groups, or organizations may attempt to disrupt the AlphaX trading platform in various ways that could negatively impact the operation of the platform, the availability of the Services, and the value of contracts traded on the Trading Platform. These disruptions include, but are not limited to, malware attacks, denial of service attacks, coordinated attacks, account takeovers, and submission of fake transactions (including fraud).

As reliance on technology and computer systems grows to support essential business operations, digital assets and the Services become exposed to risks associated with operational and information security. Typically, cybersecurity incidents stem from intentional attacks or accidental events. Cyberattacks include, but are not limited to, unauthorized entry into digital systems to steal assets, expose sensitive data, damage information, or disrupt operations. Additionally, cyberattacks might not even require unauthorized access, as seen in denial-of-service attacks that target infrastructure. Cybersecurity failures or breaches of the third-party service providers (including, but not limited to, software providers, cloud service providers, index providers, administrators, and transfer agents) could negatively affect digital assets and the Services.

You are responsible for ensuring (i) the security and confidentiality of your access credentials (including your email, username, and password) as well as any hardware, software, or passwords used for two-factor authentication, and (ii) the security and integrity of any systems (hardware and software) or services you use to access the Services.

3.2 Platform IT Maintenance Risk

AlphaX may, from time to time, perform routine or other types of maintenance on the Trading Platform. This may result in downtime and inability to access the Trading Platform, potentially leading to delay or cancellation of pending order, as well as the inability to place orders during maintenance or downtime. Additionally, trading users will not be able to submit new or modify existing orders.

  1. Accessing Risks

Utilizing mobile and/or web-based trading technologies entail inherent risks, including potential latency in price updates and other connectivity-induced issues (including but not limited to the usage of mobile networks). Prices displayed on the Trading Platform serve as indicative rates only and cannot be construed as executed or executable prices for orders.

The Trading Platform relies on public communication network circuits for message transmission. AlphaX assumes no responsibility for delays in price quoting or inability to trade due to network transmission problems or restrictions beyond our control, including but not limited to mobile signal strength, network latency, and other issues between users and service providers. Moreover, certain Trading Platform features may be unavailable on mobile applications.

AlphaX mobile applications may require you to download and install the latest version or the version compatible with your device’s operating system. Failure to update may render some services (including trading features) inaccessible until a successful update occurs. Utilizing AlphaX mobile applications on devices with customized or non-standard operating software or additional software installations may give rise to performance issues and security risks.

  1. Language of Use

This Risk Disclosure Statement may be published in multiple languages. In the event of any discrepancy between the English version and those in any other language, the English version shall prevail.