This Risk Disclosure Statement (hereinafter as 'Statement') aims to reveal to investors the investment risks of digital asset derivatives products and to help investors assess and determine their own risk appetite.
Investors shall seek legal assistance or help from independent professionals before engaging in highly leveraged futures contracts transactions.
By registering, using or otherwise accessing Blofin.com Services or any part or parts related thereto, you are deemed to have, after seeking independent professional advice, read, understood, and accepted every and all risks associated with trading of Digital Assets and/or its derivatives in their entirety.
Derivatives transactions for digital assets are highly leveraged and bear substantial risk. As such, it is only suitable for professional investment institutions, experienced investors, or those who fully understand the risk related to derivatives transactions of digital assets. Most importantly, derivatives transactions of digital assets are only suitable for those who can assume responsibility for loss of funds due to any investment decisions made.
BY INVESTING IN OR OTHERWISE PARTAKING IN THE TRADING OF DIGITAL ASSETS AND/OR THEIR DERIVATIVES, YOU RISK LOSSING THE ENTIRETY OF YOUR ASSETS/FUNDS/POSITIONS WITHOUT ANY POSSIBILITY OF RESTITUTION OR RECOVERY.
1. Risk of Price Fluctuation
As a special product with investment value, the price of digital currency derivatives is affected by many factors, and the price fluctuates greatly as a result. It is difficult for any investor to fully acknowledge or respond to the effect of these variables in real-time, so there is the possibility of poorly-made investment decisions. As risk cannot be effectively controlled, investors may suffer great losses and should bear all responsibility for any loss that occurs.
2. Transaction Risk
Investors should understand that derivatives trading is characterised by high leverage, which may lead to quick profits or losses. If the direction of the transaction is opposite to the fluctuation of the market, it will cause a larger loss. Investors may increase the digital currency margin or reduce their positions, to prevent the possibility of a liquidation. In either scenario, investors must bear all responsibility for any loss or liquidation/closout that occurs.
In the exchange's trading system, the limit order submitted by the investor is irrevocable once the transaction is executed, and the investor must accept the risks that may be brought about by this mechanism.
The exchange does not guarantee profit to its investors, nor does it bear the responsibility of profit or risk with investors.
3. Policy and Regulatory Risk
Digital asset derivatives trading may face policy regulatory risks in certain jurisdictions. Blofin.com may exerciese its discretion to discontinue any or all of its services in certain jurisdictions due to a change in policy, laws and regulations, or regulatory environment. Investors should make prudent judgments and ensure they understand the policy and regulatory background of the relevant jurisdictions before trading. Blofin.com does not bear any liability as a result of change in aforesaid policy, regulatory environment, laws, or regulations.
4. Liquidity risk
Digital Assets may have limited liquidity which may make it difficult or impossible for you to sell or exit a position when you wish to do so. This may occur at any time, including at times of rapid price movements, in which case you may suffer great financial losses to your funds.
5. Fees & Charges
Our fees and charges are set out https://blofin.com/en/fee. Blofin.com may, in its discretion, update the fees & charges from time to time. Please be aware of all costs and charges that apply to you, because such costs and charges will affect the gains you generate or losses you may suffer from using Blofin.com Services.
6. Availability Risk
We do not guarantee that the Blofin.com Services will be available at any particular time or that Blofin.com Services will not be subject to unplanned service outages or network congestion. It may not be possible for you to buy, sell, store, transfer, send or receive Digital Assets, or close your positions when you wish to do so.
7. Third Party Risk
Third parties, such as payment providers, custodians, and banking partners may be involved in the provision of Blofin.com Services. You may be subject to the terms & conditions of these third parties, and Blofin.com may not be responsible for any loss that these third parties may cause to you.
8. Security Risk
It is not possible for Blofin.com to eliminate all security risks. You are responsible for keeping your Blofin.com Account password safe, and you may be responsible for all the transactions under your Blofin.com Account, whether you authorised them or not. Transactions in Digital Assets is irreversible, and losses due to fraudulent or unauthorised transactions may not not recoverable.
9. Monitoring Risks
Digital Asset markets are open 24 hours a day, 7 days a week. Rapid price changes may occur at any time, including outside of normal business hours.
10. Communication Risks
When you communicate with us via electronic communication, you should be aware that electronic communications can fail, can be delayed, may not be secure and/or may not reach the intended destination.
11. Exchange Rate Risks
Currency exchange fluctuations will impact your gains and losses.
12. Legal Risk
Changes in laws and regulations may materially affect the value of Digital Assets. This risk is unpredictable and may vary from market to market.
13. Other Relevant Risks
When a user uses high leverage, it can bring greater risk to the user and Blofin.com. Therefore, in order to maintain market stability, Blofin.com will monitor the positions of users who use high leverage. When Blofin.com determines that the user's position may cause harm to the user or other positions on Blofin.com, appropriate measures will be taken by the exchange including, but not limited to, communication, risk disclosure, forced position reduction and forced liquidation. Blofin.com may, but is not obligated to, send a notification to the user on the measures taken.
Derivatives trading rules in the digital asset derivatives market, including, but not limited to, adjustment coefficients, expiration dates and product rules, can be modified according to the actual operation of Blofin.com. If Blofin.com needs to deliver products earlier or later due to special circumstances, after fulfilling the obligation of notification by means of announcement on the official website or SMS, the user must tend to their own position in a timely manner. Any possible loss or gain caused thereby shall be borne by the user alone.
Investors must have a detailed understanding of the basic knowledge and related risks of digital currency contract transactions and the business rules related to participating in derivatives exchanges before trading.
The risk factors mentioned in this Statement are not exhaustive, and all risk factors related to digital asset derivatives trading are not listed in detail. Before investing in digital asset derivatives trading, investors should also seriously consider other possible risks.
We do not provide personal advice in relation to our products or services. We sometimes provide factual information, information about transaction procedures and information about the potential risks. HOWEVER, ANY DECISION TO USE OUR PRODUCTS OR SERVICES IS MADE SOLY BY YOU. No communication or information provided to you by Blofin.com is intended as, or shall be considered or construed as, investment advice, financial advice, trading advice, or any other sort of advice. You are solely responsible for determining whether any investment, investment strategy or related transaction is appropriate for you according to your personal investment objectives, financial circumstances and risk tolerance. Blofin.com is not your broker, intermediary, agent, or advisor and has no fiduciary relationship or obligation to you in connection with any trades or other decisions or activities undertaken by you using Blofin.com Services. We do not monitor whether your use of Blofin.com Services is consistent with your financial goals and objectives. It is up to you to assess whether your financial resources are adequate for your financial activity with us, and to your risk appetite in the products and services you use.
Blofin.com sincerely hopes and suggests that investors will prudently decide whether to participate in Digital Asset transaction and allocate their Digital Assets reasonably based on their own conditions, such as risk tolerance and financial capabilities.