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Risk Disclosure

Last updated: December 1, 2024

⚠️ Important Warning

Trading cryptocurrencies involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved.

1. General Risk Statement

Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. Before deciding to trade cryptocurrencies, you should carefully consider your investment objectives, level of experience, and risk appetite.

The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore, you should not invest money that you cannot afford to lose.

2. Market Volatility

Cryptocurrency markets are highly volatile. Prices can fluctuate significantly in very short periods of time. Factors that may cause price volatility include:

  • Changes in market sentiment
  • Regulatory announcements and government actions
  • Technological developments and security incidents
  • Market manipulation and whale activity
  • Macroeconomic factors and global events

3. Leverage Risk

Trading with leverage amplifies both potential profits and potential losses. When trading futures with leverage:

  • Small price movements can result in large gains or losses
  • You may lose more than your initial margin
  • Positions may be liquidated automatically if margin requirements are not met
  • High leverage increases the risk of total loss

⚠️ Leverage Warning

Using high leverage (e.g., 100x) significantly increases risk. A 1% adverse price movement would result in 100% loss of your position. Only use leverage you fully understand and can afford.

4. Liquidity Risk

Some cryptocurrency markets may have limited liquidity, which can:

  • Make it difficult to execute orders at desired prices
  • Result in significant slippage on large orders
  • Lead to wider bid-ask spreads during volatile periods

5. Technology Risk

Trading platforms and blockchain networks are subject to technological risks including:

  • System failures and technical errors
  • Cybersecurity threats and hacking attempts
  • Network congestion and delayed transactions
  • Smart contract vulnerabilities

6. Regulatory Risk

The regulatory landscape for cryptocurrencies is evolving and uncertain:

  • Laws and regulations may change without warning
  • Some jurisdictions may ban or restrict cryptocurrency trading
  • Tax treatment of cryptocurrencies varies by jurisdiction
  • Regulatory actions can significantly impact prices

7. Counterparty Risk

When using our platform, you are exposed to counterparty risk, including:

  • Exchange insolvency or bankruptcy
  • Inability to withdraw funds
  • Loss of assets due to security breaches

8. No Guarantees

HashKey does not guarantee:

  • Any level of profit or return on investment
  • The accuracy of price information
  • Uninterrupted access to the platform
  • Protection against all losses

9. Your Responsibilities

You are responsible for:

  • Understanding the risks involved before trading
  • Conducting your own research and analysis
  • Securing your account and private keys
  • Complying with applicable laws and regulations
  • Managing your risk through appropriate position sizing

10. Seek Professional Advice

If you are unsure about any aspect of cryptocurrency trading, you should seek independent professional advice from a qualified financial advisor before making any investment decisions.

⚠️ Final Notice

By using HashKey's services, you acknowledge that you have read, understood, and accepted the risks outlined in this disclosure. Past performance is not indicative of future results. Trade responsibly.

On this page

1. General Risk Statement 2. Market Volatility 3. Leverage Risk 4. Liquidity Risk 5. Technology Risk 6. Regulatory Risk 7. Counterparty Risk 8. No Guarantees 9. Your Responsibilities 10. Seek Professional Advice

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