THIS IS AN IMPORTANT DOCUMENT
PLEASE READ IT CAREFULLY AND KEEP IT FOR FUTURE REFERENCE
The services provided by or through Digital Software Technology Pte. Ltd., a company incorporated in Singapore (registration no. 202024470w) (“Company” or “we”, “us” or “our”) (“Services”) cover derivative products such as options, futures and perpetuals, with or without leverage (each a “Product”, or “Derivative Product”) made available on the trading platform (“Trading Platform”) provided by the Company via www.eqonex.com.
The intention of this Risk Disclosure Statement is to inform you of the certain risks relating to the Service and Products. For example, the risk of loss in relation to any such Products may be substantial in certain circumstances.
The information presented in this Risk Disclosure Statement is not comprehensive and does not disclose or reflect all the risks associated with the Service and Products. It explains, in general terms, the nature of the risks particular to entering into transactions with financial instruments provided by the Company but it cannot explain all of the risks and how these risks relate to your personal circumstances. You should inform yourself and be aware of the associated risks generally, and in particular those set out in the Risk Disclosure Statement. You should make your own independent decision to access the Service or Products and seek professional independent advice, if you consider this necessary before using the Services or Products. You should not construe these or any other statements as legal, tax or financial advice.
Before deciding to trade and / or invest, you should carefully consider your objectives, level of experience, and risk appetite. Capitalised terms used in this Risk Disclosure Statement shall have the meaning given to them in the Perpetual Futures Terms and Conditions unless otherwise defined in this risk disclosure statement.
You understand and agree that this brief Risk Disclosure Statement cannot disclose all the risks and other significant aspects of the Service or the Products and you should therefore carefully study the Product before you trade.
In particular, you understand and acknowledge that:
PERPETUALS ARE DERIVATIVE PRODUCTS.
DERIVATIVE PRODUCTS ARE COMPLEX PRODUCTS AND ARE NOT SUITABLE FOR ALL USERS. PRODUCT FEATURES AND / OR RISKS MAY NOT BE READILY UNDERSTOOD DUE TO THEIR COMPLEX STRUCTURE, NOVELTY AND RELIANCE ON TECHNOLOGICAL FEATURES.
YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL AND ANY ADDITIONAL MARGIN HELD WITH US TO ESTABLISH A POSITION OR MAINTAIN POSITIONS. DON’T USE THE MONEY YOU CAN’T AFFORD TO LOSE. YOU COULD LOSE ALL OR MORE THAN THE MONEY YOU PLACED ON A TRADE.
YOU SHOULD ONLY CONSIDER TRADING IN DERIVATIVE PRODUCTS IF:
YOU HAVE EXTENSIVE EXPERIENCE OF TRADING IN VOLATILE MARKETS, AND IN VIRTUAL ASSETS INCLUDING BITCOIN.
YOU FULLY UNDERSTAND HOW THEY OPERATE, INCLUDING ALL THE RISKS AND COSTS INVOLVED.
YOU ARE AWARE THAT THE GREATER THE LEVERAGE, THE GREATER THE RISK. YOU SHOULD BE AWARE THAT SMALL PRICE MOVEMENTS IN THE UNDERLYING MARKET MAY HAVE A MULTIPLYING EFFECT ON YOUR CORRESPONDING GAIN OR LOSS.
YOU UNDERSTAND THAT YOUR POSITION CAN BE CLOSED BY THE COMPANY WHETHER OR NOT YOU AGREE WITH OUR DECISION TO CLOSE YOUR POSITION.
YOU HAVE SUFFICIENT TIME TO MANAGE YOUR TRADES ON AN ACTIVE BASIS. DUE TO THE VOLATILE NATURE OF PERPETUALS, AN OPEN POSITION MAY BE CLOSED OUT WITH NO NOTICE TO YOU.
YOU HAVE HAD SUFFICIENT OPPORTUNITY TO OBTAIN, AND HAVE OBTAINED, ALL NECESSARY PRIOR INDEPENDENT LEGAL, FINANCIAL AND OTHER ADVICE SO TO UNDERSTAND YOUR POSITION.
YOU SHOULD READ THE SERVICE TERMS AND CONDITIONS BEFORE PROCEEDING, INCLUDING APPLICABLE RISK DISCLOSURES.
YOU ARE AWARE OF ANY RESTRICTIONS THAT MAY EXIST IN YOUR COUNTRY IN TRADING DERIVATIVE PRODUCTS.
DERIVATIVE PRODUCTS TRADED ON THE TRADING PLATFORM ARE NOT OFFERED TO ANY USERS IN ANY JURISDICTIONS WHERE (BY REASON OF THAT PERSONS’ NATIONALITY, RESIDENCE OR OTHERWISE) THE AVAILABILITY OF THIS SERVICE IS PROHIBITED OR OTHERWISE LIMITED OR COULD SUBJECT THE COMPANY OR DIGINEX CAPITAL PTE. LTD. A SINGAPORE COMPANY WITH REGISTRATION NUMBER 201827813E (“EQONEX”) OR ANY OF ITS RELEVANT GROUP COMPANIES TO ANY LOCAL REGISTRATION OR LICENSE AND YOU MAY NOT PROCEED ANY FURTHER. THIS INCLUDES BUT IS NOT LIMITED TO U.S. PERSONS AND RESIDENTS OF SINGAPORE AND JAPAN.
DERIVATIVE PRODUCTS TRADED ON THE TRADING PLATFORM ARE NOT REGULATED BY MAS.
General Risk of Trading
The Company does not guarantee the initial capital made or its value at any time in respect of any Product. You should acknowledge and accept that you run a great risk of incurring losses and damages as a result of the purchase and / or sale of any Product and accept and confirm that you are prepared to take on this risk.
You should completely acknowledge and accept that, regardless of any information which may be offered by the Company or any other party, the value of any Product may fluctuate downwards or upwards and it is even possible that the Product may become of no value. The fluctuations may result whole or partial loss.
The value of a Product may fluctuate dramatically due to different market factors including the price or level of any underlying reference asset, level of interest rates, credit quality of the issuer and guarantor (where applicable), foreign exchange rates, volatility, liquidity and tenor remaining on the financial instrument (if relevant). Products may depreciate in value as quickly as it may appreciate and can also become valueless. Dealing in Products is as likely to incur losses as it is to make profit. Past performance should not be used as an indicator of future performance.
There is no guarantee that you will be able to earn returns under any type of Product will be greater than or at least equal to any potential return you may have earned from a bank deposit or direct investment in any non-structured instrument. There is also a risk that you may not receive any returns and may in fact incur losses on your investment.
Products may not be instantly liquid as a result of reduced demand, for example, where you may not be able to sell them or easily obtain data on the price of these Products or the degree of the related risks.
Cryptocurrency derivatives (including the Products) may be riskier, less liquid, more volatile and more vulnerable to economic, political, market, industry, regulatory and other changes than other derivatives contract types. The liquidity of the market for contracts on the Trading Platform will depend on, among other things, supply and demand on the Trading Platform and the commercial and speculative interest in the market for these Products. As Products traded on the Trading Platform are traded on a closed trading system, there is a risk that there may be limited volume and liquidity.
A lack of liquidity in any market for Products traded on the Trading Platform may result in delays in order execution, variations in executed price and some orders may not execute at all; these effects may be exacerbated where an order is larger.
We recommend that you take independent tax advice before entering into any Product to ensure that you understand the potential tax implications (including the implications of any applicable income tax, goods and services or value added taxes, stamp duties and other taxes) of acquiring, entering into, holding and disposing of the relevant Product. Different transactions may have different tax implications and the tax consequences of any transaction is dependent upon your individual circumstances and may be subject to change in the future. You should be accountable for any taxes and / or any other duty which may accumulate in respect of your trades. The Company does not offer tax advice and any tax-related information provided to you by the Company from time to time should not be relied on as tax advice or as a tax recommendation.
You use the Services at your own risk. There can be no assurance that use of the Services will provide a positive return or profit, that significant losses will not be incurred, or that your objectives will be achieved.
It is also important to have sufficient relevant experience when entering into financial contracts such as the Products and transactions. Products traded on the Trading Platform are derivative contracts and are not suitable for everyone. You should only fund your wallet and trade what you can afford to lose. It is possible that you may lose a substantial proportion or all of your capital. In addition, use of our Services involves a high risk of loss inherently associated with the contracts that are available for trading. As a result, you should carefully consider whether you can afford to bear the risks of loss involved in using the Services and, in particular, trading cryptocurrency derivatives contracts.
The Trading Platform is designed so that the maximum risk associated for any client with respect to an open position on the Trading Platform shall not exceed the actual amount allocated to the relevant position (by way of fees, funding, margin and / or premium). A client will have a single net position in any given Product at any time. If a position is liquidated, then funds allocated to that position as margin will be lost, up to the entire amount of the client’s account balance.
Nature of virtual assets
Virtual assets are not legal tender. They may not be backed by physical assets and are not backed or guaranteed by a government. They may not have intrinsic value. Some virtual assets may not circulate freely or widely and may not be listed on any secondary markets.
Virtual assets are generally a high-risk asset class. They (or transactions involving them) may or may not be securities or other regulated products. You should exercise caution in relation to the trading of virtual assets, and virtual assets themselves.
Transactions involving virtual assets are irrevocable. Lost or stolen virtual assets may be irretrievable. Once a transaction has been verified and recorded on a blockchain, loss or stolen virtual assets generally will not be reversible.
The price of virtual assets can be highly unpredictable and volatile when compared to other assets such as stocks, bonds and other tradeable instruments. Such volatile moves can have a direct impact on your profits and losses. You should not deal in virtual assets derivatives (including the Products) unless you understand their nature and the extent of your exposure to risk. We shall not be liable to any person for any losses, damages, costs or expenses (including, but not limited to, loss of profits, loss of use, direct, indirect, incidental or consequential damages) occurring because trades cannot be executed due to market conditions.
Liquidation of Positions
Under certain market conditions, you may find it difficult or impossible to liquidate a Product.
Regulatory and Legal risk
Laws and regulations affecting the investment sector and / or a specific financial instrument, and any changes thereof can have adverse material effects on the Products. Risk involved with regulatory or legal framework and any amendments and / or changes vary depending on jurisdictions and the market. Regulation of Virtual Assets is unsettled and rapidly changing.
Regulatory actions could negatively impact the underlying virtual assets of the Products, or the Products themselves in various ways, including, for purposes of illustration only, through a determination (with retrospective or prospective effect) that virtual assets or the Products are regulated financial instruments requiring registration or licensing in certain jurisdictions. The effect of regulatory and legal risk is that any virtual asset or the Product may decrease in value or lose all of its value due to legal or regulatory action or change. This may affect the value or potential profit of a Product.
We recommend you obtain independent legal, tax and financial advice and that you continue to monitor the legal and regulatory position in respect of the Products and Services.
Jurisdiction related risks
You understand that ultimately it is your responsibility to make sure that you comply with any and all local regulations, directives, restrictions and laws in your place(s) of residence before using our Services. We do not permit the use of our Services by users from a jurisdiction in which the use of our Services is not permitted. We do not offer or solicit the use of our Services to any person located in any restricted jurisdiction or any other jurisdiction in which the specific use of our Services is not authorised or is otherwise prohibited by local laws.
Changes in your place of domicile or applicable law may result in you violating any legal or regulatory requirements of your applicable jurisdiction. You are responsible for ensuring that any access or use of the Service or Products remains lawful despite changes to applicable law, your residence and circumstances.
Not a deposit
Any underlying virtual assets or the Products held by us are not held as “deposits”, nor are they intended to be held as such under applicable law.
Risk relating to leveraged trading
Leverage, if available or offered to you, allows trading in certain contracts on the Trading Platform with relatively modest margins in relation to the position size. The result of this is that even a slight fluctuation of the index price could mean substantial gains on leveraged positions when these fluctuations are in your favour but could also mean loss of the allocated margin if the fluctuations are to your detriment.
Under certain market conditions, particularly given the high volatility and substantial risk of illiquidity in virtual asset derivatives markets, you may find it difficult or impossible to close a position in the market above the liquidation price. For example, if there is insufficient liquidity in the market or technical issues with the orders that you attempt to place, you may not be able to manage the risk on open positions. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit your losses to the intended amounts, since these order types are not guaranteed and market conditions may make it impossible to execute such orders. The use of leverage can work against you as well as for you and can lead to large losses as well as gains.
The conduct of all trading on your accounts is at your own risk and we do not take any responsibility for any loss or damage incurred as a result of your use of the Trading Platform or your failure to understand the risks involved in virtual asset markets generally or your use of our Services.
We may not accept any orders which would increase your aggregate risk above the risk limit set by you or by us.
We do not make any assessment as to the appropriateness of the risk limit set by you, or the appropriateness of risk limits set by us as those risk limits apply to your specific circumstances. You must make your own independent assessment as to what level of risk is appropriate for yourself.
You must ensure that you are able to monitor positions on your account closely. We are not responsible for monitoring any positions on your account and it is always your responsibility to monitor your trades and transactions.
Other than in the case of transactions which are fully paid by you in advance, you may be required to transfer margin in the form of cash (or other assets agreed with us in advance) prior to the purchase of a Product and from time to time during the life of a Product (including on an intraday basis) to maintain such a position. The amount of margin required to be transferred to us will be determined by us in such amounts as required by us from time to time in our sole and absolute discretion for the purpose of protecting ourselves against loss or risk of loss on present, future or contemplated Product purchase and one demand for margin shall not restrict our making a further demand for margin. You are responsible for ensuring arrangements are in place to deal at all times with calls for further margin to be transferred.
The use of margin in connection with Products is a form of leverage and this can work for you or against you. A small price movement in your favour can result in a high return on the margin transferred to us in relation to the Product but conversely a small price movement against you may result in substantial losses.
Your open positions may be liquidated, and other actions taken, without warning and / or without your consent. You should therefore carefully consider whether such an arrangement is suitable in light of your own financial position and investment objectives.
There are a series of inherent risks with the use of mobile and / or web trading such as latency in the prices provided, and other issues that are a result of connectivity (including, without limitation, the use of mobile networks). Prices displayed on the Trading Platform are solely an indication of the executable rates and may not reflect the actual executed or executable price of an order.
The Trading Platform utilises public communication network circuits for the transmission of messages. We shall not be liable for any and all circumstances in which you experience a delay in price quotation or an inability to trade caused by network transmission problems or restrictions or any other problems outside our direct control, which include but are not limited to the strength of the mobile signal, network latency, or any other issues that may arise between you and any internet service provider, phone service provider or any other service provider or between you and the Company.
You should consider the risk of your position being liquidated or closed out without your consent due to one (or more) party involved with your transaction being liquidated.
Any opinions, news, research, analyses, prices, or other information contained on this website or produced by us are provided as general market commentary, and do not constitute investment advice or investment recommendation. We shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information.
While we endeavour to keep information displayed on the Services as accurately as possible, there is a risk that this may not be correct, complete or updated.
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