HyperPay contract trading involves cryptocurrency derivatives, which carry high leverage and high risk. Therefore, before enabling contract trading, users must fully understand the risks associated with contract trading and the trading rules of HyperPay contracts. By enabling contract trading, users acknowledge and agree to accept the risks involved.
1. Price Fluctuation Risk:
Cryptocurrencies are highly volatile and influenced by various factors, making it challenging for investors to predict price movements accurately. This volatility can lead to significant losses if risk is not effectively managed. Investors must bear all losses resulting from such price fluctuations.
2. Forced Liquidation Risk:
Derivative trading features high leverage, which can lead to rapid gains or losses. If market movements are contrary to your trading position, significant losses may occur. Depending on the extent of the losses, investors might need to add more cryptocurrency margin or reduce their positions. Otherwise, positions may be forcibly liquidated, and investors must bear all resulting losses.
3. Trading Risk:
Once an order is executed within the HyperPay trading system, it is irrevocable. Investors must accept the risks associated with this trading mechanism. The exchange does not guarantee profits and will not share gains or assume risks with investors.
4. Policy Risk:
Cryptocurrency derivative trading may be subject to regulatory risks in different jurisdictions. Investors should understand the regulatory background of the trading region and make informed decisions before trading.
5. Force Majeure Risks:
Risks arising from unforeseeable events such as earthquakes, floods, fires, or system failures (e.g., computer or communication system malfunctions) may affect the execution of orders. Investors must bear any losses resulting from such events.
6. Other Risks:
Using high leverage can pose significant risks to both individual traders and the market. To maintain market stability, the platform monitors positions with high leverage. If the platform determines that a user’s position could significantly impact market stability, it may take appropriate measures, including but not limited to risk warnings, forced position reduction, forced liquidation, or order cancellation, and provide written explanations to users.