This Agreement is entered into by you (hereinafter referred to as the "User") and RooEx Platform (hereinafter referred to as the "Platform" or "we") and is intended to help Users understand the characteristics and potential risks associated with perpetual contract trading. By signing this Agreement or continuing to use the perpetual contract trading services of the Platform, you indicate that you have fully read, understood, and agreed to all the provisions of this Agreement.
1. Applicability of Risk Disclosure
Perpetual contract trading is a high-risk financial derivative product based on leverage, with significantly higher risks compared to spot trading. The risk disclosure in this Agreement applies to all perpetual contract trading activities conducted by you on the RooEx Platform.
2. Key Features and Major Risks of Perpetual Contract Trading
2.1 Key Features
- Leverage Mechanism:
Perpetual contracts allow Users to trade with high leverage based on their initial margin deposit. Even minor price fluctuations may result in substantial changes to the margin, including profits, losses, or triggering a forced liquidation (liquidation). - No Expiry Mechanism:
Unlike traditional futures contracts, perpetual contracts have no expiry date and use a funding rate mechanism to dynamically balance long and short positions. However, holding a position over the long term may result in rising costs. - Market Volatility Impact:
The digital asset market is characterized by high volatility, and prices may experience rapid and significant changes, especially in unregulated or low-liquidity markets.
2.2 Major Risks Faced by Users
Users engaging in perpetual contract trading should fully understand the following risks:
1. Leverage Amplification Risk:
- Leverage significantly amplifies potential returns, but it also increases the risk of substantial losses.
- Under extreme market conditions, it may lead to the complete loss of your margin deposit or even result in a negative balance (depending on the leverage settings).
2. Liquidation Risk:
- When the margin ratio of the User’s account falls below the liquidation threshold, the Platform will automatically liquidate the position to prevent further losses.
- Liquidation may result in Users losing control over the clearing price, potentially leading to greater losses.
3. Liquidity Risk:
- Market conditions may prevent contracts from being executed at the User’s expected price, especially in markets with limited depth or lower liquidity for specific assets.
4. Systematic Risk:
- System failures, server outages, network congestion, or hacker attacks may result in interrupted trading, delays, fund losses, or other unpredictable damages.
5. Market Manipulation and Extreme Behaviors:
- In unregulated markets, price manipulation, abnormal price volatility, or other illicit market behaviors may occur, adversely impacting trading outcomes.
6. Policy and Regulatory Risk:
- Users must understand and comply with the laws and regulations of their local jurisdiction. Due to changes in national policies or regulatory requirements, trading may be restricted, suspended, or forced to terminate.
7. Funding Rate Risk:
- Holding positions over a longer period may lead to rising costs due to fluctuating funding rates, significantly affecting trading profits or capital size.
3. Rights and Obligations of Users
3.1 Independent Judgment and Risk Assumption
- Independent Decision-Making:
Users should make an independent and prudent decision to engage in perpetual contract trading based on their financial ability, risk tolerance, trading experience, and investment goals. - Risk Liability Commitment:
Users accept full responsibility for any consequences (including but not limited to losses, forced liquidations, or margin calls) arising from perpetual contract trading. The Platform shall not be liable for any losses or damages incurred.
3.2 Compliance and Due Diligence Requirements
- Understanding Risk Disclosure Documents:
Users must carefully read and comprehend all risk disclosure documents, terms of service, and policy statements published by the Platform during registration, authorization, or trading. - Ensuring Compliance:
Users shall ensure that their trading activities comply with the laws and regulations of their jurisdiction. Users are solely responsible for any legal consequences arising from non-compliance with local laws. - Legitimate Source of Funds:
Users affirm that the funds used in trading are derived from legitimate sources and shall not engage in trading via any illegal means, including but not limited to money laundering or terrorist financing activities.
4. Disclaimer of Liability by the Platform
The Platform, as a technical service provider for perpetual contract trading, only provides digital asset trading matchmaking and market support functions. The Platform does not make any promises or guarantees regarding your economic gains (or losses) from trading. The following circumstances exempt the Platform from liability:
- Market Volatility Risk:
The Platform does not bear responsibility for price fluctuations or liquidity changes of trading products. - Force Majeure and Unexpected Events:
Circumstances beyond the Platform’s control—such as system failures, communication disruptions, cyberattacks, natural disasters, or government policies—resulting in non-performance or loss shall not impose liability on the Platform. - Handling User Errors:
If Users engage in improper operations (e.g., failing to maintain sufficient margin), the Platform reserves the right to implement risk control measures, including but not limited to liquidating positions or restricting trading. - Potential Information Errors:
The Platform strives to ensure the accuracy and timeliness of market information but is not responsible for delays, errors, or omissions resulting from technical or external factors.
5. Risk Disclosure and Agreement Amendment
- Risk Control Measures:
The Platform is committed to reducing systemic risks during trading through multiple technical measures (e.g., strong liquidation protection, price depth optimization). However, it does not guarantee complete safety or system stability. - Agreement Amendments and Effectiveness:
The Platform reserves the right to modify or revoke this Agreement. Modified provisions will be published in Platform announcements and will take effect immediately. Users continuing to use the services are deemed to accept the amended Agreement.
6. User Acknowledgment and Confirmation
Before gaining access to perpetual contract trading, Users must acknowledge and confirm the following:
- I have fully read and understood the entire content of this Risk Disclosure Agreement;
- I voluntarily choose to engage in perpetual contract trading and am aware of the aforementioned risks;
- I agree to comply with all relevant trading rules and risk control norms of the Platform;
- The Platform has fulfilled its obligation of risk disclosure, and I voluntarily assume full responsibility for my trading decisions.
This Agreement is subject to final interpretation by the RooEx Platform. If you have any questions about the content of this Agreement, please contact us through the Platform’s customer service or support channels.