Risk Disclosure
Last updated: January 1, 2023
General Risk Warning
The following disclosure outlines the principal risks associated with crypto futures trading through Tethify's management services. This is not an exhaustive list and other risks may exist.
1. Market Risk
Cryptocurrency markets are highly volatile and can fluctuate significantly in very short time periods:
- Prices may move rapidly and unpredictably due to regulatory changes, market sentiment, or technological developments
- Liquidity can vary substantially between different cryptocurrencies and trading pairs
- 24/7 market operation means prices can change when you're not monitoring positions
2. Leverage Risk
Our strategies may use leverage, which magnifies both potential profits and losses:
- Small market movements can result in large losses exceeding your initial deposit
- Margin calls and liquidations can occur rapidly in volatile markets
- Leveraged positions require constant monitoring of margin requirements
3. Liquidation Risk
When trading on margin, exchanges will automatically liquidate positions if your margin balance falls below maintenance requirements:
- Liquidations may occur before we can take defensive action
- In extreme volatility, liquidations may execute at unfavorable prices
- Partial liquidations can trigger further liquidations in a cascade effect
4. Technical Risks
Trading via API connections introduces technical risks:
- Internet connectivity issues or exchange API failures may prevent order execution
- System errors or bugs could lead to unintended positions or failed trades
- Latency in order transmission may result in slippage
5. Counterparty Risk
Your funds are held on third-party exchanges, exposing you to:
- Exchange insolvency or bankruptcy risk
- Hacking or security breaches at the exchange level
- Withdrawal freezes or regulatory actions against exchanges
6. Strategy Risk
Our trading strategies carry inherent risks:
- Past performance is not indicative of future results
- Market conditions may change, making previously successful strategies unprofitable
- No strategy can guarantee profits or prevent losses
7. Regulatory Risk
Cryptocurrency regulations are evolving globally:
- Sudden regulatory changes may impact market liquidity or trading availability
- Your jurisdiction may impose restrictions on crypto derivatives trading
- Tax treatment of crypto trading varies by jurisdiction
Your Acknowledgment
By using Tethify's services, you acknowledge that:
- You have read and understood this Risk Disclosure
- You are aware of the substantial risks involved in crypto futures trading
- You are solely responsible for all trading decisions and outcomes
- Tethify is not liable for any trading losses you may incur
- You have sought independent financial advice if necessary
Contact Us
If you have any questions about these risks, please contact us at:
Email: [email protected]
WhatsApp: +91 85095 17215