Introduction

CoinFLEX offers you the ability to trade Digital Assets and derivatives of such Digital Assets. Trading our products carries a high degree of risk. This warning provides you with information about key factors and risks you should take into account before trading with us. It is not a complete list of all the risks and does not explain how these apply to your individual circumstances. You should ensure you understand these risks before trading with us. If anything is unclear, please contact us. If you open an account with us, you must keep these risk factors in mind at all times and ensure you have sufficient financial resources to bear such risk when you trade with us. You should always monitor your positions carefully.

Our Products

Our products allow you to obtain direct and indirect exposure to an underlying asset, cryptocurrencies. This means you will own the underlying asset if you choose to trade PD or will never own the underlying asset, creating cash like settlement, if you close or roll the position near expiry but you will make gains or suffer losses as a result of price movements in the underlying asset to which you have the indirect exposure. Trading our products carries a high degree of risk and will not be appropriate for everyone.

Understanding Digital Assets requires advanced technical knowledge. Digital Assets are often described in exceedingly technical language that requires a comprehensive understanding of applied cryptography and computer code in order to appreciate the inherent risks. The listing of a Digital Asset on CoinFLEX does not indicate CoinFLEX’s approval or disapproval of the underlying technology of any Digital Asset and should not be used as a substitute for your own understanding of the risks specific to each Digital Asset. You understand that some of our products are listed on a “permissionless” basis.  We do not warrant the appropriateness, quality or viability of any of the digital assets, or derivatives thereof, that are listed on CoinFLEX. We provide no warranty as to the suitability of the Digital Assets traded on CoinFLEX and assume no fiduciary duty to you in connection with such use on our platform.

Trading of complex products, including but not limited to perpetual futures contracts, futures contracts, permissionless perpetual futures contracts, repo, spreads (collectively, “Complex Products”), may not be suitable for all Users. Complex Product trading is designed to be utilised only by sophisticated users, such as active traders employing dynamic strategies. You should use extreme caution when trading Complex Products and only trade them if you understand how they work, including but not limited to the risks associated with margin trading, the use of leverage, the risk of shorting, and the effect of compounding and market volatility risks on leveraged products.

Complex Product trading entails significant risk, and you may feel the effects of losses immediately. Complex Product trading requires initial posting of collateral to meet initial margin requirements. If movements in the markets for a Complex Product or the underlying Digital Asset decrease the value of your position in such Complex Product, you may be required to have or make additional collateral available as margin to ensure that maintenance margin requirements are met. If your account is under the minimum margin requirements, your position may be liquidated at a loss, and you may lose all of your assets in your account. 

USERS WHO DO NOT UNDERSTAND LEVERAGE OR MARGIN TRADING, OR DO NOT INTEND TO ACTIVELY MANAGE THEIR PORTFOLIO, SHOULD NOT ENGAGE IN COMPLEX PRODUCT TRADING.

COINFLEX AND ITS AFFILIATES DO NOT TAKE ANY RESPONSIBILITY WHATSOEVER FOR ANY LOSSES OR DAMAGE INCURRED AS A RESULT OF YOUR USE OF ANY COMPLEX PRODUCT TRADING SERVICES OFFERED ON THE PLATFORM OR YOUR FAILURE TO UNDERSTAND THE RISKS ASSOCIATED WITH COMPLEX PRODUCT TRADING.

Your losses are limited to your deposits

Every financial investment involves a degree of risk. However your losses are limited to the amount you have funded your account with and by using this platform you will not owe us additional money.

The use of leverage magnifies your losses and gains

Our products are generally traded using leverage. Trading using leverage allows you to trade without paying or depositing the full value of your position in advance. We take a form of security (or deposit) against any losses you may incur when you trade using leverage. This is known as Margin. Trading on leverage magnifies your gains and losses, so small price changes in the underlying asset can result in large losses or gains. 

Your losses can quickly exceed your deposits.

The effects of trading on margin

For each transaction we require you to deposit and maintain a sum of money in your account known as “Margin”. Margin acts as a deposit against the full value of the transaction. This is what creates the leverage referred to above. For example, we might ask you to deposit margin of 10% of the full value of the trade you wish to enter into. Insufficient margin can lead to you owing us money if any of your open positions are closed. Margin protects us in case you are not able to pay any money you might owe us when transactions are closed out. We set the amount of margin required and can alter it for any reason.You have to keep a minimum amount of money in your account to keep a position open. This is known as the “Maintenance Margin”. You must maintain sufficient Margin in your Account at all times to meet the Maintenance Margin threshold.If the market moves against you, you may be required to pay substantial additional funds at short notice to keep your position open. If you fail to maintain this Maintenance Margin level, our auto-liquidation algorithm may reduce your open position to be margin compliant and/or close your open positions without prior notification. You will be responsible for any losses you incur as a result.

The nature of the contracts between you and us

Every futures trade you enter into using our services is a contract between you and a counterparty. CoinFLEX does not act as the seller when you buy, and the buyer when you sell. Even though this is the case, you cannot transfer your contracts to other providers such as other exchanges.

You must close all contracts through us.

We do not provide advice

We provide our services on an execution-only basis. This means we do not provide investment or financial advice for any product. Where we provide factual information, market commentary, transaction procedure guidance or methods of managing risk, you should not construe these as advice. You are solely responsible for any decision to enter into a transaction with us. You are responsible for managing your own tax, regulatory, and legal affairs, including where relevant any filings, payments, or returns.

We do not provide any tax, legal, or regulatory advice. If you require assistance with a tax, legal, or regulatory matter regarding our products, you should seek independent professional advice.

You accept the risk of trading Digital Assets. In entering into any transaction on CoinFLEX, you represent that you have been, are, and will be solely responsible for making your own independent appraisal and investigations into the risks of such transaction and the underlying Digital Asset. You represent that you have sufficient knowledge, market sophistication, professional advice and experience to make your own evaluation of the merits and risks of any transaction entered into on CoinFLEX or any underlying Digital Asset.

CoinFLEX is not your broker, intermediary, agent, or advisor and has no fiduciary relationship or obligation to you in connection with any trades or other decisions or activities effected by you using the services on our platform.

Our products are not appropriate for everyone

Prior to opening an Account, we are required to assess whether our products are appropriate for you. We may refuse to open an account for you on the basis that we do not consider our services to be appropriate for you. We would not expect our services to be appropriate for people who:

  • do not understand the impact of and risks associated with trading on margin and in derivative products;
  • do not have a high risk tolerance;
  • cannot afford to lose the money they are trading with;
  • do not already have a diversified investment portfolio or savings.

We will warn you if we do not consider our service to be appropriate for you. In such circumstances we may still let you open an account, but you do so at your own risk like all of our customers.

Pricing

We have a straightforward pricing policy for our products, which is on a basis points of Currency value traded and is available via our website. These charges may infrequently be updated so please check our website on a regular basis.

Past performance is not an indication of future performance

Past performance is not an indication of future performance. The value of investments can go down as well as up.

Markets are volatile and prices can change rapidly

Financial markets in general and these products in particular, are volatile and can move rapidly, particularly in response to news events. This will have a direct impact on your profits and losses. Knowing the volatility of an underlying market will help guide you as to where any stops should be placed. Volatility can often be hard to predict and come unexpectedly.

Market liquidity

The value of Digital Assets may be derived from the continued willingness of market participants to exchange Digital Assets for fiat currency and other Digital Assets, which may result in the permanent and total loss of value of a particular Digital Asset should the market for that Digital Asset disappear. 

Market conditions can change significantly in a very short period of time. Under certain trading conditions, it may be difficult or impossible to exit a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session or if trading is suspended or restricted at any point.If our futures market is abnormally wide, this can create more liquidation events or greater losses on liquidation. As liquidation is a function of order book depth & automatic, an unexpected widening of bids and offers or loss of liquidity on the order book could potentially trigger auto-liquidations even though the underlying market may not have moved significantly.We have a sanity check system in place that references our own spot exchange and other external sources to prevent excessively unreasonable liquidations and fat finger error trades but liquidations can occur inside this price band. This band is currently set at 10% above or below the referenced spot prices, but could vary significantly with market conditions, such as during periods of excessive volatility.

Monitoring open positions

Markets can move quickly and consequently you should monitor open positions closely. It is your responsibility to monitor all of your open positions at all times. Whilst any position is open it is prudent to have the ability to access your accounts quickly and easily.

Tax

You will be liable for all taxes, fees and assessments for any transaction. We do not provide tax advice and if you are in any doubt as to your tax affairs, you should seek independent professional advice.

Blacklisted addresses and forfeited assets

CoinFLEX reserves the right to “blacklist” certain addresses and freeze associated assets (temporarily or permanently) that it determines, in its sole discretion, are associated with illegal activity or activity that otherwise violates the Terms and Conditions (“Blacklisted Addresses”). In the event that you send assets to a Blacklisted Address or receive assets from a Blacklisted Address, CoinFLEX may freeze such Assets and take steps to terminate your account.

In certain circumstances, CoinFLEX may deem it necessary to report such suspected illegal activity to applicable law enforcement agencies and other regulatory authorities, and you may forfeit any rights associated with your assets, including the ability to redeem or exchange your Digital Assets for other Digital Assets or fiat currency. CoinFLEX may also freeze assets held in your account in the event that we receive a related order or request from a legal or regulatory authority.