Payment Token and their derivatives are NOT suitable for all investors.
Payment Token derivatives such as contract for differences is not regulated under the Securities Futures Act.
Trading of derivatives on Payment Token exposes you to various types of risk. Such products exhibit high price volatility. You may lose more than the amount you put in due to the leveraged nature of derivatives such as futures.
Before start trading, you should familiarize yourself with Payment Token and their derivatives and understand the associated risks, including but not limited to:
- Payment Token is a highly volatile asset class and is based on decentralised monetary protocols which are still in experimental stage and may change at any time. Payment Token derivative contracts based on cryptocurrency may pose specific risks. Such risks may arise from great volatility in prices resulting from a range of factors. Those risks could in turn affect financial outcomes associated with maintaining required margins or any losses at final contract settlement.
- Trading the derivatives exposes you to market risk. This is the risk that you suffer a loss as a result of a position in the derivatives moving against you. If you hold a long position and the cryptocurrency price declines or if you hold a short position and the cryptocurrency price increases, you can lose all of your Payment Token;
- Trading the derivatives exposes you to liquidity risk. This is the risk that you suffer a loss because you cannot close out a derivative contract position because there is no demand to take the other side of that trade;
- Cryptocurrencies trade 24/7. However, their derivative contracts listed in CME and ICE US have specific trading hours. This may result in wide price gap.