Trading and financing in digital tokens involves considerable financial risk.
This brief statement is provided to clients of CGCX to present an overview of the risks. It does not disclose all the risks or other significant aspects of trading digital tokens on CGCX. Clients are advised to also read other useful educational material that deals with many of these issues available elsewhere.
You are requested to read this statement in full and acknowledge that you have comprehended risks fully and that you undertake these risks in full willingness when you sign up for our services. Trading in digital tokens is not suitable for many members of the public. Before you sign up for CGCX services, you should obtain a clear understanding of the nature of the digital tokens that you will be trading.
Values in any digital token marketplace are volatile and can vary quickly. Clients buying and selling in any Digital Tokens market are warned that they should pay close attention to their position and holdings, and how they may be impacted by sudden and adverse shifts in trading and other market activities.
Trading on CGCX occurs on a web based trading system. As a result you are exposed to risks associated with failure of hardware, software or communications systems. The result of any of these failures may be that your order is not executed in accordance with your instructions or, is not executed at all. Your losses may be greater if the market moves against your positions during those failures before CGCX makes the system available after addressing the issues.
The market for Digital Tokens is still new and uncertain. No one should have funds invested in Digital Tokens or speculate in Digital Tokens that she is not prepared to lose entirely. Whether the market for one or more Digital Tokens will move up or down, or whether a particular Digital Token will lose all or substantially all of its value, is unknown. This applies both to traders that are going long and to traders that are shorting the market. Participants should be cautious about holding Digital Tokens.
Sometimes it may not be possible for a digital token to be offered for trading further for various reasons including but not limited to technology changes, new forks or lack of market liquidity. You may also be unable to transfer the digital tokens out of exchange wallets under such circumstances and you may lose your investment entirely. CGCX makes no representations or warranties about whether a Digital Token that may be traded on the Site may be traded on the Site any point in the future, if at all. Any Digital Token is subject to delisting without notice or consent.
Markets for Digital Tokens have varying degrees of liquidity from highly liquid to very thin markets. Thin markets can amplify volatility. There is never a guarantee that there will be an active market for one to sell, buy, or trade Digital Tokens or products derived from or ancillary to them. Furthermore, any market for tokens may abruptly appear and vanish.
Placing orders, such as a “stop-loss” order, intended to limit losses to a predetermined amount, may not achieve their purpose because market conditions, such as high volatility or lack of liquidity, may make it impossible for your order to be executed.
Before commencing to trade, you should be fully aware of all commissions, fees and other charges for which you will be liable. These charges will be payable regardless of the out come of your trading, and will decrease your net profit or increase your loss.
Most of the crypto pairs in CGCX are currently settled in USDT. If the asset base or income stream that you are using to support your CGCX trading is denominated in any other currency, you effectively have an exposure to fluctuations in exchange rates.
Clients should be aware of the risks associated with delays in disclosure information wherein under certain market conditions, the prices of the listed pairs on CGCX may not maintain their expected relationships to its underlying crypto or fiat values. These pricing disparities could occur due to a variety of reasons and have an impact on your profit or loss.
Having Digital Tokens on deposit or with any third party in a custodial relationship has attendant risks. These risks include security breaches, risk of contractual breach, and risk of loss. Clients should be wary of allowing third parties to hold their property for any reason.
The legal status of certain Digital Tokens may be uncertain. This can mean that the legality of holding or trading them is not always clear. Whether and how one or more Digital Tokens constitute property, or assets, or rights of any kind may also seem unclear. You are responsible for knowing and understanding how Digital Tokens will be addressed, regulated, and taxed under applicable law.
This brief statement cannot capture all of the risks and other aspects associated with trading in the digital tokens. Clients should be aware and understand and consider carefully whether trading in digital tokens is appropriate for you, (or your company), and in light of your experience, objectives and financial resources.