Risk in difference settlement transactions

There is a risk in the virtual currency difference settlement transaction using this service. The representative risks are shown below, but not all risks are shown without exception, and please be aware that there are various risks other than these.
 We do not take any responsibility for the risk. Even if such risks cause damages or losses to users or third parties (including lost profits, regardless of whether they are normal damages, special damages, direct damages or indirect damages, the same shall apply hereinafter), the Company We do not compensate for damages or losses.
 Please use this service after fully understanding and accepting these points.
 In addition, the definition of terms in this web page shall be in accordance with the Terms of Use(https://bitking-trading.com/terms_of_service) and “Rules on difference settlement transactions”(https://bitking-trading.com/cfd_rule

1. Price fluctuation risk
  • The prices of virtual currency are changing every day. The price of the virtual currency may fluctuate or fall sharply while the user performs the difference settlement transaction of the virtual currency using this service or while holding the open position of the virtual currency.
  • Change in supply and demand balance, prices, legal currency, trends in other markets, natural disasters, wars, political changes, changes in laws and regulations, changes in virtual currency conditions, and other unexpected events or special events The price of the currency may fluctuate rapidly, and depending on the price movement, there is a possibility that the order may not be fulfilled or the intended transaction may not be possible.
  • There is also the possibility that the amount of the margin will be less than the amount at the time of the difference settlement transaction of the virtual currency, become zero or become negative (the additional exchange will have to be paid to the target exchange).
2. Business hours risk
  • Even outside our business hours (including during maintenance hours, the same applies hereinafter), the price of the virtual currency may fluctuate significantly. Even if the user fails to make a virtual currency difference settlement transaction outside our business hours, we do not take any responsibility.
3. Liquidity risk
  • Depending on market conditions and trading volume conditions, it may be impossible or difficult to make a difference settlement transaction in a virtual currency, or it may be forced to trade at a significantly disadvantageous price. In addition, it may take a long time to execute, or the transaction may not be concluded, as the order is biased to either selling or buying.
4. Risk due to leverage effect
  • In the difference settlement transaction of virtual currency, the principal and profit of the margin are not guaranteed at all, and there is a high risk of leverage. The higher the leverage ratio, the larger the amount of money that can be traded compared to the funds actually invested (including the amount of deposited deposits, and the same applies hereinafter), but it is possible to expect large profits. If it differs from the market price, the loss will also increase.
5. Loss cut risk
  1. In the case of loss cut, if the margin retention rate falls below the loss cut rate, all positions will be settled to prevent the expansion of losses. If a loss cut is executed due to price fluctuation, there is a risk that a transaction that the user does not intend is closed.
  2. Since the final settlement price in the loss cut is determined by the market price, the user's loss amount is not fixed until the settlement is completed. If the market price changes suddenly, for example, the final settlement price promised may deviate significantly from the price at the time of loss cut execution, so the user may lose more than expected, such as a loss exceeding the amount of the margin deposited with the company. It may occur. In such a case, the user must promptly make a deposit of the lack of margin to the Company.
6. System risk
  1. In the difference settlement transaction of virtual currency using this service, it is possible that the user does not enter the order correctly, the intended order may not be fulfilled, or the unintended order may be fulfilled. Also, depending on the type of order, market conditions, etc., the user may have unintended trade results. Even if any damage is caused to the user or third party as a result of such transaction, we do not take any responsibility.
  2. The service may not be available temporarily or for a fixed period of time due to various causes such as communication or system equipment failure of our company or users, communication problems, earthquakes, lightning strikes, fires and other natural disasters, cyber attacks, etc. .
  3. In addition, in the event of a failure etc. in the Service, the Company may suspend or restrict the use of all or part of the Service. Furthermore, if the market fluctuates rapidly, the reflection of price information may be delayed. In these cases, if the user's order instruction does not reach or is delayed, etc., the order may not be valid or not executed, or the user may not have intended transaction results. Even if damage is caused to the user or a third party by these, we do not take any responsibility.
  4. Loss of opportunity due to a system failure or emergency maintenance, etc. related to this service (for example, the user's order was not accepted, and the user had lost the opportunity to order, and lost the profit that would otherwise be obtained) May occur. Even in this case, since we can not identify the contents of the order that the user tried to place an order, we can not process errors or other corrections.
7. Risks from changes in laws and regulations, tax systems, policies, etc
  • Due to changes in legislation, taxation or policy, difference settlement transactions in virtual currency may be restricted or may become more disadvantageous than the current situation. In no event shall we be liable for all damages (including but not limited to tax returns, tax burdens) incurred by users or third parties. Please ask your lawyer, tax accountant or government office (including tax office), etc. for handling of virtual currency in laws and regulations (including tax law).
8. Bankruptcy risk
  • Changes in the external environment (including the strengthening of laws and regulations on virtual currency) and deterioration of our financial condition may prevent our business from continuing. The virtual currency difference settlement transaction is not subject to the fund settlement law, and no measures such as trust preservation have been taken on the assets deposited from the user.
  • If the company goes bankrupt, the money deposited by the user may be incorporated into our bankruptcy foundation and it may not be possible to return all or part of the user's property to the user.
9. Other risks
  • Natural disasters, political changes, alliances, sudden changes or closures of the virtual currency market, etc., may limit the difference settlement transaction of the virtual currency. In that case, the user may incur an unexpected loss.