Risk Warning
At Changexcapital, you get to trade forex, foreign currency exchange rates, indices, commodities, futures, cryptocurrencies and other financial assets (CFDs). The trading in these assets come with high levels of risks and may or may not suit all kinds of investors.
Factors such as fluctuation in the market can have an effect on the deposited funds. Price fluctuation can lead to high gains as well as deep losses too. We suggest every client to be ready for such an outcome, and therefore, trade carefully and pragmatically.
In cases when the user experiences a loss on the initial funds, he or she would need to deposit additional funds to sustain their position. Failure of meeting the minimum requirements of your funds would lead to the liquidation of your position, and the user will be responsible for the losses incurred.
For this reason, we urge you to carefully evaluate your investment aims, your level of trading and investment experience, your personal risk capacity, etc., before you make any trade or investment.
Please Note: These are the general risk warning guidelines. The aim of disclosing the general nature of the risks involved is to describe the general nature of risks of financial products and services offered on this platform.
Following are the probable risks that the user may face when trading with Changexcapital:
- Leverage Risk: Leveraged risks can result in high favors as well as high risks. It can cost you your entire investment amount too.
- Cryptocurrency Risk: Changexcapital acts as a counterparty for all the transactions you make on our platform. When you sell your cryptocurrency, the platform acts as a buyer and when you buy a cryptocurrency, the platform acts as a seller. Therefore, the user is exposed to the risks of the platform not repaying its obligations. In circumstances where the Company becomes insolvent, there is a risk of zero security on the debt or obligation made to you by the platform.
- Volatility Risk: The volatile nature of cryptocurrencies or digital currencies subjects the user or the owner of the cryptocurrency to unpredictable losses. Therefore, Changexcapital does not guarantee any sustenance of the price of the digital currency in the future. The user is requested to be aware of the market trends and invest or trade as per the accordance of his or her own risk capacity.
- Liquidity Risk: The digital currency is also very unpredictable when it comes to liquidity. Some can be highly liquid, while others can be non-liquid at any given time. Therefore, assurance that a company or a third party will buy the digital currency can’t be guaranteed. In addition, please note, that Changexcapital can delist or cease the trading of any digital currency or trading pair at any point in time without issuing any notice.
- Security Risk: The stored up digital currencies in one’s account on any trading platform are vulnerable to risks such as hacking, ransom or theft by malicious actors. In the cases when the digital currencies get stolen, retrieving or tracing the digital currencies may not be possible.
- Technological Risk: Blockchain technology, upon which the digital currencies are based on, work as per the peer-to-peer networking and cryptography. This system is under the scrutiny of various regulatory bodies around the world. There is always a risk of the entire system to collapse at any time. Also, there is a risk of any technical difficulties to potentially prevent the access or use of the digital currency by the user.
- Operational Risk: There is always a risk of an unpredictable operational downtime that can hinder or block the access or any processing of transaction/s made by the user on the platform at any given point of time. This may cause an inherent unforeseen loss or prevention of materializing of any profit.
- Regulatory Risk: Cryptocurrency and the digital currency, at the moment, are not fully regulated around the globe. It is subject to many kinds of regulations by various countries. Therefore, the regulation around digital currencies is subject to a change in incurring the user with a negative and material impact, because of unforeseen little or no value of the digital currency due to any new regulation introduced by any country. Regulatory inquiries or actions, including, without limitation, the licensing of or restrictions on the use, sale, or possession of digital currency, could impede, limit or end the services or your ability to trade the digital currency at any point.
- Market Manipulation Risk: Market manipulations in the form of “pump and dumps” schemes by companies, third parties in the market may have an effect on the prices of the digital currency. Therefore, the user is requested to be aware of the ongoing market trends and then make their trading and investment decisions.
- Value Risk: Digital currencies are not centrally backed. Their value is therefore, backed by technology and trust. The protection of the value of digital currencies is therefore not guaranteed. It also challenges the assurance of the price sustenance over time. In addition, there is also a risk of digital currencies not being accepted by any third party or a company as a means of exchange.
- Encryption Risk: The security of Private keys is solely the responsibility of the user. These private keys to your digital wallet, when being misused, can lead to hacking, theft of personal data and funds. Any such damage to the private keys is irreversible in nature and is the responsibility of the user.
When a user uses our services, he or she affirms and acknowledges that they are well aware of the additional risks that exist in connection with your trading and storing of digital currencies which may or may not have been covered in the above points, (including such risks not foreseen by the Company at the time of writing).
It is implied that users understand their responsibility to carefully assess all the risks. They should act as per their financial standing and risk capacity when it comes to buying, selling or trading digital currencies.
The user also understands that the Company does not provide any investment, legal, or tax advice. The user also understands that the Company will not consider your financial situation, investment or trading objectives, or other personal circumstances. Therefore, it is the user’s sole responsibility to seek independent, professional advice before he or she decides to use Changexcapital’s services, website, and related products.
PLEASE NOTE: TRADING IN DIGITAL CURRENCY IS CONSIDERED A RISKY TRANSACTION WITH HIGHLY SPECULATIVE OUTCOMES. THE COMPANY DOES NOT GUARANTEE ANY PROFIT FROM TRADING OR ANY OTHER ACTIVITY ASSOCIATED WITH THE WEBSITE. IN LIGHT OF THE RISKS ABOVEMENTIONED, WHICH ARE NOT A COMPREHENSIVE LIST, YOU SHOULD CAREFULLY CONSIDER IF HOLDING OR TRADING DIGITAL CURRENCY IS SUITABLE FOR YOU DEPENDING ON YOUR FINANCIAL CIRCUMSTANCES. THE DECISION TO EITHER CHOOSE OR ABANDON THE USE OF THE COMPANY’S SERVICES LIES AT YOUR SOLE OPTION, DISCRETION, AND RISK.