RISK DISCLOSURE STATEMENT
Engaging in the trading or related leveraging transactions of Digital Tokens entails the possibility of significant financial loss. You should not commit funds to such activities if you are not prepared to lose them entirely. Market prices for Digital Tokens can be volatile and highly unpredictable. Whether the future market price for a Digital Token will move up or down is highly speculative and unknown. When you engage in leverage trading, you are exposing yourself to a larger market position but, in so doing, you are also exposing yourself to a greater risk of losing your funds.
Unless you fully understand the risks involved in trading Digital Tokens and/or leveraging them, you are advised not to engage in any dealings with Digital Tokens. This Risk Disclosure Statement describes several risks associated with trading Digital Tokens and entering leverage positions, but it does not and cannot outline every risk or consideration involved in holding, trading, or engaging in leveraged transactions in Digital Tokens.
There is a wide range of risks associated with trading Digital Tokens and engaging in leverage transactions. This document lists some of the most significant risks; however, the risks are not limited to the ones below and may not be exhaustive.
1. Market Risk
The market prices of Digital Tokens are highly erratic and unpredictable. It is extremely difficult to foresee the future price of any Digital Token, as the market is subject to heavy speculation. Contingent orders such as “stop-loss” or “stop-limit” may not entirely limit losses to a specified amount, as market conditions can render it impossible to execute such commands.
AKJ FX makes no representations or warranties that any Digital Token will continue trading in the market or that it will not be subject to delisting. AKJ FX reserves its sole discretion to delist any Digital Token without prior notice.
2. Liquidity Risk
If a Digital Token becomes “illiquid”—that is, there is insufficient demand—market participants may face potential losses. In such a scenario, the participant may find it impossible to liquidate the Digital Token except at an unfavorable price. There is no guarantee that markets for any Digital Token will remain active and liquid, thereby enabling participants to liquidate positions at favorable prices or at a time of their choosing.
3. Legal Risk
Globally, the legal status of Digital Tokens and the trading or leveraging of such tokens remains unclear or evolving. Different jurisdictions have divergent views on whether Digital Tokens constitute assets, property, securities, or rights of any kind. Consequently, the legality of holding or trading Digital Tokens—or entering into related leverage transactions—can vary by country.
Market participants are responsible for knowing and complying with the laws applicable to them, including laws related to property rights, lending limits, and taxation.
4. Digital Token Wallet Risks
When Digital Tokens are transferred by you into the platform’s Digital Token Wallet, they may be pooled or interact with Digital Tokens transferred by other market participants or affiliates of AKJ FX. AKJ FX and its affiliates are permitted to use your Digital Tokens for their own benefit, investments, or other uses while accounting for them in your Digital Token Wallet.
Holding your Digital Tokens in AKJ FX’s Digital Token Wallet may expose you to potential loss stemming from (among other things) security breaches due to cyberattacks, technical or electronic failures that impede or block market access or functionality, recordkeeping errors, or any insolvency, bankruptcy, or material financial losses of or incurred by AKJ FX or its affiliates.
5. Digital Token Wallet Freeze
If suspicious activity is detected or if there is a breach of the platform’s terms and conditions, AKJ FX may freeze your Digital Token Wallet. In such cases, you would be unable to continue trading or transfer funds to and from your Digital Token Wallet. This may effectively result in the termination of your open orders.
6. Market Default Risk
AKJ FX only operates and administers the trading platform for Digital Tokens and serves the needs of market participants. It does not act as a counterparty or accept financial responsibility for any failure by other market participants to honor their financial obligations.
Should a default occur among market participants—resulting in financial losses or a reduction in gains—AKJ FX will not be held responsible.
7. Risks Associated with Financing Activities
If a market participant finances the purchase of Digital Tokens through a peer-to-peer arrangement, AKJ FX is not a counterparty to such arrangements and will have no financial responsibility or liability in the event of any unfulfilled financial obligations.
Similarly, when a market participant enters financing or trading agreements, they bear the risk of being unable to repay that financing if the market price of the Digital Token they acquired with the borrowed funds falls. Participants should be fully aware of the terms of any financing or trading contracts they enter and understand how market and risk factors can affect their obligations.
Important Note
• No Warranty: AKJ FX makes no warranties regarding the accuracy, completeness, or reliability of any information contained in this statement.
• No Liability: Under no circumstances shall AKJ FX be held liable for any direct, indirect, punitive, incidental, special, or consequential damages arising out of or in connection with the use of this Risk Disclosure Statement or any activities described herein.
• Seek Professional Advice: Before participating in Digital Token trading or leveraging, you should consult with professional financial, tax, and legal advisors.