Risk Disclosure Statement

1. General Risk Warning

By using DiamondX, you acknowledge that you understand and accept the inherent risks associated with cryptocurrency trading. Trading digital assets is highly speculative and involves a significant risk of loss.

You should only trade with funds you can afford to lose completely.

2. Market Risk

Cryptocurrency markets are extremely volatile and unpredictable:

• Prices can fluctuate dramatically in short periods
• Markets operate 24/7 without breaks or circuit breakers
• No price limits exist - prices can move to zero
• Market manipulation may occur
• Flash crashes can result in significant losses
• Correlation with traditional markets is unpredictable

3. Leverage & Margin Risk (Perpetual Trading)

Perpetual trading with leverage involves additional risks:

• Leverage Risk: Small price movements can result in large losses
• Liquidation Risk: Positions may be automatically liquidated if margin requirements are not met
• Margin Calls: You may be required to add additional margin to maintain positions
• Funding Rates: Periodic funding fees can impact position profitability
• Partial Liquidations: Your position may be partially liquidated
• Total Loss: You may lose your entire margin and more

Example: With 10x leverage, a 10% adverse price movement can result in 100% loss of your margin. A 20% adverse movement can result in losses exceeding your initial margin.

4. Liquidity Risk

Market liquidity can impact your ability to trade:

• Low liquidity periods may result in wider bid-ask spreads
• Orders may execute at prices significantly different from expected (slippage)
• You may be unable to exit positions quickly during volatile periods
• Market depth may be insufficient for large orders
• Order book manipulation may occur

5. Technology Risk

Technical issues can impact trading:

• Platform Outages: System failures may prevent trading
• Software Bugs: Errors in platform code may cause losses
• Network Congestion: Blockchain networks may experience delays
• Gas Fees: Transaction costs may fluctuate or increase unexpectedly
• Smart Contract Risks: Code vulnerabilities may be exploited
• Blockchain Forks: Network forks may impact transactions
• Node Outages: Infrastructure failures may disrupt service

6. Security Risk

Security threats are inherent in cryptocurrency trading:

• Cyberattacks: Platforms may be targeted by hackers
• Phishing: Scams may attempt to steal your credentials
• Malware: Your device may be compromised
• Social Engineering: Attackers may attempt to trick you
• Wallet Security: You are solely responsible for wallet security
• Private Key Loss: Lost private keys cannot be recovered
• Smart Contract Interactions: Approving malicious contracts can result in loss

7. Regulatory Risk

Regulatory landscape is evolving and uncertain:

• Laws and regulations may change without notice
• Your jurisdiction may restrict or ban cryptocurrency trading
• Platform may be required to restrict access in certain regions
• Tax treatment may change
• Regulatory actions may impact asset values
• Compliance requirements may increase
• Legal status of perpetual contracts may be uncertain

8. Operational Risk

Operational issues can impact trading:

• Platform errors or bugs
• Human error in operations
• System maintenance downtime
• Third-party service failures
• Order execution delays
• Data inaccuracies
• Service interruptions

9. Counterparty Risk

Trading depends on third-party services:

• Orderly Network: Trading infrastructure dependency - outages may prevent trading
• Smart Contracts: Code vulnerabilities may be exploited
• Oracle Price Feeds: Price feed failures or manipulation
• Liquidity Providers: Liquidity may be withdrawn
• Settlement Risks: Settlement delays or failures
• Blockchain Networks: Network congestion or forks

DiamondX is not responsible for third-party service failures, including Orderly Network outages or issues.

10. Legal & Tax Risk

Legal and tax implications vary by jurisdiction:

• Tax obligations vary by country and jurisdiction
• You are responsible for tax reporting and compliance
• Tax treatment of perpetual contracts may be uncertain
• Capital gains implications
• Retroactive regulations may apply
• Legal status of trading may change

You should consult qualified tax and legal professionals regarding your obligations.

11. No Investment Advice

DiamondX does not provide investment, financial, legal, or tax advice:

• All information is for educational purposes only
• No recommendations regarding buying, selling, or holding assets
• You must make your own trading decisions
• Consult qualified professionals before making investment decisions

12. No Guarantees

DiamondX makes no guarantees:

• No guarantee of profits
• No guarantee of platform availability
• No guarantee of data accuracy
• No guarantee of order execution
• No guarantee of system uptime
• Platform is provided "as-is" without warranties

13. User Responsibilities

You are responsible for:

• Understanding all risks before trading
• Only trading with funds you can afford to lose
• Maintaining wallet security and private key protection
• Verifying all transactions before approval
• Staying informed about regulations in your jurisdiction
• Consulting professionals when needed
• Making your own trading decisions