The derivatives trading services provided by the Bybit platform are highly leveraged and high-risk, and are only suitable for professional investment institutions or people with rich investment experience background, or can fully understand all risks related to cryptocurrencies derivatives trading, and are able to withstand any total investment losses.
Therefore, investors should read carefully before trading on cryptocurrencies derivatives, and decide for themselves whether to participate in cryptocurrencies derivatives trading based on their investment experience, goals, financial status, and ability to bear risks. Once this agreement is agreed, this represents the investor's full understanding and consent to the trading risks of Bybit’s cryptocurrencies derivatives margin trading on the exchange platform.
1. Risk of price fluctuation
- The trading of goods and products, real or virtual, as well as virtual currencies, involves significant risk. Prices can and do fluctuate on any given day. Due to such price fluctuations and volatility, you may increase or lose value in your assets at any given moment. Any currency – virtual or not – may be subject to large swings in value and may even become worthless. There is an inherent risk that losses will occur as a result of buying, selling or trading on the market.
- Cryptocurrency derivatives trading is probably susceptible to irrational (or rational) bubbles or loss of confidence, which could collapse demand relative to supply. For example, confidence might collapse in Bitcoin because of unexpected changes imposed by the software developers or others, a government crackdown, the creation of superior competing alternative currencies, or a deflationary or inflationary spiral. Confidence might also collapse because of technical problems: if the anonymity of the system is compromised, if money is lost or stolen, or if hackers or governments can prevent any transactions from settling.
2. Trading Risks
- Investors need to understand that derivatives trading is characterized by high leverage, which may lead to rapid profit or loss. If the direction of the trade is opposite to the fluctuation of the market, it will cause a large loss. Depending on the extent of the loss, investors need to add margins or reduce positions, otherwise, their positions may be forced to liquidate, and investors must bear all the losses caused thereby.
- When the investor submits a single market order/limit order / conditional order within the trading system of the exchange, it is irrevocable, and the investor must accept the risks that this method may bring.
- The exchange does not make profit guarantees for investors and does not share profits or share risks with investors.
- Since this platform is also used for trading derivatives, additional risks are involved. In extreme market conditions, if a position loss during a certain period of time has depleted the insurance fund, any further losses will be paid by Bybit based on the profit gained by other traders on the platform based on the ADL ranking system. In this case, we will lock some or all of the positions of the traders whose rankings are being Auto-deleverage according to the scale of the loss to cover the losses caused by the liquidation of other traders' positions. Bybit will take this measure after the insurance fund depletes. The insurance fund will be used to make up for the system loss caused by the position opening. The current balance of the insurance fund will be displayed on the platform's "Daily Insurance Fund Balance" page.
- These terms or any information provided on this website should not be considered financial advice at any time. Bybit does not advise on the advantages of any particular investment. This article or any information provided on this website is for educational purposes to enable investors to understand the prices, ranges and Volatility of the respective coins; BTC, ETH, XRP, EOS. Any decision to trade, buy or sell is made by the account holder himself, and therefore the account holder shall be liable for any losses suffered.
3. Regulatory Risks
Digital asset derivatives transactions may face regulatory policy risks in a certain jurisdiction. Investors need to make a careful judgment on the premise of understanding the policy regulatory background of the trading region before trading.
4. Other Possible Risks
- Derivatives trading rules in the digital asset derivatives market, including but not limited to adjustment factors and product rules can be modified according to the actual operation of the platform. If the platform needs to settle the trade in advance or if there is a delay due to special circumstances, the official website after fulfilling the notification obligation by means of announcement or short message notification, the user shall promptly handle his own trading position. Any possible loss or gain caused thereby shall be borne by the user.
- Due to the nature of digital assets, the following may occur: Bybit will close transactions in advance to maintain the integrity of the platform, and we conclude that traders of the platform are aware of these risks. For example, extreme situations can occur during the fork and split of the Bitcoin network.
- Investors must thoroughly understand the basic knowledge and related risks of cryptocurrencies derivatives margin trading activities and the relevant business rules of participating in derivatives exchanges before participating.
- The risk issues described in this agreement are only enumerated in nature, failing to elaborate on all the risk factors related to cryptocurrencies derivatives trading. Investors should carefully consider other possible risk factors before participating in cryptocurrencies derivatives trading activities.
- We sincerely advise investors to carefully decide whether to participate in the derivatives trading activities and to reasonably allocate their digital assets based on their actual conditions such as risk tolerance.
- If you have made any infringement to Bybit’s website (including but not limited to your breach of this agreement) and any related rights of disputes and costs (including attorneys' fees), you will compensate for the consequential actions and guarantees Bybit, its contractors, licensed persons and their respective directors, senior management, employees and agents are protected from harm.
- Under no circumstances shall Bybit or its partners assume any responsibility for any of the following matters under the contract, liability or other laws or rights under this agreement:
- Any special, incidental or consequential damages;
- The cost of purchasing or replacing a product or service;
- Discontinued use, lost or corrupted data;
- The amount in excess of the fees you paid to Bybit under this agreement within twelve (12) months before the date of the cause of action.
- To the extent permitted by law, Bybit is not liable for transaction cancellations or transaction delays caused by uncontrollable factors.
- All transactions on the platform are executed by Bybit ‘s trading system, and all calculations verified by Bybit have final validity.
- Bybit has the right to take appropriate legal measures for violations of these terms, including, but not limited to, the right to restrict, suspend or terminate your account or deny you access to this website without notice.
- If Bybit suspects that any trading activity violates the content of this clause or violates the rules of the platform, Bybit reserves the right to restrict the trading activity of the account if necessary, which may result in the cancellation of the transaction. Bybit will not be liable for any losses if any of the transactions are restricted, withdrawn or closed early due to a suspected violation of these Terms. If any losses are caused by our actions, you will ensure that Bybit is not affected by you or any third-party litigation and you will provide the corresponding damage compensation. During the investigation of any fraudulent account behaviour, Bybit reserves the right to prohibit you from conducting any transaction such as a deposit or withdrawal. Until the end of the investigation period, Bybit has the right to close the account without providing any explanation.
- If Bybit believes that any account have violated the terms and conditions under any circumstances (including but not limited to marketing activities), Bybit has the right to immediately close your account, and all relevant remaining account assets will be forfeited.