This Risk Disclosure and Compliance Statement should be read in conjunction with the PrimaX Terms of Service (“Terms”).
This Risk Disclosure and Compliance Statement should be read in conjunction with the PrimaX Terms of Service (“Terms”). We want you to understand the key risks of potential financial losses when using cryptocurrencies, as well as compliance considerations when trading on our platform.
Trading in digital assets is considered high-risk. Digital assets are not legal tender and are not backed by any government or central bank. The risk of loss when trading or holding digital assets can be substantial. You should carefully consider whether engagement with, storage of, or trading in digital assets is appropriate for you, taking into account your financial situation.
2.1 Investing in digital assets carries a high level of risk and may not be suitable for all investors. A user should not engage in digital asset transactions if seeking regular or low-risk returns on invested capital. Unlike traditional investment products, digital assets generally have no underlying or intrinsic value or any assets upon which their price is based.
2.2 Trading in digital assets is largely speculative and carries significant risk. There are few fundamental pricing justifications for digital assets, which may be subject to irrational and uncontrolled market forces. Whether the price of a digital asset will rise or fall in the future is unpredictable and purely speculative. There is also a risk that a digital asset may have no value at all. Therefore, trading in digital assets is undertaken entirely at the user’s own risk.
2.3 The value of digital assets is highly volatile and can fluctuate significantly compared to fiat currencies or traditional investment products. Market conditions may change substantially over a very short period of time. Moreover, the value of a digital asset may never recover if it fails to attract interest or development. Consequently, the user risks losing all or a substantial portion of the value of their digital assets, and such losses can occur in a very short period.
2.4 Order instructions may not necessarily limit losses to the specified amount, and execution or achievement of a target price may be impossible due to market conditions.
2.5 The user acknowledges that they must be able to bear the risk of losing their entire invested capital. Users should only invest capital they can afford to lose without affecting their standard of living and in proportion to their income. A user should cease trading in digital assets if their personal financial circumstances no longer allow them to do so.
2.6 Individuals with limited resources, limited investment experience, and/or unwillingness to accept the risk of investment or trading losses should not trade in digital assets.
2.7 The user should ensure they understand the economic and other risks associated with digital asset trading. Where necessary, they should seek professional advice. Before opening an account, the user must have assessed the relevant risks and confirmed their understanding of the potential risks.
The value of any digital asset may decrease as well as increase. Digital asset trading may be affected by irrational market forces. Any data regarding past performance is not indicative of future results and should not be relied upon as a reliable indicator.
4.1 The user’s ability to acquire a digital asset via our platform may depend on the availability of a counterparty willing to sell (and vice versa). We make no guarantees regarding the timing or ability to buy or sell digital assets through the PrimaX platform.
4.2 The value of digital assets may depend on the ongoing willingness of users to exchange them for other assets, which may lead to a permanent and complete loss of value. Markets with low activity or illiquidity may involve a higher risk of loss due to increased volatility, and the user may be unable to open or close positions at advantageous prices or at all.
4.3 A digital asset may change or cease to function properly as a result of changes to the underlying technology, including due to cyberattacks. Such changes may reduce the value of a user’s holdings or reallocate value to another digital asset.
4.4 A “fork” refers to a blockchain network code update, which may occur due to disagreements among stakeholders or attempts to revert the blockchain’s history following a cyberattack. A hard fork may result in a permanent split from the previous version and the creation of a new digital asset. Forks are outside of PrimaX’s control. The availability of assets resulting from a fork and our ability to provide services for them may depend on third-party providers not controlled by PrimaX. We do not own or control any of the protocols associated with digital assets or related networks and are not responsible for them, their security, functionality, or availability.
4.5 You may incur losses if unable to promptly sell or convert digital assets into a preferred alternative asset, or if conversion can only be made at a loss. Such liquidity risks can arise from factors including lack of buyers, low trading activity, or underdeveloped secondary markets.
Trades may be executed in a currency different from that deposited into your account. You should be aware of exchange rate fluctuations and associated risks. Changes in exchange rates may have positive or negative effects on profits or losses.
If you convert digital assets after order execution, or if an order is denominated in a digital asset that is not your primary asset, adverse market movements may result in significantly lower net proceeds than the original amount invested, eliminating any profit.
PrimaX may store digital assets with third parties. Assets held with PrimaX are not “deposits” and are not intended to be held as regulated products or services under applicable law.
In case of insolvency or similar proceedings concerning a third party holding user fiat or digital assets, PrimaX may only assert unsecured claims on behalf of the user.
7.1 By opening an account, the user accepts the risk of trading digital assets. When executing any transaction, the user affirms they have conducted and will continue to conduct independent assessment and research of the risks involved.
7.2 By using PrimaX services, the user confirms they have sufficient knowledge, market experience, and professional advice to independently assess the risks and benefits of any transaction.
7.3 Users should seek professional advice where appropriate, considering investment goals, experience, and risk tolerance.
7.4 Each user should be fully aware of the specific features and risks of any digital asset they intend to trade.
7.5 The platform serves as a trading venue, matching user orders and facilitating settlement.
7.6 Stop Orders: These are offers to trade if our price moves unfavorably beyond a certain level. Stop orders may not limit losses to planned amounts due to volatility. Execution near the stop price may be impossible. In fast markets, asset prices may drop below the stop price, causing greater losses.
7.7 Margin and Leverage: Before entering a leveraged contract, you must deposit margin. Small favorable price movements can yield large returns, but small adverse movements can cause substantial losses. You must maintain account equity at or above the required margin at all times. If equity falls, you may be required to deposit more funds immediately, or we may close your positions at our discretion. We may change margin requirements at any time in response to volatility, liquidity changes, news events, trading halts, changes in your account status, or legal/regulatory changes.
In case of system errors or unjust enrichment, we will seek recovery of profits, including by restricting accounts, freezing funds, debiting assets, or pursuing legal action.
Certain network events may make liquidating positions difficult or impossible, and such events may be unpredictable and beyond our or third parties’ control.
PrimaX acts solely as a market execution and custody service provider. We do not assess:
Information provided on our site is for informational purposes only and is not financial, investment, or trading advice. We make no guarantees as to its accuracy, completeness, or usefulness, and it should not be considered an offer to buy or sell digital assets. Users are solely responsible for determining the appropriateness of any transaction.
PrimaX provides only execution services and does not offer advice on the merits, risks, or tax consequences of any transaction, nor any other financial, investment, or legal advice related to our services.