Risk Disclosure Statement

Last Updated: January 1, 2025

IMPORTANT WARNING: Trading financial instruments involves substantial risk of loss and is not suitable for all investors. You should carefully consider your financial situation, investment objectives, and risk tolerance before trading.

1. General Risks

Trading on margin or leverage carries a high level of risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.

The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

2. Market Volatility Risk

Financial markets can be highly volatile, particularly cryptocurrency markets. Prices can fluctuate significantly within short periods due to:

  • News announcements and market sentiment
  • Regulatory changes and government interventions
  • Technological developments and security breaches
  • Liquidity shortages and market manipulation
  • Economic indicators and geopolitical events

These fluctuations can result in substantial losses or gains in a very short time.

3. Leverage Risk

Using leverage can amplify both profits and losses. Even small market movements can result in significant losses that may exceed your initial investment.

Example: Trading with 10:1 leverage means a 1% adverse market movement could result in a 10% loss of your capital. Higher leverage increases risk exponentially.

We strongly recommend that you understand how leverage works and use it cautiously.

4. Cryptocurrency-Specific Risks

Cryptocurrency trading involves additional risks beyond traditional financial markets:

  • Extreme Volatility: Crypto prices can experience 20-50% swings in a single day
  • Regulatory Uncertainty: Governments may ban or restrict cryptocurrency trading
  • Security Risks: Exchanges and wallets can be hacked
  • Technology Risks: Network forks, congestion, or failures can affect trading
  • Market Manipulation: Crypto markets may be susceptible to "pump and dump" schemes

5. Technical Risks

You may face technical issues that affect your ability to trade:

  • Internet connectivity problems
  • Platform downtime or maintenance
  • Order execution delays or failures
  • Software bugs or glitches
  • Hardware failures or power outages

We are not responsible for losses resulting from technical issues beyond our reasonable control.

6. Liquidity Risk

Some trading pairs may have limited liquidity, which can result in:

  • Slippage between expected and executed prices
  • Inability to enter or exit positions at desired prices
  • Wider bid-ask spreads
  • Price gaps during volatile periods

Low liquidity can make it difficult to close positions without significant losses.

7. Counterparty Risk

When trading on orbits8, you are exposed to counterparty risk. While we employ security measures, there is always risk that:

  • The platform could become insolvent
  • Funds could be frozen due to legal actions
  • Security breaches could result in fund loss
  • Regulatory actions could affect operations

8. Regulatory Risk

Changes in laws and regulations could adversely affect your trading activities:

  • New taxes or fees on cryptocurrency transactions
  • Stricter KYC/AML requirements
  • Trading restrictions or bans in your jurisdiction
  • Changes to margin requirements or leverage limits

9. Psychological Risks

Trading can be emotionally challenging and may lead to impulsive decisions:

  • Fear of missing out (FOMO) leading to poor entries
  • Panic selling during market downturns
  • Greed leading to excessive risk-taking
  • Revenge trading after losses

We strongly recommend maintaining a disciplined trading strategy and never trading with money you cannot afford to lose.

10. Automated Trading Risks

Using our trading bots and automated features carries additional risks:

  • Bots may execute trades based on faulty signals
  • Technical errors could cause unintended positions
  • Rapid market movements may overwhelm bot strategies
  • You are fully responsible for bot configurations

Monitor automated trading activity regularly and understand how your bots operate.

11. Recommendations

To manage your risk exposure, we recommend:

  • Never invest money you cannot afford to lose
  • Diversify your investments across different assets
  • Use stop-loss orders to limit potential losses
  • Start with small positions while learning
  • Keep up-to-date with market news and risks
  • Enable Two-Factor Authentication (2FA)
  • Regularly review your trading performance

12. No Financial Advice

orbits8 does not provide financial, investment, or trading advice. All information provided on our platform is for informational purposes only.

You are solely responsible for your trading decisions. Consider seeking independent financial advice from a qualified professional before trading.

By using orbits8's services, you acknowledge that you have read, understood, and accept all risks associated with trading. You agree that you are solely responsible for any losses incurred.