Risk Notice on Contract Underlying Asset Price Fluctuations and Trading

Dear Users,

SUNX contract trading involves high leverage and high risk. To help you understand price fluctuations in contract underlying assets and related trading risks, and carefully assess whether to participate, we provide the following notice.

Before registering for and using SUNX contract trading services, please carefully read and fully understand this risk notice, relevant trading rules, and service agreements. Independently decide whether to participate based on your trading experience, investment objectives, financial circumstances, and risk tolerance.

Registering for or using SUNX contract trading services constitutes confirmation that you are aware of, understand, and accept this risk notice and the relevant business rules. If this notice is available in multiple languages, the Chinese version shall prevail in the event of any conflict or omission.

I. Suitable Participants

Contract trading involves extremely high risk and is suitable only for users who fully understand the related trading risks and can withstand the loss of part or all of their assets resulting from unsuccessful investments, or for professional investment practitioners.

Please do not engage in trading beyond your financial capacity or risk tolerance.

II. Risks of Price Fluctuations in Contract Underlying Assets

Digital asset prices are highly volatile and may be affected by various factors. Users may find it difficult to accurately determine market direction, and trading may result in substantial losses.

When the price of a contract’s underlying asset moves against a position, losses may occur. Leverage further amplifies the impact of price fluctuations on margin and account risk.

Please assess market trends independently and bear losses arising from your own trading decisions.

III. Leverage and Trade Execution Risks

1. High Leverage Risk

Leverage amplifies both profits and losses, potentially causing significant changes in position profit and loss within a short period.

Rapid and substantial market fluctuations may result in major losses or trigger forced liquidation. Please fully understand the leverage mechanism and liquidation rules and bear the associated trading risks.

2. Executed Trades Cannot Be Reversed

Contract trading is a market trading activity. Once an order has been executed, the completed trade cannot be reversed by canceling the order.

Before submitting an order, please carefully check the trading information and fully understand the risks you may bear after execution.

3. No Guarantee of Profit

SUNX provides trading tools and a trading environment. It does not guarantee users’ trading returns, share their trading profits, or jointly bear their trading risks.

IV. Policy and Regulatory Risks

Policies, laws, and regulatory requirements concerning digital assets and contract trading may differ across countries or regions and may change.

Before trading, please understand the applicable policies and regulatory requirements in your location. Carefully decide whether to participate after confirming your eligibility to use the relevant services.

V. Risk Management During Extreme Market Conditions

High leverage may substantially amplify market risk.

To prevent users from bearing excessive risk and maintain market stability, SUNX may, under relevant rules, adjust the positions and leverage of highly leveraged users or take risk management measures during extreme market conditions, including but not limited to:

1. Communicating with users;
2. Issuing risk warnings;
3. Forcibly reducing positions;
4. Conducting forced liquidation;
5. Adjusting leverage;
6. Canceling relevant orders.

Relevant arrangements will be published through official Platform announcements.

Please promptly review information disclosed by the Platform, understand the risk management arrangements, and manage your positions according to your circumstances. Profits or losses arising from related operations and market changes shall be borne by users under applicable rules.

VI. Important Notice

1. Registering for or using SUNX contract trading services constitutes confirmation that you are aware of, understand, and accept this risk notice, the related trading risks, and business rules.
2. The risks listed in this notice do not represent all risks of contract trading. Before participating, you should also fully understand other potential risk factors.
3. Please allocate trading funds and leverage appropriately and make prudent trading decisions based on your financial circumstances, trading experience, and risk tolerance.
4. Please continuously monitor official Platform announcements and your account’s positions, and address relevant risks promptly.

This notice should be read together with the relevant SUNX service agreements and contract trading rules. The rights and obligations of the Platform and users, and the allocation of risks, are governed by the relevant agreements and applicable law.

Thank you for your support and trust in SUNX.

SUNX Global Operations Team