Dear Users,
To help you fully understand the risks of contract trading and strengthen your risk management awareness, SUNX issues this risk warning. Before trading, please carefully read the relevant information and make prudent decisions based on your trading experience, financial circumstances, and risk tolerance.
I. Main Risks of Contract Trading
1. Market Price Volatility Risk
The price of a contract’s underlying asset may fluctuate significantly due to market supply and demand, policy changes, macroeconomic conditions, unexpected events, and other factors. Price movements against your position may cause substantial losses or trigger liquidation.
2. Leverage Risk
Leverage magnifies both profits and losses. With high leverage, even a small adverse price movement may cause significant losses to your margin. Please do not regard high leverage as a way to increase the probability of making a profit.
3. Margin and Liquidation Risk
While holding a position, your account or position must continuously meet the relevant contract’s margin and risk requirements. Failure to meet these requirements may trigger liquidation and result in substantial losses.
The liquidation price and account risk level may change due to position changes, margin adjustments, fee deductions, and other factors. Monitor the actual risk indicators and liquidation trigger criteria. Do not assess risk solely based on the last traded price or the liquidation price displayed when the position was opened.
4. Liquidity and Price Slippage Risk
During sharp market fluctuations or periods of insufficient order-book liquidity, orders may experience slippage, partial execution, delayed execution, or failure to execute. Actual execution prices may differ from the prices displayed when orders are submitted or from expected prices. These effects may be more pronounced for large orders.
5. Order and Take-Profit/Stop-Loss Execution Risk
Submitting an order does not mean it has been executed, and meeting a trigger condition does not mean the trade can be completed.
Take-profit/stop-loss orders and conditional orders generally involve condition triggering, order submission, and matching for execution. Order types, price limits, available margin, the quantity available for closing, market liquidity, and other factors may prevent orders from executing as expected.
Limit orders can restrict execution prices but cannot guarantee execution. Market orders aim to execute as quickly as possible but cannot guarantee execution at a specified price.
6. Trading Fee and Funding Fee Risk
Opening and closing fees, together with applicable funding fees, affect trading costs and final returns. Holding a position across multiple funding settlement times may result in multiple funding payments or receipts.
Fee deductions may affect your available balance and margin level. Understand the fee rules before trading and continue monitoring funding rates and settlement arrangements while holding positions.
7. System, Network, and External Event Risk
Network connection issues, device failures, third-party service disruptions, system failures, or other uncontrollable events may cause delayed page updates, delays in order submission or cancellation, or temporary service interruptions.
Verify the results of your operations using actual order statuses, execution records, and account records to avoid additional risks caused by duplicate submissions or incorrect assessments of order status.
II. Risk Management Recommendations
1. Determine Acceptable Losses Before Choosing Position Size and Leverage
Before opening a position, determine the loss you can afford on a single trade and use it to plan your position size and leverage. Avoid committing all available funds, excessively adding to positions, or trading with funds beyond your financial capacity.
2. Understand Margin Modes and Maintain a Reserve of Funds
Understand how funds are used and how risk is borne under your selected margin mode, and check related settings such as automatic margin replenishment, where applicable.
Maintaining a reserve can help accommodate fee deductions and price fluctuations. However, adding margin does not guarantee that liquidation will be avoided and may increase the amount of funds exposed to risk.
3. Set Exit Conditions in Advance
Set take-profit and stop-loss orders appropriately according to your trading plan, and verify the trigger price, trigger reference, order type, and quantity. Fully understand their execution limitations and do not regard them as absolute protection against losses.
4. Continuously Monitor Positions and Account Risk
While holding positions, monitor margin levels, risk indicators, liquidation prices, unfilled orders, and funding fee changes. When significant market changes occur, reassess whether your positions remain within your risk tolerance.
5. Avoid Excessive Risk Concentration
Avoid concentrating most of your funds in a single contract or trading direction. Different contracts may also be highly correlated. Holding several positions at the same time does not mean that risk has been sufficiently diversified.
6. Understand the Rules and Verify Your Operations
Before trading, carefully review the relevant contract’s trading parameters, leverage range, margin requirements, trading fees, funding fees, order restrictions, and liquidation rules.
Before submitting an order, verify the trading pair, buy/sell direction, opening/closing type, price, and quantity. After submission, promptly confirm the order and position status.
III. Important Statements
Contract trading is a high-risk activity and may result in substantial losses. The risks listed in this announcement are not exhaustive, and the risk management recommendations cannot guarantee profits or prevent losses.
Product descriptions, operation guides, and market information provided by SUNX do not constitute personalized investment advice or a promise of returns. Please make trading decisions independently and bear the resulting profits and losses, as well as the risks allocated to you under the applicable rules.
The specific features, trading parameters, fee standards, and execution mechanisms of each contract are subject to the relevant SUNX contract pages, agreements, and official rules. The rights and obligations of the platform and users are determined by the relevant agreements and applicable laws.
If you have questions about trading rules or operations, please promptly contact the SUNX Customer Support Team.
Please fully understand the product mechanisms, manage position sizes appropriately, use leverage prudently, and trade rationally.
Thank you for your support and trust in SUNX.
SUNX Global Operations Team
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