SUNX Strategy Trading Risk Warning

Dear Users,

SUNX provides strategy trading features that allow users to set relevant parameters based on their own market assessments, with the system executing trades according to preset rules.

Strategy trading is an automated trading tool. It does not guarantee profits or eliminate market risks. Before using it, please fully understand the strategy mechanisms, trading rules, and associated risks, and make prudent decisions based on your trading experience, financial circumstances, and risk tolerance.

I. Automated Trade Execution Risk

After a strategy is activated, the system may automatically submit trading orders according to preset rules and your settings, without requiring manual confirmation for each order.

Automatic execution does not mean that every order can be successfully submitted or filled. Price restrictions, order quantity limits, insufficient margin, market liquidity, and system status may all affect execution results.

Verify the relevant parameters before creating a strategy, and continuously monitor orders, positions, and account risk status while it is running.

II. Market Volatility and One-Way Market Risk

Strategies such as contract grids generally depend on specific market conditions. A strategy may incur losses when actual price movements differ from expectations.

For grid strategies, a sustained price rise or decline may continuously expose existing positions to adverse price movements. Long grids, short grids, and neutral grids all carry market risk. A neutral grid does not mean there is no directional risk.

Do not regard historical returns earned in range-bound markets as evidence that a strategy will remain profitable under other market conditions.

III. Price Range and Parameter Setting Risk

Parameters such as upper and lower price limits, grid count, grid mode, leverage, and invested margin affect order distribution, execution frequency, fund usage, and risk levels.

If grids are too closely spaced, the price difference per transaction may be insufficient to cover trading costs. If grids are too widely spaced, trading opportunities may decrease. Inappropriate parameters may also prevent strategy creation, restrict order placement, or cause risks to exceed expectations.

When the market price moves outside the preset range, the strategy may pause new orders. However, existing orders and positions may not be automatically canceled or closed and may still incur losses.

Specific handling outside the range and parameter restrictions are subject to the relevant strategy rules.

IV. Leverage, Margin, and Liquidation Risk

When contract strategies use leverage, both profits and losses are magnified. Even small adverse price movements may cause substantial margin losses.

While a strategy is running, the relevant account or position must continuously meet margin and risk requirements. Position losses, fee deductions, or other fund changes may cause insufficient margin, affect subsequent orders, or trigger liquidation.

Estimated liquidation prices may change with positions, margin, and fees and should not be regarded as fixed risk boundaries. Adding margin does not guarantee that liquidation will be avoided and may increase the funds exposed to risk.

V. Liquidity and Order Execution Risk

Reaching a grid price or another preset condition does not guarantee that an order will execute.

During sharp market fluctuations or periods of insufficient liquidity, slippage, partial execution, delayed execution, or failure to execute may occur, causing the actual order distribution to differ from expectations.

Limit orders can restrict execution prices but cannot guarantee execution. Market orders aim to execute as quickly as possible but cannot guarantee execution at the expected price.

VI. Displayed Returns and Trading Cost Risk

Grid returns or returns from completed trades displayed on the strategy page do not necessarily equal the strategy’s overall profit.

Unrealized losses on existing positions, trading fees, funding fees, and other applicable costs may all affect the final result. Even if grid returns are positive, the strategy may still incur an overall loss.

Understand the calculation methodology of each return indicator, confirm whether relevant fees are included, and assess realized profit and loss, unrealized profit and loss, and actual fund changes together.

VII. Fund Transfer, Addition, and Withdrawal Risk

Fund transfers or allocations when creating a strategy may reduce available funds in other trading accounts and affect the risk level of existing positions.

Adding margin, withdrawing profits, or adjusting fund allocations may also change the strategy’s available funds and ability to withstand risk. Before operating, confirm the impact of fund changes on the strategy and other positions.

Specific fund segregation arrangements, withdrawable amounts, and operation restrictions are subject to page instructions and the relevant rules.

VIII. System, Network, and Abnormal Event Risk

Network connection issues, device failures, third-party service disruptions, or system failures may cause delayed page updates, delayed instruction processing, or interruptions to strategy operation.

Contract trading suspensions, delistings, or other abnormal events may also affect continued strategy operation and trigger the corresponding handling procedures.

Confirm operation results using actual order, execution, and account records, and monitor relevant platform announcements.

IX. Risk Management Recommendations

1. Understand the strategy mechanisms: Before creation, confirm the strategy direction, applicable market conditions, order placement logic, and exit method.
2. Set parameters appropriately: Set the price range and grid count based on market conditions, minimum order requirements, and trading costs.
3. Control investment and leverage: Avoid using all available funds, excessive leverage, or funds beyond your financial capacity.
4. Define an exit plan: Determine acceptable losses and exit conditions in advance, and understand the execution limitations of take-profit and stop-loss orders.
5. Continuously monitor operation: Regularly review orders, positions, margin, fees, and the strategy’s overall profit and loss.
6. Avoid risk concentration: Multiple strategies may have the same direction or be highly correlated. Running them simultaneously does not mean that risks have been sufficiently diversified.
7. Verify operation results: After creating, adjusting, withdrawing funds from, or stopping a strategy, promptly confirm the actual execution status.

X. Important Statements

Strategy tools, displayed parameters, product descriptions, and related information provided by SUNX do not constitute personalized investment advice or a promise of returns. Historical performance, example returns, or estimated data do not represent future actual results.

Please independently select strategies and make trading decisions, and bear the resulting profits and losses, as well as the risks allocated to you under the applicable rules. The rights and obligations of the platform and users are governed by the relevant agreements and applicable laws.

The risks listed in this announcement are not exhaustive, and the risk management recommendations cannot guarantee profits or prevent losses. Supported strategies, trading pairs, features, parameters, and execution mechanisms are subject to SUNX’s actual pages, relevant agreements, and official rules.

If you have questions about strategy rules or operations, please promptly contact the SUNX Customer Support Team.

Thank you for your support and trust in SUNX.

SUNX Global Operations Team