Dear Users,
To help you understand the risks associated with spot trading and strengthen your awareness of risk management, SUNX provides the following risk warnings and recommendations.
Spot trading does not guarantee profits. Before participating, please fully understand the product mechanisms and trading rules, and make prudent decisions based on your trading experience, financial circumstances, and risk tolerance.
I. Market Price Volatility Risk
Digital asset prices may be affected by market supply and demand, industry events, and external conditions, causing substantial increases or decreases within a short period and significant changes in the value of your holdings.
Assets may continue to decline after purchase, resulting in substantial losses. Please do not regard historical prices, short-term price increases, or past returns as guarantees of future performance.
II. Liquidity
Market depth and trading activity may vary across trading pairs. During significant market volatility or insufficient liquidity, orders may be partially filled, filled with delays, or remain unfilled.
Market orders may be executed at multiple price levels, and the average execution price may differ substantially from the latest traded price displayed when the order was submitted. Pay particular attention to slippage risk when the order value is large relative to order book depth.
III. Order Type and Execution Risks
1. Limit Orders
Limit orders are executed only at the specified price or a better price, but immediate or full execution is not guaranteed.
The latest traded price reaching your limit price does not mean that your order will necessarily be filled. Execution also depends on factors such as the quantity of matching orders available and the matching sequence.
2. Market Orders
Market orders aim to execute as quickly as possible, but execution at the expected price is not guaranteed, nor is full execution under all market conditions.
3. Order Cancellation
Submitting a cancellation request does not mean that the order has been successfully canceled. An order may be executed before cancellation is completed, and completed trades cannot be reversed by canceling the order.
Please confirm execution results using the actual order status and trade records.
IV. Trading Cost Risk
Trading fees and bid-ask spreads may affect final returns. Frequent trading may increase cumulative trading costs.
Maker and Taker classifications are determined by the actual matching method. A limit order that executes immediately may also be classified as Taker.
Before trading, please understand the applicable fee rates, the asset used to deduct fees, and the relevant fee rules, and assess trading costs using actual trade records.
V. Fund Allocation and Asset Concentration Risks
Investing most of your funds in a single digital asset or trading pair may result in excessive concentration of account risk.
Holding multiple assets does not mean that risks are sufficiently diversified. If their price movements are highly correlated, they may decline simultaneously and compound losses.
Fund transfers and assets reserved for unfilled orders may also affect your available account balance. Please confirm your funding arrangements before taking action and maintain a reasonable amount of liquid funds.
VI. Operational Error Risk
Selecting the wrong trading pair or buy/sell direction, confusing quantity with order value, or entering an incorrect price may result in unintended trades or losses.
Please distinguish between the base asset and the quote asset. For example, in the BTC/USDT trading pair:
- Buy BTC: Use USDT to purchase BTC.
- Sell BTC: Sell BTC to receive USDT.
Before submitting an order, verify the amount unit, order type, price, and quantity. After completing an action, promptly check your orders, trade records, and asset balances.
VII. System, Network, and Exceptional Event Risks
Network disruptions, device failures, third-party service disruptions, or system failures may cause delays in market data display, delays in processing trading instructions, or service interruptions.
Trading suspensions, delisting of trading pairs, or other exceptional events may also affect order execution and subsequent asset handling. Please monitor relevant platform announcements and confirm the results of your actions using actual order, trade, and account records.
VIII. Risk Management Recommendations
- Understand the product and rules: Before trading, confirm the trading pair, order type, order restrictions, and fee standards to avoid losses caused by misunderstandings.
- Control your investment amount: Allocate trading funds according to your financial circumstances and avoid committing funds beyond your capacity to bear losses.
- Avoid excessive concentration: Assess the proportion held in a single asset and the correlations between different assets, and allocate funds reasonably.
- Establish an exit plan: Define your trading objectives, acceptable losses, and exit conditions in advance, and avoid blindly committing additional funds during price fluctuations.
- Assess costs comprehensively: Include fees, bid-ask spreads, and slippage in your trading plan, and do not overlook the cumulative costs of frequent trading.
- Regularly review your account: Check open orders, trade records, available balances, and changes in assets, and promptly address pending orders that no longer align with your trading plan.
- Protect account security: Safeguard your login and verification information, use services through official platform channels, and avoid disclosing account information.
IX. Important Statement
The spot trading features, market data, product descriptions, and related 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 any risks you are required to bear 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 notice are not exhaustive, and the risk management recommendations cannot guarantee profits or prevent losses. The specific supported trading pairs, features, parameters, and execution rules are subject to SUNX’s actual interface, relevant agreements, and official rules.
If you have questions about trading rules or operations, please contact the SUNX Customer Support Team promptly.
Thank you for your support and trust in SUNX.
SUNX Global Operations Team
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