Introduction:
Any reference to the “PrimeXBT”, the “Company”, “we”, “us”, “our” is a reference to
Prime XBT Trading Services Ltd, a company incorporated and existing under the laws
of Saint Lucia, with Registration No. 2024-00343, having its registered office address at
PKF Corporate Services Ltd., 1st Floor, Meridian Place, Choc Estate, Castries, Saint
Lucia.
This Risk Disclosure Statement (the “Statement”) outlines the inherent risks of the
Products and Services available on the PrimeXBT Trading Platform. All Clients must
carefully read and understand this Statement before deciding to open a trading
account with PrimeXBT and before commencing any trading activity. Clients should,
under no circumstance, trade without understanding the risks involved, or risk more
than they are prepared to lose.
YOU SHOULD CAREFULLY READ AND CONSIDER THIS STATEMENT AND THE
PRIMEXBT GENERAL TERMS AND CONDITIONS BEFORE OPENING A TRADING
ACCOUNT OR ENGAGING IN ANY TRADING ACTIVITY. IF YOU HAVE ANY
QUESTIONS OR UNCERTAINTIES, YOU SHOULD SEEK INDEPENDENT LEGAL
OR FINANCIALADVICE.
IF ANY OF THE FOLLOWING DISCLOSURES ARE UNACCEPTABLE TO YOU, YOU
SHOULD NOT USE THE PRIMEXBT TRADING PLATFORM OR ENGAGE IN ANY
TRADING ACTIVITY WITH PRIMEXBT.
TO THE EXTENT PERMITTED BY LAW, YOU AGREE NOT TO HOLD ANY OF THE
COMPANY AND ITS RESPECTIVE PAST, PRESENT AND FUTURE EMPLOYEES,
OFFICERS, DIRECTORS, CONTRACTORS, CONSULTANTS, EQUITY HOLDERS,
SUPPLIERS, VENDORS, SERVICE PROVIDERS, PARENT COMPANIES,
SUBSIDIARIES, AFFILIATES, AGENTS, REPRESENTATIVES, PREDECESSORS,
SUCCESSORS AND ASSIGNS LIABLE FOR ANY LOSSES OR ANY SPECIAL,
INCIDENTAL, OR CONSEQUENTIAL DAMAGES ARISING FROM, OR IN ANY WAY
CONNECTED, TO THE TRADING WITH MARGIN, INCLUDING LOSSES
ASSOCIATED WITH THE TRADING WITH MARGIN.
- Nature of Leveraged Products:
1.1. Our products are complex instruments and come with a high risk of losing money
rapidly due to leverage. These products are not suitable for all investors. You should
consider whether you understand how these products work and whether you can
afford to take the high risk of losing your money. Seek independent advice if
necessary.
1.2. Leveraged products are traded off-exchange or Over the Counter (‘OTC’); this
means PrimeXBT is at all times the counterparty to Client trades and any trades
entered into with PrimeXBT can therefore only be closed with PrimeXBT. Your ability to
open and/or close trades is dependent on the availability of our service to your
Jurisdiction.
1.3. You understand that you are not entitled to the physical delivery of the underlying
instrument of the leveraged product you are trading, and you have no rights in the
underlying instrument.
- Market Risks:
2.1. PrimeXBT enables you to use leverage to open a trade by depositing a fraction
of the total trade value; this means that a relatively small market movement may lead
to a proportionately much larger movement in the value of your trade.
2.2. Markets may fluctuate rapidly to reflect events that are outside the control of the
Company and/or your control; as a result, prices will become volatile. This can be
caused, for example, by unexpected economic events or market announcements,
within or outside trading hours. In addition, if prices move against you, this will have a
direct and real-time impact on your trades, which may automatically stop out.
2.3. Consequently, PrimeXBT may be unable to execute your instructions at the
requested price. Therefore, even ‘stop-loss orders’, whereby your trade will be
executed only when the instrument you want to buy or sell reaches a particular price (the stop price), cannot guarantee the limit of loss. ‘Stop-loss orders’ are not
guaranteed to be filled at the price you state. Once the ‘stop-loss orders’ have been
triggered, it turns into a market order, which is filled at the best possible price. This
price may be lower than the price specified by the ‘stop-loss orders.
2.4. Past performance, simulation or prediction does not constitute an indication of
future results. You should note that the value of your investment can decrease or
increase as the market price of the underlying asset may fluctuate downwards or
upwards
2.5. Some of the instruments may not become immediately liquid as a result of
reduced demand for the underlying instrument and Client may not be able to obtain
the information on the value of these or the extent of the associated risks.
- Margin & Liquidation Risks:
3.1. You should be aware of the implications of leveraged products trading and in
particular the specific margin requirements which are applied thereto. You shall be
required to deposit funds (“margin”) in your trading account in order to open a
leveraged position and the funds deposited should reflect the specific margin
required.
3.2. You shall be able to see the margin requirements and fees for each individual
instrument before you begin trading. Such information shall be available within the
Fees Section on the PrimeXBT Website. Margin requirements will depend on the
underlying asset, level of leverage applied, and the value of position to be
established.
3.3. The Company has no obligation to inform you about the critical margin utilization
levels. It shall be your sole responsibility to maintain sufficient margin on your account
at all times in order to avoid stop-out.
- Cryptocurrency Related Risks:
4.1. The market for cryptocurrency is still new and uncertain. No-one should have
funds invested in cryptocurrency or speculate in cryptocurrency that they are not
prepared to lose entirely. Whether the market for one or more cryptocurrencies will
move up or down, or whether a particular cryptocurrency will lose all or substantially
all of its value, is unknown. This applies both to traders that are going long and to
traders that are shorting the market. Participants should be cautious about holding
cryptocurrency.
4.2. Markets for cryptocurrency have varying degrees of liquidity. Some are quite
liquid while others may be thinner. Thin markets can amplify volatility. There is never a
guarantee that there will be an active market for one to sell, buy, or trade
cryptocurrency or products derived from or ancillary to them. Furthermore, any
market for cryptocurrency may abruptly appear and vanish. Any cryptocurrency is
subject to delisting without notice or consent.
4.3. You acknowledge that PrimeXBT is not responsible for any losses or damages of
any kind arising either directly or indirectly from the sending of cryptocurrency to the
wrong wallet address during the withdrawal of funds from their PrimeXBT account.
There is a risk that cryptocurrency may unintentionally include weaknesses or bugs in
the source code interfering with the use of or causing the loss of cryptocurrency.
4.4. Advances in cryptography, or technical advances such as the development of
quantum computers, could present risks to cryptocurrencies which could result in the
theft or loss of cryptocurrency.
4.5. The legal status of certain cryptocurrency may be uncertain. This can mean that
the legality of holding or trading them is not always clear. Whether and how one or
more cryptocurrencies constitute property, or assets, or rights of any kind may also
seem unclear. Participants are responsible for knowing and understanding how
cryptocurrency will be addressed, regulated, and taxed under applicable law. There
is a risk that in some jurisdiction’s cryptocurrency might be considered to be a security,
or that it might be considered to be a security in the future. PrimeXBT does not give
warranties or guarantees that any cryptocurrency is not a security in all jurisdictions.
4.6. You are fully responsible to check if acquisition and disposal of cryptocurrency is
legal in your jurisdiction and you should not use cryptocurrency or trade in our
Products if it is illegal in your jurisdiction.
- Risk of Theft & Hacking:
5.1. Hackers or other groups or organizations may attempt to interfere with the
Website and/or the Trading Platform in any number of ways, including without
limitation denial of service attacks, Sybil attacks, spoofing, smurfing, malware attacks,
or consensus-based attacks. You hereby agree that Prime XBT shall have no liability
for any loss you incur in relation to hacking or malicious third-party activities.
5.2. You acknowledge that PrimeXBT is not responsible for any losses or damages of
any kind arising either directly or indirectly from a withdrawal of funds from your
account by a third party due to the loss of credentials.
- Technical Risks:
6.1. You hereby acknowledge that there are risks associated with online trading
including, but not limited to, the failure of hardware, software, and Internet connections.
You acknowledge that PrimeXBT shall not be responsible for any communication
failures, disruptions, errors, distortions or delays you may experience when using the
website or our services. cryptocurrency or trade in our Products if it is illegal in your
jurisdiction.
6.2. You acknowledge that you may be prevented from sending a transaction request
or email may not be received by PrimeXBT due to hardware, software or network
connectivity issues. You accept that PrimeXBT is not responsible for any loss or
damage whatsoever arising directly or indirectly due to any such issues.
- Fund Transfer Risks:
7.1. You acknowledge that the Company cannot be held liable for the number of
days passing between the transfer of funds from your account on PrimeXBT until the
time that the transferred funds are booked into the account with the receiving
financial institution.
7.2. You acknowledge that PrimeXBT cannot be held liable for the number of days
passing between the transfer of funds by the sending financial institution until the time
that the transferred funds are received by PrimeXBT and booked on your account.
- Market Making Risks:
8.1. You acknowledge that PrimeXBT may act as a Market Maker for certain
leveraged products. You acknowledge that PrimeXBT, when acting as a Market
Maker, may quote your bid and ask prices. Notwithstanding this, you accept that the
Company has no obligation to quote prices to you at any time in any given market,
nor an obligation to quote prices with a specific maximum spread to you.
- No Investment Advise:
9.1. PrimeXBT does not provide investment, financial, legal, tax, regulatory or other
advice relating to investments or trading. Any material or information or other features,
which may be provided to you through our website, trading platforms, marketing, or
training events or otherwise, is generic and shall not be treated as advice appropriate
for you or based on a consideration of your personal circumstances. You should seek
independent professional advice from a suitably qualified advisor, if necessary, prior
to engaging in trading with us.
- Taxation:
10.1. You are solely responsible for withholding, collecting, reporting, paying, and/or remitting any and all taxes to the appropriate tax authorities in such jurisdiction(s) in
which you may be liable to pay tax. PrimeXBT shall not be responsible for withholding,
collecting, reporting, paying, and/or remitting any taxes (including, but not limited to,
any income, capital gains, sales, value added or similar tax) which may arise from your
online trading activities or acquisition of cryptocurrency.
- Changes to the Risk Disclosure Statement:
11.1. PrimeXBT reserves the right to amend this Risk Disclosure from time to time, at
its sole discretion, whenever it deems necessary, without prior notice to Clients. In
case there is a material change to this statement, we will inform clients by publishing
an updated version of this Policy on our website. The latest and prevailing version of
the Privacy Policy will, at all times, be available on the Company Website.
- Client Declaration:
12.1. You hereby acknowledge, confirm, and accept that by opening an account with
PrimeXBT, you run a high risk of incurring losses and damages as a result of the risks
disclosed herein, and you therefore declare that you shall only proceed with this kind
of trading if you are willing to undertake such risks.
Each of these points underscores the importance of due diligence, risk management, and continuous education in the realm of online trading, especially with leveraged products and cryptocurrencies. Traders should enter the market with a clear understanding of these risks and a strategy to mitigate them.