Risk Disclosure

1. TDX Services

  • In line with our commitments to compliance and user protection, this Risk Warning provides you with information about some of the key risks associated with TDX Services. Each TDX Service has its distinct risks. This Risk Warning provides a general description of some of the risks that may arise when you use TDX Services.
  • This Risk Warning does not explain all of the risks or how such risks relate to your circumstances. It is important that you fully understand the risks involved before deciding to use TDX Services and you should also read the relevant terms applicable to the specific TDX Service. By using the TDX Services and entering into any Transactions, you agree that you assume all of the related risks. 

2. No Personal Advice

  • We do not provide personal advice about TDX Services. We sometimes provide factual information, information about transaction procedures and information about the potential risks. However, any decision to use TDX Services is made by you. No communication or information provided to you by TDX is intended as or shall be considered or construed as, investment advice, financial advice, trading advice, or any other sort of advice. You are solely responsible for determining whether any investment, investment strategy or related transaction is appropriate for you according to your personal investment objectives, financial circumstances and risk tolerance.

3. No Monitoring

  • TDX is not your broker, intermediary, agent, or advisor and has no fiduciary relationship or obligation to you in connection with any trades or other decisions or activities undertaken by you using TDX Services. We do not monitor whether your use of TDX Services is consistent with your financial goals and objectives. It is up to you to assess whether any activity that you engage in through the TDX Services is appropriate given your financial position and risk appetite.  

4. No Tax, Regulatory or Legal Advice

  • You have sole responsibility for determining what taxes you might be liable to, how and when they apply, and meeting such tax obligations when transacting through TDX Services. It is your responsibility to report and pay any taxes that may arise from entering into a Transaction by using TDX Services, and you acknowledge that TDX does not provide legal or tax advice about these transactions. If you have any doubts about your tax status or obligations when using TDX Services, or concerning the Digital Assets held to the credit of your TDX account, you are encouraged to seek independent advice.
  • You acknowledge that, when, where and as required by Applicable Law, TDX shall report information regarding your transactions, transfers, distributions or payments to tax or other public authorities. Similarly, when, where and as required by Applicable Law, TDX shall withhold taxes related to your transactions, transfers, distributions or payments. Applicable Laws could also prompt TDX to request that you provide additional tax information, status, certificate documentation or other information. You acknowledge that failure to comply with these requests within the specified timeframe may result in taxes withheld by TDX, to be remitted to tax authorities as defined by Applicable Law. You are encouraged to seek professional and personal tax advice regarding the above and before entering into any Transaction.

5. Market Risks

  • An investment in Digital Assets carries significant risk. The value of an investment and any returns can go up or down, and you may lose all or part of your investment and not get back the amount you had invested. If you are new to Digital Assets, consider investing only a small amount. Only invest what you can afford to lose. It is important to do your research to understand the risks of investing in Digital Assets.
  • Digital Asset trading is speculative, prices are volatile and market movements are difficult to predict. Supply and demand for Digital Assets can change rapidly without warning and can be affected by a variety of factors which may not be predictable, including regulation, general economic trends and developments in the Digital Asset ecosystem. All investments in Digital Assets carry the risk of loss. 
  • Past performance is not an indicator of future performance.  TDX does not in any way guarantee or provide any assurance about the performance or market price of Digital Assets or products available through TDX Services. 
  • The Digital Asset industry is subject to systemic and systematic risk. Systemic and systematic risks are both threats to the Digital Asset markets and economy, but the cause of these risks and the approaches for managing them are different. Systemic risk is the risk that a company or industry-level risk could trigger a major collapse. Systematic risk is the risk inherent to the entire market, which can be economic, sociopolitical, technological, or natural in origin. These risks can affect the prices of Digital Assets. 
  • Blockchain technology is a relatively new technology that is evolving rapidly and is likely to be subject to continued technological development.  The future development and growth of the Digital Asset industry are subject to a variety of factors that are difficult to predict and evaluate. Similarly, the sustainability of Digital Asset networks may also be affected by a range of different factors.  All such factors may impact the value of a Digital Asset. 
  • Negative perceptions about Digital Assets may reduce the confidence of investors in the industry and result in greater volatility of the prices of Digital Assets, including possibly a significant depreciation in values.  Any events that trigger negative publicity in respect of Digital Asset markets may therefore have an adverse impact on the value of any investment in Digital Assets.    

6. Liquidity risk

  • Digital Asset prices on the secondary market are driven by supply and demand and may be highly volatile. Digital Assets may have limited liquidity which may make it difficult or impossible for you to sell or exit a position when you wish to do so. This may occur at any time, including at times of rapid price movements.

7. Fees & Charges

  • Our fees and charges are set out here. TDX may, at its discretion, update the fees & charges from time to time. Please be aware of all fees and charges that apply to you, because such fees and charges will affect the returns you generate from using TDX Services.

8. Third-Party Risk

  • Third parties, such as payment providers, custodians, and banking partners may be involved in the provision of TDX Services. You may be subject to the terms & conditions of these third parties. Unless expressly provided otherwise, TDX will not be responsible for any loss that may be incurred by you as a result of or arising from the services provided by such third parties. 

9. Security Risk

  • The nature of Digital Assets exposes them to an increased risk of cyberattack. While TDX uses all reasonable efforts to safeguard Digital Assets and protect the Platform from cyberattacks, no exchange can eliminate security risks. There can be no guarantee that systems in place to mitigate cybersecurity threats will always be effective in preventing improper access to the Platform and Digital Assets. 
  • You are responsible for keeping your TDX Account information safe, and you shall be responsible for all the Transactions under your TDX Account, whether you authorised them or not. Transactions in Digital Assets may be irreversible, and losses due to fraudulent or unauthorised transactions may not be recoverable.

10. Risks Related to Digital Assets

Given the nature of Digital Assets and their underlying technologies, there are a number of intrinsic risks, including but not limited to:

  • faults, defects, hacks, exploits, errors, protocol failures or unforeseen circumstances occurring in respect of a Digital Asset or the technologies or economic systems on which the Digital Asset rely;
  • transactions in Digital Assets being irreversible. Consequently, losses due to fraudulent or accidental transactions may not be recoverable;
  • technological developments leading to the obsolescence of a Digital Asset;
  • network delays causing transactions to not be settled on the scheduled delivery date;
  • attacks on the protocol or technologies on which a Digital Asset depends;
  • a hard fork may occur if Digital Asset developers suggest changes to a particular Digital Asset software the updated software is not compatible with the original software and a sufficient number (but not necessarily a majority) of users and minors elect not to migrate to the updated software. This would result in two versions of Digital Asset networks running in parallel and a split of the blockchain underlying the Digital Asset network, which could impact the demand for the Digital Asset and adversely impact the price of the Digital Asset;
  • certain addresses on the blockchain networks hold a significant amount of the currently outstanding assets on that network. If one of these addresses were to exit their positions, this may result in volatility that could adversely affect the price of that asset;
  • if anyone gains control of over 51% of the computing power (hash rate) used by a blockchain network, they could use their majority share to double spend their Digital Assets. Whilst the risk of this occurring for networks with wider adoption is remote, if such a “51% attack” were to be successful, this would significantly erode trust in public blockchain networks (like Bitcoin and Ethereum) to store value and serve as a means of exchange, which may significantly decrease the value of Digital Assets;
  • Digital Assets are subject to the risk of fraud or cyber-attacks; 
  • Digital Assets purchased and held in an account with TDX are not covered by any external investor compensation, customer asset protection, deposit protection, insurance or other similar schemes; and
  • New risks may arise from investing in new types of Digital Assets or market participants’ engagement in more complex transaction strategies. Digital Assets and the Digital Asset market are subject to speculative interest, rapid price swings and uncertainty.

11. Monitoring Risks 

  • Digital Asset markets are open 24 hours a day, 7 days a week. Rapid price changes may occur at any time, including outside of normal business hours.

12. Communication Risks

  • When you communicate with us via electronic communication, you should be aware that electronic communications can fail, can be delayed, may not be secure and/or may not reach the intended destination.

13. Currency

  • Currency exchange fluctuations may impact your gains and losses.

14. Legal and Regulatory Risks

  • Most Digital Assets operate without a central authority and are generally not backed by any government or authority. Changes in laws and regulations may materially affect the value of Digital Assets. This risk is unpredictable and may vary from market to market. 
  • Further, Digital Assets may not be considered “property” under Applicable Laws in some jurisdictions. This may affect the nature and enforceability of your interest in the Digital Assets.
  • Legislative and regulatory changes may adversely affect or restrict (as applicable) the use, transfer, exchange and value of Digital Assets, as well as the provision of TDX Services in certain jurisdictions. Legislative and regulatory changes may occur quickly and without prior notice.

15. Risk of trading using leverage

  • Trading using leverage entails significant risk and it is important that you fully understand the risks involved in trading Digital Assets using leverage.
  • A relatively small market movement will have a proportionately larger impact on the leveraged funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of initial margin funds and, in exceptional circumstances, any additional funds deposited with TDX to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you may, in exceptional circumstances, be liable for any resulting deficit

16. Risk of Trading Futures 

  • Futures are complex leveraged products and may not be suitable for inexperienced investors. Before investing, investors must understand the nature and accept the risks of futures products, including the extreme price volatility of Digital Asset Futures and the risk that the value of a Digital Asset Futures position may decline rapidly and significantly, including to zero. While Digital Asset Futures amplifies the potential profit of trading in Digital Assets, it also amplifies the risk of loss.  All the risks relating to the underlying Digital Assets may be magnified in Digital Asset Futures because of the use of leverage. 
  • The risk of loss is substantial. In volatile market conditions, the price of Digital Assets, and therefore the price of Digital Asset Futures, may decline significantly in a short period of time, including to zero. An investor in Digital Asset Futures must be prepared and able to bear the loss of the entirety of their investment.
  • You should not invest any amount that you cannot afford to lose. You are strongly encouraged to seek independent professional advice when deciding whether Digital Asset Futures products are suitable for you, having regard to your risk appetite, financial position and knowledge about Digital Assets.
  • When trading Futures, it is your responsibility:
      1. To familiarise yourself with Digital Assets and Futures before you start trading.
      2. To monitor your open positions and, when required,  to reduce your position or deposit additional margin to avoid liquidation.
      3. Manage your exposure and not risk more than you can afford to lose.
  • When trading Futures you may suffer a loss as a result of a number of factors including but not limited to the following: (i) a position in Futures moving against you, for example, you hold a long position and the price of the underlying Digital Asset declines or you hold a short position and the price of the underlying Digital Asset increases. You may lose the entirety of your investment, including all assets that you have made available as margin for the position; (ii) your profitable position may be forced closed under auto-deleveraging, because one or more of the counter-parties to your profitable position has provided insufficient collateral, resulting in you not receiving some or all of the profits that you may otherwise be entitled to receive; (iii) you cannot close a Futures position because there is insufficient market liquidity or demand for the other side of that trade; (iv) we are required to change parameters on the Platform such as the margin requirements; (v) there is a malfunction of the Platform, for example resulting from scheduled or unscheduled downtimes, matching system failure, database failure, cryptocurrency transfer or storage failure, failure or malfunction of the API, hacker attacks or other failure or malfunction.
  • The market price of a Futures contract for a Digital Asset may not mirror the price of the relevant Digital Asset in the spot market. The price of a Futures contract for a Digital Asset may also fluctuate significantly in response to movements in the price of the underlying Digital Asset, supply and demand, and other market factors.
  • TDX may at its sole discretion determine to terminate the offering of Futures. If you are required to close your Futures positions or your Futures positions are forced closed, at a time when the market price of the underlying Digital Asset is not favourable, you may suffer losses as a result. TDX will not be responsible for any losses resulting from such termination.

16. Risk of Trading Options

  • Transactions in options carry a high degree of risk. You should familiarise yourself with the type of option (i.e. put or call) that you intend on trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.
  • “Writing” or “granting” an option involves considerably greater risk than purchasing options. The premium received is fixed, however you may sustain a loss well in excess of that premium amount. You may be liable for additional margin to maintain the position if the market moves unfavourably. You may also be exposed to the risk of the purchaser exercising the option and you may be obligated to settle the option. If the option is “covered” by holding a corresponding position in the underlying interest, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.