Risk Warning

Understand your risks, plan ahead, and trade responsibly

Some things to consider prior to trading on Trade8:

  • Investments can fall and rise. You may get back less than you invested.

  • Past performance is no guarantee of future results. You should consider whether you understand how trading works and whether you can afford to take the high risk of losing your money.

  • The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

  • Digital currency, unlike most currencies which are backed by governments or commodities, is backed by technology and mathematics in an autonomous and unregulated network of nodes and miners. Considering this, digital currency cannot be considered a currency in the traditional sense.

  • Trading in digital currency carries its own risks due to the highly volatile nature of the system. Market confidence might collapse due to technical issues, software or hardware hacks of large bitcoin entities, unexpected changes in the code underlying the cryptocurrency network, government crackdowns, competing alternative currencies, among other risks.

Additional Details

  • The trading of goods and products, real or virtual, as well as virtual currencies, involves significant risk. Prices can and do fluctuate on any given day. Due to such price fluctuations, you may increase or lose value in your assets at any given moment. Any currency – virtual or not – may be subject to large swings in value and may even become worthless. There is an inherent risk that losses will occur as a result of buying, selling or trading anything on a market.

  • Bitcoin and Ethereum trading also has special risks not shared with official currencies or goods or commodities in a market. Unlike most currencies, which are backed by governments or other legal entities, or by commodities such as gold or silver, Bitcoin and Ethereum are unique and backed by technology and trust. There is no central bank that can take corrective measure to protect the value of Bitcoin and/or Ethereum in a crisis or issue more currency. Instead, Bitcoin and Ethereum are as-yet autonomous and largely unregulated worldwide networks. Traders put their trust in a digital, decentralized and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity.

  • Bitcoin trading is probably susceptible to irrational (or rational) bubbles or loss of confidence, which could collapse demand relative to supply. For example, confidence might collapse in Bitcoin because of unexpected changes imposed by the software developers or others, a government crackdown, the creation of superior competing alternative currencies, or a deflationary or inflationary spiral. Confidence might also collapse because of technical problems: if the anonymity of the system is compromised, if money is lost or stolen, or if hackers or governments can prevent any transactions from settling.

  • Because on Trade8 there are perpetual contracts being traded, there are additional risks involved. Under extreme market circumstances, whenever necessary, Trade8 could decide to act preemptively to adjust or close partial or entire winning positions to be able to close losing positions.

  • An extreme situation could for example occur during forks and splits of the Bitcoin network.


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