PrimeXBT Risk Disclosure

The company Prime XBT Trading Services Ltd., incorporated in the Marshall Islands, with Reg. No.: 120813 and registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960, is referred to as “PrimeXBT,” the “Company,” “we,” “us,” or “our” in this document. 

The risks associated with the products and services that are offered on the PrimeXBT Trading Platform are described in this risk disclosure statement (the “Statement”). Before choosing to open a trading account with PrimeXBT and before engaging in any trading activity, all clients must thoroughly read and comprehend this statement. Under no circumstances should clients trade without being aware of the hazards involved or take on more risk than they are willing to take on.

PRIMERA TO OPENING A TRADING ACCOUNT OR PARTICIPATING IN ANY TRADING ACTIVITY: PLEASE READ AND CONSIDER THIS STATEMENT AND THE PRIMEXBT GENERAL TERMS AND CONDITIONS CAREFULLY. SEEK INDEPENDENT LEGAL OR FINANCIAL ADVICE IF YOU HAVE ANY QUESTIONS OR UNCERTAINTIES.

You should not use the PrimexBT trading platform or take part in any trading activity with PrimexBT if any of the disclosures below are unacceptable to you. 

You agree, to the extent permitted by law, that none of the Company’s 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 shall be held liable for any Losses or any Particular, Incidental, or Consequential Damages Resulting From, or In Any Way Related to, Trading with Margin, including Losses Associated with the Trading with Margin.

1. Nature of Leveraged Products

1.1. Because of their complexity and high leverage, our products carry a significant risk of losing money quickly. Not all investors are a good fit for these products. You should think about whether you can afford to take the significant risk of losing your money and whether you understand how these products operate. If required, get independent guidance.  

1.2. Leveraged products are sold over-the-counter, or “OTC,” meaning that PrimeXBT is always the counterparty to trades made by clients; as a result, trades made with PrimeXBT can only be closed with PrimeXBT. The availability of our service in your jurisdiction will determine whether you are able to initiate and/or close deals.

1.3. You are aware that you have no ownership rights in the underlying instrument and are not entitled to a physical delivery of the leveraged product you are trading.

2. Market Risks

2.1. With PrimeXBT, you can utilize leverage to start a trade with a small deposit of the entire trade value. This implies that a minor change in the market could result in a correspondingly larger movement in the value of your transaction.

2.2. Prices will become volatile as a result of markets that may change quickly to reflect circumstances that are outside the Company’s and/or your control. For instance, market announcements or unforeseen economic developments that occur during or after trading hours may be the cause of this. Furthermore, if prices go against you, your trades may immediately stop out as a direct and immediate result.

2.3. As a result, PrimeXBT might not be able to carry out your instructions at the amount you have asked. Thus, even “stop-loss orders,” which execute your transaction only upon reaching the desired stop price for the instrument you wish to purchase or sell, are unable to ensure the maximum loss. It is not assured that “stop-loss orders” will be filled at the amount you specify. The “stop-loss orders” become market orders that are completed at the best available price after they are triggered. The price indicated by the “stop-loss orders” can be less than this one.

2.4. Past performance, modeling, or forecasting does not guarantee future outcomes. It should be noted that the market price of the underlying asset may change downward or higher, which could result in a drop or gain in the value of your investment.

2.5. Due to a decrease in the demand for the underlying instrument, some of the instruments might not become liquid right once, and the client would not be able to find out how much these are worth or how big the risks are.

3. Margin & Liquidation Risks

3.1. You need to understand the ramifications of trading leveraged items, especially the precise margin needs that are involved. To start a leveraged position, you will need to deposit money (also known as “margin”) into your trading account. The money you deposit should correspond to the precise amount of margin that is needed.

3.2. Prior to starting to trade, you must be able to view the margin requirements and costs for each specific item. On the PrimeXBT website, this information can be found in the Fees Section. The underlying asset, the amount of leverage used, and the value of the position to be built will all affect the margin needs.

3.3. The Company is not required to provide you with information regarding the key levels of margin utilization. You alone are in charge of making sure your account has enough margin at all times to prevent stop-outs.

4. Cryptocurrency Related Risks

4.1. The bitcoin market is still in its infancy and lacks stability. Nobody should speculate with cryptocurrencies or have money invested in it that they aren’t willing to lose completely. It is uncertain whether the value of a certain cryptocurrency will decrease or increase, or if the market for one or more cryptocurrencies will move in either direction. This holds true for traders who are shorting the market as well as those who are going long. Holding cryptocurrency should be done with caution by participants.

4.2. The level of liquidity in cryptocurrency markets varies. While some may be thinner than others, some are fairly liquid. Market thinness may increase volatility. The existence of a thriving market for the purchase, sale, or exchange of cryptocurrencies or goods produced from or related to them is never guaranteed. Moreover, any cryptocurrency market could come and disappear suddenly. Any coin could be taken off the market without warning or permission.

4.3. By transferring cryptocurrency to the incorrect wallet address while requesting a withdrawal from their PrimeXBT account, you agree that PrimeXBT is not liable for any losses or damages of any type, whether direct or indirect. Cryptocurrency may inadvertently have flaws or vulnerabilities in the source code that prevent it from being used or result in its loss.

4.4. Technological developments like the creation of quantum computers or advancements in cryptography could pose threats to cryptocurrencies and cause them to be lost or stolen.

4.5. Some cryptocurrencies could not have clear legal standing. This may imply that it’s not always obvious if it’s lawful to hold or trade them. It might not be evident whether or not one or more cryptocurrencies are assets, property, or rights of any kind. It is the participants’ responsibility to be aware of and comprehend how applicable laws will be applied to, regulating, and taxing cryptocurrencies. There exists a potential risk that cryptocurrency could be regarded as a security in certain jurisdictions or could eventually be deemed as such. None of the cryptocurrencies offered by PrimeXBT are warranted or guaranteed not to be securities in any jurisdiction.

4.6. It is entirely your responsibility to determine whether purchasing and disposing of cryptocurrencies is permitted in your area. If it is not, you should not use our products or trade cryptocurrencies.

5. Risk of Theft & Hacking

5.1. There are a variety of methods that hackers and other people or organizations can try to use to disrupt the Website and/or the Trading Platform. These methods include spoofing, smurfing, virus attacks, denial of service attacks, and consensus-based attacks. By using this, you accept that Prime XBT will not be held responsible for any losses you sustain as a result of hacking or other nefarious third-party activity.

5.2. You agree that PrimeXBT shall not be liable for any losses or damages of any kind resulting directly or indirectly from a third party taking money out of your account as a result of losing your login information.

6. Technical Risks

6.1. By using online trading, you accept the risks involved, which include, but are not limited to, hardware, software, and Internet connection failures. By using the website or our services, you agree that PrimeXBT will not be held liable for any communication breakdowns, interruptions, mistakes, distortions, or delays. if trading in cryptocurrencies or using our products is prohibited in your country. 

6.2. You agree that PrimeXBT may not be able to process your transaction request or receive your email as a result of hardware, software, or network connectivity problems. You acknowledge that PrimeXBT bears no liability for any loss or damage resulting from any of these problems, whether they arise directly or indirectly.

7. Fund Transfer Risks

7.1. You agree that the Company will not be responsible for the number of days that elapse between when money is moved from your PrimeXBT account and when it is credited to your receiving financial institution account.

7.2. You understand and agree that PrimeXBT shall not be responsible for the number of days that elapse between the time the sending financial institution transfers money and the time PrimeXBT receives it and posts it to your account.

8. Market Making Risks

8.1. You understand that PrimeXBT might operate in the capacity of a market maker for specific leveraged products. You understand that PrimeXBT may quote your bid and ask prices in its capacity as a market maker. Nevertheless, you acknowledge that the Company is under no duty to provide you with a price quote at any point in time in any particular market, nor is it required to provide you with a price quote that has a certain maximum spread.

9. No Investment Advise

9.1 No financial, legal, tax, regulatory, investment, or other advice pertaining to trading or investments is given by PrimeXBT. Any content, features, or information that you may receive from us via our website, trading platforms, marketing campaigns, training sessions, or in any other way are general in nature and should not be interpreted as advice that is suitable for you or that is based on an analysis of your particular situation. Before trading with us, you should, if necessary, obtain independent professional advice from a suitably certified advisor.

10. Taxation

10.1. In such jurisdiction(s) as you may be required to pay taxes, you are entirely responsible for withholding, collecting, reporting, paying, and/or remitting any and all taxes to the relevant tax authorities. Any taxes (including, but not limited to, income, capital gains, sales, value-added, or similar taxes) that may result from your online trading activities or purchase of cryptocurrencies are not PrimeXBT’s responsibility to withhold, collect, report, pay, or remit.

11. Changes to the Risk Disclosure Statement

11.1. Without providing clients with advance notice, PrimeXBT maintains the right, at its sole discretion, to modify this Risk Disclosure at any time. We shall notify our clients of any significant changes to this statement by posting an updated copy of the Policy on our website. The most recent version of the Privacy Policy will always be accessible on the business website.

12. Client Declaration

12.1. By opening an account with PrimeXBT, you hereby acknowledge, confirm, and accept that you run a high risk of suffering losses and damages due to the risks disclosed herein. As a result, you declare that you will only engage in this type of trading if you are willing to take on such risks.