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1. Extreme volatility and no guarantee of returns
Trading cryptocurrency involves an extreme risk of total capital loss. The crypto market operates 24/7, 365 days a year, with no daily price limits or circuit breakers enforced by traditional financial regulators. ImaxTrade explicitly, categorically, and unequivocally disclaims any promise, projection, or guarantee of consistent returns, income, or capital preservation.
2. Leverage, margin, and forced liquidation
When the Platform is used to trade USDⓈ-margined perpetual futures, Binance permits leverage that can result in forced liquidation on small adverse price movements. You acknowledge the risk of “Liquidation Cascades” and “Flash Crashes.”
3. Slippage, fees, and funding rates
Stop-loss and take-profit orders fill as market orders once their trigger price is reached. In extreme volatility, slippage can materially exceed coded thresholds and the actual fill price can be worse than the trigger.
Holding perpetual futures requires the continuous payment or receipt of “Funding Rates” — periodic payments between long and short positions, typically every 8 hours. The User is solely responsible for all exchange fees, slippage costs, and negative funding-rate deductions levied by Binance.
4. Discovery cost and the certainty of drawdowns
No automated trading system is profitable on every trade or every day. The Platform pays a continuous “discovery cost” — small, predetermined losses — before automated suppression logic mutes under-performing strategies. This is a feature, not a bug.
5. Pool-specific risks for Asset Managers
When operating a pool on behalf of multiple Investors, additional risks arise that the Asset Manager bears in full:
- Investor disputes — Asset Managers are responsible for handling disputes about deposit timing, withdrawal processing, fee calculation, and settlement statements.
- Concentration risk — A drawdown event impacts every Investor in the pool proportionally to their unit holding. Larger Investors absorb larger absolute losses.
- Settlement timing — Realised P&L is allocated at settlement, not at the moment of each trade. Investors may not withdraw mid-period and crystallise a different result than what the end-of-period statement shows.
- Regulatory exposure — Operating a pool may constitute a collective-investment scheme, advisory service, or pooled-trust activity in the Asset Manager's jurisdiction. Legal counsel before launch is the Asset Manager's responsibility.
If you are new to cryptocurrency trading, or unsure about the appropriateness of a pooled-trading product for your investors, do not subscribe. Consult a qualified financial and legal professional licensed in your jurisdiction first.