Websea risk control rules

Dear Users:

The derivative trading services provided by Websea involve high leverage and high risks. This risk warning is set up to disclose to investors the high leverage investment risks of digital asset derivative trading and to help investors evaluate and determine their own capabilities. Given the existence of investment risks, before confirming this agreement and engaging in futures trading, investors should carefully read this risk warning, ensure that they understand the nature and rules of futures trading, and decide whether to participate based on their own investment experience, objectives, financial status, and risk-taking ability. Investors should consult legal and other independent professional opinions before applying.

Suitable Investors:
Digital asset derivative trading involves high leverage and high risks and is only suitable for professional investment institutions or experienced individuals who can fully understand all risks related to digital asset derivative trading and can bear partial or total loss of account funds due to investment errors.

Risks Involved:
1. Price Fluctuation Risk:
* Digital currency derivatives, as a special investment product, are influenced by various factors and experience significant price fluctuations. Investors may find it difficult to fully grasp during actual operations, which may lead to investment errors and significant losses if risks are not effectively controlled. Investors must bear all losses resulting from this.

2. Trading Risks:
* Investors need to understand that derivative trading involves high leverage, which can lead to rapid profits or losses. Contrary trades to market fluctuations can result in substantial losses. Depending on the extent of losses, investors may need to add digital currency margins or reduce positions; otherwise, their positions may be forcibly closed, and investors must bear all losses resulting from this.
* Orders submitted by investors within the trading system of the exchange are irrevocable once executed, and investors must accept the risks associated with this method.
* The exchange does not guarantee profits to investors, nor does it share profits or risks with investors.

3. Regulatory Policy Risk:
* Digital asset derivative trading may face regulatory policy risks in certain jurisdictions, and investors need to carefully assess before trading based on an understanding of the regulatory background of the trading jurisdiction.

4. Other Potential Risks:
* When users use high leverage, it brings significant risks to themselves and the market. Therefore, the platform monitors users' positions using high leverage and takes corresponding measures if it judges that users' positions may have a significant impact on market stability, including but not limited to communication, risk disclosure, forced reduction of positions, forced liquidation, and providing written explanations to users.
* Derivative trading rules of the digital asset derivative market, including adjustment coefficients, expiration dates, product rules, etc., may be modified based on the actual operation of the platform. If the platform needs to deliver products in advance or postpone delivery due to special circumstances, after fulfilling the obligation to inform through official website announcements or SMS notifications, users should handle their positions in a timely manner, and any resulting losses or gains will be borne by the users themselves.

5. Violation Handling:
* In order to provide users with a more complete trading environment and prevent malicious trading activities, Websea contract establishes the following trading rules: Please read carefully:
* If you have conducted 30 or more trades within 15 minutes:
* 1st ~ 2nd trigger: We will prohibit you from opening positions for 5 minutes.
* 3rd ~ 5th trigger: We will prohibit you from opening positions for 15 minutes and stop incentives and cashbacks for the day.

* 6th ~ 10th trigger: We will prohibit you from opening positions for 1 hour, stop incentives and cashbacks for the day, and reduce the incentive and cashback ratio to "current incentive coefficient * 0.8".
* 10th ~ 15th trigger: We will prohibit you from opening positions for 5 hours, stop incentives and cashbacks for the day, reduce the incentive and cashback ratio to "current incentive coefficient * 0.5", and reduce one VIP level.
* More than 15 triggers: We will prohibit you from opening positions for 30 hours, stop incentives and cashbacks for the day, reduce the incentive and cashback ratio to "current incentive coefficient * 0.3", and reduce three VIP levels.
* Similar warnings and penalties will be applied if you conduct 60 or more trades within 2 hours, or 100 or more trades within 4 hours.

Tips:
* Investors must thoroughly understand the basic knowledge of digital currency futures trading, related risks, and business rules before participating.
* The risk items mentioned in this risk warning are illustrative and do not exhaustively list all risk factors related to digital asset derivative trading. Before participating in digital asset derivative trading investment, investors should also carefully understand and master other possible risk factors.
* We sincerely hope and advise investors to make prudent decisions based on their own actual situations such as risk tolerance and reasonably allocate their digital assets.

Websea Team