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Introduction
This Risk Disclosure (“Disclosure”) is provided to inform Clients of the material risks associated with engaging in over-the-counter (OTC) trading in digital assets. OTC transactions are executed off-exchange and may carry different risk characteristics than exchange-based trading.
Market Risk
Digital assets are subject to extreme price volatility due to market sentiment, liquidity conditions, regulatory actions, and macroeconomic trends. OTC trades may experience significant slippage or price changes during execution.
Liquidity Risk
OTC transactions rely on the availability of willing counterparties. Lack of market depth or constrained liquidity may result in delayed execution or inability to complete the Order at desired terms.
Slippage and Pricing Risk
Executed prices in OTC transactions may differ from indicative quotes due to price movement during the order routing and negotiation process. Slippage may occur, particularly in fast-moving or illiquid markets.
Settlement Risk
OTC transactions involve bilateral settlement. There is a risk that one party may default, delay, or fail to deliver the agreed-upon assets, leading to counterparty risk and potential losses.
Regulatory Risk
Digital assets may be subject to regulatory scrutiny or changes in legal classification, affecting their tradability or legality. Clients are solely responsible for ensuring that their use of the OTC Services complies with applicable law.
Technology Risk
Technical failures, wallet errors, exchange outages, or blockchain congestion may affect the execution or settlement of OTC transactions.
Counterparty Risk
As OTC trades are not intermediated by central exchange, there is an inherent risk of counterparty default. The Service Provider conducts due diligence on counterparties but does not guarantee their solvency or performance.
AML/KYC Restrictions
Transactions may be delayed or declined if the Client fails to meet identity verification or compliance checks. The Service Provider reserves the right to suspend or withhold settlement pending completion of such reviews.
Client Acknowledgment
By entering any OTC transaction, the Client acknowledges that it understands and accepts the risks outlined herein. The Service Provider does not provide investment advice or guarantee any profit or protection from loss.
