FireflyEX provides cryptocurrency investment, and you can obtain ownership of the underlying assets through FireflyEX.
This notice provides you with risk information related to the investment products of each entity of the FireflyEX Group. FireflyEX is authorized and supervised by the US MSB, strictly abides by capital supervision rules, and is committed to providing a wide range of financial derivatives trading services to retail customers and financial institutions.
The investment currencies provided by FireflyEX include BTC, ETH and other trading currencies. You can obtain ownership of the underlying assets through FireflyEX.
FireflyEX also provides investors with the opportunity to buy the underlying cryptocurrency (that is, a transaction that uses leverage to buy the above-mentioned assets), hold these assets and then sell them. All transactions related to cryptocurrency are applicable to the "Appendix for Cryptocurrency Transactions"
Since the cryptocurrency market is a decentralized market and is not regulated, the cryptocurrency trading services we provide are non-regulated services and are not subject to any specific European regulatory agencies (including EU financial instrument market regulations). Therefore, when FireflyEX's European customers use our cryptocurrency trading services, they will not be able to obtain the protection provided by other regulated investment services for customers, such as being unable to obtain the investor compensation fund of the Cyprus Investment Company and applying to the financial complaint service Mediate disputes. FireflyEX European customers can still apply relevant rules such as best execution and customer funds and customer asset custody. We will do our best to ensure that we provide you with the best execution services and protect the safety of our customers' assets.
All these products carry high risks and are not suitable for all investors. This notice provides you with relevant risk information about these products, but it cannot explain all the risks and the relationship between these risks and your personal situation. If in doubt, you should seek professional advice. Before deciding to use FireflyEX for trading, you must fully understand the risks involved and have sufficient financial resources to bear such risks and carefully monitor your positions. Trading will bring risks to your funds. You should not invest funds that you cannot afford to lose, but your loss will not exceed the net value in your account.
CFD stands for "Contract for Difference", which means that you are not buying the underlying asset, but a contract that settles the difference between the initial price and the ending price of the asset. When trading CFDs, you usually trade on margin, which means you only need to deposit a small portion of the total position. This is "leverage". Even a small ups and downs in the market may have a significant negative or positive impact on your trading account.
If the market moves against you, your total loss may be greater than the funds you invested in a certain position. You are responsible for all losses of all equity in your account.
Before deciding to trade on margin, you should carefully consider your investment objectives, level of experience and risk appetite. Our CFDs are not listed on any exchange. CFDs are more risky than exchange products because market liquidity is not guaranteed and it may be more difficult to liquidate existing positions. We set prices and other conditions in accordance with our obligation to provide best execution as stipulated in our order execution policy in order to conduct reasonable operations in accordance with the applicable "Terms and Conditions". The characteristics of our CFDs may be very different from the actual underlying market or instrument. Full details of all our CFDs are listed on our website. In corporate activities related to the underlying assets, we do not intend to obtain customer profits from the results of corporate activities, such as equity issuance, acquisitions, mergers, stock issuance or mergers, and public offerings. Our purpose is to reflect the benefits we get or will get if we hedge the risk in the underlying market. But in the end, you are not trading in the underlying market, so in terms of our CFDs, the benefits you get may not be as beneficial as holding the underlying instruments.
CFD is a complex trading tool, and there is a risk of rapid loss due to leverage. 76% of retail investor accounts lose money when trading CFDs with providers. You should consider whether you have a clear understanding of CFDs and whether you are able to bear the risk of capital loss.
CFDs are not suitable for long-term investors. If an open CFD is held for a long period of time, the costs associated with it will increase (e.g. overnight fees), as opposed to buying the underlying asset, which may be more advantageous. Sharp market movements called "jumps" can occur, resulting in sharp shifts in the price of the underlying asset. The underlying market may jump at market close, which means that the price of the underlying market may change significantly at market open and the price may move against you.
At all times while holding an open position, you must ensure that your account meets our margin requirements, which may change from time to time. Therefore, if our prices move against you or our margin requirements have changed, you may need to provide a significant amount of additional funds to meet your margin requirements on short notice to maintain your open positions. If you do not do so, we will have the right to close one, more or all of your positions and you will be solely responsible for any losses incurred as a result.
Before opening an account for you, we need to assess whether the products and/or services you have chosen are suitable for you and alert you to products or services that are not suitable for you based on the information you provide to us. By proceeding and opening an account with our platform you confirm that you are aware of and understand these risks.
You should also ensure that you are able to monitor the positions in your account at all times, as you are solely responsible for this. We are not responsible for monitoring the positions in your account.
Although the FireflyEX trading platform is automated and we provide you with the best execution conditions, market prices may change between the time an order is placed and the time it is executed, therefore, we cannot guarantee that the price requested will be the same as the price at which the order is executed, and the price you receive may be to your advantage or disadvantage.
In order to limit losses, we require you to select "stop loss" limits. These limits will automatically close your position when the limit price you have selected is reached. However, there are situations where the "stop loss" limits do not work fully, such as when prices move quickly or when the market closes.
In addition, there are certain risks associated with using online execution and trading systems, including but not limited to software and hardware failures and network disconnections.
FireflyEX offers the ability to trade with orders. When deciding to follow one or more traders and/or implement a particular strategy, you must consider your overall financial situation, including financial planning, and you may sustain large losses in excess of the amount used to follow the trader. The risks associated with the follow-trade feature include, but are not limited to, automated trading operations where your account can start and close trades without your manual intervention.
Past performance cannot be used as a predictor of future performance. The value of an investment can go down or up.
The currency in your FireflyEX account is the U.S. dollar and may be different from the currency in which you deposit, so you should be aware of fluctuations in currency exchange rates.