DolphTrade Risk Disclosure Statement
At DolphTrade, clients have the opportunity to trade a variety of assets including forex, foreign currency exchange rates, indices, commodities, futures, cryptocurrencies, and other financial instruments (CFDs). Trading these assets involves significant risk and may not be suitable for every type of investor.
Market fluctuations can directly impact your deposited funds. Price movements may lead to substantial profits or, conversely, serious losses. We strongly encourage clients to recognize these possibilities and to trade carefully, using strategic and risk-conscious approaches.
In cases where users experience losses on their initial capital, they may need to deposit additional funds to maintain their open positions. Failure to meet margin requirements may result in the automatic liquidation of positions, and users will be held fully responsible for any resulting losses.
For this reason, clients are urged to assess their investment goals, trading experience, financial capacity, and risk tolerance before making any trade or investment.
Potential Risks When Trading with DolphTrade
Leverage Risk
Leverage can magnify both potential gains and losses. Trading with leverage carries the risk of losing your entire investment capital.
Cryptocurrency Risk
DolphTrade acts as a counterparty to all transactions on its platform. When you sell cryptocurrency, the platform serves as the buyer; when you buy, it acts as the seller. This creates counterparty risk — the possibility that the platform may be unable to meet its obligations. In the event of insolvency, users could experience total loss with no guarantee of recovery.
Volatility Risk
Cryptocurrencies and digital assets are inherently volatile. Their values can change rapidly and unpredictably. DolphTrade does not guarantee price stability. Users should monitor market trends and trade in line with their personal risk appetite.
Liquidity Risk
The liquidity of digital currencies can vary drastically. Some may be easily tradable, while others may not be at certain times. There is no assurance that a third party or company will buy or sell a digital currency on demand. Additionally, DolphTrade reserves the right to delist or suspend trading of any digital asset or pair without prior notice.
Security Risk
Funds and digital assets stored on any trading platform may face risks such as hacking, ransomware, or theft by malicious actors. In such cases, recovery of stolen assets may be impossible.
Technological Risk
Blockchain technology relies on cryptographic systems and peer-to-peer networking. These systems are under global regulatory scrutiny and could face failures or disruptions that may prevent users from accessing their assets.
Operational Risk
Unexpected operational downtime or technical issues could interrupt or delay transaction processing. Such disruptions might cause unanticipated losses or prevent the realization of potential profits.
Regulatory Risk
Cryptocurrencies are not fully regulated worldwide. Legal frameworks vary between countries and are subject to change. New regulations could negatively affect digital currencies’ value, legality, or your ability to trade them on DolphTrade.
Market Manipulation Risk
Some market participants may engage in manipulative practices such as “pump and dump” schemes, which can distort cryptocurrency prices. Users should stay informed and make trading decisions based on verified information.
Value Risk
Digital currencies are decentralized and not backed by any government or authority. Their value depends on public trust and technology, both of which can fluctuate. Therefore, future value and acceptance cannot be guaranteed.
Encryption Risk
The security of private keys is entirely the user’s responsibility. Misuse, loss, or theft of private keys can result in irreversible loss of funds or data. Such losses remain the user’s sole responsibility.
User Acknowledgment
By using our services, users confirm that they understand and accept all risks associated with trading or holding digital currencies, including unforeseen ones not listed here. Users must independently evaluate these risks and act according to their financial circumstances and risk tolerance.
Users also acknowledge that DolphTrade does not provide financial, legal, or tax advice. The company does not consider individual financial situations or trading goals. Clients are responsible for seeking independent professional advice before using DolphTrade’s services, website, or related products.