This risk warning disclosure provides you with information about the key risks associated with the investment products and services supplied by FortuneX, which you have further agreed to invest in by signing up for our services. Each of our services has its own distinct risk and this Risk Warning Disclosure will provide our user with a general description of some of the risks that may arise when you use the wide range of FortuneX Investment Services.
However, this Risk Warning Disclosure does not explain all of the risks or how such risk is related to your circumstances. It’s important that you fully understand the risks involved before deciding to use the FortuneX Services, and you should also read the relevant terms applicable to the specific FortuneX Service. By using the FortuneX Services and entering into any Transactions, you agree that you assume all of the related risks.
Risk Warning Disclosure regarding FortuneX Products
This Risk Warning Disclosure covers some of the investment products offered by FortuneX, including but not limited to stocks, cryptocurrencies, futures trading, and all other investment products and services that FortuneX might add to our platform in the future. All of these products carry a high degree of risk and are not suitable for certain investors. FortuneX will do our best to provide you with information about the risks associated with the product, but as mentioned, we cannot explain all of the risks nor how such risks will relate to your circumstances. You are advised to seek professional advice if necessary and It is important that you fully understand the risks involved before investing in FortuneX services and products and to make sure that you have adequate financial resources to bear such risks. Trading involves risks to your capital. You should not invest money that you cannot afford to lose.
FortuneX on No Personal Advice
Please be informed that neither the FortuneX Group nor its personnel will provide personal advice concerning our services and tips on investing. We may provide factual information, information about the transaction procedures that will occur on our platform, and also a reminder of potential risks. However, any decision to use or invest in the FortuneX services and products should be made by you. No communication or information provided to you by FortuneX is intended as or shall be considered or construed as investment advice, financial advice, trading advice, or any other sort of advice. You are solely responsible for determining whether any investment, investment strategy, or related transaction is appropriate for you according to your personal investment objective, financial circumstances, and risk tolerance. If you come across any of the FortuneX personnel, such as the customer support team, providing you with such advice, please write to us to inform us of such a matter.
FortuneX on No Monitoring
FortuneX is not your broker, intermediary, agent, or advisor and has no fiduciary relationship or obligation to you in connection with any trade or other decisions or activities undertaken by you using the FortuneX Services. We do not monitor whether your use of the FortuneX service is consistent with your financial goals and objectives. It is up to you to assess whether any activity that you engage in through the FortuneX Services is appropriate given your financial position and risk appetite.
Out of good faith, FortuneX can provide features whereby we’ll make an assessment on whether the product(s) and/or service you have chosen are appropriate for you, and warn you if, on the basis of the information you provide us, any product or service is not appropriate. If you decide to continue with the usage or investment of our services, you are confirming that you are aware of and understand the risks. You should further ensure that you are able to monitor your own account at all times, as you are solely responsible for your own investment action.
No Tax, Regulatory, or Legal Advice by FortuneX
It is your sole responsibility to determine what taxes you’re liable to, how and when they apply, and meet such tax obligations when transacting through FortuneX Services. It is your responsibility to report and pay any taxes that may arise from any Transaction that occurs when using the FortuneX Services, and you acknowledge that FortuneX does not provide any legal or tax advice about these transactions. Hence, you are advised to seek professional advice if you have any doubt about your tax status or obligations when using FortuneX Services or concerning the Digital Assets that are held in your FortuneX Account.
You acknowledge that FortuneX reserves all rights to report any information regarding your transaction, transfers, distributions, or payment to tax or other public authorities whenever required by Applicable Law. In addition. FortuneX shall also reserve all rights to withhold taxes that arise from any transaction, transfer, distribution, or payment made on our platform/website. Under certain circumstances, Applicable Law may require FortuneX to request that you provide additional tax information, status, certificate, documents, or other information. You acknowledge that failure to comply with these requests within the specified timeframe, may result in taxes withheld by FortuneX, to be remitted to tax authorities as defined by Applicable Law.
Market Risks
Investment in stocks, cryptocurrencies, and futures can result in significant risk. The value of an investment and any returns can go up or down, and you may lose all or part of your investment and not get back the amount you had invested. If you are new to investing in Digital Assets, you should consider investing only a small amount and do your own research to understand the risk of investing in Digital Assets.
Digital Asset trading is speculative, prices are volatile and market movements are difficult to predict. Supply and demand for Digital Assets can change rapidly without warning and can be affected by a variety of factors that may not be predictable, including regulation, general economic trends, and developments in the Digital Asset ecosystem. All investments in Digital Assets carry the risk of loss.
FortuneX does not in any way guarantee or provide any assurance about the performance of a market price of Digital Assets or products available through the FortuneX services.
The Digital Asset industry is subject to systemic and systematic risk. Systemic and systematic risks are both threats to the Digital Asset markets and economy, but the cause of these risks and the approaches for managing them are different. Systemic risk is the risk that a company or industry-level risk could trigger a major collapse. Systematic risk is the risk inherent to the entire market, which can be economic, sociopolitical, technological, or natural in origin. These risks can affect the price of Digital Assets.
Blockchain technology is a relatively new technology that is evolving rapidly and is likely to be subjected to continued technological development. The future development and growth of the Digital Asset industry are subject to a variety of factors that are difficult to predict and evaluate. Similarly, the sustainability of Digital Asset networks may also be affected by a range of different factors. All such factors may impact the value of a Digital Asset.
Negative perceptions about Digital Assets may reduce the confidence of investors in the industry and result in greater volatility of the prices of Digital Assets, including possibly a significant depreciation in value. Any events that trigger negative publicity in respect of Digital Asset markets may therefore have an adverse impact on the value of any investment in Digital Assets.
Counterparty Risk
When using FortuneX services, you may be exposed to counterparty risk which may include and is not limited to if a market maker or liquidity provider faces issues that could result in slippage or an inability to execute trades, failures by or disputes with payment processors which may delay deposit and withdrawal transactions; borrowers defaulting on their repayment obligations which may delay the redemption of deposits from certain services and/or products.
In such circumstances, any form of transaction, investment, and any form of operation on our platform/website may be adversely affected which may result in a range of outcomes including, without limitation, transactions not completing as expected, trading costs being irrecoverable, loss of profits, inability to acquire or dispose of assets at the desired time or price.
Liquidity Risk
Digital Asset prices are very much dependent on supply and demand and may be highly volatile. Digital Assets may have limited liquidity which may make it difficult or impossible for you to sell or exit a position when you wish to do so. This may occur at any time, including at times of rapid price movements.
Availability Risk
We cannot always guarantee that the FortuneX Products/Services will be made available at all times or that the FortuneX Products/Services will not be subject to unplanned service outages or network congestions. You may experience instances where you will not be able to buy, sell, transfer, send or receive Digital Asset when you wish to do so.
There are legal requirements in various countries which may restrict the products and services that FortuneX can lawfully provide. Accordingly, some products and services and/or certain functionality within the Platform, including but not limited to fiat services, may not be available or may be restricted in certain jurisdictions or regions or to certain Users and any FortuneX campaigns, user competitions or other promotions will not be open to (and are not targeted at or intended for) Users to whom restrictions apply. It is the obligation of the user to be aware of all restrictions an/or requirements imposed with respect to, the access to and use of the Platform and Services. FortuneX reserves the right to modify such restrictions or impose additional restrictions with respect to the access to and use of the Platform and/or Services from time to time in its sole discretion without notification.
Third Party Risk
FortuneX have no control over services provided by third parties on the platform which may include and is not limited to payment providers, custodians, and banking partners. You may be subject to the terms and conditions of these third parties. Unless expressly provided otherwise, FortuneX will not be responsible for any loss that may be incurred by you as a result of or arising from the services provided by such third parties.
Security Risk
The nature of Digital Assets makes it prone to increased risk of cyberattack. While FortuneX will use all reasonable efforts to safeguard your Digital Assets and protect the platform from cyberattack, it is not possible for any exchange to eliminate security risks entirely. There can be no guarantee that systems in place to mitigate cybersecurity threats will always be effective to prevent improper access to the Platform and Digital Assets.
You are responsible for keeping your FortuneX Account Information safe, and you shall be responsible for all transaction under your FortuneX account, whether you authorized them or not. Transactions in Digital Assets may be irreversible, and losses due to fraudulent or unauthorized transactions may not be recoverable.
Risks Related to Digital Assets
Given the nature of Digital Assets and their underlying technologies, there are a number of intrinsic risks, including but not limited to:
- Faults, defects, hacks, exploits, errors, protocol failures, or unforeseen circumstances occurring in respect of a Digital Asset or the technologies or economic systems on which the Digital Asset relies;
- Transactions in Digital Assets are irreversible. Consequently, losses due to fraudulent or accidental transactions may not be recoverable.
- Technological developments leading to the obsolescence of a Digital Asset;
- Network delays cause transactions to not be settled on the scheduled delivery date;
- Attacks on the protocol or technologies on which a Digital Asset depends;
- A hard form may occur if Digital Asset developers suggest changes to a particular Digital Asset software the updated software is not compatible with the original software and a sufficient number (but not necessarily a majority) of users and minors elect not to migrate to the updated software. This would result in 2 versions of Digital Asset networks running in parallel and a split of the blockchain underlying the Digital Asset network, which could impart the demand for the Digital Asset and adversely impact the price of the Digital Asset;
- Certain addresses on the blockchain networks hold a significant amount of the currently outstanding assetson that network. If one of these addresses were to exit their positions, this may result in volatility that could adversely affect the price of that asset;
- if anyone gains control of over 51% of the computing power (hash rate) used by a blockchain network, they could use their majority share to double spend their Digital Assets. Whilst the risk of this occurring for networks with wider adoption is remote, if such a “51% attack” were to be successful, this would significantly erode trust in public blockchain networks (like Bitcoin and Ethereum) to store value and serve as a means of exchange, which may significantly decrease the value of Digital Assets;
- Digital Assets are subject to the risk of fraud or cyber-attacks;
- Digital Assets purchased and held in an account with FortuneX are not covered by any external investor compensation, customer asset protection, deposit protection, insurance, or other similar schemes; and
- new risks may arise from investing in new types of Digital Assets or market participants’ engagement in more complex transaction strategies. Digital Assets and the Digital Asset market are subject to speculative interest, rapid price swings, and uncertainty.
Communication Risks
When you communicate with us via electronic communication, you should anticipate scenarios whereby the electronic communications may fail, be delayed, may not be secure, and/or may not reach the intended destination.
Currency Exchange Risk
Currency exchange fluctuations may impact your gains and losses.
Legal and Regulatory Risks
Most Digital Assets operate without a central authority and are generally not backed by any government or authority. Changes in laws and regulations may materially affect the value of Digital Assets. The risk is unpredictable and may vary from market to market.
Digital Assets may not be considered “property” under Applicable Laws in some jurisdictions. This may affect the nature and enforceability of your interest in Digital Assets.
Legislative and regulatory changes may adversely affect or restrict (as applicable) the use, transfer, exchange, and value of Digital Assets, as well as the provision of the FortuneX Services in certain jurisdictions. Legislative and regulatory changes may occur quickly and without prior notice.
Product-based Investment Risk
Stock Investment Risk
When you invest in stocks on FortuneX, including SPAC stocks, you gain ownership of the underlying asset. This also entails exposure to the risk involved in stock investment
SPAC Risks
Investing in SPACs carries different risks to investing in other stocks on FortuneX. Unlike other listed companies, SPACs are shell companies when they become public and, therefore they do not have an underlying operating business. This means that you are relying on the managers of the SPACs to realize your investment, and there is no guarantee that SPACs will be managed by individuals and firms that may be competent or qualified to do so. It is your own obligation to read the SPAC’s IPO prospectus and any reports or other key information documents filed or published to understand the terms of your investment and the economic interests and motivations of the SPAC you are investing in. You should also be aware that SPACs that do not carry out an acquisition within a certain time period will be liquidated. As a result, there’s a risk that you may not recover some or all of the money directly invested by you into the SPAC. The liquidation of the SPAC is also likely to render any stocks held in the SPAC worthless.
Extended-Hours Trading Risks
There is generally less trading volume during the extended hours market. Thus, price moves can be more volatile and less representative of the broader market sentiment. Traders may experience:
- Lower liquidity: There are typically fewer buyers and sellers during extended hours, which can result in less trading volume and wider bid-ask spreads. This might make it harder to execute trades at desirable prices.
- Higher volatility: Lower liquidity can also lead to greater price volatility, with potentially rapid and significant price moves.
- Increased competition: Extended-hours traders may also be competing against professional traders and institutional investors who have access to more resources.
- Risk of changing prices: The prices of securities traded in extended hours may not reflect the prices either at the end of regular trading hours or at the opening the next morning. As a result, you may receive an inferior price when engaging in extended-hours trading than you would during regular trading hours.
- Risk of new announcements: Normally, issuers make news announcements that may affect the price of their securities after regular trading hours. Similarly, important financial information is frequently announced outside of regular trading hours. In extended-hours trading, these announcements may occur during trading and, if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.
- Risk of wider spreads: The spread refers to the difference between the price you can buy a security and the price you can sell it. Lower liquidity and higher volatility in extended-hours trading may result in wider than normal spreads for a particular security.
Cryptocurrencies Investment Risks
Due to its decentralized and non-regulated nature, cryptocurrency trading services are unregulated services that are not governed by any specific law or regulatory body. This means that there is no central bank that can take corrective measures to protect the value of cryptocurrencies in a crisis or issue more currency. Hence, cryptocurrency trading on the FortuneX platform follows the standard of the majority of cryptocurrency trading platforms that currently exist in the market.
The nature of cryptocurrency is that its respective prices are often highly unpredictable and volatile. Cryptocurrency prices are usually not transparent, highly speculative, and susceptible to market manipulation.
It is important to make a distinction between indicative prices which are displayed on charts, and dealable prices, which are displayed on our trading platform. Indicative quotes only give an indication of where the market is. Because cryptocurrency markets are decentralized, meaning they lack a single central exchange where all transactions are conducted, each market maker may quote slightly different prices. Therefore, any prices displayed on any chart made available by FortuneX or by a third party will only reflect indicative prices and not necessarily actual “dealing” prices where trades can be executed.
Cryptocurrency trading is prone to being misused for illegal activities due to the anonymity of transactions and investors would be adversely affected if law enforcement agencies were to investigate any illegal illicit activities.
CRYPTOCURRENCY IS RENDERED AS AN EXTREMELY HIGH-RISK ASSET AND YOU SHOULD NEVER INVEST FUNDS THAT YOU CANNOT AFFORD TO LOSE.
Cryptocurrencies are not suitable for all types of investors. You should not deal in the products unless you have the required knowledge and expertise, and understand these product’s characteristics and your exposure to risk. You should also make sure that your financial position allows you to tap into such a high-risk investment.
When dealing with cryptocurrency investment, you should be aware that you may sustain a total loss of funds in your account. If the market moves against your position, we may ask you to provide a substantial amount of additional margin funds on short notice, in order to maintain your position. If you do not provide the required funds within the time frame required by us, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.
FortuneX currently allows trading in cryptocurrencies over the weekend. However, we reserve the right not to do so. Should FortuneX so elect, trading of cryptocurrencies shall only be allowed from Monday through Friday. Given that Cryptocurrency exchanges may operate over the weekend, there may be a significant difference between Friday’s close and Sunday’s open. All such factors may result in you either not completing an order on a specific trading day or completing an order on a substantially less favorable price.
Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example when the market reaches a daily price fluctuation limit (“limit move”), if there is insufficient liquidity in the market.
Certain crypto assets may carry additional or specific risks.
Newly Issued Cryptocurrencies might carry additional risks you need to consider. Limited liquidity or difficulties in trading the asset after you’ve bought it. This means prices could be volatile, going up and down quickly, and liquidity may be limited, all depending on supply and demand. FortuneX cannot control these external factors.
Blockchain Risks
Blockchain is an independent public peer-to-peer network and is not controlled in any way or manner by FortuneX, FortuneX shall not be responsible for any failure and/or mistake and/or error and/or breach that shall occur in blockchain or in any other networks in which the cryptocurrencies are being issued and/or traded. You will be bound and subject to any change and/or amendments in the blockchain system and subject to any applicable law which may apply to the blockchain. We make no representation or warranty of any kind, express or implied, statutory or otherwise, regarding the blockchain functionality nor for any breach of security in the blockchain.
As mentioned, FortuneX does not control the software protocols that govern the operation of cryptocurrencies that are made available for trading on our platform. These protocols are open source and anyone can use, copy, modify, and distribute them. FortuneX is not responsible for the operation of the underlying protocols and we make no guarantee of their functionality, security, or availability. The underlying protocols are subject to sudden changes in operating rules (“Forks”), and such Forks may materially affect the value, function, and/or even the name of the cryptocurrency FortuneX holds for your benefit. In the event of a Fork, FortuneX may temporarily suspend its operations (with or without advance notice) and FortuneX may:
- Configure or reconfigure its systems; or
- Decide to not support (or cease supporting) the Forked protocol entirely.
FortuneX may, but is not obligated to do so, adjust your account in respect of a Fork, depending on the circumstances of each event attributable to any specific cryptocurrency that you hold.
Delisting and/or unsupported Cryptocurrencies: If at any time any of the cryptocurrencies from the subject of your order are delisted and/or we no longer support the trading in such Cryptocurrencies for any reason, the applicable order will be immediately closed. If FortuneX is notified that a cryptocurrency you hold in your account is likely to be delisted and/or removed and/or canceled from any of the exchanges (some of them or all) and FortuneX believes that it shall not be able to trade in such cryptocurrencies, shall make effort to sell the cryptocurrencies on your behalf at such time and price, and in such manner as it determines.
Futures Trading Risk
Futures are complex leveraged products and may not be suitable for inexperienced investors. Before investing, investors must understand the nature and accept the risks of futures products, including the extreme price volatility of Digital Asset Futures and the risk that the value of a Digital Asset Futures position may decline rapidly and significantly, including to zero. While Digital Asset Futures amplifies the potential profit of trading in Digital Assets, it also amplifies the risk of loss. All the risks relating to the underlying Digital Assets may be magnified in Digital Asset Futures because of the use of leverage.
In volatile market conditions, the price of Digital Assets, and therefore the price of Digital Asset Futures, may decline significantly in a short period of time, including to zero. An investor in Digital Asset Futures must be prepared and able to bear the loss of the entirety of their investment.
You should only invest the amount that you can afford to lose. You are advised to seek professional advice when deciding whether Digital Asset Futures products are suitable for you having regard to your risk appetite, financial position, and knowledge about Digital Assets.
When trading Futures, it is your responsibility:
- To familiarise yourself with Digital Assets and Futures before you start trading.
- To monitor your open positions and, when required, to reduce your position or deposit additional margin to avoid liquidation.
- Manage your exposure and not risk more than you can afford to lose.
When trading Futures you may suffer a loss as a result of a number of factors including but not limited to the following:
- a position in Futures moving against you, for example, you hold a long position and the price of the underlying Digital Asset declines or you hold a short position and the price of the underlying Digital Asset increases. You may lose the entirety of your investment, including all assets that you have made available as margin for the position;
- your profitable position may be force closed under auto-deleveraging, because one or more of the counter-parties to your profitable position has provide insufficient collateral, resulting in you not receiving some or all of the profits that you may otherwise be entitled to receive;
- you cannot close a Futures position because there is insufficient market liquidity or demand for the other side of that trade;
- we are required to change parameters on the Platform such as the margin requirements;
- there is a malfunction of the Platform, for example resulting from scheduled or unscheduled downtimes, matching system failure, database failure, cryptocurrency transfer or storage failure, failure or malfunction of the API, hacker attacks or other failure or malfunction.
The market price of a Futures contract for a Digital Asset may not mirror the price of the relevant Digital Asset in the spot market. The price of a Futures contract for a Digital Asset may also fluctuate significantly in response to movements in the price of the underlying Digital Asset, supply and demand, and other market factors.
In order to open and maintain a Futures position, you will be required to provide collateral as margin. The use of leverage allows traders to provide a relatively small amount of margin for a position with significantly more market exposure. However, this use of leverage means that a relatively small change in the market price of the underlying Digital Asset could result in liquidation of a position and loss of assets. For example, a 1% decrease in the price of a Digital Asset underlying a 10x leveraged long Futures contract is equal to a 10% loss in the long Futures position. Conversely, a 1% increase in the price of a Digital Asset underlying a 10x leveraged short Futures contract is equal to a 10% loss in the short Futures position.
If the market moves against your Futures position, you may be required to provide additional margin on short notice in order to maintain your Futures positions, failing which your position may be liquidated. If you are subject to liquidation, you may sustain a total loss of all collateral that has been provided or otherwise made available to establish or maintain a position, including collateral provided to meet margin calls. Further, you may, in exceptional circumstances, be responsible and liable for any deficit resulting in your Account following liquidation of your positions. It is your responsibility to ensure that you have sufficient margin in your Account to maintain all open positions.
FortuneX may at its sole discretion determine to terminate the offering of Futures. If you are required to close your Futures positions, or your Futures positions are forced closed, at a time when the market price of the underlying Digital Asset is not favourable, you may suffer losses as a result. FortuneX will not be responsible for any losses resulting from such termination.
The placing of certain “stop-loss” orders, or “stop-limit” orders which are intended to limit losses to certain amounts, may not always be effective because rapidly changing market conditions may make it impossible to execute such orders. Strategies using combinations of positions such as “spread” and “straddle” positions may be as risky as taking simply “long” or “short” positions.
Fees and Charges
FortuneX may, at its discretion, update the fees & charges from time to time. Please be aware of all the fees and charges that apply to you, because such fees and charges will affect the returns you generate from using the FortuneX Services.
Information relating to FortuneX Services
Any opinion, news, research, analyses, prices, or other information contained on this website are provided as general market commentary and do not constitute investment advice. FortuneX shall not be responsible for any loss arising from any investment based on recommendations, forecasts, or other information provided.
FortuneX also does not guarantee that the Market Data provided by either us, or relevant third parties is always accurate, correct, or up to date although we will take reasonable steps to ensure that it is. Please take note that Market Data is NOT financial advice and we are not responsible or liable for any action which you take or do not take based on the Market Data.