Risk Disclosure and Disclaimer

Essential information about potential risks associated with trading on GRVT exchange

1. Introduction

  1. If you intend to access the Platform, use the Services and/or enter into Orders or Trades in respect of Derivatives Products, you should be aware of and understand the risks which may be involved in performing such activities. In this regard, the Company has prepared this Risk Disclosure Statement to briefly explain some of the risks associated with accessing the Platform and using the Services. By opening an Account on the Platform, accessing the Platform and/or using any of the Services, you are taken to have read, understood and accepted the risks described in this Risk Disclosure Statement in their entirety.

  2. This Risk Disclosure Statement is neither comprehensive nor exhaustive and does not disclose all of the risks (and other significant aspects) of trading in Derivatives Products that may be relevant or applicable. This Risk Disclosure Statement should be read in conjunction with the other risks that have been described in the various provisions of the User Agreement (which are themselves neither comprehensive nor exhaustive as well). It is not possible for the Company to exhaustively identify and explain all risks associated with an Exchange User's access to the Platform and usage of the Services.

  3. In light of the risks, you should undertake any Trade only if you understand the nature of the Derivatives Product (and contractual relationships) into which you are entering and the extent of your exposure to the risks. Trading in Derivatives Products may not be suitable for many members of the public. You should carefully consider whether trading or holding Derivatives Products is suitable or appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. You should be aware that the risk of suffering losses in trading or holding Derivatives Products can be substantial, and you must carefully consider whether you can bear the risk of such losses.

  4. Ultimately, you are required to make your own independent decision to access the Platform, use the Services and/or enter into any Order or Trade, and you should seek independent advice (including, but not limited to, from financial, investment, legal, and tax perspectives) where you deem fit. You should not construe this Risk Disclosure Statement (or any other statements made by the Company) as financial, investment, legal, tax or other advice. The Company does not provide any financial, investment, legal, tax or other advice to any Exchange User. You are solely responsible for your decision to access the Platform, use the Services and/or enter into any Order or Trade, which you do so solely at your own risk.

  5. Save as defined herein or where the context requires otherwise, all capitalised terms have the meaning ascribed to them in the User Agreement.

2. Trading Risks

  1. Derivatives contracts (such as the Derivatives Products) are by nature complex products. You should only enter into a Trade if you fully understand:

    1. the nature and fundamentals of the Derivatives Product and the Digital Asset underlying such Derivatives Product;

    2. the contractual terms and conditions governing the Derivatives Product and the Trade, and your relationship with your counterparty to such Trade;

    3. the extent of the risk to which you are exposed as a result of such Trade, and determine that such risk is suitable and appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances; and

    4. the regulatory, tax and/or accounting treatment of such Trade (which can be complex).

  2. There can be no assurance that any Trade will provide a positive return or profit to you, allow you to avoid any losses, or allow you to achieve your investment objectives. The Company does not guarantee the principal amount invested or its value at any time in respect of any Trade or Derivatives Product. Past performance is not an indication of future performance. The value of Digital Assets and Derivatives Products can go down as well as up.

  3. The following paragraphs set out a brief, non-exhaustive summary of certain specific factors and risks relating to trading in Derivatives Products that you should read, understand and consider.

  4. Counterparty Risks

    1. The Company is not a counterparty to any Trade. This means that the Company does not enter into any Trade as a principal vis-à-vis any Exchange User. The Company has no responsibility whatsoever and accepts no liability for any failure of Exchange Users to fulfil their obligations under any Trade or Derivatives Product. There is always a risk that an Exchange User who is your counterparty will default or otherwise fail to fulfil their obligations. You therefore assume all counterparty and credit risks associated with your Trade.

  5. Volatility and Market Risks

    1. Entering into a Trade will expose you to the volatility of the price and other risks associated with the underlying Digital Asset of the relevant Derivatives Product. You may sustain substantial losses if the market conditions move against your Positions. The market prices of Digital Assets can be highly unpredictable and volatile when compared to other asset classes. The price of Digital Assets is driven by their demand and supply on global markets, which are themselves influenced by many factors, including, but not limited to, irrational (or rational) swings in investor confidence in Digital Assets, broader economic conditions, and the legal and regulatory environment surrounding Digital Assets.

    2. It is possible for the price of a given Digital Asset to decrease sharply, and, in some cases, become valueless. This could render the relevant Derivatives Product worthless. As such, there is no assurance as to the inherent ability of Digital Assets or Derivatives Products to maintain their long-term value.

    3. Each market maker may quote different prices. Any prices displayed on the Platform made available by us or by a third party may only reflect "indicative" prices and not necessarily actual "dealing" prices where Trades can be executed. Particularly during periods of high volume, illiquidity, fast movement or volatility for any Digital Asset or Derivatives Product, the actual price at which any Trade is executed may be different from the price indicated on the Platform at the time of submission of your Instruction or Order.

    4. The price volatility of Digital Assets may have the following (non-exhaustive) implications on your trading activity on the Platform:

      1. the market value of the relevant Digital Assets may decrease sharply and, in some cases, become valueless. This may hamper your ability to enter into or Settle Trades;

      2. once you have committed Digital Assets in the Smart Contract System as Committed Digital Assets, you will not be able to withdraw them until the Smart Contract System releases the block over such Committed Digital Assets. In cases of sharp fluctuations in the market value of Digital Assets, you may not be able to react in time to realise any potential profits / returns, or mitigate Losses suffered;

      3. you may be called upon at short notice to commit further Digital Assets in the Smart Contract System. Where this is not done within the specified timeframe, your Position(s) may be Liquidated and you may suffer Losses. You will not be entitled to any extension of time on a Margin Call.

  6. Risks associated with Leveraged Trading and meeting Margin Requirements

    1. The Platform allows Exchange Users to enter into a Trade with relatively modest Margin in relation to the size of a given Position. Leveraged Trades can lead to large losses as well as gains in response to a small market movement. A relatively small market movement could have a proportionately larger impact on your Position, and if the market moves against you, it is possible that you may sustain Losses far in excess of your Committed Digital Assets in the Smart Contract System.

    2. At all times during which you have open Positions, you must ensure that you satisfy all applicable margin requirements (including all applicable Maintenance Margin Requirements). You may be subject to a Margin Call at short notice to maintain your Position, failing which your affected Trade(s) or Position(s) may be Liquidated at a loss to you. You will not be entitled to any extension of time on a Margin Call.

    3. The Company does not make any guarantee as to the appropriateness or sufficiency of any margin requirement (including any Initial Margin Requirement or any Maintenance Margin Requirement) or any Margin Call.

    4. The applicable margin requirements are set out in the Applicable Contract Specifications, and these are subject to change at any time (including without prior notice in an Emergency). All calculations and determinations relating to the relevant margin requirements are performed by the Smart Contract System and they are final, conclusive, and binding on you.

    5. You should ensure that you are able to monitor your Positions and your Account at all times, as you are solely responsible for this. We are not responsible for monitoring your Positions or your Account.

  7. Liquidity Risks

    1. Under certain market conditions, you may find it difficult or impossible to liquidate a Position at a reasonable price. This may occur where there is a scarcity of Exchange Users who are willing to enter into Trades at any given time. This may be influenced by irrational (or rational) swings in investor confidence in Digital Assets and/or derivatives contracts with Digital Assets as the underlying, broader economic conditions, and the legal and regulatory environment surrounding Digital Assets and/or derivatives contracts with Digital Assets as the underlying. Placing contingent Orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit your Losses to the intended amounts, as it may be impossible to execute such Orders under certain market conditions. This potential lack of liquidity may also result in greater price volatility, greater uncertainty, and Losses.

  8. Risks associated with Errors in Submitting Instructions / Orders

    1. You are solely responsible for any and all of your actions performed on the Platform, including, but not limited to, verifying all Instructions and Orders you submit on the Platform. In this regard, where an Order becomes irrevocable pursuant to the User Agreement, you will not be able to change and/or withdraw your Order (including to correct any errors in such Order), or cancel your authorisation for the Company to complete such Order. The Company will not be able to reverse erroneous Trades and it is possible that you may suffer Losses as a result of any erroneous Instructions and/or Orders.

  9. Risks associated with Changes in Cost

    1. Your net returns from a Trade would also be affected by the relevant costs. You should factor in these costs when making any risk assessment. The costs associated with your access to the Platform and use of the Services (e.g. Gas Fees, Trading Fees, Settlement Fees, Liquidation Fees and Withdrawal Fees) remain variable and may increase at any time. It is your sole responsibility to check and verify the costs associated with your access to the Platform and use of the Services.

  10. Tax Risks

    1. There may be tax implications (including, but not limited to, any applicable income tax, goods and services or value added taxes, withholding taxes, stamp duties and other taxes) associated with your trading or holding a Derivatives Product. You are solely responsible for checking and verifying the tax implications associated with any of your Trades and/or your activities on the Platform, and seeking independent tax advice. You are liable for any taxes payable by you in respect of any of your Trades and/or your activities on the Platform.

3. Platform and Technological Risks

  1. Electronic trading involves many interrelated systems, including hardware, software, communication networks, cable, and power generation, all of which are subject to vulnerabilities, failures, malfunctions, bugs, delays, interruptions in service or intentional attacks by bad actors that may adversely affect your ability to access the Platform and/or use the Services, and you may suffer Losses as a result.

  2. The Platform's underlying technology (which involves blockchain technology) is still in a nascent development stage. There is no assurance that such technology is immune from vulnerabilities, failures, malfunctions, bugs, delays, interruptions in service or intentional attacks by bad actors.

  3. The following paragraphs set out a brief, non-exhaustive summary of certain specific factors and risks relating to the Platform and the relevant technology involved that you should read, understand and consider.

  4. Accuracy of Information Published on the Platform

    1. The Company publishes certain information and data on the Platform, including, but not limited to, information and data relating to the Derivatives Products and Digital Assets, and information and data from third-party Information Providers. Such information and data are provided for general informational purposes only, and do not constitute any investment advice or investment recommendation, nor do they include any consideration of your personal investment objectives, financial circumstances or particular needs. Such information and data may not always be available, accurate, reliable, complete, or up-to-date and may also include technical inaccuracies or typographical errors. Your reliance on any such information or data is entirely at your own risk.

  5. Platform's Operational Risks

    1. Any technological difficulties experienced by the Platform (whether within the Company's control or not) could result in your inability to access the Platform, use the Services and/or enter into any Order or Trade.

    2. Execution of Orders, and deposits, withdrawals and transfers may not be instantaneous, and prices of the relevant Digital Assets may move during that time, which may result in Losses suffered by you.

    3. The Company may, at any time, suspend or terminate its support for any Derivatives Products, Digital Assets and/or any Digital Assets Wallets currently supported by the Platform, in its sole and absolute discretion. In certain circumstances, the Company may not be able to give Notice where it suspends or terminates its support for any Derivatives Product, Digital Asset and/or any Digital Assets Wallet on the Platform, including, but not limited to, circumstances where the Company is compelled to do so due to any action, request or directive by a governmental, regulatory or other authority. If you attempt to transfer to the Smart Contract System any Digital Assets that are not supported by the Platform, such Digital Assets may be permanently lost.

    4. From time to time the Platform and Services may become unavailable for various reasons, including when the Company or any third-party technology service provider(s) is/are performing maintenance (whether scheduled or unscheduled) on the Platform. When services resume, there is a risk that market conditions and prices may differ significantly from the market conditions and prices prior to such Downtime or unavailability of the Platform or Services.

  6. Electronic and Internet-based Trading Services

    1. As with most other internet-based trading platforms, the Platform and its Exchange Users rely on public communication network systems for the transmission of inputs, information, and data (including, but not limited to, Instructions and Orders). Where such public communication network systems experience vulnerabilities, failures, malfunctions, bugs, delays, interruptions in service or intentional attacks by bad actors, you may be unable to access the Platform and/or use any Services, and/or experience failures or delays in the submission or execution of any Instruction and/or Order, which may result in Losses suffered by you. Such circumstances are beyond the control of the Company.

    2. The Company may require you to download, install, and/or update software applications, in order to access / continue accessing the Platform. Your failure to do so may lead to the Platform / certain Services provided on the Platform (including trading functions) becoming inaccessible to you, due to compatibility issues, which may result in Losses suffered by you. It is your sole responsibility to ensure that your device has the ability to support the requisite software applications by performing the necessary downloads, installations, or updates.

  7. Blockchain and Smart Contract Technology

    1. There are inherent risks associated with the cryptographic systems and blockchain-based networks that the Platform, Digital Assets, Digital Assets Wallets, Smart Contract System, and Derivatives Products are built on. The Company does not own or control any of such underlying systems and networks, which may be subject to sudden changes commonly referred to as "forks", "rollbacks", "bootstraps", or "airdrops", or otherwise cease to operate as expected. The Company is not responsible for the operation of any such underlying systems and networks, and makes no guarantee or warranty of their functionality, security or availability. Any such change, or any failure in any of the underlying systems and networks, may affect your ability to, inter alia, fund your Accounts with Digital Assets, submit Instructions and/or Orders, enter into Trades, Settle Trades, and/or Liquidate your Positions, which may result in Losses suffered by you. The Company does not guarantee support of such underlying systems or networks.

    2. As the Platform is a fully self-custodial exchange, neither the Company nor the Platform will have control, or access, at any point in time, to your Digital Assets, your Exchange User Wallet Private Key and/or your Smart Contract System Private Key. You are solely responsible for maintaining the security and confidentiality of your Exchange User Wallet Private Key and Smart Contract System Private Key, and preventing unauthorised access or use of your Exchange User Wallet Private Key, Smart Contract System Private Key, Account and/or Digital Assets Wallet(s).

    3. If you lose your Exchange User Wallet Private Key, it may be irretrievable, and you may permanently lose access to your Digital Assets. The Company does not own, control, or provide any of the Digital Assets Wallets used by any Exchange User and would not have the ability to perform the recovery of any lost Exchange User Wallet Private Keys.

    4. If you lose your Smart Contract System Private Key, it may be irretrievable, and you may lose the ability to initiate or execute Instructions, Orders, communications or other relevant transactions on the Smart Contract System. If you have opted-in for the Recovery Services, you should note that there is no guarantee as to the availability of the Recovery Services, or the effectiveness of the Recovery Services to recover access to the lost Smart Contract System Private Key.

    5. Transactions involving Digital Assets are typically irreversible. It is your sole responsibility to ensure that:

      1. the correct address is used for any deposit, withdrawal, or transfer of Digital Assets. Any inaccuracy in a specified address may result in a permanent and irreversible loss of the Digital Assets concerned; and

      2. you are prepared to commit the relevant amount of Digital Assets in the Smart Contract System as Committed Digital Assets, as such Committed Digital Assets cannot be withdrawn until the Smart Contract System releases the block over them.

    6. The Smart Contract System may undergo upgrades, modifications or be suspended from time to time, which may result in the Smart Contract System being disrupted, operating incorrectly or not as expected, or transactions being executed in violation of the logic which underpins the Smart Contract System. This can lead to partial or complete loss of Digital Assets used in the transaction. You should note that the Platform is unable to effect a rollback of any transactions once they have been executed and registered on the blockchain, even where such transactions are clearly erroneous due to, inter alia, the Smart Contract System being disrupted, operating incorrectly or not as expected, or transactions being executed in violation of the logic which underpins the Smart Contract System. This may result in Losses suffered by you.

  8. Cybersecurity

    1. The Platform and the broader technological infrastructure that it is built on (e.g. blockchain technology) are susceptible to deliberate attacks by malicious individuals, groups, or organisations. This includes, but is not limited to, malware attacks, denial of service attacks, coordinated attacks, account takeovers and transaction spoofing. There is no assurance that any of the security measures implemented by the Company and/or technological infrastructure providers will provide complete protection from such deliberate attacks. Any such deliberate attacks on the Platform and/or the technological infrastructure that it is built on could have an adverse impact that results in Losses suffered by you.

    2. Non-exhaustive examples of such adverse impacts include, but are not limited to:

      1. disruption of the operation of the Platform, the availability of the Services and the value of the Derivatives Products traded on the Platform;

      2. the theft or loss of your Digital Assets held in your Digital Assets Wallet, and/or Committed Digital Assets held in the Smart Contract System; and

      3. the exposure of your personal information.

4. Risks Associated with Third Parties

  1. The Company and all Indemnified Persons will not be liable for any act or omission of any third party including for any services or information provided by a third party.

  2. If any third-party software is included within the Platform, then such third-party software shall be provided subject to the terms of the User Agreement. You shall fully comply with the terms of any third-party software licences made available to you with from time to time. The Company and all Indemnified Persons will not be liable for any third-party tools, services, or integrations used on the Platform (including without limitation any modification, malfunction, vulnerabilities, interruption, and/or cessation thereof) or any information provided by any third party (including without limitation any inaccuracy or incompleteness of such information).

  1. The Company, its operation of the Platform and provision of the Services are subject to Applicable Laws, which may encompass the laws and regulations of more than one country. Under such laws and regulations, there is a broad range of (i) regulatory licensing, approval, registration, authorisation, permit and/or notification requirements, and (ii) prohibitions, restrictions and ongoing compliance obligations governing different aspects of the Company, its operation of the Platform and provision of the Services (including, but not limited to, AML/CFT and sanctions-related prohibitions, restrictions and ongoing compliance obligations).

  2. The applicability of such requirements, prohibitions, restrictions and ongoing compliance obligations may be ambiguous. There is also some inherent uncertainty in the legal and regulatory treatment of automated decentralised applications. Regulatory authorities may exercise broad discretion in (i) assessing and enforcing the Company's compliance with such requirements, prohibitions, restrictions and ongoing compliance obligations, and/or (ii) introducing new requirements, prohibitions, restrictions and ongoing compliance obligations. Any of the foregoing actions by regulatory authorities may have an adverse impact on the Company and/or its ability to continue operating the Platform and providing the Services to Exchange Users in some or all jurisdictions, which may result in Losses being suffered by Exchange Users.

  3. The information provided on the Platform should not be construed as a distribution, an offer to sell, or a solicitation to buy or sell any products or services in any jurisdiction where such activities would be unlawful under the laws of such jurisdiction. It is the responsibility of any and all persons who open an Account on the Platform, access the Platform and/or use any of the Services, to observe all applicable laws and regulations of their relevant jurisdiction. By proceeding, you represent and warrant that all the applicable laws and regulations of your jurisdiction allow you to access or use the information. The Company and the Indemnified Persons do not represent or warrant that the information on the Platform is available or suitable for any particular user or all users, or for access or use in all jurisdictions. Under no circumstances shall any of the Indemnified Persons be responsible or liable to you or any other person or entity for any Losses by reason of, or arising from, or as a consequence of, your violation of any laws and regulations that are applicable to you.

  4. Legal and Regulatory Risks associated with Digital Assets and Derivatives Products

    1. Digital Assets are generally not considered legal tender and are not backed by any central bank or government. Accounts and value balances are not subject to any government-backed deposit insurance or any other government protections. There is no central bank or government regulator that can take corrective measures to protect the value of the Digital Assets in a crisis, manage the demand or supply of Digital Assets, or smoothen any fluctuations in the price or value of Digital Assets.

    2. The laws and regulations concerning Digital Assets and derivatives contracts with Digital Assets as the underlying ("Digital Asset Derivatives") remain unsettled and dynamic, and may rapidly evolve. The application and interpretation of existing laws and regulations are often largely untested and there is a lack of certainty as to how they will be applied. New laws and regulations may be promulgated in the future that apply to blockchain technology, Digital Assets, Digital Asset Derivatives and related service providers, and no assurance can be given that any such changes will not adversely affect Digital Assets generally (including the use, transfer, exchange and value of Digital Assets), Derivatives Products generally (including the legality and enforceability of Derivatives Products), or the Services. It is not possible to predict how such changes would affect the price and liquidity of Digital Assets and Derivatives Products, or the Company's ability to offer the Services. Any Digital Asset and/or Derivatives Product may decrease in value or lose all of its value due to changes in laws or regulations, or any action taken by governmental or regulatory authorities, resulting in Losses being suffered by Exchange Users.

    3. It is possible that due to changes in laws and regulations, the Company may, at any time with or without prior notice, have to restrict the availability of certain Derivatives Products on the Platform, or disallow the onboarding or continued usage of the Platform by certain Exchange Users based on (among other things) their citizenship, domicile, place of incorporation, residence or location, and/or investor status. This may result in Losses being suffered by Exchange Users.

  1. Our commitment to regulatory compliance means that we restrict services in certain jurisdictions and reserve certain offerings only for certain categories of clients.

  2. You should note the following specific legal and regulatory risks associated with (i) Singapore, (ii) Hong Kong, (iii) the United Kingdom, and/or (iv) the United States, as the case may be, if you are:

    1. accessing or intending to access the Platform from any of the above jurisdictions; and/or

    2. (A) (in the case of an individual) a citizen of, or resident in, any of the above jurisdictions, or (B) (in the case of an entity) (1) incorporated, registered, established or organised in, or have a business presence in, any of the above jurisdictions, or (2) beneficially owned by or controlled by (whether directly or indirectly) an individual who is a citizen of or resident in, or an entity that is incorporated, registered, established or organised in, or has a business presence in, any of the above jurisdictions.

  3. Singapore

    1. The Company is not licensed, approved, authorised, designated, recognised, registered or otherwise regulated under any legislation administered by the Monetary Authority of Singapore ("MAS"). As such, Exchange Users would not have the benefit of any regulatory safeguards imposed by the MAS.

    2. Contracts listed for trading by the Company do not fall within the definition of “derivatives contracts” under the Securities and Futures Act 2001 (“SFA”) and are unregulated products in Singapore. In particular, payment token derivatives (“PTDs”) are derivatives contracts that reference Digital Payment Tokens as underlying assets. MAS has taken the position that PTDs as a general asset class are not yet suitable to be regulated and MAS does not regulate PTDs unless they are offered by an Approved Exchange under the SFA.

    3. Under Singapore laws and regulations, certain matters concerning Digital Assets and Digital Asset Derivatives are not fully settled and/or may continue to evolve. These include, but are not limited to, (i) the nature of property rights held by a Digital Asset holder; and (ii) the regulatory treatment of Digital Assets and Digital Asset Derivatives. It is not possible to predict how a change in Singapore laws and regulations could adversely impact, inter alia:

      1. the price and liquidity of Digital Assets and Derivatives Products;

      2. an Exchange User's rights and remedies in law and/or equity, in respect of his / her Digital Assets and/or Derivatives Products; and/or

      3. the Company and its ability to continue operating the Platform and providing the Services to Exchange Users in Singapore.

  4. Hong Kong

    1. The Company is not licensed, approved, authorised, designated, recognised, registered or otherwise regulated under the applicable laws of Hong Kong, and is not regulated by the Securities and Futures Commission (“SFC”). There are hence no regulatory protections compared to investors trading with a licensed market operator.

    2. The Platform and services are not intended to be accessed by persons in Hong Kong. The Company does not solicit business or transactions in virtual assets from residents or entities operating in Hong Kong.

    3. The protections under the Investor Compensation Fund do not extend to the Company or to virtual assets.

  5. Republic of Korea

    1. The Company is not licensed, approved, authorised, designated, recognised, registered or otherwise regulated under the applicable laws of the Republic of Korea. It is the sole responsibility of an Exchange User to ensure his/her compliance with all applicable laws. The Company hereby reserves the right to undertake any necessary measures, without prior notice, for compliance with such applicable laws.

  6. United Kingdom

    1. The Company is not licensed or regulated by the Financial Conduct Authority (“FCA”) in any capacity, and does not engage with any authorised firms in the United Kingdom.

    2. The Platform and services are not intended to be accessed by persons in the United Kingdom. The Company does not solicit business or transactions in cryptoassets from residents or entities operating in United Kingdom.

    3. Any marketing or promotional materials provided by the Company are not intended for distribution or use in the United Kingdom, and the Company does not engage in any promotional activities targeted at UK residents or entities.

    4. Neither the Company nor investments in cryptoassets are covered by the Financial Ombudsman Service or subject to protection under the Financial Services Compensation Scheme.

  7. United States

    1. The Company is not registered with or licensed by the U.S. Commodity Futures Trading Commission, the U.S. Securities and Exchange Commission, or any other regulatory authority in the United States, in any capacity.

    2. This information provided on the Platform provision of the Services by the Company does not constitute advice or a recommendation concerning any derivative, commodity, or security. The Company is not acting as an investment adviser or commodity trading adviser to any person.

    3. For the avoidance of doubt, persons resident or incorporated in the United States are prohibited from using the Platform or any Services.

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