Contract Trading Risk Warning

Dear user:

If you participate in Basekx contract trading, please be sure to carefully read and understand the following risk reminders. Contract trading carries high risks. Please participate cautiously after confirming your own risk tolerance.

I. High-Risk Nature of Contract Trading

Contract trading allows the use of leverage — leverage can amplify both gains and losses. Although leverage may increase potential profits, it can also magnify losses, and you may lose all your principal within a short period of time.

Market prices may fluctuate dramatically. The digital asset market is affected by macroeconomic factors, policies, liquidity, market sentiment, and many other variables. Prices may change rapidly, resulting in increased losses.

II. Forced Liquidation & Maintenance Margin Risk

If your account balance or margin ratio falls below the system’s minimum maintenance requirement, the platform may automatically execute forced liquidation on your positions. The execution price may differ from your expectations, and you shall bear any resulting losses.

If you use the cross margin mode, once forced liquidation is triggered, multiple positions in your account may be affected at the same time, resulting in greater risk.

III. Liquidity & Slippage Risk

In extreme market conditions or when liquidity is insufficient, slippage may occur, orders may fail to execute immediately, execution prices may deviate from expectations, or positions may not be closed at ideal prices.

Although the contract system has built-in risk control mechanisms, trading execution risks may still occur due to extreme market conditions, unstable markets, or system latency.

IV. System Risk & Operational Risk

Network failures, platform system maintenance, delays, interface anomalies, or trading congestion may cause order failures, delayed executions, abnormal prices, or an inability to close positions in time.

Human operational errors or improper parameter settings (such as excessive leverage, insufficient margin management, or excessive position additions) may result in significant losses.

V. Strategy & Psychological Risk

Using leverage, adding positions, copy trading, automated strategies, or trading bots increases overall trading complexity and risk. Blindly following trends or other traders’ strategies may lead to substantial losses.

Historical performance, strategy backtesting results, or others’ past success do not guarantee future profits. If market conditions change, previous performance may no longer apply.

VI. Recommendations — How to Reduce Risk

To participate in contract trading more prudently, we recommend that you:

Set leverage and position sizes reasonably, avoiding excessive leverage or oversized positions. Manage margin and available funds, keeping sufficient reserves to handle volatility and forced liquidation risk. Set take-profit and stop-loss levels to avoid emotionally driven decisions. Understand and familiarize yourself with contract rules (margin mechanism, liquidation mechanism, fees, settlement logic, etc.) to avoid losses caused by misunderstanding the rules. Trade within your capacity. Only invest funds you can afford to lose. Avoid borrowing, high leverage, or allocating all funds to high-risk positions.

Statement

This announcement serves only as a risk reminder and does not constitute investment advice.

All trading decisions are made independently by you and at your own risk.

Basekx shall not be liable for any losses caused by market fluctuations, system failures, force majeure events, or your trading decisions.