Margin Disclosure Statement
This document provides some basic facts regarding the purchase of digital assets on margin and the risks involved to you in trading digital assets in a margin account. Before trading digital assets in a margin account, you are advised to carefully review this Margin Disclosure Statement. If you have any questions regarding a margin account, please contact us through support at [email protected]
When you purchase digital assets, you may pay in full or you may borrow part of the purchase price from us. If you choose to borrow funds from us, you will need to open a margin account. The digital assets purchased are our collateral for the loan made to you. Thus, if the digital assets in your account decline in value, the value of the collateral supporting your loan will also decline. As a result, we can take the following actions in order to maintain the required equity in your account: issue a margin call and/or sell any or all of the digital assets in your account(s).
It is important that you fully understand the risks involved in trading digital assets on margin. These risks include, but are not limited to, the following:
● You can lose more funds than you have deposited into the margin account. A decline in the value of assets that are purchased or sold on margin may require you to deposit additional funds to avoid the forced sale of assets in your account(s).
● We can force the sale of assets in your account. If the equity in your account falls below our maintenance margin requirements, we can sell any or all of the assets in your account(s) to cover the margin deficiency. You will also be responsible for any shortfall in the account after such a sale.
● We can sell your assets without contacting you. We are not required to contact you for a margin call to be valid and we can liquidate assets in your account to meet a margin call without contacting you first. Although we will attempt to notify you in the event of a margin call, we are not required to do so. However, even if we have contacted you and provided you with a specific date by which you must meet a margin call, we can still take necessary steps to protect our financial interests including, but not limited to, immediately selling assets without notice to you.
● We can increase maintenance margin requirements at any time and are not required to provide you with advance written notice. Maintenance margin requirements often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the margin call may result in us liquidating or selling assets in your account(s). We are not responsible for any delay in the release of any funds intended to satisfy the margin call including, but not limited to, internal holds on funds exceeding verification limits, delays in the transfer of funds from external accounts maintained by third party financial institutions, or the failure of the proper routing of funds through financial networks. Funds will not count towards any margin maintenance requirement until the funds are released into your account.
● You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to you under certain conditions, you do not have any right to an extension.