Risk of Trading Futures 

Risk of Trading Futures 

1. 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.
2. The risk of loss is substantial. 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.
3. You should not invest any amount that you cannot afford to lose. You are strongly encouraged to seek independent 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. 
4. When trading Futures, it is your responsibility:
5. To familiarise yourself with Digital Assets and Futures before you start trading.
6. To monitor your open positions and, when required,  to reduce your position or deposit additional margin to avoid liquidation.
7. Manage your exposure and not risk more than you can afford to lose.
8. When trading Futures you may suffer a loss as a result of a number of factors including but not limited to the following: (i) 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; (ii) your profitable position may be forced closed under auto-deleveraging, because one or more of the counter-parties to your profitable position has provided insufficient collateral, resulting in you not receiving some or all of the profits that you may otherwise be entitled to receive; (iii) you cannot close a Futures position because there is insufficient market liquidity or demand for the other side of that trade; (iv) we are required to change parameters on the Platform such as the margin requirements; (v) 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.
9. 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.
10. 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.
11. 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 the liquidation of your positions. It is your responsibility to ensure that you have sufficient margin in your Account to maintain all open positions.
12. Perpetual Futures Products do not have a fixed term. You will be subject to funding rates for the duration of your positions in Perpetual Futures Products. 
13. Binance 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 favorable, you may suffer losses as a result. Binance will not be responsible for any losses resulting from such termination.
14. 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 simple “long” or “short” positions.