- Fluctuations in currency prices can result in losses. In addition, since the transaction amount is large compared to the amount of margin discharged by the customer, the loss may exceed the amount deposited.
- We have set a stop-loss rule so that you will not lose more than the amount of margin you have deposited, but there is a risk that you will lose more than the amount of margin due to sudden fluctuations in the market price.
- Foreign exchange margin trading is a bilateral transaction between the Company and the customer. The Company conducts cover transactions with the following cover trading partners to reduce the risk arising from the transaction with the customer. Therefore, the customer may suffer a loss. If the business or property situation of the Company and the cover trading partner deteriorates.
- The exchange rate in this transaction is based on the exchange rate offered by the cover business partner and is presented to the customer by adding or subtracting a certain amount. There is a price difference (spread) between the selling price and the buying price of the exchange rate, and depending on the market conditions, the spread width may widen, or the intended transaction may not be possible.
- Suppose the trading system or the communication line connecting the financial instruments business operator and the customer does not operate normally. In that case, it may not be possible to place, execute, confirm, or cancel the order.
- Depending on the market conditions, it may be challenging to settle the open interest held by the customer or to hold a new genuine interest. There are no price limits on the foreign exchange market, and major currencies, including the Japanese yen, are not Managed In Any Special Currency, Show High Liquidity. However, It Can Be Difficult To Provide Exchange Rates Depending On Market Conditions, Such As Holidays In Major Countries, Just Before The Market Closes, Or At The Beginning Of The Week. In Addition, When trading on holidays such as Golden Week, Christmas, New Year’s holidays, or trading in currencies with low liquidity, it is difficult to offer prices or close orders even during regular business hours. There is.
- Trading of certain currencies may be difficult or impossible under exceptional circumstances such as natural disasters, wars, terrorism, political changes, alliance trades, sudden changes in foreign currency conditions, and the closure of the foreign exchange market.
Risk of crypto-asset margin trading
Differences between crypto-assets and Japanese or foreign currencies
- Cryptocurrencies handled by our Company are not Japanese currency or foreign currency. In addition, its value is not guaranteed by a specific nation or a specific person.
- Risks associated with lack of supply and demand
- Cryptocurrencies are generally less liquid than fiat currencies. In addition, there is a price difference (spread) between the selling price and the buying price of the cryptocurrency rate. Spreads may widen during sudden changes in the price of crypto assets or when liquidity declines, and it may not be possible to perform the transaction intended by the customer.
- Depending on the market conditions, it may be difficult to place or execute new and settlement orders, or the trading conditions may be temporarily changed or restricted depending on the requirements of our cover trading partners.
- Risk of regulation in countries/regions
- In certain countries and regions, the sale and possession of cryptocurrency assets may be prohibited by law. This can make it extremely difficult or impossible to buy, sell or hold crypto assets in that country or region. As a result, demand for crypto assets may diminish, and prices fall.
Price fluctuation risk
- The value of cryptocurrencies fluctuates day by day due to various changes in the external environment and the supply and demand balance of cryptocurrency transactions. Cryptocurrency prices sharply rise due to natural disasters, wars, terrorism, public health emergencies, political changes/law revisions. It may fluctuate and make trading of crypto assets difficult or impossible. It may fluctuate and make trading of crypto assets difficult or impossible.
Risk of system failure
- Suppose the trading system or the communication line connecting our Company and the customer does not operate normally. In that case, it may not be possible to present the cryptocurrency rate, place an order, execute, confirm, cancel, etc., at the timing requested by the customer. ..
- Risks from leverage and stop-loss rules
- Crypto currency margin trading does not guarantee the principal. Crypto currency margin trading is a transaction that is settled by giving and receiving money equivalent to the difference in the trading price of the target crypto currency asset, so a loss may occur due to fluctuations in the cost of the crypto currency Asset. In Addition, Since The Transaction Amount Is Large Compared To The Amount Of Margin Deposited By The Customer, The Amount Of Loss May Exceed The Amount Of Margin Deposited. In Addition, We Have Established A Loss Cut Rule So That Losses That Exceed The amount of margin crypto currency are not incurred, but if the loss cut transaction cannot be executed immediately due to sudden fluctuations in the market price, etc., the amount of margin There is a risk of loss exceeding.
Suppose the business/property status of the Company, the cover business partner (liquidity supplier of cryptocurrency assets), or the financial institution consumed by the Company deteriorates. In that case, it will be difficult or delayed for the customer to return the customer’s assets.
Branch risk due to hard fork
- Of the cryptocurrency assets we handle, for Bitcoin and Ethereum, there is a possibility that the cryptocurrency assets will split into two due to a hard fork (irreversible specification change), and they will not be compatible with each other. In that case, there is a risk that the value of the cryptocurrency will drop significantly, or the transaction will be invalidated retroactively.
- 51% attack risk
- Regarding Bitcoin and Ethereum among the cryptocurrency assets we handle, if a malicious person has 51% or more of the total hash rate (minor’s computing power), there is a risk of intentionally delivering fraudulent transactions.
XP may be tampered with in the ledger and data of the cryptocurrency assets we handle if a trusted validator unintentionally colludes.
- Suppose the cover customer cannot perform the cover transaction. In that case, the customer’s transaction may cause a loss to the Company. The financial situation changes due to the expansion of the loss due to the market fluctuation during that period, and the customer’s transaction continues. It may not be possible.
- If the presentation of the cryptocurrency rate is stopped and then the reason for the stop is resolved, we will check the status of the prevailing rate of the cryptocurrency market and then resume the distribution of the cryptocurrency rate. Depending on the cryptocurrency rate at the time of resumption, a loss cut may occur, and the amount of loss caused by it may exceed the margin balance due to sudden fluctuations in the market price.