Scope and intended audience

This document applies to all users of 1024EX products and services, including but not limited to: perpetual futures, margin/leverage trading, order-book execution, funding mechanisms, sub-accounts, API access, and the associated risk engine, insurance fund, and price feeds. It is written for individual and institutional participants who understand that digital asset markets are volatile and that using leverage can lead to rapid losses. If any part is unclear, do not trade until you fully understand the risks.

Core risks (overview)

Capital loss: You may lose some or all of your margin and unrealized gains due to adverse price movements, liquidations, fees, or system events.

Technology/protocol risk: Failures or vulnerabilities in smart contracts, custody, matching engine, or network infrastructure can cause loss or unavailability of funds or services.

Data & oracle risk: Inaccurate or interrupted price feeds can impact mark prices, risk checks, funding, and liquidations.

Liquidity risk: Insufficient order-book depth may produce slippage and widen spreads, impacting entry, exit, and liquidation prices.

Regulatory risk: Rules may change or restrict access, resulting in forced position closures or service modifications with short notice.

Operational risk: Human error, compromised credentials, or misconfigured API/sub-accounts can result in unintended orders or losses.

Market & volatility risk

Digital asset prices are highly volatile and may gap across levels with little or no trading in between. Sudden moves can exceed typical risk limits and may cause:

Immediate liquidation or partial deleveraging before you can react.

Order rejections or partial fills during fast markets.

Divergences across venues; the reference price used by 1024EX may differ from prices you observe elsewhere. Important: Use only capital you can afford to lose and size positions with worst-case scenarios in mind.

Liquidity & slippage risk

Market depth varies by instrument, time of day, and external conditions. Consequences include:

Slippage: Executions at worse prices than expected.

Spread risk: Wider bid-ask spreads increase trading cost and liquidation risk.

Open-interest & risk limits: 1024EX may cap maximum open interest, order size, or notional exposure per instrument/account to reduce systemic risk (parameters subject to change; refer to the latest official 1024EX publications). When a cap is reached, new positions or increases may be restricted.

Leverage, margin, and liquidation / margin call risk

Leverage magnifies both profits and losses. If your account equity falls below certain maintenance thresholds, the risk engine may liquidate positions partially or fully to protect account and platform integrity.

Risk-engine (conceptual overview)

Mark price: Positions are risk-checked against a fair-value mark price derived from permitted data sources.

Margin tiers: Initial and maintenance margin requirements may vary by instrument, notional size, and risk tier.

Auto-actions: If equity < maintenance margin, the engine can start partial position reductions, cancel resting orders to free margin, and escalate to full liquidation if equity continues to deteriorate.

Price bands/checks: Orders may be constrained by price-band logic relative to the reference price to mitigate erroneous executions.

Parameters: Specific formulas, buffers, and limits are dynamic and governed by the latest official 1024EX parameters.

Note: Rapid moves, illiquidity, and gaps may result in fills away from last-traded prices. You are responsible for monitoring margin and using risk controls (e.g., stop orders, reduced leverage, diversification).

Funding rate & carry cost risk

Perpetual contracts on 1024EX use a funding mechanism to align contract prices with spot.

Variable funding: Funding payments may be paid or received periodically based on the difference between the perp price and the reference price, subject to the platform’s calculation framework (see the latest 1024EX documentation for exact timing and inputs).

Cost implications: Funding can materially impact P&l; holding positions over time is not cost-free.

Extreme conditions: During high volatility or dislocations, funding rates may spike or clamps may apply as specified by current platform rules.

Price feed / oracle anomaly risk

1024EX uses internal and/or third-party data sources to determine reference prices for risk and settlements. Risks include:

Stale/incorrect data: Network congestion, exchange outages, or manipulation attempts can distort the reference price.

Safeguards: 1024EX may apply filters, source weighting, outlier rejection, or circuit breakers, and may enforce order-placement bands relative to reference prices.

Limitation: These mitigations reduce but do not eliminate the possibility of erroneous marks or premature liquidations. Always account for oracle risk in your sizing and stop-loss planning.

Smart contract, system, and counterparty risk

Smart contracts (if applicable): Where products rely on smart contracts, defects or exploits may lead to loss or inaccessibility of funds.

System components: The matching engine, risk engine, networking, and storage may experience downtime, delays, or inconsistencies, affecting order entry, cancels, or risk checks.

Dependencies: Blockchain networks, bridges, custodians, and service providers can fail or be attacked.

No guaranteed availability: 1024EX does not guarantee continuous, error-free operation. Back-ups and redundancies exist but cannot cover all scenarios.

Regulatory & compliance uncertainty

Digital asset regulation evolves rapidly and differs by jurisdiction. 1024EX may:

Restrict service in certain regions or to certain users.

Modify products, impose leverage limits, or require position closures to comply with law.

Users are responsible for understanding local rules, tax implications, and eligibility. KYC/AML and sanctions screening apply where required; access is not a right and may be revoked.

Operational errors & account security

Credentials & 2FA: Secure your credentials; enable two-factor authentication. Losses due to compromised accounts are your responsibility.

Sub-accounts & permissions: Assign the minimum permissions necessary, review withdrawal whitelists, and monitor cross-margin impacts across sub-accounts.

API use: Test in a safe environment first; rate limits, nonce handling, and key rotation are your responsibility. Misconfigured bots can generate unintended orders.

Device/network hygiene: Use trusted devices and networks; phishing and malware can lead to account takeovers.

Mechanism notes (conceptual; parameters subject to change)

Margin & leverage (terminology and approach)

Margin modes: 1024EX may support cross and isolated margin. Cross margin shares equity across positions; isolated confines risk per position or symbol.

General idea: Required margin increases with notional size, volatility, and risk tier. Initial margin ≥ maintenance margin, with step-ups by tier.

Formulae & inputs: Volatility estimates, concentration limits, and haircuts may be used. Exact formulae and numbers are as per the latest 1024EX official parameters.

Liquidation, partial reductions, ADL, insurance fund (order of use)

Cancel reduces risk: Cancel or reduce open orders to release margin.

Partial liquidation: Reduce position size to bring equity above maintenance thresholds.

Full liquidation: If account remains under-margined, close positions using available liquidity.

Insurance fund: If liquidations cannot close at or within risk bounds, the insurance fund may cover shortfalls subject to current policies.

ADL (auto-deleveraging): In extreme cases, profitable opposing positions may be reduced based on a priority algorithm (e.g., leverage and profitability ranking) to socialize residual losses. Refer to current 1024EX rules for the exact priority and triggers.

Fees, funding, and P&L impact

Fees: Maker/taker fees, liquidation fees, and other charges apply. Fee schedules and VIP tiers may change.

Funding: Periodic payments transfer between longs and shorts; the calculation references the difference between the perp and an underlying index/reference price and may include clamps or caps.

Impact: High fees or funding in stressed markets can erode P&L even if the market later reverts.

Exceptional market or system events

Halts / circuit breakers: 1024EX may pause trading for specific instruments or the entire venue to preserve orderly markets.

Mode changes: Risk parameters, price bands, or order types may be modified during events.

Rollbacks or adjustments: In case of clear errors, data corruption, or oracle failures, 1024EX may cancel or adjust trades consistent with published policies and applicable law.

Communication: Material changes will be communicated via official channels; users must monitor announcements.

User obligations & good practices

Risk controls: Use limit orders, stop-losses, and alerts. Set conservative leverage and diversify exposures.

Position monitoring: Track margin, funding, fees, and upcoming events; do not rely on notifications alone.

Gradual sizing: Avoid oversized positions in illiquid markets; break large orders into smaller clips when appropriate.

API hygiene: Enforce IP allow-lists, least-privilege keys, and key rotation.

Records & taxes: Keep your own records; you are responsible for tax reporting and compliance.

Disclaimer & no-advice statement

No financial advice: Nothing in this document or on the 1024EX platform is investment, tax, accounting, or legal advice. Seek independent professional counsel.

No warranty: Services are provided on an “as is” and “as available” basis. 1024EX disclaims all warranties to the maximum extent permitted by law.

Assumption of risk: By using 1024EX, you acknowledge and accept all risks described herein and any additional risks inherent to digital assets and leverage.

Jurisdiction, eligibility, KYC/AML, and sanctions

Access to 1024EX may be limited by jurisdiction, user category, or product type. Users must ensure they are eligible under local laws.

KYC/AML and sanctions compliance may be required; failure to satisfy requirements can result in denial or termination of service and/or position closures.

Where conflicts arise, applicable law and 1024EX’s most recent terms of use and policies control.

Versioning, updates, and contact

Dynamic document: Risk frameworks and parameters evolve. In case of discrepancy, the latest official 1024EX publications prevail.

Updates: Material changes will be posted through official channels (e.g., website notices, status pages, or documentation).

Support: For questions, contact 1024EX support via the official help center or verified communication channels.