III. Risk Disclosure

1. Market Risks

  • Price Volatility: Cryptocurrency markets operate 24/7, with extreme fluctuations due to regulations or technical upgrades (e.g., BTC’s historic 30% daily drop).

  • Liquidity Risks: Illiquid tokens may face challenges in timely liquidation.

2. Technical Risks

  • Smart Contract Vulnerabilities: Despite audits, undiscovered flaws may exist (e.g., $120M loss in a 2023 DeFi reentrancy attack).

  • Private Key Loss: Users self-custody keys; loss results in irreversible asset forfeiture.

3. Regulatory Risks

  • Policy Changes: Shifting regulations (e.g., China’s crypto ban, EU’s MiCA framework) may disrupt services.

4. Operational Risks

  • Phishing Attacks: Fake platform links may steal private keys (enable 2FA for protection).

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