Statement of Risk

This notice outlines the risks associated with digital assets that you may consider investing in through services offered by X10. X10 provides a decentralized platform for trading perpetual contracts, and it is not authorized or regulated by the Seychelles Financial Services Authority or any other financial regulator.

Disclosures

X10 facilitates the trading of perpetual contracts, which provide indirect exposure to cryptocurrencies and commodities.

As the cryptocurrency markets are decentralized and not subject to regulation, our cryptocurrency trading services fall outside the scope of specific European regulatory frameworks such as MiFID or MiCA. Consequently, users of X10’s trading services do not receive the protections typically available to clients of regulated investment services, including access to investor compensation schemes.

Our offerings are highly risky and may not be appropriate for all investors. This notice aims to inform you of these risks, though it cannot detail all potential risks or how they might apply to your individual circumstances. If you are in doubt, we recommend seeking professional advice. Before engaging with X10, it is crucial that you understand these risks, ensure you have sufficient financial resources to withstand potential losses, and monitor your positions closely. Trading involves risk to your capital. You should not invest money that you cannot afford to lose.

Perpetual Contracts

A Perpetual Contract is an agreement to buy or sell a cryptocurrency at a future date without an expiration. Unlike equity futures, Perpetual Contracts do not have a set delivery date and can be held indefinitely, avoiding the need to rollover contracts. When you engage in trading Perpetual Contracts, you typically do so on margin, also known as trading with leverage. This implies that you can deposit only a fraction of your position’s total value. Consequently, even minor fluctuations in the market can significantly affect your equity, both positively and negatively. Even minor market movements can significantly affect your position, positively or negatively.

If the market turns adverse, you could lose more than your initial investment in a given position. Market gaps can occur when the underlying market is closed, potentially causing substantial price shifts that could be disadvantageous to you. You are liable for all losses associated with your positions up to the equity in your X10 smart contract.

Before deciding to trade on margin, carefully evaluate your investment goals, experience level, and risk appetite. Market liquidity of Perpetuals Contracts is not guaranteed, and it may be challenging to liquidate an existing position. The specifications of Perpetual Contracts may significantly differ from the actual underlying market or cryptocurrency.

Perpetual Contracts are complex instruments that carry a high risk of rapid monetary loss due to leverage. Make sure you fully understand how Perpetual Contracts work and carefully consider whether you can afford the significant risk of financial loss.

Perpetual Contracts generally do not suit long-term investment strategies. Holding a Perpetual Contract for an extended period can lead to increased costs due to funding payments and might not be as beneficial as owning the underlying asset directly.

Whenever you have open positions, it is crucial that your account equity satisfies our margin requirements, which are subject to change. If market prices turn unfavorable, or if margin requirements are adjusted, you might be required to promptly deposit additional funds to meet the new margin criteria and preserve your open positions. Failure to comply may result in the closure of one or more—or even all—of your positions by us, with you bearing sole responsibility for any resulting losses