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This Risk Warning is the Risk Warning referred to in the User Agreement and forms an integral part of the User Agreement.
Last updated: 30 September 2026
1.1 Trading Virtual Assets involves a high level of risk. You may lose some or all of the funds you invest; with products such as Crypto Loans, your losses may exceed the funds you have invested. Using leverage will magnify your losses. Virtual Assets are not bank deposits and, in most jurisdictions, are not protected by any government deposit insurance or investor compensation scheme. Please trade only with funds that you can afford to lose.
1.2 This Risk Warning sets out the principal risks of using the Hotcoin Services, but it cannot cover every risk. Before using any product or service, please read this Risk Warning, the User Agreement, the Product Terms and the relevant product rules carefully, and make a prudent decision based on your own circumstances.
1.3 You must be at least 18 years of age and have full legal capacity to use the Hotcoin Services.
2.1 In this Risk Warning, “Hotcoin” and “we” have the meanings given to them in the User Agreement; “you” means a user of the Hotcoin Services.
2.2 This Risk Warning applies to all products and services that you use through the Hotcoin website, apps and other channels. Some products and services may not be available to you depending on your location.
2.3 This Risk Warning is provided for risk disclosure purposes only and does not constitute any offer, solicitation, recommendation or investment advice.
2.4 Regulatory status. Any registration or filing made, or licence obtained, by a Hotcoin entity in certain jurisdictions applies only to that entity and the business it is permitted to conduct. The investor protection, compensation or complaints mechanisms available to you, if any, depend on the Hotcoin entity providing services to you and the Applicable Law of the jurisdiction in which you are located.
3.1 Price volatility risk. The prices of Virtual Assets are highly volatile, and their fluctuations are generally greater than those in traditional financial markets. Virtual Assets you hold may lose significant value within a short period and may even become worthless.
3.2 Risk relating to the basis of value. Virtual Assets are not legal tender and are not backed by any government or central bank; their value depends on market participants’ continued willingness to trade them.
3.3 Past performance is not indicative of future performance. Historical prices, rates of return and backtesting results are not indicative of future performance.
3.4 Liquidity risk. When market liquidity is insufficient, the market is extremely volatile or a technical failure occurs, you may be unable to buy or sell at your expected price, or your order may not be executed at all.
3.5 Order execution risk. When prices gap, the market is extremely volatile or liquidity is insufficient, conditional orders such as stop-loss orders, take-profit orders and trigger orders may be executed at prices significantly worse than the prices you set, or may not be executed at all.
3.6 Market manipulation risk. Virtual Asset markets may be affected by price manipulation, fake trading volume, insider trading and other such conduct, which may cause prices to deviate significantly from reasonable levels within a short period.
3.7 Stablecoin risk. Stablecoins are not legal tender. Insufficient issuer reserves, restrictions on redemption, regulatory measures or market panic may each cause the price of a stablecoin to deviate from its pegged value. A stablecoin issuer may also freeze stablecoins held at specific addresses in accordance with its rules or law enforcement requirements. Products that are denominated in, margined in or settled in stablecoins may be affected as a result.
3.8 System and cybersecurity risk. No system can be guaranteed to be completely secure. Cyberattacks, technical failures, or system maintenance or upgrades may result in service interruptions, trading delays or loss of assets.
3.9 Data risk. Data displayed on the Platform, such as index prices and mark prices, may be sourced in part from, or calculated on the basis of, third-party data. Such data may be subject to delays, interruptions or errors, and may affect order placement, liquidation or settlement outcomes.
3.10 Suspension and delisting risk. Deposits, withdrawals or trading of a Virtual Asset may be suspended, or the Virtual Asset may be delisted, on the basis of project risk, liquidity, security incidents, compliance requirements or other reasons. The treatment of the relevant assets after delisting is subject to the User Agreement and the relevant announcements.
3.11 Erroneous trade risk. Trades executed at a manifestly erroneous price, or as a result of a system failure or other abnormal circumstances, may be corrected, voided or reversed in accordance with the User Agreement.
3.12 Asset custody risk. Virtual Assets that you hold on the Platform are held in custody by the Platform. If a security incident, regulatory measures or another major event occurs, the timing and amount of your asset withdrawals may be affected.
3.13 Force majeure risk. Force majeure events such as natural disasters, war, pandemics, government actions, and power or communications failures may result in service interruptions or loss of assets.
3.14 Irreversibility of transactions. On-chain transfers cannot be reversed once confirmed. If you enter an incorrect address, amount, network or Memo/Tag, the relevant assets may be permanently lost.
3.15 Blockchain network risk. Network congestion, rising transaction fees, block reorganisations, consensus attacks or smart contract vulnerabilities may cause delays to deposits or withdrawals, or result in loss of assets. For security reasons, the number of confirmations required for a network may be increased, and deposits and withdrawals on that network may also be suspended.
3.16 Fork and airdrop risk. Blockchain forks, token migrations, protocol upgrades and airdrops are determined by project teams or communities. While such an event is taking place, related deposits, withdrawals and trading may be suspended. Whether we support any Virtual Asset resulting from a fork or any airdrop, and any related arrangements, will be subject to our announcements.
3.17 Account security risk. Please keep your account password, two-factor authentication (2FA) credentials, linked email address, mobile phone number and API keys secure, and never disclose them to anyone. Hotcoin will not ask you for your password or 2FA codes. Please be alert to scams such as impersonation of customer support, phishing websites, fake airdrops and invitations to “high-yield” investments. Leakage of your account information or compromise of your device may result in loss of your assets.
3.18 Dormant account risk. An account that has not been used for an extended period may be designated as a dormant account and dealt with as provided in the User Agreement.
3.19 Fee risk. Trading fees, funding fees, loan interest, spreads, network fees and other charges will affect your actual returns or losses. Fees may be adjusted, and the rates published on the Platform shall prevail.
3.20 Technological development risk. Developments in cryptographic technology (such as quantum computing) may pose challenges to the security of existing cryptographic algorithms and blockchain networks.
3.21 Regulatory change risk. The regulation of Virtual Assets varies significantly between jurisdictions and may change at any time. Changes in law or regulation may result in certain products being delisted, trading being restricted, accounts being restricted, or assets being required to be disposed of in accordance with the law.
3.22 Compliance review risk. To comply with anti-money laundering, counter-terrorist financing and sanctions laws and regulations, we may require you to complete identity verification or provide additional information; while a review is in progress, your trading or withdrawals may be restricted. If an account or funds are suspected of involvement in unlawful activity, restrictive measures may be taken in accordance with the User Agreement and Applicable Law.
3.23 Tax risk. The tax treatment of Virtual Assets varies by jurisdiction and may change. Please determine and fulfil your own tax obligations.
3.24 No investment advice. Hotcoin does not provide legal, tax or investment advice. Market information, research articles, market analysis, Copy Trading data and AI-generated content on the Platform are for reference only and do not constitute investment advice. Please make your own independent decisions based on your financial circumstances and investment objectives, and continuously monitor your positions and your account. Hotcoin does not owe you a fiduciary duty in respect of your trading decisions.
3.25 Conflicts of interest. The trading activities or economic interests of Hotcoin or its affiliates may not be aligned with your interests.
3.26 Campaign and reward risk. Campaigns, rewards, trial funds and airdrop events run on the Platform are subject to their respective campaign rules, and such campaigns may be adjusted or terminated in accordance with those rules.
3.27 Account restriction and closure. While your account is restricted or closed, you may be unable to trade or withdraw assets; the relevant assets will be dealt with as provided in the User Agreement.
4.1 We do not provide services to persons located in any country or region included in the List of Prohibited Countries, to persons included on any applicable sanctions list, or to persons who are prohibited from using the Hotcoin Services by the laws of the place where they are located. That list may be updated, and the latest version published on the Platform shall prevail.
4.2 Do not use a VPN or proxy server, or provide false information, to circumvent regional restrictions. If you are located in a restricted region, or are a resident or national of a restricted region, your account may be restricted, suspended or closed.
4.3 Even if you are not located in a restricted region, certain products may not be available to you due to local laws and regulations. Please confirm for yourself whether your use of the relevant products is lawful where you are located.
5.1 Newly listed and small-cap Virtual Assets carry particularly high risk, and may experience extreme price volatility or extremely low liquidity, or be affected by failed project development, cessation of operations, large-scale selling by the project team, concentrated token unlocks or similar events.
5.2 Information disclosed by project teams may be limited or inaccurate. The listing of a Virtual Asset on the Platform does not mean that we endorse or recommend that asset. Listing decisions may be based on factors such as liquidity, compliance and technical assessment, and do not constitute a judgement on the value or prospects of the asset. The asset may also be delisted after it has been listed.
5.3 Market orders may be executed at prices significantly worse than expected, and limit orders may be only partially filled or not filled at all. Convert transactions are executed at the price quoted when you place your order, and the quote may differ from the market price.
5.4 Tokens traded in Pre-Market Trading have not yet been officially issued or listed. The project may be postponed or cancelled, or its tokenomics may be changed; delivery may not be completed on schedule, in which case the relevant trades will be dealt with in accordance with the product rules. The price of a token after its official listing may differ materially from its pre-market price.
5.5 Alpha enables you to buy and sell on-chain tokens within the Platform. Most of these tokens relate to early-stage projects with limited public information and extreme price volatility. A token’s smart contract may contain vulnerabilities or restrictive features (such as prohibitions on selling, high transaction taxes or blacklist functions), and liquidity may also be withdrawn, leaving you unable to sell or causing your assets to become worthless. On-chain transactions may incur additional losses due to slippage, network fees or failed transactions. The display of a token on the Platform does not mean that we endorse or recommend it.
5.6 Leverage risk. Futures are leveraged products, and leverage magnifies both gains and losses. If the market moves against you, you may lose all of your margin within a very short time. For example, at 100x leverage, an adverse price movement of approximately 1% may cause you to lose all of your position margin (the specific liquidation price is subject to the futures rules). In extreme market conditions, you may be unable to close your positions in time or at your desired price.
5.7 Liquidation risk. If your margin is insufficient to maintain a position, the position may be forcibly closed (“liquidation”); you may lose all of your position margin and may incur a liquidation fee. The price at which liquidation is triggered and the actual execution price may differ from your estimates.
5.8 Margin mode risk. If you use cross margin mode, all margin in your account allocated to cross margin may be used to maintain your positions, and you may lose all of the relevant assets; if you use isolated margin mode, you may lose all of the margin for that position. Coin-margined futures use the relevant Virtual Asset as the margin and settlement unit; price movements in the margin asset itself will affect both the value of your position and your liquidation price.
5.9 Insurance fund and auto-deleveraging risk. Where the applicable futures rules provide for an insurance fund, the insurance fund is limited in size. Where the applicable futures rules provide for an auto-deleveraging (ADL) mechanism, your profitable positions may be partially or fully closed even if you have not given an instruction to close them.
5.10 Funding fee risk. Perpetual futures require the periodic payment and receipt of funding fees. Funding rates change with market conditions and may rise significantly in extreme market conditions; the longer you hold a position, the greater the impact of funding fees on your returns.
5.11 Limitations of the Risk-Based Position Sizing tool. “Risk-Based Position Sizing” is an auxiliary position calculation tool that estimates position size solely on the basis of the parameters you enter. Due to factors such as slippage, price gaps, stop-loss orders not being executed, funding fees and trading fees, your actual loss may exceed the maximum loss amount you set.
5.12 Rule change risk. To manage risk, maximum leverage, risk limits, margin ratios and other trading parameters may be adjusted, and futures contracts may also be suspended or delisted; such adjustments may affect your existing positions.
5.13 The specific rules governing futures trading are as set out on the futures product pages and in the relevant rules.
5.14 Crypto Loans require you to provide Virtual Assets as collateral. If the price of the collateral falls, your loan may be liquidated. On liquidation, the collateral will be disposed of at the then-prevailing market price, which may result in slippage and related fees; if the proceeds of disposal are insufficient to repay the loan, you may remain liable for the outstanding debt.
5.15 Loans accrue interest, and interest rates may be adjusted. The Virtual Assets available for borrowing, loan-to-value ratios, liquidation thresholds and loan periods may be adjusted. During the loan period, the collateral may not be freely withdrawable; in periods of extreme volatility, you may not have time to add collateral.
5.16 The specific rules governing Crypto Loans are as set out in the relevant lending service agreement and on the product pages.
5.17 Nature of the products. TradFi products (including TradFi Spot and TradFi Futures) are products linked to the prices of traditional financial assets (such as US, Hong Kong, Japanese and Korean equities, ETFs, indices, precious metals, commodities and foreign exchange). You do not directly purchase or hold the corresponding shares or physical assets, and you are not entitled to shareholder rights (such as voting rights, dividend rights or rights issue entitlements).
5.18 Settlement currency risk. TradFi products are denominated and settled in USDT. In addition to the price risk of the underlying asset, the value of your assets will also be affected by the risks of USDT itself.
5.19 Price deviation risk. The prices of TradFi products reference traditional markets and third-party data sources, may be subject to delays, premiums or discounts, and may differ from the quotes on other platforms or in traditional markets.
5.20 Trading hours risk. TradFi Spot is open during the trading hours of the relevant traditional market, as adjusted for holidays. TradFi Futures enter reduce-only mode while the relevant traditional market is closed, during which time you cannot open positions and may only reduce or close positions. When the traditional market reopens, prices may gap significantly, which may result in your positions being liquidated.
5.21 Corporate action and market event risk. If events such as a stock split, dividend, merger or acquisition, trading halt, delisting or circuit breaker occur in respect of the underlying asset, the relevant product may be subject to price or position adjustments, trading suspension, order cancellation or delisting, which will be handled in accordance with the product rules.
5.22 TradFi Futures are also leveraged products and are subject to the risks described in the “Futures Trading” section of this Risk Warning.
5.23 Products linked to traditional financial assets are subject to securities or derivatives regulation in many jurisdictions. Changes in local regulations may result in the relevant products becoming unavailable to you or being delisted.
5.24 A lead trader’s past performance is not indicative of future performance. Lead traders may change their strategies, use high leverage or stop leading trades. Due to factors such as slippage, latency, minimum order sizes and insufficient balance, the execution price, timing and quantity of your copy trades may differ from those of the lead trader, and your results may also differ.
5.25 Data displayed on the Platform, such as lead traders’ rates of return, win rates and rankings, reflects historical performance only and does not constitute investment advice. A lead trader’s interests may not be aligned with those of copy traders. Where copy trading generates a profit, you may be required to pay a profit share to the lead trader in accordance with the rules.
5.26 Futures Grid and other trading bots operate according to the parameters you set. In a one-directional market, a strategy may incur continuous losses; if the price moves outside the grid range, the bot may stop running or continue to incur losses. Futures Grid involves leverage and is likewise subject to the risks described in the “Futures Trading” section. Parameters recommended by the Platform or generated by AI are based on historical data and are not indicative of future performance.
5.27 System failures, network latency or abnormal market conditions may cause a bot not to perform as expected. If you use third-party tools via API, please keep your API keys secure and never enable withdrawal permissions for third-party tools.
5.28 Prediction Markets are generally settled on a “Yes/No” basis or across multiple options. If your prediction is wrong, you may lose the entire amount you committed.
5.29 Event outcomes are determined on the basis of the data sources or determination methods specified in the product rules. If an event is postponed or cancelled, or its outcome is disputed, the matter will be handled in accordance with the product rules, and the relevant orders may be voided, refunded or subject to delayed settlement.
5.30 Some jurisdictions may restrict or prohibit participation in prediction market products. Please confirm for yourself whether participating in Prediction Markets is lawful where you are located.
5.31 In P2P trading, your counterparty is another user, and fiat currency payments are made directly between the parties to the trade. Counterparties may commit fraud, for example by providing fake proof of payment, paying from a third-party account or requesting the reversal of a payment after it has been made.
5.32 Fiat currency you receive may originate from fraud or other unlawful activities, which may result in your bank account or payment account being frozen. Please trade only with accounts whose name matches the counterparty’s verified real name, never release Virtual Assets until you have confirmed that the payment has actually been received, and never trade privately outside the Platform.
5.33 Some regions restrict or prohibit the exchange of fiat currency for Virtual Assets, or restrict certain payment methods; please confirm the local laws and regulations for yourself. If a dispute arises, it may take some time to resolve.
5.34 Where you buy Virtual Assets through third-party channels such as bank cards, the service is provided by a third-party payment service provider and is subject to its terms. The transaction price may include spreads and fees; your card-issuing bank may decline the transaction or charge additional fees; and refunds and disputes will be handled in accordance with the rules of the third-party service provider.
5.35 Earn products are not principal-protected. Returns may be lower than expected, and you may even lose your principal. Earn products are not bank deposits.
5.36 Some products cannot be redeemed early, or are subject to additional fees for early redemption; during any lock-up period, you may be unable to redeem or transfer out your assets.
5.37 The annualised yield displayed on the product page is for reference only and is not a promise; past returns are not indicative of future performance. Earn returns may be derived from lending, on-chain staking and other activities, and are exposed to risks such as slashing, validator node failures and unstaking waiting periods.
5.38 Credit risk. Assets you have subscribed to may be used for lending, on-chain staking or other purposes. If the relevant borrower or any other counterparty defaults, your principal and returns may be affected.
5.39 At maturity, a Dual Investment may be converted into another Virtual Asset at the agreed price, and the value of the assets after conversion may be lower than that of the assets you originally held. If the price rises sharply, you may miss out on gains above the agreed price; if the price falls sharply, you may receive Virtual Assets that have lost significant value. Once subscribed, a Dual Investment generally cannot be cancelled.
5.40 The specific rules, durations and return structures of each product are as set out in the relevant product description.
5.41 Assets in your Web3 Wallet are held at blockchain addresses and are distinct from the assets in your Hotcoin trading account. If you lose or disclose your private keys, seed phrase or other recovery credentials, the relevant assets may be permanently lost.
5.42 Token swaps, DApp interactions and NFT transactions carried out through Web3 Wallet are all executed on-chain and may be exposed to risks such as smart contract vulnerabilities, malicious approvals, phishing DApps and risks associated with cross-chain bridges. Third-party DApps and protocols are operated by third parties, and their security and availability may be subject to risks.
5.43 Hotcoin Card and Hotcoin Pay may involve third-party card issuers, card networks or payment service providers and be subject to their terms. When you use them, your Virtual Assets may be converted into fiat currency at the then-prevailing price, and the exchange rates and fees will be as determined at actual settlement.
5.44 Card issuers, card networks or payment service providers may, on the basis of their rules or regulatory requirements, decline transactions, freeze cards or terminate services.
6.1 This Risk Warning may be updated in line with legal, regulatory and product changes, and the latest version published on the Platform shall prevail. Updates will be made in the manner set out in the User Agreement.
6.2 Matters not addressed in this Risk Warning are governed by the User Agreement, the Product Terms and the relevant product rules.
6.3 Any dispute relating to this Risk Warning shall be resolved in the manner set out in the User Agreement.
6.4 This Risk Warning is published in multiple languages. In the event of any inconsistency between different language versions, the English version shall prevail.
6.5 If you have any questions about this Risk Warning, please contact Hotcoin Customer Support at service@hotcoin.com.