Risk Reminder

Dear Investors:

The derivatives transaction services provided by the Webpage for the Transaction Platform of Huobi Futures Contract are highly leveraged and risky, so the users need to agree to this Agreement when opening the highly leveraged derivatives transaction. This behavior also represents the users' full knowledge and understanding of the risks of digital asset derivatives transaction of Huobi Futures Trading Platform.

Foreword

This Risk Reminder aims to reveal the investors about the highly leveraged investment risks of digital asset derivatives transaction and to help investors assess and determine their own capabilities. In view of the existence of investment risks, investors shall carefully read this Risk Reminder before confirming this Agreement and conducting the Contract Transactions, make sure to understand the nature and rules of the Contract Transactions, and decide whether to participate in the Contract Transactions on their own according to their own investment experience, objectives, financial status and risk-taking ability.

Investors shall consult the law and other independent professional advice before applying for highly leveraged contract transactions.

Competent Investors

The derivatives transaction of digital asset is highly leveraged and risky, only suitable for professional investment institutions or experienced investors, or those who can fully understand all risks related to the derivatives transaction of digital asset and can assume some or all losses of account funds due to investment mistakes.

Existing Risks

1. Risk of Price Fluctuation

As a special product with investment value, due to affected by many factors,the price of digital currency’s fluctuates greatly making it difficult for investors to comprehensively grasp in actual operation. Therefore, there is the possibility of investment mistakes. If the risk cannot be effectively controlled, the investors may suffer great losses, and shall assume all the losses caused by this on their own.

2. Transaction Risk

(1) Investors need to understand that derivatives transaction has the characteristics of high leverage, which may lead to rapid profits or losses. If the direction of the transaction is opposite to the fluctuation of the market, it may cause a large loss. According to the amount of the loss, investors need to add digital currency margin or reduce positions, otherwise the positions taken by them may be forced to liquidate, and investors shall assume all the losses caused by this.

(2) In the exchange transaction system, once it clinch a deal of the limit order submitted, that is irrevocable, and the investor shall accept the risks that may caused by this way.

(3) The Exchange shall not guarantee investors' profits and shall not share profits or risks with investors.

3. Risks of Policy Supervision

The derivatives transaction of digital asset may face policy regulatory risks in certain jurisdictions. Investors need to make a careful judgment on the premise of understanding the policy regulatory background of the transaction region in advance.

4. Other Possible Risks

(1) When the users use high leverage, it may bring greater risks to the users to maintain the market stability, the Webpage may monitor the positions of the users with high leverage. When the Webpage judges that the positions of users may have a great impact on the market stability, it will take corresponding measures, including but not limited to communication, revealing risks, forced underweight, forced liquidation and so on, and it will give the users written explanations.

(2) The derivatives transaction rules of the digital asset derivatives market, including but not limited to the adjustment coefficient, due date, product rules and others, can be modified according to the actual operation of the Webpage. If the Webpage needs to deliver products ahead of schedule or later due to special circumstances, the user shall handle the position in time after the official website performs the notification obligation through official website announcement or SMS notification, the users shall assume all possible losses or profits arising therefrom on their own.

Attention:

1. Investors shall fully understand the basic knowledge and related risks of digital currency contract transaction and business rules related to participating in derivatives transaction in advance.
2. The above-mentioned risk items in this Risk Reminder are only listed in nature, and all risk factors related to digital asset derivatives transaction are not listed in details. Investors shall also carefully understand and master other possible risk factors before participating in digital asset derivatives transaction.
3. We sincerely hope and advise investors to prudently decide whether to participate in this contract transaction and rationally allocate your digital assets based on your own actual situation such as risk tolerance.