Risk Disclosure

Leverage Amplifies Both Gains and Losses

Levret Exchange offers leverage up to 125x on perpetual futures contracts. Position sizes are determined by your available balance and contract specifications, not by fixed limits. While leverage can amplify potential profits, it equally amplifies potential losses. A small adverse price movement can result in substantial losses, potentially exceeding your initial margin deposit.

• With 125x leverage, a 1% adverse price movement can result in a 100% loss of your position
• You can lose more than your initial investment if the market moves against you
• Higher leverage increases the probability of liquidation
• Funding rates in perpetual contracts can erode your position value over time
• Maximum position size is based on your available balance and contract specifications
• No fixed concentration limits - you can allocate your entire balance to a single position if desired

Automatic Position Closure

When your position's margin falls below the maintenance margin requirement, your position will be automatically liquidated by our system to prevent further losses.

• Liquidation occurs automatically when maintenance margin is breached
• You may lose your entire position and margin in a liquidation
• In extreme market conditions, liquidation may occur at prices worse than the liquidation price
• Liquidation fees apply and will be deducted from your remaining margin
• Gaps and slippage in volatile markets can result in losses beyond your margin

Cryptocurrency Market Characteristics

Cryptocurrency markets are known for extreme volatility and can experience rapid price movements in either direction.

• Prices can move 10% or more within minutes during volatile periods
• 24/7 markets mean price gaps can occur at any time
• Low liquidity can exacerbate price movements
• Market manipulation and whale activity can cause sudden price swings
• News and regulatory announcements can trigger extreme volatility

Perpetual Contract Funding Payments

Perpetual futures contracts use a funding rate mechanism to keep contract prices aligned with spot prices.

• Funding rates are exchanged between long and short positions every 8 hours
• Positive funding rates mean longs pay shorts
• Negative funding rates mean shorts pay longs
• High funding rates can significantly erode your position value over time
• You must maintain sufficient margin to cover funding payments

Platform and Technology Risks

• System Failures: Technical issues may prevent you from accessing your account or executing trades
• Network Congestion: Blockchain congestion may delay deposits, withdrawals, or order execution
• Smart Contract Risks: Bugs or vulnerabilities in smart contracts could result in loss of funds
• Wallet Security: Loss of private keys means permanent loss of access to funds
• Hacking: Despite security measures, no system is 100% immune to attacks
• Oracle Failures: Price feed failures could result in incorrect liquidations

Evolving Regulatory Landscape

• Cryptocurrency regulations vary by jurisdiction and are constantly evolving
• Future regulations may restrict or prohibit cryptocurrency trading in your jurisdiction
• Regulatory actions may affect platform operations or asset values
• Tax implications of trading vary by jurisdiction - consult a tax professional
• Cross-border trading may have additional legal considerations

Insurance Fund Coverage

While Levret maintains an insurance fund to cover losses from liquidations, the fund has limitations:

• The insurance fund may be depleted during extreme market conditions
• Auto-deleveraging (ADL) may occur if the insurance fund is insufficient
• ADL may close profitable positions without your consent during emergencies
• Insurance fund protection is not a guarantee against all losses