Virtual Asset Trading Risk Disclosure

1. About This Disclosure

1.1 This disclosure is provided by Xenobex, a company registered in [JURISDICTION] with its registered address at [REGISTERED ADDRESS] ("Xenobex", "we", "us"), and forms part of the Terms of Use. Words defined in the Terms of Use have the same meaning here.

1.2 It describes the main risks of using the virtual asset trading service operated by Xenobex (the "Service"), including spot trading, deposits, withdrawals and holding balances in your account. It cannot describe every risk, and new risks may arise as technology, markets and laws change.

1.3 You agree to this disclosure when you open an account. We may update it as described in the Terms of Use; the version that applies to you is shown with the consent items in the Service.

2. No Advice and Your Own Decisions

2.1 Xenobex provides an execution-only service. We do not give investment, financial, legal, tax or accounting advice, and nothing in the Service (including prices, charts, market data, announcements, educational material or messages from our staff) is a recommendation to buy, sell or hold any virtual asset.

2.2 You decide whether a transaction is appropriate for you in light of your experience, financial situation and objectives, and you bear the results of those decisions. Consider seeking independent professional advice before you trade.

2.3 Past performance, historical prices and statistics shown in the Service are not reliable indicators of future results.

3. Price Volatility and Loss of Capital

3.1 Virtual asset prices are extremely volatile. They can rise or fall sharply within minutes, including outside the hours in which you are able to watch the market, because virtual asset markets trade around the clock.

3.2 Prices may be driven by speculation, news, social media, changes in regulation, technical events, the actions of large holders or the failure of other market participants, and may not reflect any underlying value.

3.3 The value of a virtual asset can fall to zero. You may lose all of the assets you use to trade.

4. The Nature of Virtual Assets

4.1 Virtual assets are not legal tender, are not issued or guaranteed by any government or central bank, and are generally not backed by physical assets. Their value depends on continued market acceptance, which may be lost.

4.2 Stablecoins such as USDT, which the Service uses as a quote and settlement asset, aim to hold a stable value but may lose that value ("de-peg") because of the issuer's reserves, solvency, operations or regulatory action. A de-peg affects every balance, price and futures position denominated in that stablecoin.

4.3 Each virtual asset has its own risks, including defects in its software or smart contracts, the conduct or failure of the team or issuer behind it, changes to its rules made by its developers or validators, concentration of supply, and network attacks.

4.4 A blockchain may split into two or more chains (a "fork"), or a new token may be distributed to holders (an "airdrop"). Xenobex is not obliged to support any fork, airdrop or new token, and decides whether and how to do so at its discretion.

5. Liquidity and Order Execution

5.1 Some markets have few buyers and sellers. You may be unable to buy or sell at the price, in the size or at the time you want, and you may be unable to exit a position at all.

5.2 A market order is filled against the best available orders on the order book and may be filled at a price materially worse than the last traded price ("slippage"), or only partially.

5.3 To protect members from extreme prices, the Service applies price bands, minimum and maximum order sizes and limits on the number of open orders. An order outside these limits may be rejected, and the unfilled part of a market order that reaches the edge of the band may expire.

5.4 A stop-limit or other conditional order is only submitted when its trigger condition is met. It may be filled late, at a different price or not at all, for example when the price moves quickly past the trigger or the order book is thin.

5.5 Orders are matched in price and time priority by our matching engine. Orders, cancellations and messages can be delayed by network conditions, high load or maintenance, and an order may be filled before a cancellation reaches the engine.

6. Prices on the Service and Market Structure

6.1 Prices on the Service are formed by the orders of its own members on its own order books. They may differ, sometimes significantly, from prices of the same asset on other trading venues, and Xenobex does not guarantee that they track any other market.

6.2 Liquidity in some markets may be provided wholly or partly by market makers, which may include parties engaged by Xenobex [MARKET MAKING ARRANGEMENTS]. Market makers are not obliged to quote at all times, and liquidity can disappear during volatile periods.

6.3 Market data shown in the Service, such as charts, tickers and 24-hour statistics, is provided for information and may be delayed, incomplete or incorrect.

7. Listing, Trading Status and Delisting

7.1 Xenobex decides which virtual assets and markets it supports. Listing an asset is not an endorsement of the asset or of its issuer.

7.2 A market may be scheduled to open at a future time, halted so that only cancellations of open orders are possible, or delisted. Xenobex may change a market's status for reasons including security incidents, network problems, legal or regulatory requirements, unusual trading activity or the asset no longer meeting our standards.

7.3 When a market is to be delisted we normally announce the schedule in advance in the Service. From the announced time only cancelling orders may be possible, and at the delisting time all remaining open orders are cancelled. You can withdraw a delisted asset for [DELISTING WITHDRAWAL PERIOD] after the delisting, unless the law or the condition of the asset's network prevents it. In urgent cases (for example a security incident or a legal requirement) the notice may be shorter or there may be none.

7.4 Delisting, or the expectation of it, can cause a sharp fall in price and liquidity.

8. Deposits, Withdrawals and Network Risks

8.1 Blockchain transfers are generally irreversible. If you send assets to a wrong address, on a network the Service does not support for that asset, or without a required memo or tag, the assets may be lost permanently. Xenobex is not able to recover such transfers in most cases.

8.2 A deposit is credited only after the number of network confirmations shown in the Service, and a deposit may be held for review before it is credited. Network congestion, reorganisations of the chain or problems with a network can delay or prevent crediting.

8.3 Withdrawals are not instant. Every withdrawal is reviewed and approved by Xenobex before it is sent, which may take time, especially outside business hours [WITHDRAWAL PROCESSING HOURS]. Identity verification is required before you can withdraw, and a withdrawal may be delayed, limited or refused under the Terms of Use, for example for security reasons, after a change of your security settings, or when required by law.

8.4 Network fees can change quickly and are charged in the asset withdrawn. Xenobex may suspend deposits or withdrawals of an asset or a network at any time when it considers this necessary to protect members or the Service.

9. Custody and Counterparty Risk

9.1 While assets are in your account, Xenobex holds and controls them on your behalf, and you rely on Xenobex's systems, controls and solvency to get them back.

9.2 Xenobex is not a bank. Balances in your account are not bank deposits, do not earn interest, and are not protected by any government deposit insurance or investor compensation scheme [UNLESS REQUIRED BY THE LAW OF JURISDICTION].

9.3 Although we maintain security measures, assets held by any service provider can be lost through theft, hacking, fraud, operational error or insolvency, and the law of [JURISDICTION] may affect how assets are treated if Xenobex becomes insolvent.

10. Technology, Security and Service Interruptions

10.1 The Service depends on software, hardware, networks and third-party providers. Outages, delays, errors, maintenance and cyber attacks can prevent you from logging in, placing or cancelling orders, depositing or withdrawing, sometimes at the moments when it matters most.

10.2 To protect members and the integrity of the ledger, Xenobex may take emergency measures without prior notice, including limiting spot trading to order cancellations only, limiting futures trading to reduce-only orders, pausing withdrawals, holding deposits for manual review, and stopping new registrations. These measures may stay in place until we are satisfied that it is safe to lift them.

10.3 If a balance, order or trade is recorded in error (for example because of a system fault), Xenobex may correct it as described in the Terms of Use. Corrections are shown in your account history.

11. Your Account Security

11.1 Anyone who obtains your password, one-time codes, recovery codes, e-mail account or an unlocked device may be able to take your assets. Activity carried out with your credentials is treated as yours.

11.2 Use a unique password, turn on two-factor authentication, set an anti-phishing code so you can recognise genuine e-mails from us, keep your recovery codes offline, and review the login devices and notices in your account regularly. Xenobex will never ask you for your password, two-factor codes or recovery codes.

12. Fraud, Scams and Impersonation

12.1 Virtual assets are a frequent target of fraud. Be wary of anyone who promises guaranteed or unusually high returns, pressures you to act quickly, asks you to transfer assets to them or to install remote-access software, offers to recover lost assets for a fee, or contacts you through social media, messengers or dating services about investment opportunities.

12.2 Scammers may copy our name, website, e-mails or staff identities. Always check that you are on the official address of the Service and that our e-mails show your anti-phishing code. Xenobex staff will never ask you to send assets to an address, to share your codes or to trade on their instructions.

12.3 Transfers made to a fraudster usually cannot be reversed. If you suspect fraud or a compromised account, contact customer support immediately at [SUPPORT EMAIL] or through the support page, and report the matter to the police or other competent authority.

13. Legal and Regulatory Risk

13.1 The legal and regulatory treatment of virtual assets differs between countries and is changing. New laws, regulatory action, enforcement or court decisions may restrict or prohibit the Service, a particular asset or a particular product in your country, and may reduce the value or liquidity of virtual assets.

13.2 You are responsible for making sure that your use of the Service is lawful where you live. Xenobex does not offer the Service in the restricted jurisdictions described in the Terms of Use, and may restrict, suspend or close accounts, or change or withdraw products, to comply with the law.

13.3 Xenobex is subject to anti-money laundering, counter-terrorist financing and sanctions obligations. To meet them we may require identity verification, ask for further information, delay or refuse transactions, freeze assets or report information to authorities, and we may be prohibited by law from telling you why.

14. Taxes

14.1 Trading, holding, receiving rewards in or disposing of virtual assets may create tax obligations for you. You are solely responsible for determining, reporting and paying any taxes that apply, and for keeping your own records.

14.2 You can export your orders, trades, deposits, withdrawals, futures income and corrections from the Service as CSV files, with each time given in UTC and in the time zone you choose. Xenobex does not give tax advice and may be required by law to share information about your account with tax authorities.

15. Fees, Costs and Promotions

15.1 Trading fees, network fees for withdrawals and other charges reduce your returns, and frequent trading can make these costs significant. The current fees are published on the fee page of the Service and may change as described in the Terms of Use.

15.2 Referral rewards, promotions and similar programmes may change, end or be withheld under their rules. They should never be a reason to trade more often or with more money than you otherwise would.

16. Futures and Leveraged Trading

16.1 Futures trading with leverage carries additional and greater risks, including the rapid loss of your entire margin through liquidation and the payment of funding fees. Before you trade futures, you must read and accept the separate Futures Trading Risk Disclosure.

17. Your Acknowledgement

17.1 By accepting this disclosure you confirm that you have read and understood it, that you are using the Service at your own risk, that you can bear the loss of the assets you commit, and that Xenobex is not liable for losses arising from the risks described here except as set out in the Terms of Use or required by law.

18. Contact Us

Xenobex · Registered address: [REGISTERED ADDRESS] · Registration number: [REGISTRATION NUMBER]

Customer support: the support page in the Service, or [SUPPORT EMAIL].