Risk Disclosure Statement

Last updated: 2026-10-21 · Version 1.2

1. Leverage magnifies losses as much as gains

bayanX offers leverage up to the maximum shown for each market, currently up to 20×. At high leverage, a small adverse price move can wipe out 100% of your margin — for example, a 5% move against a 20× position. In volatile markets, such moves can happen in seconds. Your entire position can be liquidated before you have time to react or add margin.

2. You could lose MORE than you deposited

During extreme volatility (circuit-breaker events, oracle anomalies, flash crashes), liquidation may not execute at the liquidation price. Shortfall positions are absorbed by the Insurance Fund, but if the Insurance Fund is depleted, losses are socialized across profitable counterparties via Auto-Deleveraging (ADL). A position can also be force-closed at a price far worse than expected. See the dedicated ADL explainer for ranking rules and how ADL differs from liquidation.

3. Custody, smart-contract and blockchain risk

Deposited assets are held in bayanX-controlled smart contracts and wallets, including wallets operated with third-party infrastructure providers. Hacks, key compromise, contract defects, provider failures or operational errors could cause partial or total loss of your assets. Assets sent on an unsupported network may be unrecoverable.

4. Oracle and price-feed risk

Mark and index prices are aggregated from several external spot exchanges; some markets rely on fewer sources and carry higher price-feed risk. If a price feed is delayed or temporarily incorrect, positions may be liquidated based on faulty data. We run divergence monitoring, but cannot guarantee all price-feed issues are caught before a liquidation occurs.

5. Funding rate risk

Perpetual futures charge a funding rate every 8 hours, paid between long and short holders. Rates can be negative for either side and can compound quickly. Holding a leveraged position for a long time can incur funding costs that exceed your P&L. Funding rates are capped per bayanX's funding engine, but the cap does not eliminate cost.

6. Slippage and market impact

Market orders fill at the best available prices on the order book. Large orders or thin books can cause significant slippage. The order form uses a fixed 0.2% estimated average-price guard for a market order that opens or adds to a position. When the exchange's per-fill price protection is enabled, execution instead limits each fill to within 0.2% of the best opposite quote at matching time. Available quantity inside that limit may fill; any unfilled remainder is cancelled. The order form shows an estimate, which can change before execution. Orders that only reduce or close a position are not subject to this limit, so a close on a thin book can fill further from that price; such orders remain bounded by the exchange's price band around the mark price. Use a limit order to control your price exactly.

7. Illiquid or new markets

Newly-listed markets may have insufficient liquidity, leading to wider spreads, slippage, and larger maintenance margin. Do not put significant capital into markets with obvious thin order books.

8. Regulatory and geographic risk

Cryptocurrency and derivatives regulations evolve rapidly. Regulatory action in your jurisdiction — or globally — may force the Service to restrict features, freeze accounts, or suspend withdrawals with little notice. You are solely responsible for determining the legality of your use of the Service in your location.

9. Technical and operational risk

• Server outages may prevent you from closing a position or placing a trade.
• DDoS attacks, though we mitigate them, can cause temporary latency or unavailability.
• Wallet or network issues on your end (gas, RPC, ledger) may block actions.
• Scheduled maintenance is pre-announced via the Notice CMS; emergency maintenance may not be.

10. Counterparty and insolvency risk

Because bayanX holds deposited assets, you are exposed to bayanX's insolvency and operational risk. Your balance is a claim against bayanX and is not protected by any government deposit insurance scheme. The Insurance Fund is limited; withdrawals may be paused while losses are allocated.

11. Security risk on your side

• Private key theft: if your wallet is compromised, attackers can withdraw your funds up to the cool-down limit.
• Phishing: bayanX staff will NEVER ask you to paste code in DevTools or share your private key.
• Scam relays: always check you are on bayanx.net.

12. Taxes

You are responsible for reporting and paying any taxes on your trading activity. We provide annual CSV exports of realized PnL and fees, but these are not tax advice. Consult a qualified tax professional in your jurisdiction.

13. No investment advice

Nothing on the Service constitutes investment, legal, or financial advice. Backtests, leaderboards, and AI support responses are for informational purposes only. Past performance does not guarantee future results.

14. Automatic settlement risk

A position whose unrealized profit reaches 10 times its margin is closed automatically, even if you would prefer to keep it open; an account whose equity reaches 1.5 times its net deposits is settled automatically. Both actions execute at the prevailing market price, which may be less favorable than a price you would have chosen yourself. These thresholds are shown in the trading interface. bayanX or its affiliates may be the counterparty to your trades.

15. Acknowledgement

By trading on bayanX, you acknowledge that you have read this document, understand the risks, can absorb a total loss of your invested capital, and are trading with your own funds — not borrowed capital. You agree not to hold bayanX liable for losses arising from normal operation of the Service.