Strategy Trading Disclaimers
Spot Grid and Futures Grid Trading
Users can use the grid trading strategy when executing trades by filling in the trading parameters. These parameters set by the user dictate the operation of the grid trading. Any parameter selection and investment decision will, in all cases, be made solely by the user.
Binance and grid trading services do not determine the suitability of any grid trading parameter and make no representation or warranty that the grid trading strategy will guarantee profit. Any risk associated with the grid trading strategy resides with the user, not Binance.
It is worth noting that the past performance of the grid trading strategy is not indicative of future results. Users cannot assume that the future performance of any grid trading strategy will be profitable or equal to past performances.
Furthermore, Binance employs multiple risk mitigation strategies, including manual and automated circuit breakers, as well as kill-switch controls. These features can activate in the event of regulatory restriction, market disruption, and/or systems failure, canceling any grid trading strategy in place. Given the associated risks, users must conduct thorough due diligence to ensure that this feature is suitable for them.
Time-Weighted Average Price Algorithm (TWAP)
The risks associated with using the Time-Weighted Average Price Algorithm (TWAP) also reside with the user, not Binance.
If the market price moves considerably or liquidity is insufficient during the execution of an order, the algorithm may not achieve full completion. Thus, execution is and will always be liquidity-dependent with no guarantee for best price execution. For example, if the market becomes distressed, the algorithm may fail to complete the order before the specified end time.
Binance employs multiple risk mitigation strategies, including manual and automated circuit breakers, as well as kill-switch controls. These features can activate in the event of market disruption and/or systems failure, canceling any TWAP order early in a non-fully filled state.
No representation is being made nor implied that using the TWAP trade execution will generate income or guarantee a better execution price than a regular market order. Therefore, users must understand the risks associated with TWAP trade execution and conduct thorough due diligence to ensure that this feature is suitable for them.
Users can use the rebalancing bot strategy to execute trades by filling in the trading parameters, accepting or amending the preset category portfolios, and setting the rebalancing parameters. Any investment decision, portfolio selection, and parameter selection, in all cases, will be made solely by the user.
Binance and the rebalancing bot service do not determine the suitability of any portfolio or rebalancing bot parameter. Furthermore, Binance makes no representation or warranty that the rebalancing bot strategy will perform as expected or be profitable. Any risk associated with a rebalancing bot strategy resides with the user. Binance shall not be responsible for any losses incurred in connection with any rebalancing bot strategy.
Past performance of a rebalancing bot strategy is not indicative of future results. Users cannot assume that the future performance of any rebalancing bot strategy will be profitable or equal to past performance.
Transactions entered into via a rebalancing bot may incur trading fees. You should consider the impact of trading fees on the performance of the relevant portfolio before deciding to use the rebalancing bot and setting any relevant parameters.
Category portfolios are generated based on relevant coins’ categories and market caps. Binance assigns one or more categories to each coin based on the main characteristics of that particular coin and its associated project. For category portfolios, Binance compiles preset portfolios for certain coin categories, encompassing the coins that make up the top 30% of the relevant category’s total market cap. The number of coins in a category portfolio will be between 2 and 10. This number depends on the market dynamics within the relevant category.
Binance makes no representation about the accuracy of the allocation of categories to coins or the representativeness of any category portfolio of the associated sector.
Crypto Investment Risk
Crypto assets are volatile products with a high risk of losing money quickly. Prices can fluctuate significantly on any given day. Due to these price fluctuations, your holdings may significantly increase or decrease in value at any given moment, which can result in a loss of all the capital you have invested in a transaction.
Therefore, you should not trade or invest money you cannot afford to lose. It is crucial that you fully understand the risks involved before deciding to trade with us in light of your financial resources, level of experience, and risk appetite. If required, you should seek advice from an independent financial advisor. The actual returns and losses experienced by you will vary depending on many factors, including, but not limited to, market behavior, market movement, and your trade size. Past performance is not a guide to future performance. The value of your investments may go up or down.