xStocks Risk Disclosure
Investment in xStocks involves a high degree of risk and may result in the total loss of your invested capital. xStocks are a novel and highly speculative investment and are highly reliant on technology. xStocks are complex products which are difficult to understand and may not be suitable for all investors.
You are solely responsible for your investment in xStocks, and MEXC makes no representations, warranties, or guarantees that the xStocks in which you invest will perform in accordance with your expectations or the underlying stocks. You are solely responsible for, and you hereby acknowledge and agree that we disclaim and have no responsibility for, any loss, liability, or damage you may incur, directly or indirectly, as a result of your investment in xStocks.
BY INVESTING IN xSTOCKS, YOU CAN LOSE YOUR ENTIRE INVESTMENT. You should not invest money that you cannot afford to lose. You should seek advice from independent financial, legal, and tax advisors and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade.
By purchasing xStocks, you may be exposed to the performance of the underlying stock. Holders of xStocks have no voting rights, dividend or distribution entitlements, or legal claims to the underlying stocks or any residual assets in the event of the underlying company’s liquidation. An investment in the xStocks does not entitle holders to receive any information from the respective issuer or sponsor of the underlying stocks or shares.
By investing in xStocks, you acknowledge that you have understood the associated risks and that you accept, in addition to all of the risks outlined in the MEXC Risk Disclosure Statement, but also the following:
- Investing in xStocks exposes you to market risks associated with the underlying companies (i.e., the company whose shares your xStocks represent), such as market volatility, financial performance, corporate actions, regulatory developments, and economic conditions.
- Investing in xStocks exposes you to liquidity risk, which is the risk that you suffer a loss because you cannot liquidate your investment in an xStock at the moment you wish to because there is insufficient purchase demand.
- Investing in xStocks exposes you to platform parameters risk, which is the risk that you suffer a loss because MEXC had to change parameters on the platform which affects xStocks.
- Investing in xStocks exposes you to operational risk, which is the risk that you suffer a loss because of a malfunction of the platform, for example resulting from scheduled or unscheduled downtimes, matching system failure, database failure, cryptocurrency transfer or storage failure, failure or malfunction of the API, hacker attacks or other failure or malfunction.
- Investing in xStocks exposes you to regulatory risk, which is the risk that you suffer a loss because MEXC has to restrict or terminate elements of our service in response to regulatory change in which we deem, in our absolute discretion, to be in the best commercial interest of MEXC.
- Investing in xStocks also exposes you to the financial and operational risks of the issuer of xStocks, which include risks related to the creditworthiness, operational and technology related risks, and solvency of the issuer of xStocks, and which exist irrespective of the performance of the underlying companies.