Last updated: December 5, 2025
This Risk Disclosure Statement (the "Statement") is intended to provide investors with major risk information relating to the use of the decentralized exchange protocol interface (DEX) and related services developed and operated by ALPHAX TECH PTY LTD ("AlphaX", "we", or "the Company").
Important Note: AlphaX is a non-custodial platform. We do not hold your assets and are not responsible for failures of blockchain networks themselves.
This Statement does not and cannot exhaustively disclose all risks associated with digital assets, derivatives trading, and decentralized finance (DeFi). Before deciding to use the Services, you should possess sufficient knowledge of blockchain technology and seek independent financial and legal advice.
1. Decentralization and Technical Risks
1.1 Account Security Risk: AlphaX does not provide custodial wallets. You connect to the platform via your email address.
- Risk: If you lose access to your email, or if your email is compromised due to hacking, phishing, or malicious authorization, you will permanently lose access to your assets. AlphaX cannot assist you in recovering your account or retrieving stolen assets.
1.2 Smart Contract Risk: The trading logic of the AlphaX platform operates on smart contracts deployed on public blockchains.
- Risk: Although we strive to ensure code security, smart contract technology may contain undiscovered bugs, logic errors, or security vulnerabilities. Hackers may exploit such vulnerabilities to attack the protocol, resulting in the loss or theft of funds locked in smart contracts. Such losses are generally irreversible and are not covered by deposit insurance.
1.3 Blockchain Network Risk
- Network Congestion and Gas Fees: Transaction execution depends on the status of the underlying blockchain network (Layer 1 or Layer 2). Network congestion may result in delayed confirmations, failed transactions, or significantly increased gas fees (network fees). Even if a transaction fails, gas fees charged by the blockchain network are generally non-refundable.
1.4 Irreversibility Risk: Blockchain transactions are irreversible once confirmed on-chain. If you send assets to an incorrect address (such as an unsupported network or an incorrect contract address), the assets cannot be recovered.
2. Financial and Trading Risks
2.1 Liquidity & Slippage Risk: Decentralized trading liquidity depends on Liquidity Pools or the depth of order books.
- Risk: During periods of high market volatility or insufficient liquidity in a trading pair, the actual fill price may differ significantly from the price displayed when you placed the order, resulting in slippage<0>. For large orders, slippage may substantially increase your actual execution cost.
2.2 Oracle Risk: The platform may rely on blockchain oracles to obtain market prices of assets.
- Risk: If the oracle system malfunctions, experiences delays, or is subject to malicious attacks (such as oracle price manipulation), it may cause deviations in the mark price on the platform, leading to incorrect liquidations or trades being executed at erroneous prices.
2.3 Stablecoin De-pegging Risk: Assets used on the platform may include "stablecoins" (such as USDT, USDC).
- Risk: Stablecoins are not absolutely stable. If the issuer encounters reserve issues, bank runs, or regulatory actions, the value of stablecoins may de-peg from fiat currencies (such as the US dollar), or even drop to zero. AlphaX assumes no responsibility for the value stability of any stablecoin.
2.4 High Leverage and Liquidation Risk in Derivatives: If you participate in perpetual futures or margin trading:
- Risk: Derivatives trading carries extremely high risk. Small price movements may be amplified due to leverage. If the market moves against your position, it may trigger liquidation.
- Automatic Execution: The liquidation process is automatically executed by smart contracts. Once triggered, your collateral will be automatically sold to repay the debt. This process cannot be manually intervened in or stopped, and you may lose all of your margin.
3. Regulatory and Restricted Region Risks
3.1 Uncertainty in the Regulatory Environment: The regulatory environment for virtual financial assets (VFAs) is continuously evolving. Regulatory actions may require the Company to restrict access to the frontend interface based on a user's citizenship, residency, or geographic location, or may result in certain assets (such as centralized stablecoins) being frozen.
3.2 Restricted Jurisdictions (Consistent with User Agreement): We expressly state that users from the following prohibited jurisdictions are not permitted to use the Services:
- Sanctioned and High-Risk Regions: The United States, Afghanistan, Cuba, North Korea, Iran, Syria, Canada, Singapore, Bangladesh, Myanmar, as well as individuals subject to sanctions lists issued by the UNSC, OFAC, FATF, or similar authorities.
- Specifically Restricted Regions: Mainland China (excluding Hong Kong, Macau, and Taiwan).
- Australia Compliance Notice: If you are a resident of Australia, you acknowledge that the services provided by ALPHAX TECH PTY LTD are subject to applicable Australian laws. You are strictly prohibited from using the derivatives trading features of the platform (such as perpetual contracts and leveraged trading). Australian users are permitted to use only spot trading services (where applicable). Any attempt to circumvent these restrictions constitutes a breach of this Agreement.
4. System and Access Risks
4.1 Frontend Interface Failure: The AlphaX website is a graphical interface used to interact with blockchain networks. The website may become inaccessible due to DDoS attacks, DNS hijacking, server failures, or maintenance.
- Risk: Even if the website is unavailable, smart contracts typically continue to operate on the blockchain. This means that during extreme market conditions, you may be unable to close positions in a timely manner through the website interface. Experienced users may manage positions by directly interacting with smart contracts via blockchain explorers, but this requires a high level of technical expertise. You are solely responsible for any risks arising from the inability to operate due to frontend failures.
4.2 Network and Device Risks: The trading platform relies on public communications networks to transmit messages. The Company assumes no responsibility for any losses arising from internet transmission issues, mobile signal strength, network latency, or ISP-related problems.
5. Supplementary Provisions
5.1 Language and Interpretation: This Risk Disclosure Statement may be published in different languages. In the event of any discrepancy or inconsistency, the English version shall prevail.
5.2 Relationship with the User Agreement: This Statement forms an integral part of the User Agreement. Any matters not covered herein, or provisions relating to dispute resolution (arbitration), shall be governed by the relevant provisions of the User Agreement (i.e., governed by the laws of Singapore and subject to arbitration by the Singapore International Arbitration Centre (SIAC)).
Investor Acknowledgement: By using or accessing the AlphaX Services, you acknowledge that you have read, understood, and accepted all contents of this Risk Disclosure Statement, and confirm that you are capable of bearing all losses that may arise from trading virtual financial assets.