bitmex·trading·guide
— Risk

Risk Disclosure.

Effective 22 May 2026 · Version 1.0

Trading crypto can result in the loss of all invested capital.

Cryptocurrency markets are volatile and largely unregulated. Past performance does not predict future results. Only trade with funds you can afford to lose in full. Nothing on this Site is financial advice — this page sets out, in plain language, the risks you should weigh before opening or funding a trading account.

This Risk Disclosure complements our Terms of Use and Privacy Policy. It summarises the material risks of cryptocurrency trading and the limits of what an exchange's custody arrangements can protect you against.

01 — Market risk

  • Cryptocurrency prices can move 20–30% in a single trading session and 50–70% over a market cycle.
  • Liquidity on smaller pairs can disappear quickly during fast moves; market orders can fill many percent away from the screen price unless a slippage cap is set.
  • Trading hours are continuous (24/7), so large gaps can occur outside the times you are paying attention.

02 — Counterparty & venue risk

  • An exchange holds custody of any funds you transfer to it. Even a well-run venue carries non-zero counterparty risk; a poorly-run venue is much worse.
  • Proof of Reserves reduces the gap between disclosed reserves and actual liabilities but does not eliminate it. Verify, do not assume.
  • Withdrawal rails may be paused, slowed, or restricted during periods of extreme volatility or regulatory action.

03 — Asset-level risk

  • Individual coins can lose value catastrophically due to protocol exploits, governance failures, depegging, or simple loss of demand.
  • Tokens can be delisted from venues, leaving holders with limited routes to exit.
  • Stablecoins are not immune — peg failures and redemption restrictions have occurred and can occur again.

04 — Operational risk

  • Technical failures (your device, internet connection, the venue's infrastructure) can prevent you from acting on a position when you intend to.
  • Account-level compromise (phishing, malware, SIM swap) is one of the most common ways retail traders lose funds. Use 2FA, withdrawal whitelists, and a separate hardware wallet for long-term holdings.

05 — Regulatory & jurisdictional risk

  • Rules differ by country and change over time. Products available today may become unavailable in your jurisdiction tomorrow.
  • Crypto and TradFi derivatives products on BitMEX are not available to UK retail consumers. Other jurisdictions may have their own restrictions.
  • Tax treatment is your responsibility and can be complex; consult a qualified adviser for your specific situation.

06 — Why "no leverage" is not the same as "safe"

Spot trading bounds your maximum loss to the amount you invested in a position. That is a real protection — but a 100% drawdown of a single coin remains possible, and is not unusual at the long tail of the asset class. Position sizing matters more on spot, not less.

07 — What we do not do

  • We do not offer trading advice, signals, account-management, or "guaranteed returns" products.
  • We do not solicit you to deposit funds anywhere.
  • We are not affiliated with HDR Global Trading Limited or the BitMEX exchange.

08 — Acknowledgement

By using the Site you acknowledge that you have read and understood this Risk Disclosure, and that any trading decision you make is your own. If any part of this is unclear or you are uncertain about whether crypto trading is suitable for your circumstances, seek independent professional advice before proceeding.