Notes on bitFlyer FX and Risk
- Please read and thoroughly understand this document before trading with bitFlyer FX.
- With bitFlyer FX, you may experience losses due to fluctuations in price of this virtual currency etc which is an underlying asset of the transaction.
- Although it is possible to earn large profits through bitFlyer FX transactions, it is also possible to lose amounts in excess of your deposited margin. Please ensure that you have familiarized yourself with the mechanisms and risks of trading and only engage in trading at your own risk, upon determining that it is appropriate considering your own resources, trading experience, and trading goals.
Please refer to the Fees/Taxes page for more information on bitFlyer FX transaction fees.
In order to make trades on bitFlyer, you must deposit a margin as noted in the bitFlyer FX Trading Rules page. It should be noted that the value of trades may exceed the margin you deposited, so your losses may exceed your margin.
3. Risks of bitFlyer FX Trading
(1) Risk of Price Fluctuation
With bitFlyer FX, you may experience losses due to fluctuations in price of this virtual currency etc which is an underlying asset of the transaction. Furthermore, the value of trades may exceed the margin you deposited, so your losses may exceed your margin.
(2) Liquidity Risk
Since trading volume is low, it may be difficult for you to settle open positions you hold or to hold new positions.
(3) Risk of Sell Out
If we determine that your margin maintenance rate has dropped below the standard we set, we may cancel all outstanding open positions based upon our Margin Call Rules and Sell Out Rules, regardless of your intent.
Furthermore, if your margin maintenance rate drops below the standard we set,
all of the outstanding positions in your bitFlyer FX account will be automatically counter-traded and settled (Sell Out Order).
Even in the event of a loss cut, it is possible that the amount lost due to a dramatic and rapid change in the market will cause losses to exceed the margin deposit.
∗ Please see the bitFlyer FX Trading Rules page for more information on the Sell Out Rules.
(4) Credit Risk
If our company's operational or asset situation worsens, you may be subject to losses in your bitFlyer FX trades. We manage the margins received from customers separately from our own funds. However, in the event that our company goes bankrupt and client fund safety measures are enacted, the margin may become merged with general assets and not returned.
(5) Swap Point Risk
Regardless of fluctuations in the price of the virtual currency etc which is an underlying asset of the transaction, rolling over short positions or long positions of the product will result in payment of swap points.
BitFlyer determines the swap points daily based upon interest rates.
Depending upon changes in interest rates or changes in the price of the virtual currency etc which is an underlying asset of the transaction, swap points may change, and you may not be able to receive the swap points you hoped for.
∗ Please see the bitFlyer FX Trading Rules page for more information about swap points.
(6) Risk of Use of Electronic Trading Systems
- Your bitFlyer FX trades are made using an electronic trading system. If you input incorrect order information, you may fail to make the trade you intended to make, or you may make a trade that you did not intend to make.
- You may not be able to use the electronic trading system temporarily or for a period of time due to system or communications malfunctions or failures at our company or on your own equipment. This may further result in the invalidation of an order due to the order you place being delayed or not being received by our system. We may also suspend customer trading if there are malfunctions in the electronic trading system.
- When, for example, the market is fluctuating rapidly, there may be deviations between the market price and the price displayed on our electronic trading system due to information delays.
- If your account number, password, or other information used for electronic authentication on this electronic trading system is stolen, intercepted, or leaked, you may be subject to damages caused by a third party's use of that information.
- There is a risk that your trades will be damaged if there is a system failure due to the external environment. System failures refer to situations in which your order is delayed or invalidated because we determine that there was a clear malfunction in our system and we are unable to accept your order via the Internet.
 This does not include issues such as failures with Internet connections and malfunctions with your computer.
 Our web site, smart phone site, or application
Losses of opportunity due to sudden maintenance or due to system damages (for example, if you are unable to make a profit that you should have been able to make because your order cannot be received and you miss the opportunity to place that order) cannot be corrected because we cannot determine the content of the original order that you attempted to place. The buying or selling price of Bitcoin that our system calculates may be an abnormal value. If we determine that a trade was completed with an abnormal value, we reserve the right to cancel that transaction. In such situations, we cannot respond to requests for legal settlement or similar actions.
(7) Other Risk
- The spread between the buying price and selling price may widen due to sudden market fluctuations, and you may not be able to make the trade you intend.
- Trading may be limited due to unforeseeable reasons, such as natural disasters, political upheaval, labor disputes, sudden changes to the Bitcoin market, or closing of the Bitcoin market. This may cause you to incur unanticipated losses.
- If in the future the taxation and legal system surrounding bitFlyer FX trading changes, it may result in adverse trading conditions.
Management of assets received from customers
- The margin that we collect from you for bitFlyer FX transactions will be clearly marked as funds that were collected from you as a deposit and managed separately from our own funds. However, in the event that our company goes bankrupt and as this margin not be taken measures by a security trust, it may become merged with general assets and not returned.
4. Explanation of Important Matters
(1) It is possible to suffer significant losses through bitFlyer FX transactions due to fluctuations in the price of Bitcoin. It is also possible to suffer losses due to changes in our company's management or financial conditions or changes in external evaluation. Such damages may exceed the value of the margin.
(2) bitFlyer trading system
For more information on the bitFlyer trading methods, margins, etc., please carefully read the bitFlyer FX Trading Rules page.
(3) Outline of contracts related to bitFlyer trading
bitFlyer FX transactions at our company are subject to the following:
- In principle, we provide customers with a place to match orders. Except in unusual cases where our company is a party to the trade, we do not buy and sell.
- Management of the margin for bitFlyer FX trading
(4) Please refer to the Fees and Taxes page for an outline of taxation related to bitFlyer FX trading.
(5) Outline of business and methods our company engages in related to bitFlyer FX trading
bitFlyer FX trading is subject to the following:
- In order to trade on bitFlyer FX, you must read and consent to the "Notes on bitFlyer FX" (this document), create a bitFlyer account, and upgrade the account class to a class that can use bitFlyer FX. Funds and positions related to bitFlyer FX trades are all processed through the bitFlyer FX account.
- To trade on bitFlyer FX, you must first deposit the margin that we specify.
- Place bitFlyer FX orders within the order times we specify.
- In order to place an order, you must specify the necessary items, including "order type," "asset pair," "new or settlement," order quantity (units of asset)," "order price," etc. If you do not specify these items, you may not be able to place your order.
- We electronically provide you with a transaction report. Be sure to check the content of the transaction report and immediately contact our customer support directly in the unlikely event that it contains an error.
- bitFlyer FX trades are only accepted over the Internet. Even in the event of a system failure, in principle we do not accept telephone orders. There is a spread between the selling price and the buying price that customers ask. The spread changes with market conditions and is not constant.
- For transaction rules in addition to those above, please see the bitFlyer FX Trading Rules page.