Please read this risk disclosure statement carefully. CommEX describes the general and specific risks associated with Leveraged Tokens (“Leveraged Tokens”) as part of CommEX’s products and services you may enter into from time to time. This statement is not meant to be an exhaustive list. You must read this statement in accordance with CommEX Terms of Use found at https://www.commex.com/en/terms. CommEX offers Leveraged Tokens as products and services to you on the basis that you understand the risks involved.

You should always carefully consider whether CommEX Leveraged Tokens are consistent with your risk tolerance, investment objectives, investment experience or sophistication, financial condition, financial needs and personal circumstances and other considerations that may be relevant to you.

You should keep yourself informed and be aware of investment risks generally, and in particular, the following:

CommEX Leveraged Tokens are an investment with RISK
Investing/trading in Leveraged Tokens is a risky endeavour. Although CommEX Leveraged Tokens generally have lower risks and costs compared to derivatives and conventional leveraged tokens (managed by other than CommEX), they are not a risk-free investment. As a trader, you acknowledge and agree that you shall access and use CommEX Leveraged Tokens at your own risk. You should fully understand the risks associated with CommEX Leveraged Tokens and be solely responsible and liable for any and all trading and non-trading activity on your CommEX account. Do not enter into a transaction or invest using funds that are beyond your financial means.
CommEX Leveraged Tokens are not a long term investment
Investors or traders with longer-term investment horizons shall purchase and hold the CommEX Leveraged Tokens at their own risk. There is a possibility that the value of CommEX Leveraged Tokens can become zero (0) and cannot not be recovered due to inherent market risks, high fees, slippage, rebalance algorithm frontrunning and any other perceived unknown risks associated with CommEX Leveraged Tokens.
CommEX Leveraged Tokens rebalance on an as-needed basis only
CommEX Leveraged Tokens are designed to be unpredictable in rebalance to reduce the vulnerability of being attacked by algorithms on market. Unlike conventional leveraged tokens (not managed by CommEX), CommEX Leveraged Tokens do not maintain a constant leverage ratio. Hence, CommEX Leveraged Tokens only rebalance during extreme market movements. The rebalancing of positions of CommEX Leveraged Tokens is governed by CommEX’s proprietary algorithms with the aim to maximize correlation between CommEX Leveraged Tokens and the underlying margin-leverage position without a profit-guarantee.
Commissions, fees and charges associated with CommEX Leveraged Tokens
Before you invest or trade CommEX Leveraged Tokens, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These fees will affect your expected returns.

i. Trading fees:Trading fees are charged when buying or selling tokens in the spot market, and the fee schedule is identical to spot trading as further described in Section 7 (c) of CommEX Terms of Use;

ii. Redemption fees: Redemption fees are charged when users choose to redeem tokens, which is currently set at 0.1% per redemption;

iii. Management Fees:A daily management fee of 0.01% will be charged at 00:00 UTC and reflected directly in the net asset value of the Leveraged Tokens;

iv. Funding fees:Funding fees are paid (or paid to) the underlying fund based on the funding rate and reflected directly in the net asset value of the Leveraged Tokens. CommEX takes no fees for funding rate transfers; these are directly between traders.

CommEX reserves the right to modify or change the fees mentioned above at any time and at its sole discretion. Any such updated fees will apply prospectively to any trades or other transactions that take place following the effective date of such updated fees. You authorize CommEX to remove any amounts from your account for any applicable fees owed by you under these Terms.
Liquidity and pricing risks associated with CommEX Leveraged Tokens
Due to the nature of CommEX Leveraged Tokens’ centralized creation and market liquidity, CommEX strives to provide adequate market liquidity and to make CommEX Leveraged Tokens available at a fair price. CommEX shall take reasonable steps, including, but not limited to, capital injection, additional tokens creation and selling tokens in the secondary market, token split or reverse token split to minimize the risks mentioned above. Users may redeem leveraged tokens at any time except during rebalancing. However, this will generally be more expensive than selling them on the spot market and is not recommended during normal trading times. Please refer to CommEX Leveraged Tokens Trading Rules for the limit of subscription and redemption.