Risk Statement

Before engaging in futures and options trading, we solemnly remind you that such investment activities involve high risks and may result in significant financial losses for you. Please carefully read the following risk warnings, fully understand and evaluate your own risk tolerance before making investment decisions.

1、 Market risk

The futures and options market is influenced by various factors such as global politics, economy, policies, and supply and demand relationships, resulting in severe and unpredictable price fluctuations. Changes in market prices may cause your investment to depreciate rapidly, and even face the risk of full loss.

2、 Leverage risk

Futures and options trading adopt a margin system, which has a leverage effect. This means that you only need to pay a certain percentage of margin to trade, thereby amplifying the magnitude of profits and losses. Once the market trend is contrary to your expectations, small price fluctuations may also lead to insufficient margin, resulting in being required to add margin or facing the risk of forced liquidation.

3、 Liquidity risk

Some futures and options contracts may have low trading volume and insufficient liquidity. This may make it difficult for you to find a counterparty when you need to close your position, resulting in an inability to exit the market in a timely manner or facing unfavorable price conditions.

4、 Delivery risk

For futures contracts with physical delivery, investors are responsible for the physical delivery. If the delivery obligation is not fulfilled on time, there may be risks such as breach of contract fines or legal proceedings. In addition, although some futures contracts are settled in cash, the settlement price may not match expectations on the settlement date due to market fluctuations.

5、 Operational risk

Investors may experience order execution errors or financial losses during the trading process due to operational errors, network failures, and other reasons. Therefore, it is recommended that investors familiarize themselves with the trading system, understand the trading rules, and properly keep important information such as trading passwords before trading.

6、 Policy risk

The adjustment of domestic and foreign laws, regulations, and policies may have a significant impact on the futures and options markets. Investors should closely monitor relevant policy developments and adjust their investment strategies in a timely manner to address potential risks.

7、 Psychological risk

Futures and options trading involves high risks and high returns, and investors may face significant psychological pressure during the trading process. Investors are advised to maintain a calm and rational mindset and avoid making irrational investment decisions due to emotional fluctuations.

8、 Special Reminder

This risk warning is only a general warning and cannot cover all possible risk factors. Investors should fully understand the market situation, assess their risk tolerance, and consider consulting professional investment advisors or financial institutions before engaging in futures and options trading.

As a provider of futures and options trading services, Langrun Financial Group will strictly comply with relevant laws, regulations, and regulatory requirements to provide investors with a fair, transparent, and secure trading environment. However, investors should be aware that any investment carries risks, and investment decisions should be made and borne by the investors themselves.