Trading and Leverage Risk Disclosure

This disclosure applies to margin trading and derivatives described under Orbitra Prime, including perpetuals, dated futures, options, FX and commodities. Contract specifications, margin schedules and product rules for each instrument prevail over this general description.

Access to leveraged products, leverage limits and margin modes depends on your jurisdiction, eligibility and client category.

Margin is the collateral that supports a leveraged position. Initial margin is required to open a position; maintenance margin is the minimum needed to keep it open. Leverage is the ratio between the size of a position and the margin behind it.

Leverage magnifies losses as well as gains. The higher the leverage, the smaller the adverse price move needed to consume your margin, and you can lose all collateral allocated to a position — or, under cross or portfolio margin, collateral shared across several positions.

Margin requirements can change, including during volatile conditions, and may be higher for large or concentrated positions and less liquid instruments. Collateral is valued with haircuts that can also change, so a fall in collateral value reduces your available margin even when your positions have not moved. You may need to add collateral or reduce positions at short notice.

• Isolated margin limits the collateral at risk to the amount assigned to one position. Losses are contained, but liquidation can come sooner because other balances do not support the position.
• Cross margin shares eligible collateral across positions. A position may survive longer, but a loss in one position reduces the margin available to all and can trigger several liquidations together.
• Portfolio margin recognizes offsetting risk between positions and can require less margin than the sum of positions margined separately. When hedges stop offsetting or correlations shift, requirements can rise sharply and quickly.

Aegis monitors margin continuously, and the order ticket previews an estimated liquidation distance before you confirm. The estimate reflects current prices, positions and margin rules, and it changes as markets move.

If your margin falls below the maintenance requirement, positions may be liquidated without further notice. Liquidation is designed to be partial where possible, reducing exposure in steps until the requirement is restored. In fast markets, partial steps may not be enough and positions can be closed in full.

Liquidation orders execute at prevailing prices, which can be significantly worse than the price at which liquidation began, and they may incur fees. Stops, alerts and liquidation previews help you manage risk; they do not guarantee that a position closes at a particular price or before liquidation.

If a liquidated position cannot be closed at a price that covers its losses, the shortfall is absorbed through a rule-based insurance waterfall. The resources in the waterfall, their order and the conditions for each step are set out in the product rules.

If the waterfall is exhausted, auto-deleveraging (ADL) may reduce positions on the profitable side of the market according to published priority rules. ADL can close part or all of a profitable position at a price you did not choose and without prior notice. Your ADL priority and the conditions under which ADL applies are displayed in the product.

The insurance waterfall and ADL are designed to stop losses from spreading between participants. They do not protect you against losses on your own positions.

Perpetual contracts have no expiry. To keep their price close to the underlying index, holders of long and short positions exchange periodic funding payments based on the basis between the contract price and the index.

You may pay or receive funding depending on market conditions. Rates can change quickly and stay unfavorable for long periods, so holding costs can accumulate even when the price does not move against you. Funding is settled against your margin and can bring a position closer to liquidation.

Prices can move sharply and discontinuously, especially around economic releases, market openings and closures, holidays and events affecting a single asset. A price can gap through your stop or liquidation level, so that a position closes at a worse price.

Slippage is the difference between the expected price and the fill price. It grows when liquidity is thin, when an order is large relative to available depth or when prices move quickly.

In extreme conditions, a market may be paused by circuit breakers, price bands or oracle-confidence thresholds. While a market is paused, you may be unable to open, close or amend positions, and prices can move substantially before trading resumes.

Order types control how and when an order is submitted. None of them guarantees a fill or an execution price.

• Market orders fill against available liquidity and can execute well away from the last displayed price.
• A stop order becomes a market order once triggered and can fill at a worse price after a gap. A stop-limit order may not fill at all if the market moves through its limit.
• Limit, post-only and reduce-only orders may fill partially or not at all, and a post-only order is rejected rather than executed if it would take liquidity.
• Advanced and algorithmic orders — such as OCO, bracket, trailing, iceberg, TWAP and VWAP — depend on market data and on each component executing as intended.
• RFQ and block trades depend on counterparties quoting. Quotes can be withdrawn, and a block may execute at a negotiated price away from the order book.

If you buy an option, the most you can lose is the premium paid plus fees. Options lose value as expiry approaches and can expire worthless, even when your view of direction is right but the move comes too late or is too small.

If you sell an option, you receive a premium but take on an obligation. Losses can far exceed the premium and, for uncovered calls, are theoretically unlimited. Sold options require margin that can increase rapidly as the market moves against you.

At expiry, or earlier for contracts that allow early exercise, an in-the-money option may be exercised or settled automatically. For a seller this is an assignment-like outcome: you may have to deliver the underlying exposure or pay the settlement amount at an unfavorable moment. Whether settlement is in cash, physical or tokenized form depends on the contract specification.

Option values respond to the underlying price, volatility, time and interest rates — sensitivities known as the Greeks (delta, gamma, vega, theta and rho). They interact in ways that are hard to predict: a fall in implied volatility can reduce an option’s value even when the underlying moves in your favor. Multi-leg strategies may not execute every leg together or at the intended prices, and defined-risk structures cap losses only while all legs remain in place.

Dated futures expire on a fixed date. Open positions are then settled — in cash, physically or by tokenized delivery, as the contract specifies — at a final settlement price that can differ from the last traded price. Holding a physically settled contract into expiry can create delivery obligations.

Keeping exposure beyond expiry requires closing the expiring contract and opening a later one. Each roll has costs, including the basis between contracts, spreads and fees, and the basis can move against you. Calendar and inter-commodity spreads carry their own risk when the relationship between contracts changes, and liquidity in later expiries is often thinner than in the nearest contract.

FX prices respond to interest-rate decisions, economic data, political events and central-bank intervention, and can move sharply between trading sessions. Minors, NDF-style markets and synthetic crosses may have wider spreads and thinner liquidity than majors. A synthetic cross is derived from two or more reference rates, so an error or gap in any of them affects its price.

Commodity prices are affected by supply, weather, inventories, storage and transport, geopolitical events and seasonal patterns. Contango and backwardation change the cost of holding and rolling positions, and inventory-linked tokens also depend on the custodians, warehouses and issuers behind them. Session-aware controls can raise margin requirements around market closures and scheduled events.

Aegis estimates risk with models of price, volatility, liquidity, correlation and concentration. Models depend on assumptions and historical relationships that may not hold, particularly under stress, when correlations converge, hedges fail and liquidity withdraws at the same time.

Scenario and stress results describe possible outcomes under stated assumptions. They are not forecasts, and actual losses can exceed any modeled scenario.

• Understand the contract specification, margin mode and liquidation rules of each instrument you trade.
• Commit only capital you can afford to lose, and size positions for adverse moves, gaps and funding costs.
• Set stops, loss limits and automation permissions, and review them as conditions change.
• Monitor positions, margin and notifications, including under automation.
• Seek independent advice if you are unsure whether leveraged trading is appropriate for you.

If any part of this disclosure is unclear, contact hello@orbitraone.com before you trade.