How might Matrixport use my deposit?
Matrixport will use your deposits to engage in certain transactions with the intention to generate yield, which may include advancing collateralized loans, margin loans and other loans. In managing these yield generating activities, Matrixport will endeavor to protect your deposits with its comprehensive risk control system, including real-time pledge rate monitoring and an efficient liquidation process. However, you understand that such transactions are subject to risks including but not limited to counterparty risks and exchange risks (please refer to the Risk Disclosure for details). Due to the existence of such risks, Matrixport cannot commit that you will get back 100% of your deposits.
Is there any risk?
By depositing digital assets into the Fixed Income Product, you hereby confirm you have read, understood and accepted the following risks :
Not deposits or savings accounts. Matrixport will conduct a variety of lending activities (as disclosed on the app) to generate the yield rate displayed on the app.You understand that the Fixed Income Products are not deposits or savings accounts and your deposits are not eligible for any public or private deposit insurance protection.You could lose your deposits.
Counterparty risks. Matrixport will use your deposits to engage in certain transactions with the intention to generate yield, which may include advancing collateralized loans, margin loans and other loans. You understand that once your deposits are used to engage in the transactions, such transactions are subject to counterparty risks. If a counterparty defaults (e.g.the counterparty goes bankrupt and is unable to return the principal), Matrixport would be unable to recover your deposits. You understand that in the event of such counterparty risks, you may not receive the advertised rate of yield and you could lose some or all of your deposits. You understand that Matrixport shall not be held liable for such counterparty risks, nor should it be required to use its own funds to cover any loss of deposits resulting from such counterparty risks.
Exchange risks. Counterparty risks can also come from the exchanges. Many digital assets trading venues do not provide the public with information regarding their ownership structure, management teams, corporate governance or regulatory compliance. As a result, investors may be more exposed to the risk of theft, fraud and market manipulation than when investing in more traditional asset classes. Over the past several years, a number of digital asset trading venues have been closed due to fraud, failure or security breaches. You understand that some or all of your deposits will be used for loan transactions, and the loan will be used by the borrower to trade on certain digital assets exchanges including but not limited to Binance, OKX, Deribit, Bit.com, dydx and Kraken). In the event of extreme events such as exchange closures, Matrixport would be unable to recover your deposits. You understand in the event of such exchange risks, you may not receive the advertised rate of yield and you could lose some or all of your deposits. You understand that Matrixport shall not be held liable for such exchange risks, nor should it be required to use its own assets to cover any loss of deposits resulting from such exchange risks.
Market risks. Digital assets market has historically exhibited high volatility relative to the market of more traditional asset classes. If the market of digital assets experienced a sharp and steep decline in a short period of time due to some unexpected events, it would be difficult to liquidate the digital assets collateral pledged by counterparties at a favorable price and the deposits made by clients would not be recovered in full. You understand the extreme movements of the digital assets market may cause you to lose some or all of your deposits. You understand that Matrixport shall not be held liable for the market risks, nor should it be required to use its own assets to cover any loss of deposits resulting from such risks.
Digital assets transactions involve extremely high risks. Before making a deposit, you acknowledge and agree that you have sufficient digital assets knowledge, financial expertise, and experience and the capacity to take on the increased risks arising from digital assets transactions.
Depreciation of the underlying digital asset against the U.S. dollar could result in an overall loss to you on a U.s. dollar basis. Any yield or the return of your deposits will be payable in the underlying digital asset. The trading prices of many digital assets have experienced extreme volatility in recent periods and may continue to do so. As a result of these price fluctuations, you could lose a substantial portion or all of your deposits on a U.s. dollar basis.｜
Restrictions on withdrawal under extreme market conditions. Extreme market conditions such as volatile price movements may lead to an unpredicted large volume of withdrawal requests submitted to the Matrixport platform. This may affect the normal use of the Matrixport platform and Matrixport may restrict your ability to submit withdrawal requests.
Digital assets are subject to the risk of fraud, cyber-attack, theft, manipulation, or security failures. Transactions in digital assets may be irreversible, and, accordingly, losses due to fraud, theft or manipulation may not be recoverable. Investors in digital assets therefore have little or no recourse should such theft, fraud or manipulation occur and could suffer significant losses.
Any information provided by Matrixport regarding this product (including but not limited to the website, order system and product page) does not constitute an offer to sell, or a solicitation of an offer to buy, to residents of the United States, Hong Kong SAR, Singapore and other countries or regions where such offers or solicitations are prohibited by law.