Please read and fully understand this Risk Disclosure before trading Pre-IPO perpetual futures. Pre-IPO perpetual futures are high-risk derivative products and may not be suitable for all users.
High Volatility Risk
The underlying companies of Pre-IPO perpetual futures have not yet been officially listed, and publicly available information may be limited. Futures prices may be subject to significant volatility driven by factors including market sentiment, funding developments, valuation shifts, regulatory changes, and IPO-related news flow.
Rebase Risk
Certain Pre-IPO perpetual futures may be subject to a Rebase (price adjustment) mechanism.
A Rebase may result in proportional adjustments to the following:
- Futures price
- Position size
- Average entry price
- Liquidation price
Post-Rebase:
- Take-profit and stop-loss orders may be cancelled;
- Pending orders may be cancelled;
- Users will be required to reconfigure affected orders.
Liquidity Risk
Compared to standard perpetual futures, Pre-IPO perpetual futures may exhibit:
- Lower liquidity;
- Wider bid-ask spreads;
- Higher slippage;
- Greater execution uncertainty.
Under extreme market conditions, users may be unable to execute trades at their intended prices.
Pricing Risk
Pre-IPO perpetual futures prices reflect market expectations regarding the underlying company and do not represent:
- The company's actual valuation;
- Its anticipated IPO offer price;
- Its post-listing market price.
Actual outcomes may differ materially from market expectations.
IPO Uncertainty Risk
Tapbit makes no representation that any underlying company will:
- Complete an IPO;
- Complete an IPO within any specific timeframe;
- Achieve any particular valuation level.
Underlying companies may delay, amend, or withdraw their listing plans, which could have a material impact on the price of related futures.
Funding Rate Risk
Funding rates on Pre-IPO perpetual futures may fluctuate significantly.
Changes in funding rates may increase the cost of holding positions and affect overall return performance.
Liquidation Risk
Pre-IPO perpetual futures are leveraged products.
If the market moves against a user's position, that position may be partially or fully liquidated, and the user may lose their entire margin.
Risk Control Measures
Where Tapbit deems it necessary, it reserves the right to implement risk control measures, including but not limited to:
- Adjusting maximum leverage;
- Modifying position limits;
- Enabling reduce-only mode;
- Suspending trading;
- Amending futures parameters;
- Delisting futures.
Such measures may affect users' ability to open, close, or manage positions.
Delisting and Settlement Risk
Tapbit reserves the right to delist, settle, or otherwise make necessary adjustments to Pre-IPO perpetual futures based on market conditions, developments relating to the underlying company, or risk management requirements.
Users should monitor platform announcements closely and manage their positions accordingly.
Disclaimer
Pre-IPO perpetual futures are high-risk derivative products and are not suitable for all users.
Tapbit makes no warranty or representation regarding the listing timeline, listing outcome, valuation, or post-listing market performance of any underlying company.
Unless expressly stated otherwise, Tapbit has no affiliation, sponsorship, endorsement, or partnership with any underlying company referenced in these futures.
Users are solely responsible for ensuring they fully understand the risks involved and shall bear all risks and losses arising from their trading activity.