Please read this risk disclosure statement carefully. Bybit will describe both the relevant and specific risks of Leveraged Tokens. As this risk disclosure statement is not exhaustive, please also read the terms and conditions of the Bybit platform. Once you fully understand the risks involved, Bybit will provide services related to Leveraged Tokens.

You should always carefully consider whether Bybit Leveraged Tokens meet your risk tolerance, investment objectives and experience, financial situation and needs, personal, and any other relevant circumstances.

You should fully understand and be aware of investment risks, especially the following:

A. Bybit Leveraged Tokens are risky investments.
Leveraged Tokens trading is a risky investment. Although, in general, Bybit Leveraged Tokens have lower risk and cost than Derivatives and other Leveraged Tokens (those issued and managed by institutions other than Bybit), they are not risk-free investments. As a trader, you acknowledge and agree that you will access and use Bybit Leveraged Tokens at your own risk. You should fully understand the risks associated with Bybit Leveraged Tokens and that you are solely responsible for all trading and non-trading actions on your account. Do not trade or invest beyond your financial means.

B. Bybit Leveraged Tokens are not long-term investments.
Investors with long-term investments, or who intend to hold Leveraged Tokens, do so at their own risk. Due to inherent market risks, fees, slippage, rebalancing algorithms, and other unknown risks associated with Bybit Leveraged Tokens, Bybit Leveraged Tokens may become zero (0) in value and unable to be recovered.

C. Bybit Leveraged Tokens are only rebalanced when needed
The investment portfolio behind Bybit Leveraged Token products will be adjusted, so that the combined leverage multiple and the targeted multiple will not deviate too much. The Leveraged Token rebalancing mechanism refers to the intraday Leveraged Token anchoring target when the leverage exceeds a certain range and temporarily adjusts the position. After the position adjustment, the leverage of the Leveraged Token will return to the target leverage multiple.
 
Please note that during the rebalancing process, if the Perpetual contract reaches the position and risk limit, the leverage may not return to the target leverage multiple.

D. Commissions, Fees and Charges related to Bybit Leveraged Tokens
Before investing in, or trading Bybit Leveraged Tokens, you should clearly understand all commissions, fees, and other charges that you will be responsible for as these will affect your expected earnings.
i. Trading fee: Trading fees are charged when buying and selling tokens on the Spot market, and are the same as Spot transaction fees.
ii. Subscription fee: When users choose to purchase tokens, they are required to pay a subscription fee.
iii. Redemption fee: When users choose to redeem the token, they are required  to pay a redemption fee.
iv. Management fee: The management fee is charged daily, and is directly included in the net asset value.

Bybit reserves the right to modify or change the above fees at any time and at its sole discretion. Any updated administration fees will be covered at the time of the transaction, and implemented from the corresponding effective date. You authorize Bybit to debit your account for any applicable fees, for any amount owed by you in accordance with these Terms.

E. Liquidity and Pricing Risks Associated with Bybit Leveraged Tokens
​​​​​​​Due to the centralized creation and market liquidity of Bybit Leveraged Tokens, Bybit strives to provide sufficient market liquidity to ensure Bybit Leveraged Tokens remain within a reasonable price range. Bybit will take reasonable measures, including but not limited to capital injection, creating more tokens, and selling tokens in the secondary market, to minimize the above risks.

Users can redeem tokens at any time except during the position adjustment period. Redemption is usually more expensive than selling tokens on the Spot market. This is not recommended during normal trading hours.