Risk Disclosure Statement for Derivative Trading

Risk Disclosure Statement for Derivative Trading

 

To assist your understanding of the risks associated with futures, options, and other derivatives, including but not limited to warrants and callable bull/bear contracts (“CBBCs”), Tiger Brokers (NZ) Limited (“TBNZ”) has prepared this Risk Disclosure Statement for Derivative Trading (the “Risk Disclosure Statement”) for your benefit. This Risk Disclosure Statement does not disclose all the risks and other significant aspects of trading in derivatives. In light of these risks, you should undertake such transactions only if you understand the nature of the financial products, including but not limited to futures, options, warrants, and CBBCs that you are buying or selling, and the extent of your exposure to risk. Not all clients are suitable for participating in trading derivatives, therefore you should carefully consider whether trading in financial products is appropriate in the light of your experience, objectives, financial resources, risk tolerance, and other relevant factors. You should carefully read the terms and conditions of contract and rules associated and relevant responsibilities before you decide to invest. If in any doubt, you should seek professional advice.

 

  1. RISK INVOLVED IN TRADING DERIVATIVES

 

You should be aware that the risk of loss in trading futures or options, like all derivatives, can be substantial. It is important that you carefully consider whether trading futures or options is appropriate for you in light of your knowledge, investment objectives, financial circumstances, risk tolerance and requirements and other relevant factors. Futures and options are not suitable for every investor and you should consult your financial adviser to assist you in understanding the risks of trading futures or options prior to investing. Unlike trading securities, futures and options are exchange traded derivatives featuring gearing, time delay, co-movement, high volatility, and high risk.  A future or option trade is a margin trade. It is common to experience significant price increases or decreases in one single trading day. Futures and options therefore expose you to higher risk. You may suffer substantial losses, which may even exceed your account deposits.

 

You should carefully read the terms and conditions of contract and rules associated with futures or options to be purchased as well as the relevant responsibilities before you decide to engage in any futures or options trading. The relevant exchange(s) may revise the terms and conditions of contract of the future or option not executed in some circumstances to reflect the change in relevant rights and interests.

 

You should be aware of the following:

 

  1. Loss of Initial Margin

 

You could sustain a total loss of the initial margin that you deposit with TBNZ to establish or maintain an exchange traded derivative.

 

  1. Payment of Additional Margin

 

If the price of exchange traded derivative moves against you, you may be required, at short notice, to deposit with TBNZ additional margin in order to maintain your position. Those additional funds may be substantial. If you fail to provide those additional funds within the required time, your position may be liquidated at a loss and you will be liable for any shortfall in your account resulting from that failure.

 

  1. Losses Beyond Margin Lodged

 

You may sustain a total loss of the funds (initial margin and additional margin amounts) that you deposit with TBNZ to establish or maintain an exchange traded derivative position. You may incur losses beyond the amounts that you lodged with TBNZ and have relevant obligation to settle any shortfall.

 

  1. High Leverage

 

Leverage may serve to multiply the loss suffered in percentage terms. The high level of leverage that is obtainable when trading derivatives (due to the low level of initial capital outlay) can work against an investor as well as for the investor. Depending on the market movement, the use of leverage may lead to large losses as well as large gains since leverage effectively magnifies exposures and losses. This is especially relevant if you are the writer or seller of any exchange traded derivative which may require you to deliver cash, shares or other underlying assets if the derivative is exercised by the buyer.

 

  1. Price Sensitive Announcements

 

As a general rule, price movements in the underlying share, index, or currency pair can significantly affect the value of exchange traded derivatives. The value of the underlying share, currency, or index themselves are affected by, amongst other things,  information that is announced to local or international exchange(s) in relation to the share or index (or the constituent shares of the index), credit ratings and issuer announcements, or information that is made available by a relevant body which issues a particular nation’s currency or publishes the exchange rates referenced by a particular series of derivatives.

 

It is recommended that an investor in derivatives regularly reviews information announced to the relevant exchange(s) in relation to relevant underlying shares, index or currency.

 

  1. Underlying Market Movements

 

As the value of exchange trade derivatives is dependent partly on the value of the underlying assets, any changes in the underlying market may impact the underlying asset value and hence may impact your position in derivatives. Changes in the underlying market may make it difficult to maintain the hedge or maintain your exposure under an open derivative position. There is also the risk that a derivative you have purchased may fall in price or become worthless at or before expiry.

 

  1. Liquidity Risk

 

Under certain market conditions, it could become difficult or impossible for you to close out a position, and the relationship between the prices of the exchange traded derivative and the underlying market may be distorted or affected. Examples include:

  1. if there is a significant change in the price of the underlying asset over a short period of time;
  2. if there are insufficient buyers and sellers in either the derivative or the underlying market; or
  3. if the market is suspended or disrupted for any reason.

 

Similarly, events such as these in relation to the market for the underlying asset may make it difficult for you to hedge or maintain your exposure.

 

  1. Limited Life Span

 

Exchange traded derivatives have a limited life span. Their time values erode as the derivative reaches its expiry date. It is therefore important to ensure that the derivative selected meets the investor’s investment objectives and investment horizons.

 

  1. Placing Orders in a Moving Market

 

Placing of contingent orders (e.g. a ‘stop-loss’ order) may not always limit losses to the amounts that are with your expectation. Market conditions may make it impossible to execute such orders. For example, if the price of the underlying asset moves suddenly, your stop loss order may not be filled, or may be filled at a different price to that specified by you, and you may suffer losses as a result.

 

  1. System Outages

 

Trades effected on an exchange are traded on an electronic trading platform and cleared through the clearing house, which also relies on electronic systems. All such electronic platforms and systems may be subject to failure or temporary disruption. If the system fails or is interrupted, TBNZ will have difficulties in executing all or part of your order according to your instructions. An investor’s ability to recover certain losses in these circumstances will be limited given the limits of liability commonly imposed by the local, international exchanges and the clearing house(s). Any market disruption may mean you are unable to deal in exchange traded derivatives at a desired time; you may suffer a loss as a result. Common examples of disruption include a fire, technology interruption or other exchange emergency. The exchange could, for example, declare that an undesirable situation has developed in a particular derivative and suspend trading. Exchanges or participants may also be allowed to cancel transactions under their operating rules.

 

  1. Time Zone Difference for Clients Dealing in Foreign Markets

 

You should be aware that outside of the Asia Pacific Region, there may be significant differences between your time zone and the major global financial market centres in Europe and the United States. If you are dealing in these markets, your orders may be executed outside of normal business hours and/or during the night-time in your location. In addition, major market events or events that impact individual stocks or currencies may also take place well outside of normal business hours or normal market hours in your local time zone. This in turn may have impacts on the values of exchange traded derivatives in your account.

 

  1. Exchange Rate Risk

 

If you trade in exchange traded derivatives on international exchanges, the positions are likely to be denominated in a currency other than the base currency nominated for your account. The holding of positions and trading of products denominated in a foreign currency exposes you to the potential risk (and potential benefit) of exchange rate fluctuations.

 

If a derivative is traded in a currency that TBNZ does not hold on behalf of its clients, you must ensure that you understand the risks associated with it. The fact that amounts due in respect of the derivative (for example for settlement) may not be in a currency supported by TBNZ means that there will be an additional conversion from the relevant currency traded by the derivative back to the base currency nominated for your account. This will involve risks and may also involve costs.

 

Where TBNZ performs a spot foreign conversion to settle a dealing entered into on your behalf, the exchange rate risk (loss or gain) will be crystalized. These losses (or gains) may be in addition to any losses (or gains) on the derivative itself.

 

You must pay special attention to the specifications of any currency derivative you intend to trade, especially if you intend to hold such derivative until expiry (you may be effectively required to hold the derivative to expiry if you cannot close-out your position). TBNZ offers access to derivatives on a limited number of exchanges. For example, for derivatives traded in the United States, the trading and settlement currency of such derivative is commonly U.S. Dollars, which means that you pay premium and settle transactions in U.S. Dollars. However, a derivative may be traded and settled in another currency, for instance cross-rate derivative traded on a US exchange may settle in currencies other than U.S. Dollars.

 

  1. Sanctions Legal Risk

 

New Zealand is a member of the United Nations and observes and implements United Nations Security Council sanctions. TBNZ must comply with restrictions imposed by sanctions and may be prohibited from dealing with certain persons or entities. If it appears that you are or may be acting on behalf of a prescribed person or entity, TBNZ may be required to suspend, cancel, or refuse services to you, freeze your assets held by TBNZ or close or terminate your agreement with TBNZ. If TBNZ is required to take action, it may result in significant costs to you.

 

  1. Market Emergencies

 

You may incur losses that are caused by matters outside TBNZ’s control. For example, a regulatory authority exercising its powers during a market emergency may result in losses. A regulatory authority can, in extreme situations, suspend trading or alter the price at which a position is settled. This could also result in a loss. TBNZ is unlikely to accept any responsibility for losses caused by such market emergencies.

 

  1. Market Disruption

 

A market disruption may mean that you are unable to deal in an exchange traded derivative when desired, and you may suffer a loss as a result. Common examples of disruption include the “crash” of the exchange electronic trading system, fire, or other exchange or clearing house emergency. TBNZ is unlikely to accept any responsibility for losses caused by such market disruptions.

 

  1. Exchange and Clearing House Powers

 

Local, international exchanges and clearing houses commonly have broad discretionary powers in relation to the market and the operation of the clearing facility. They have power to suspend the market operation or lift market suspension in exchange traded derivatives while the underlying assets are in a trading halt if the circumstances are appropriate. They may also restrict exercise, terminate a derivative position, substitute another underlying asset (or assets), impose position limits, exercise limits, or terminate contracts. Whilst such powers ostensibly exist to ensure fair and orderly markets are maintained as far as practicable, the consequence of an exchange exercising such powers may not be economically beneficial to you individually. Actions taken by an Exchange may affect an investor’s option positions.

 

  1. Trading Disputes and Trade Cancellations

 

Trades executed may be subject to dispute. When a trade is subject to a dispute the exchange or clearing house commonly has powers, in accordance with its rules, to request that a market participant and hence the participant’s intermediaries (e.g. TBNZ) amend or cancel a trade, which will in turn result in the contract with their clients being amended or terminated. In some situations, the exchange or clearing house may also exercise powers to cancel or vary, or direct the cancellation or variation, of transactions.

 

  1. New Zealand Regulators May Not Have Any Jurisdiction

 

Neither the Financial Markets Authority nor New Zealand Stock Exchange regulate the activities of foreign international exchanges or have the power to compel enforcement of the operating rules of a foreign international exchange or any applicable foreign laws. Generally, the foreign transaction will be governed by applicable foreign law. This is true even if an international exchange is formally linked with an exchange in New Zealand. The execution and clearing of exchange traded derivatives on international exchanges outside of New Zealand are subject to the rules of the international exchange and clearing houses, which may differ from the rules in New Zealand. Similarly, execution of your orders in respect of derivatives on an international exchange is subject to the laws of the relevant jurisdictions, which may differ from New Zealand laws. Such trading actions are subject to the supervision and regulation by overseas regulators, whose functions and powers may differ from those of New Zealand regulators such as the Financial Markets Authority.

 

  1. Automatic Liquidation

 

You should understand that TBNZ may liquidate your derivative positions in accordance with its internal risk control policy and the laws, rules, and regulatory directions effected in relation to short selling restrictions and options business as amended or supplemented from time to time. TBNZ will generally close positions automatically upon a margin deficit arising. Whilst TBNZ may notify you if a deficit arises, TBNZ is not obliged to give you any opportunity to deposit further funds to rectify such deficit and will liquidate positions to bring your account back into margin compliance.

 

  1. Foreign Currency Money Rules

 

Where you instruct TBNZ to arrange a dealing in exchange traded derivatives on international exchanges, you may be required to pay amounts in a currency other than New Zealand Dollars (for example, premium and margin payments) and/or you may receive amounts in a foreign currency.

 

 

  1. Default Risk

 

If you fail to meet your obligations to TBNZ under your client agreement with TBNZ, including but not limited to complying with TBNZ’s margin requirements at any time or refraining from performing any action or inaction which constitutes a default under the terms and conditions, TBNZ may, in addition to any other rights TBNZ holds against you, take any action (which may include entering into risk reducing positions by closing out some or all of your open positions and/or exercise open positions), or refrain from taking action, which TBNZ considers reasonable in the circumstances. TBNZ may resort to such actions that directly alter your account position with TBNZ and you are compelled to account for these changes as if they are taken on your instructions; you are, without limitation, liable for any deficiency and entitled to any surplus which may result.

 

  1. ADDITIONAL RISK INVOLVED IN TRADING OPTIONS

 

You should understand that the risks associated with sell option trading are generally higher than the risks of buy option trading. Although the seller may obtain a premium, the seller may also suffer from a loss exceeding the premium due to the fluctuation in the price of contracted subject the seller is obliged to exercise. The options market may experience less liquidity than the equity market. In instances of very low market liquidity, it is possible that enforced liquidation or execution at a very low/high price, results in a loss that exceeds the initial deposit.

 

During options trading, you should pay attention to the ex-dividend and ex-right in case of dividend allocation, dividend pay-out, capitalizing of common reserves, stocks allocation and stocks splitting or combination with respect to the contract subject. The relevant Exchange(s) will adjust the contracting parties and exercise the price of the option contract within the period of validity, and the trading and settlement of the contract will be carried out as the terms and conditions of the contract after the adjustment.

 

Option trading is complicated. You should fully understand the rules of options trading, the correlation between the option price and the movement of the underlying asset’s price and consider whether you can tolerate the risk of options investments before you make the decision to participate in option trading.

 

You should always check the terms and conditions of the options contract and related obligations (for example, under what circumstances you may be responsible for the expiration date of the option and the exercise limit of the option). In some cases, the exchange or clearing participants may modify the details of the outstanding contracts (including the option exercise price) to reflect the changes in the relevant assets of the contract. TBNZ is not responsible for any loss during trading as a result of your lack of awareness of the related rules.

 

You should only trade options if you understand the nature of the financial products and have a clear understanding of and tolerance for the losses that such trading may incur. The risks attached to investing in options will vary in degree depending on the option traded.

 

  1. Loss of Premium for Option Buyers

 

The maximum loss in buying an option is the amount of premium paid to acquire the option in addition to the transaction costs you pay to TBNZ for providing you with trading service. If the option expires worthless, you will lose the total value paid for the option plus the transaction costs (e.g. commission and other associated fees) you have paid.

 

  1. Potentially Unlimited Loss for Option Sellers

 

Whilst sellers (writers) of options earn premium, they may also incur unlimited losses if the market moves against their option position and they do not hold sufficient underlying security. The premium received by the writer is a fixed amount, however the writer may incur losses greater than that amount.

 

For example, the seller of a call option has increased risk if the market price rises and the seller does not own the underlying shares. If the option is exercised and assigned to the seller of the option, the seller will be forced to buy the underlying shares at the current (higher) market price in order to deliver them to the buyer at the exercise price. Similarly, where the market price falls, the sale of a put option is exercised and assigned to the seller, the writer is forced to buy the underlying shares from the buyer at a price above the current market price. In either case, as a seller of an option, you may be required to deliver or take delivery of an asset at a value which is disadvantageous in view of its then price. You need to carefully monitor your position to avoid losing more capital than intended.

 

In the case of sellers of index and currency options, you will be effectively required to pay the difference between the strike price and settlement value multiplied by the contract multiplier in cash if the option is exercised and assigned to the seller. This may mean that you will not receive refund for any money you paid as initial or variation margin and you may be required to pay additional amounts.

 

  1. Loss of Stock for Writers of Covered Call Options

 

Sellers of covered calls (where the writer holds shares) will, if the contract is exercised, be forced to deliver the underlying stock at the exercise price below the current market price.

 

  1. Close Out Difficulties

 

Under certain conditions, it may become difficult or impossible to close out an open option position and the relationship between the price of options contracts and the underlying asset may become distorted. Examples include:

  1. if there is a significant change in the price of the underlying asset over a short period of time;
  2. if there is an absence or reduction in the number of buyers and sellers in either the option or the underlying market; or
  3. if the option market is suspended or disrupted for any reason.

 

  1. RISK INVOLVED IN TRADING WARRANTS

 

Derivative warrant trading involves high risks and is not suitable for every investor. Investors should understand and consider the following risks before trading in derivative warrants.

 

  1. Issuer Risk

 

Derivative warrant holders are unsecured creditors of an issuer and have no preferential claim to any assets an issuer may hold. Therefore, investors are exposed to credit risk in respect of the issuer.

 

  1. Gearing Risk

 

Although derivative warrants may cost a fraction of the price of the underlying assets, a derivative warrant may change in value more or less rapidly than the underlying asset. In the worst case the value of the derivative warrants falls to zero and holders lose their entire purchase price.

 

  1. Limited Life

 

Unlike stocks, derivative warrants have an expiry date and therefore a limited life. Unless the derivative warrants are in-the-money, they become worthless at expiration.

 

  1. Time Decay

 

Investors should be aware that, other factors being equal, the value of derivative warrants will decrease over time. Therefore, derivative warrants should never be viewed as products that are bought and held as long-term investments.

 

  1. Volatility

 

Other factors being equal, an increase in the volatility of the underlying asset should lead to a higher warrant price and a decrease in volatility lead to a lower derivative warrant price.

 

  1. Market Forces

 

In addition to the basic factors that determine the theoretical price of a derivative warrant, derivative warrant prices are also affected by all other prevailing market forces including the demand for and supply of the derivative warrants. Supply and demand forces may be most prominent when a derivative warrant issue is almost sold out and when issuers make further issues of an existing derivative warrant issue. The turnover of warrants should not be considered as the basis of its value increase, and the value of warrants is also affected by other factors, such as the price of relevant assets and volatility, remaining time, interest rates and expected dividend.

 

  1. RISK INVOLVED IN TRADING CALLABLE BULL/BEAR CONTRACTS

 

  1. Mandatory Call

 

Callable Bull/Bear Contracts (“CBBCs”) are not suitable for every investor and investors should consider their risk appetite prior to trading. In any case, clients should not trade in CBBC unless they understand the nature of the product and are prepared to lose the total amount invested since a CBBCs will be called by the issuer when the price of the underlying asset hits the Call Price and trading in that CBBC will expire early. Depending on where the exercise price and the call price are placed, CBBCs can be classified as “Category R” and “Category N”. Category R refers to CBBC that has a “residual value” after the mandatory call event whereas Category N refers to CBBC that has “no residual value” after the mandatory call event. Payoff for Category N CBBCs will be zero when they expire early. When Category R CBBCs expire early, the holder may receive a small amount of Residual Value payment, but there may be no Residual Value payment in adverse situations. TBNZ may charge our clients a service fee for the collection of the Residual Value payment from the respective issuers.

 

In general, the larger the buffer between the Call Price and the Spot Price of the underlying asset, the lower the probability of the CBBC being called since the underlying asset of that CBBC would have to experience a larger movement in the price before the CBBC will be called. However, at the same time, the larger the buffer, the lower the leverage effect will be.

 

Once the CBBC is called, even though the underlying asset may bounce back in the right direction, the CBBC which has been called will not be revived and investors will not be able to profit from the bounce-back.

 

Besides, the Mandatory Call Event (MCE) of a CBBC with overseas assets as underlying may be triggered outside the exchange’s trading hours.

 

  1. Gearing Effects

 

Since a CBBC is a leveraged product, the percentage change in the price of a CBBC is greater compared with that of the underlying asset. Investors may suffer higher losses in percentage terms if they expect the price of the underlying asset to move one way, but it moves in the opposite direction.

 

  1. Limited Life

 

A CBBC has a limited life, as denoted by the fixed expiry date, with a lifespan of 3 months to 5 years. The life of a CBBC may be shorter if called before the fixed expiry date. The price of a CBBC fluctuates with the changes in the price of the underlying asset from time to time and may become worthless after expiry and, in certain cases, even before the normal expiry if the CBBC has been called early.

 

  1. Movement with Underlying Asset

 

Although the price of a CBBC tends to follow the price of its underlying asset closely, in some situations, it may not (i.e. delta may not always be close to one). Prices of CBBC are affected by a number of factors, including its own demand and supply, funding costs, and time to expiry. Moreover, the delta for a particular CBBC may not always be close to one, in particular when the price of the underlying asset is close to the Call Price.

 

  1. Liquidity

 

Although CBBCs have liquidity providers, there is no guarantee that investors will be able to buy/sell CBBCs at their target prices any time they wish.

 

  1. Funding Costs

 

The issue price of a CBBC includes funding costs and issuers will specify the formula for calculating the funding costs of their CBBCs at launch in the listing documents. Since the funding costs for each CBBC issue may be different accounting for each issuer’s financing /stock borrowing costs after adjustment for expected ordinary dividend of the stock (if the underlying is a Hong Kong stock, the CBBCs will not be adjusted for ordinary dividend) plus the issuer’s profit margin, investors are advised to compare the funding costs of different issuers for CBBC with similar underlying assets and terms. The funding costs will gradually be reduced over time along with the CBBC in the secondary market as the CBBC moves towards expiry. In general, the longer the duration of the CBBC, the higher the total funding costs will be, similar to investors borrowing for a longer tenure to trade in the underlying asset. When a CBBC is called, the CBBC holders (investors) will lose the funding cost for the full period since the funding cost is built into the CBBC price upfront at launch even though the actual period of funding for the CBBC may turn out to be shorter due to MCE. In any case, investors should note that the funding costs of a CBBC after launch may vary during its life and the Liquidity Provider is not obliged to provide a quote for the CBBC based on the theoretical calculation of the funding costs for that CBBC at launch.

 

  1. Trading of CBBCs Close to Call Price

 

When the underlying asset is traded close to the Call Price, the price of a CBBC may be more volatile with wider spreads and uncertain liquidity. CBBC may be called at any time and trading will terminate as a result.

 

However, the trade inputted by the investor may still be executed and confirmed by the investors after the MCE since there may be some time lapse between the MCE time and suspension of the CBBC trading. Any trades executed after the MCE (i.e. Post MCE Trades) will not be recognized and will be cancelled. Therefore, investors should be aware of the risk and ought to apply special caution when the CBBC is trading close to the Call Price.

 

Issuers will announce the exact call time within 1 hour after the trigger of MCE, and HKEX will also send the list of Post MCE Trades to the relevant Exchange Participants who in turn will inform their clients accordingly.  For avoidance of doubt on whether their trades have been cancelled (i.e. whether they are Post MCE Trades), the investors may check with their service providers.

 

  1. CBBCs with Overseas Underlying Assets

 

Investors trading CBBCs with overseas underlying assets are exposed to an exchange rate risk as the price and cash settlement amount of the CBBC are converted from a foreign currency into its local currency in Hong Kong dollars. Exchange rates between currencies are determined by forces of supply and demand in the foreign exchange markets affected by various factors.

 

Besides, CBBCs issued on overseas underlying assets may be called outside the exchange’s trading hours. In such case, the CBBC will be terminated from trading on the exchange in the next trading session or soon after the issuer has notified the Exchange about the occurrence of the MCE. There will be no automatic suspension of the CBBC by AMS/3. For Category R CBBCs, valuation of the residual value will be determined on the valuation day according to the terms in the listing documents.

 

  1. DISCLAIMER

 

  1. Risk Disclaimer

 

All investments involve risks and uncertainties. The historical data of any security or financial product cannot guarantee its future performance or return. Although diversified investment can help you spread risks, it does not help you to benefit or prevent you from losing money in a depressed market. There will always be potential losses in investing in securities or financial products. You need to consider your own investment objectives and risk tolerance before investing. When you invest in derivatives, it means that you have read, understood, and accepted all the contents of this disclaimer and that you have fully understood the possible risks and agreed to assume all the risks involved in your investment. TBNZ does not take any responsibility for the losses and risks of your investment.

 

TBNZ and its affiliates will make every effort to ensure the authenticity, sufficiency, reliability, and accuracy of the information provided, but absolute reliability and accuracy cannot be guaranteed. All the information, data, and material provided by TBNZ will only be used as reference. You must carefully judge the accuracy of market prices, charts, comments, and purchases or other information displayed in this product. TBNZ will not take any responsibility for any loss caused by inaccuracy or omission of any content or your subjective reasons.

 

To the maximum extent permitted by applicable laws, TBNZ shall not be liable for any loss or risk arising from the use or inability to use this product, including but not limited to direct or indirect personal damage, loss of business profits, interruption of trade, loss of business information, or any other economic loss.

 

Trading in markets in other jurisdictions (including those with formal links to the local market) may involve additional risks. According to the regulations of these markets, the degree of protection you may have may vary or even decrease. Before proceeding with the transaction, you should first identify all the rules regarding the transaction you will be conducting. The regulatory authority in your own location will not be able to enforce the relevant rules in the jurisdictions or markets of the jurisdiction in which you have executed the transaction. TBNZ is not responsible for any damage caused by the application of any rules.

 

  1. Exemption of Liability for User Negligence or Breach of Contract

 

TBNZ has the right to modify or change this disclaimer at any time, and the modified or changed terms will take effect immediately upon publication. If you continue to use this product after the disclaimer modification or change, you will be deemed to have read, understood, and accepted the modified or changed terms. If you claim damages on the grounds of not reading, understanding, or accepting the modified or changed terms, TBNZ will not assume any responsibility.

 

You must confirm that you know the functions of this product and the necessary operations to realize the functions of this product, and voluntarily choose to use TBNZ’s products and related services according to your own needs. For any loss caused by your personal negligence or operational mistakes during your use of TBNZ’s products and related services, TBNZ will not assume any responsibility.

 

If you use this product for any illegal purpose or in any illegal way and use TBNZ’s services to engage in any illegal acts or acts causing infringement of the rights and interests of others, resulting in losses to you or third parties, TBNZ will not assume any liability for compensation.

 

The software or program used in this product and all contents on the product, including but not limited to texts, pictures, files, information, data, product structure and product design, shall be owned by TBNZ or other rights holders who own its intellectual property rights according to laws, including but not limited to trademark rights, patents, copyrights, business secrets and proprietary technologies. If you use, modify, reproduce, publicly broadcast, convert, distribute, release, publicly publish, conduct reverse engineering, decompile or reverse compile of this product without the prior written consent of TBNZ or other rights holders, TBNZ will not bear any liability for compensation and has the right to demand that you bear the liability for infringement of intellectual property rights.

 

If the account password, personal information and transaction data are leaked or your identity is counterfeited in the process of using this product, TBNZ will not bear any liability for compensation.

 

  1. Objective Disclaimer

 

This product has been tested in detail and closely, but it cannot be guaranteed to be completely compatible with all hardware and software systems, and it cannot be guaranteed to be completely error-free. If there are incompatibilities and software errors, you can call TBNZ's customer service (400-603-7555) for technical support, but you cannot receive financial compensation from TBNZ.

 

TBNZ will not be responsible for any loss caused by telecommunication system or Internet network failure, computer failure or virus, information damage or loss, computer system problems or any other force majeure reasons (such as war, communication failure, natural disasters, strikes and government actions).

 

The service provided by this product may be interrupted or malfunctioned due to objective factors such as internet data transmission failure, interruption and delay, which causes a danger that this product function cannot be realized. Under such circumstances, if you suffer from losses due to delayed use or inability to use the services provided by this product, TBNZ will not be liable for compensation. You are recommended to take reasonable and effective protective measures when you are using this product.

 

According to the needs of the company's operation, TBNZ will publish and reprint the news and information provided by the cooperative company in this product and the content provider will be indicated when publishing and reprinting. Based on respect for the intellectual property rights of the content provider, TBNZ will not conduct any substantive review over or make modification of the content provided by the content provider and does not guarantee the authenticity of the content. Please make your own judgment. If you think some content involves infringement or misrepresentation, please report your opinion to the provider of the content.

 

This Risk Disclosure Statement shall be made in both English and Chinese. In case of any discrepancies between the Chinese version and English version, the English version shall prevail.