Stablecoin Risk Warning

Dear CoinQ User,

A stablecoin is a type of crypto asset designed to maintain a stable value, typically by pegging it to a fiat currency (e.g., USD), physical assets, or algorithmic mechanisms. CoinQ hereby solemnly reminds you that, despite the word "stable" in its name, stablecoin trading still involves multiple risks. Please fully understand these risks and exercise caution before using stablecoins.

To protect your assets, we disclose the following key risks associated with stablecoins:

I. De-pegging Risk

The actual market trading price of a stablecoin may deviate from its pegged value — an event known as "de-pegging." Due to factors such as market panic, liquidity crises, or doubts about the issuer's solvency, a stablecoin may significantly deviate from its target price in a short period. Historical data shows that even major stablecoins have experienced de-pegging events multiple times. In such cases, your holdings could suffer substantial losses.

II. Issuer Risk

The value stability of a stablecoin is highly dependent on the issuer's reserve asset transparency, governance capability, and regulatory compliance. If the issuer encounters audit issues, financial crises, regulatory investigations, or operational incidents, it may directly affect the stablecoin's redeemability and market confidence.

III. Regulatory Risk

Regulatory policies regarding stablecoins continue to evolve across the globe. Sudden changes in regulatory policies may render a particular stablecoin unusable in certain regions, lead to its delisting from exchanges, or impose strict restrictions on its issuance and trading. You are responsible for understanding and complying with the laws and regulations of your jurisdiction.

IV. Liquidity Risk

During periods of extreme market volatility or special events, the secondary market liquidity of a stablecoin may drop sharply, making it difficult to execute trades or resulting in unfavorable pricing.

V. Technical Risk

Stablecoins operate on blockchain technology and may face unforeseen technical risks, including smart contract vulnerabilities, cyberattacks, and on-chain congestion.

Important Notice:

• Stablecoins are not equivalent to fiat currency. CoinQ makes no guarantees regarding the stability, redeemability, or market performance of any stablecoin.
• You should fully understand the issuance mechanism, reserve composition, and audit status of the stablecoin you trade, and make prudent decisions based on your own risk tolerance.
• In the event of a significant de-pegging or other abnormal incident involving a stablecoin, CoinQ may take risk control measures in accordance with applicable rules, including but not limited to restricting trading, suspending deposits and withdrawals, or facilitating conversions.

This notice is for risk disclosure purposes only and does not constitute investment advice. Crypto asset trading involves extreme risk. Please participate rationally and invest prudently.

If you have any questions, please feel free to contact the CoinQ customer service team.