Notice to Option Sellers

Dear User,

Before becoming an option seller, you should be aware of the rights and the associated risks of the option seller:

1.Unlike an option buyer, who has limited risk and unlimited profit, an option seller receives the maximum return on the premium and faces potentially unlimited risk, that is, limited profit and unlimited risk. Therefore, when you open a position as an option seller, it is important to have a risk control strategy in place.

2.The option buyer uses the premium system, so there is no risk of position blowout, position bankruptcy, or forced liquidation. Sellers use the margin system, meaning that selling a position to open a contract requires a certain amount of margin to facilitate the payment of the buyer’s profit. If the margin is insufficient, the exchange will notify to add the amount within a specified period of time, otherwise there will be a risk of liquidation.

Click here to view BitWell Options Product Margin and Liquidation Rules.

Disclaimer: Please make a rational judgment of your risk taking ability, make sure you have made an adequate risk assessment, and make sure you have a clear understanding and knowledge of the rights and obligations of the seller. BitWell is not responsible for any losses caused by market price fluctuations as a result of your participation in the options seller’s operations.

Thank you for your support of BitWell!

BitWell Team
2021/01/31