Summary of the main risks
- Price. Virtual assets are extremely volatile and can lose their value in full or in part.
- Leverage. A leveraged position can lose your entire deposit quickly, and the loss can exceed what you deposited.
- Liquidation. A position is closed automatically, without prior notice, when the mark price reaches the liquidation price.
- Copy trading. Copied trades run without your approval of each trade and can lose more than you allocated.
- Earn. Rewards are variable and not guaranteed, and Dynamic Earn can lose principal.
- Protection. No deposit guarantee or investor compensation scheme is stated for either Flipster company.
Risk warning Not financial advice. Crypto is highly volatile and may drop in value significantly. You may lose the amounts you invest and your investments do not benefit from any form of financial protection.
This page is a concept summary. The binding risk wording is in Flipster’s product terms and in the Flipster FZE Public Disclosure, and each quotation below names its document.
Mandatory warning for Dubai
Dubai, for marketing of virtual assets VARA
“Virtual Assets may lose their value in full or in part, and are subject to extreme volatility”.
The owner or investor in a virtual asset “can lose all the money or other value they invest, and does not benefit from any form of financial protection”.
The wording is set by the Regulations on the Marketing of Virtual Assets and Related Activities of VARA, the Dubai regulator that licenses Flipster FZE for Exchange Services under VASP Licence VL/26/07/002 (register entry). It applies in Dubai; the general warning above is for all readers, and the two are not merged. See licences and what they cover.
Perpetual futures and leverage
Flipster’s Derivatives Trading Terms, last updated on 13 February 2026 (flipster.io/policies/derivatives), say: “Derivatives are leveraged products which are complex and may not be suitable for inexperienced investors.” Contract rules are on the perpetual futures product page.
Loss greater than your deposit
You can lose up to your entire deposit in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount which you originally deposit with us.
Liquidation without notice
If the Mark Price hits the Liquidation Price, the position is closed automatically, without prior notice. A liquidation fee equal to half of the Maintenance Margin of the liquidated position is charged, and any margin left above the fee goes to the Insurance Fund. The service runs 24 hours a day, 7 days a week, so this can happen at any time (clauses 4.1.5 to 4.1.8 and 4.2). See the guide to liquidation prices.
Funding costs
Funding is exchanged between long and short traders at every funding time. On the paying side it is a cost that adds up for as long as the position stays open. See the guide to funding rates.
Auto-deleveraging
If the Insurance Fund cannot absorb a liquidated position, counterparty liquidation can close another trader’s position, including a profitable one. The BTCUSDT.PERP contract rules list auto-deleveraging as enabled.
In Dubai, the Exchange Services Rulebook of VARA (Part V, section G) does not permit Retail Investors to use exchange traded derivative services “with greater than 5-to-1 leverage”. The VARA licence of Flipster FZE, VL/26/07/002, lists Exchange Services, and this page does not claim that derivatives are offered under it.
TradFi perpetuals
TradFi perpetuals follow the price of gold, US stocks, ETFs and other markets and settle in USDT. They carry every risk above, and four more:
- You own no share, no ETF unit and no metal, only a contract on a price.
- The price can gap while the underlying market is closed and when it reopens.
- Some contracts follow leveraged ETFs, which already multiply the moves of their own underlying.
- Pre-IPO markets have no public market price to check the contract against.
Local law may treat these contracts differently from crypto contracts. Read the TradFi perpetuals product page first.
Copy trading
Clause 3.1 of the Copy Trading Specific Terms, last updated on 26 February 2026 (flipster.io/policies/copy-trading-specific-terms), says: “copy trading involves substantial risk and is highly speculative. The use of the Copy Trading Service may result in significant financial losses, including losses exceeding the funds initially allocated to copying a Master Trader.”
- Trades are replicated in your account automatically, without your approval of each trade.
- Your results may differ from the Master Trader’s because of balance, leverage, trade size, slippage, timing and fees (clause 3.3).
- Historical results and metrics “do not guarantee future outcomes” (clause 3.6).
- Copying a trader is not investment advice.
How the service works is on the copy trading product page.
Earn products
Flipster Earn pays daily rewards on supported assets such as USDE and USDT. The rewards are variable and not guaranteed: the published APR is the daily rate multiplied by 365 and, in the company’s words, “may vary daily”. USDE rewards come from a promotional programme between Ethena and Flipster whose base APR is updated weekly, so they can fall or stop.
Dynamic Earn subscribes your assets to on-chain strategies. The company states the risks as “including principal loss and protocol-related risks from smart contract interactions”. This page prints no rate.
Custody, counterparty and technology risks
- Custody. The operating company holds your assets. Flipster FZE says it keeps client virtual assets in omnibus wallets and is the sole custodian of the private keys.
- Counterparty. You rely on the company you contract with and on its service providers.
- Technology. Networks and systems can fail, and a compromised account can be emptied.
- Regulation. Rules can change, and a product can be withdrawn from your country.
Clause 20.3 of the Terms of Use says: “Trading in Digital Asset can be extremely risky and volatile.” See what is published about custody and proof of reserves, and the terms of use summary.