Quote from: btcdrak on February 06, 2014, 12:54:31 PM

True. We assume risk of trading, not risk of the platform getting exploited.

I'm not sure you guys should be trading, considering that you don't fully understand the risks you are taking.

This is basic Trading 1-1:

1- Settlement Risk: this is the risk that, when i said that i will sell you 1 BTC for 800USD, someone makes sure that both the BTC and the USD exchange hands for the value agreed

2- Counterparty Risk: this is the risk that both of us are going to actually pay to each other what we said we will pay, and none of us will run away without paying

3- Slippage Risk: this is the risk that, when you put an order in the market @800, you will actually get it filled at 800 and not at 795

4- Volatility Risk: this is the risk that the exchange rate will move from 800 to 10 in one second

5- Liquidity Risk: this is the risk that, even if you bought 2.000 BTC at 10USD, and now the price is 800USD/BTC (which just make you a virtual millionaire), there's someone on the other side willing to ACTUALLY buy those 2.000 BTC for USD

6- Notional Risk: this is the risk that the "pixel" fiat money you have in your BFX account on the computer screen can be actually transformed into hard cash that you can smell and use to buy a Porsche

And these are just the major ones. Have a look at ANY respectable Forex trading platform, and you will see a comprehensive list of the risk you are facing whenever trading something through an exchange. That goes for everyone, and the reason why all the exchanges sanctioned by the states are so heavily regulated and controlled.

Maybe we should give a little credit to the Bitfinex team, and to all remind ourselves that we're trading cryptos BECAUSE of the high volatility, BECAUSE it's risky and BECAUSE it's still a legal and regulatory "no man's land".