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What is a financial liability?

A financial liability can be a contract probably to be settled in the entity's own and that is a non-derivative under which the entity may deliver a variable amount of its own equity instruments. A financial liability can be a that probably will be settled other than through the exchange of cash or similar for a fixed amount of the entity's equity.

What is a liability in business?

What is a Liability? A liability is an obligation of a company that results in the company’s future sacrifices of economic benefits to other entities or businesses. A liability, like debt, can be an alternative to equity as a source of a company’s financing.

What is a liability in accounting?

Probably the most accepted accounting definition of liability is the one used by the International Accounting Standards Board (IASB). The following is a quotation from IFRS Framework: Regulations as to the recognition of liabilities are different all over the world, but are roughly similar to those of the IASB.

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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