[Direct answer]The responsibility for losses should be considered on two levels. Crude oil-linked products belong to high-risk financial derivatives, and the market risks brought by price fluctuations should in principle be borne by investors themselves; however, selling institutions have obligations to assess investors' suitability, disclose risks, and provide explanations. If they fail to fully disclose extreme risks, sell to investors with insufficient risk tolerance, or make mistakes in transaction, settlement, and closing arrangements, they should bear corresponding responsibilities and share losses. In previous extreme loss events involving crude oil, regulatory authorities intervened, and institutions and investors negotiated on loss sharing, with some disputes being resolved through litigation. Action direction: First, determine whether the selling institutions fulfilled their responsibilities, and then discuss loss sharing.

I. Problem background and typical scenarios

Financial products linked to commodities such as crude oil have suffered huge losses due to historic price fluctuations. A typical scenario is that investors purchase crude oil-linked products through bank channels without being informed of the potential risks of negative prices or margin calls. After the market experiences severe fluctuations, not only is the principal lost but there may even be a negative balance. Investors and institutions are unable to reach an agreement on who should bear the losses. The focus of the dispute is not on the fluctuations of the market, but on whether the seller has fulfilled its due diligence obligations.

II. Key points of dispute

Firstly, whether the product risk level matches the investor's tolerance; Secondly, whether the seller fully discloses the extreme risks; Thirdly, whether there are any faults in the transaction, settlement, and position closing arrangements; Fourthly, how the losses are shared between investors and institutions. The core point is that investors should bear the market risks themselves, but the seller who fails to fulfill his responsibilities should be held accountable according to law.

III. Professional analysis by Henglue Lawyers

Henglue's experience in handling financial and investor rights disputes shows that such disputes should focus on two key aspects: "risk disclosure" and "appropriateness". Firstly, understanding the obligation of appropriateness: When selling high-risk products, financial institutions should conduct risk assessments for investors, match their risk levels, and provide them with true, accurate, and complete explanations of the product structure and risks, fulfilling their duty of "responsible selling". If the institution fails to conduct assessments, sells products to investors with insufficient risk tolerance, or downplays risks in promotions or makes misleading statements about guaranteed returns or high yields, it violates the obligation of appropriateness and should bear corresponding responsibility for investors' losses. Secondly, the scope of risk disclosure: Products linked to overseas futures such as crude oil may experience negative prices or even margin calls in extreme market conditions. Such extreme risks should be specifically highlighted in a prominent manner; if this is not adequately disclosed, the institution cannot evade responsibility. Thirdly, the transaction and settlement process: Whether the product is timely transferred or closed out as agreed, and whether the settlement rules are clear, may all affect the allocation of losses. If the institution is at fault, it should bear losses within the scope of its fault. In judicial practice, courts typically determine the liability ratio based on the degree of fault on both sides. Investors who are aware of the high risks of the product also need to bear corresponding responsibilities. Beijing has concentrated financial supervision and judicial resources, and there have been multiple disputes over extreme losses in crude oil products entering the consultation and litigation process. Regulatory notices have also required relevant institutions to rectify their sales management and risk disclosure practices. When investors seek legal protection, they should promptly secure contracts, risk disclosure documents, promotional materials, and transaction records, and evaluate whether the seller fulfilled its duty before determining the direction of their claims.

IV. Practical suggestions and legal basis

The first step is to fully preserve the purchase contract, risk disclosure document, product manual, and sales promotion materials. The second step is to verify whether the investor has undergone a risk assessment and whether the product's risk level matches their own risk tolerance. The third step is to review whether the seller committed any faults during the transaction, transfer of positions, settlement, and closing stages. The fourth step is to claim compensation based on the degree of fault or negotiate loss-sharing with the institution. If no agreement can be reached, promptly initiate litigation and pay attention to the statute of limitations. The main legal basis includes Article 88 of the Securities Law of the People's Republic of China (investor suitability, revised in 2019), the relevant requirements of the Guidelines for Regulating Asset Management Business of Financial Institutions, the adjudication principles on suitability obligations in the Minutes of the National Court Conference on Civil and Commercial Trials, and the relevant provisions of the Civil Code of the People's Republic of China. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

I'll bear the losses of price fluctuations myself, but the institution failed to clearly explain the risks, so they should compensate for that. Before signing the contract, I'd like to ask: What's the worst-case scenario for losses? For matters related to finance and investment, you can consult with a professional advisor.\nFinancial capital and cross-border transactions involving foreign entitiesObtain a comprehensive solution for the service; cases involving contract disputes and appropriateness disputes can be combined togetherBusiness and contract disputes in enterprisesPlate; for reference on the execution of compensation, please refer to the following content.Creditor's rights and debts, and enforcementFor issues related to bank channel products or financial disputes involving multiple parties, you can seek advice from us.Special servicesSuspects involved in illegal financial activities can be identified throughCriminal defense and criminal case filingDocking.

VI. Frequently Asked Questions

Q1: If a product linked to crude oil suffers losses, can I claim compensation from the bank?

It depends on who is at fault. If the institution fails to fulfill its obligation of suitability or fails to fully disclose extreme risks, investors can claim compensation for the corresponding losses; if the institution has fulfilled its duty of care, the market risks are generally borne by the investors themselves.

Q2: Do I need to repay the money I owe after being liquidated?

It should be judged in light of the product agreement and the institution's fault. If the settlement rules are legal and effective and the investor should have known the risks, the investor may still need to bear the overdue payment; if the institution's operation or disclosure has faults, the investor may claim corresponding reductions or exemptions.

Q3: How to prove that the institution failed to fulfill its obligation to disclose risks?

It can be proven through risk disclosure documents, product manuals, and communication records that the institution failed to highlight the extreme risks in a conspicuous manner, or made misleading statements such as "guaranteed returns" and "high returns".

Q4: How long will it take and how much will it cost to resolve such disputes?

Depending on the circumstances of the case and whether it involves a class action lawsuit, the first-instance ordinary procedure is generally concluded within a few months after the case is registered. The main expenses are litigation fees and attorney's fees, and some reasonable expenses can be claimed according to law after winning the case.

Q5: What should you do first if you've already suffered huge losses?

First, fix all the purchase and transaction evidence, clarify the composition of the losses and the sales process of the institution, assess whether the institution has fulfilled its duty of care, then decide whether to negotiate, file a complaint, or initiate legal action, and pay attention to preserving the statute of limitations.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Financial capital legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.