MYX.Finance
  • PROTOCOL
    • 🔍MYX Protocol Overview
      • 📐Product specifications
      • 💹Trading experience
      • 🤔How does it work?
    • 💰Trading Costs
    • 🌟MLP
      • ⭐Overview
      • 🏭Minting and Redeeming
    • 🌐Keeper Network
    • Seamless Trading
      • Introducing MYX Seamless Trading
      • What Am I Signing?
      • What Am I Authorizing?
    • 🏆Reward
      • 💸Fee Rewards
    • 📈Tokenonomics
    • 💦Liquidation
    • ⚙️Risk Management Mechanisms
      • 🚫Inactive/Malicious Keepers
      • ❓Inaccurate Execution Prices: Dual Oracle
      • ⚖️Imbalanced Open Interests: Funding Rate
      • 🤖Lack of liquidity: Automated Deleveraging (ADL)
      • 🌪️Extreme Market Conditions: Dynamic Position Limit (DPL)
      • ⌛Time Travel
    • ⚠️Risks
    • 💻API
    • 📱Social Media
    • ☂️Audit
    • 📜Compliance
  • TUTORIALS
    • 🌳How to trade on Arbitrum one and Linea
      • 🛞Installation and Wallet Setup
      • 🌱Bridge ETH to Arbitrum and Linea，Swap for USDC
      • 🔁Trade Process
      • 💸Provide Liquidity
    • Particle Effortless Trading
    • 🙌How to buy BMYX
    • 🔭Copy Trading
    • 🎁Referral
  • Media kit
    • Logo
Powered by GitBook
On this page
  • Liquidity Risk
  • Funding Rate Risk
  • Market Risk
  • Smart Contract Risk
  • Keeper Risk
  • Price Deviation Protection Risk
  • LP Liquidity Risk
  • Counterparty Risk
  • Network Stability Risk
  1. PROTOCOL

Risks

Following risks should be managed by concerning entities accordingly

Liquidity Risk

  • Liquidity Risk refers to the inability to open or close positions. This risk concerns traders and market makers.

Funding Rate Risk

  • Funding rate risk refers to any potential losses due to either change of direction of funding fees or the increase of funding rate. This risk concerns traders and market makers.

Market Risk

  • Market Risk refers to potential losses due to the movement of prices of underlying assets. This risk concerns traders, market makers and liquidity providers.

Smart Contract Risk

  • Smart contract Risk refers to potential losses due to smart contract exploits. Although MYX is carefully tested and audited, it is a test product that could be vulnerable to hacks which could result in loss of funds, use at your own risk.The core smart contracts are non-upgradable.

Keeper Risk

  • Keeper risk refers to the losses caused by inactive/malicious keepers that stops the protocol from functioning. Keepers are strictly selected and required to stake tokens which could be slashed in such cases.This risk concerns traders, market makers and liquidity providers.

Price Deviation Protection Risk

  • Trades do not cause price impact on MYX, all trades are executed using oracle price. Price Deviation Protection refers to losses caused by price movements between the submission of a market order and the confirmation of the trade.This risk concerns traders.

LP Liquidity Risk

  • LP liquidity risk refers to the inability to withdraw LP funds when the Pool is highly utilized. This risk concerns liquidity providers.

Counterparty Risk

  • Counter Party Risk refers to the inability to realize profits due to the default of counter parties. This risk is non-existent in MYX due to its trading engine design.

Network Stability Risk

  • Network risk refers to losses caused by inability to open/close/liquidate positions, Mint/ Burn LP tokens etc in case the network is temporarily down or congested. This risk concerns traders, market makers and liquidity providers.

PreviousTime TravelNextAPI

Last updated 1 year ago

⚠️