Trading perpetual futures and using onchain infrastructure involves significant risk. You can lose more than your initial deposit in extreme conditions. Read this page before using any Nexwest product.
Leverage and liquidation
Leverage magnifies gains and losses. A small adverse price move can liquidate a position. Liquidation uses mark price, which may differ from the last traded price. Fees and funding can accelerate losses. You are responsible for monitoring margin and liquidation levels.
Funding and basis
Perpetual positions pay or receive funding. Funding can be volatile and can exceed the fees you expect. A carry trade can lose money even if the spot and perp prices converge.
Market and liquidity risk
Order books can thin quickly. Market orders can fill at worse prices than expected. During volatility, spreads can widen, orders can be rejected, and liquidation may occur at a worse price than the estimate shown before the trade.
Oracle and mark price risk
Mark price combines external price sources with onchain book state. An oracle failure, manipulation attempt, or extreme market move can produce outcomes that differ from the last trade. Historical data does not guarantee future behavior.
Smart contract and bridge risk
Onchain systems can contain bugs. Bridges and wrapped assets add counterparty and smart contract risk. Audits reduce but do not eliminate risk. Never deposit funds you cannot afford to lose.
Counterparty and venue risk
A venue can halt markets, change parameters, or become unavailable. Validators, vaults, and market makers can fail. Third-party applications are independent and may have their own risks.
Regulatory risk
Derivatives regulation varies by jurisdiction and can change. Access may be restricted or prohibited in some countries. You are responsible for complying with the laws that apply to you and for any taxes on your activity.
No advice
Nothing on this site is investment, legal, tax, or trading advice. Past performance and backtests are not reliable indicators of future results. Seek independent professional advice where appropriate.