# Risk ### Smart Contract Risk The on-chain operations of Trado Perp DEX rely on the correctness and security of the FLOW bridging smart contracts. Vulnerabilities or exploits in the smart contracts may result in the loss of user funds. ### Market Risk Derivative markets may experience extreme fluctuations, and price movements can lead to losses of user funds, especially in cases of low liquidity where price slippage may be more severe. ### Liquidity Risk As a relatively new protocol, there may be potential risks of low liquidity in the early stages. This could result in significant price slippage for traders, negatively impacting the overall trading experience and potentially causing substantial losses. ### Oracle Risk Exchanges may rely on external data sources (such as price Oracles) to provide market data. If these data sources are manipulated or attacked, it may result in incorrect trade execution or liquidation. ### Leverage Trading Risk Trading with leverage can amplify gains but also increases the risk of losses. Therefore, users need to be cautious of the high risks and potential losses associated with leverage trading when engaging in trades. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs-perp.trado.one/risk.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.