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.