Risks
Smart Contract
Vulnerabilities in smart contract code
Counterparty
Traders failed to meet the margin call
The liquidation fee did not cover LP's loss
Bridged tokens
Depend on the security of the bridge
Pegged tokens
USDC have risks of de-pegging
Pricing
Risk of liquidations from temporary wicks During times of high volatility, there will be a spread from the Oracle price to the median price of reference exchanges
Stop-Loss/Take-Profit Orders
Orders are not guaranteed to execute, this can occur in a few situations including but not exclusive to: The mark price which is an aggregate of exchange prices did not reach the specified price, the specified price was reached but not long enough for it to be executed, no keeper picked up the order for execution.
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