Risks

Trading perpetual futures, especially with leverage, is high risk. You can lose all the collateral you deposit. This page explains the main risks of using BotRadix in plain language. It is not exhaustive and it is not financial advice.

Market and leverage risk#

• Prices of crypto assets, stocks, indices, commodities and currencies can move sharply and quickly.
• Leverage multiplies both gains and losses. At 100x, a price move of less than 1% against you liquidates an isolated position and its whole margin is lost.
• Synthetic pairs combine the movements of two assets and can be more volatile than either one.

Liquidation risk#

• If your margin falls to the maintenance level, your position is liquidated in full, in a single execution, and the loss is final.
• With the v2.2 reference values, an isolated position loses its entire margin when liquidated (adjustable penalty).
• In fast markets the price can move past your stop loss or your liquidation price before an execution happens.
• Withdrawing collateral and paying funding move cross liquidation prices closer.

See Liquidation.

Oracle and data risk#

• Every price used by the DEX comes from the PairForge data provider. On Base it is signed by three reporters operated by BotRadix, and a 2-of-3 quorum is required.
• If sources report wrong data, or reporters fail, prices may be inaccurate or unavailable.
• Without current prices, actions that need them wait: opening and closing positions, liquidations, and withdrawals while you hold open cross positions.
• A market can be administratively closed (SESSION_CLOSED) when its data is unreliable; while closed, its positions cannot be opened, closed or liquidated through ordinary paths, except for the freezing and emergency procedures, and valid funding does not stop because of it.
• If a market stops receiving prices, anyone can challenge it; after 3 days without a price it is settled at its last observed price, which may differ from the price the asset trades at elsewhere.
• Orders execute at the oracle price, which can differ from prices on other exchanges.

See Prices and oracle.

Smart contract risk#

• The contracts may contain bugs that could cause losses, including loss of deposited funds.
• Check source verification for each address on BaseScan. No third-party audit report has been published; source verification alone does not establish safety.
• Base is a layer-2 network; congestion, outages or problems on Base or Ethereum can delay or prevent transactions.

Administrative and centralization risk#

• The contracts are upgradeable by BotRadix with a single administrator key. Router changes go through an advance-notice gate whose notice is 0 hours today; the cross-margin contract that holds the collateral and the business logic can be upgraded immediately. This belongs to the current consolidation phase: sealing is planned by component once the system has proven stable.
• If the administrator key were stolen, the attacker could upgrade CrossMargin immediately. Monitoring would make it visible; it would not prevent it.
• The administrator can pause the DEX, put markets in reduce-only mode, pause withdrawals (at most 72 hours at a time), change fees, maintenance margin, the profit cap, the BAQ credit and other parameters within the contracts' limits, and withdraw the vault's free liquidity. Pause-only keys can also pause, but never resume.
• The independent exit lets you leave from BaseScan, but it depends on prices being published within its time limits (24 hours, 3 days, 72 hours) and, while the contracts are open, on the exit contract staying connected. See Exit without BotRadix.
• Keepers, executors, the terminal and the API are operated by BotRadix. If they are unavailable, resting orders, take profit, stop loss and liquidations may be delayed.

See Security and contracts and Smart contracts.

Vault and capacity risk#

• Profits are paid by the protocol's vault. Each position has a maximum profit; beyond it, further favourable moves do not increase your gain.
• Auto-deleveraging (ADL). When the vault is at risk, winning positions can be reduced or closed early, at the oracle price, even if you did not ask for it, and you lose any further gain. The cap applies and funding is settled; the net is paid from available liquidity and any uncovered part is deferred, so immediate payment of the entire gross gain is not guaranteed. A position with a valid backed take profit is not closed for this reason. With a small vault, ADL can act after relatively moderate moves.
• When capacity limits are reached, new positions can be rejected or a market can move to reduce-only.
• After an extreme price gap the vault and reserves could still fall short; unpaid profits would be recorded as deferred payments, not withdrawable balance, and could only be claimed if contributions or vault income replenish their backing, with no guaranteed payment or deadline. In an emergency, profits are paid pro rata and the shortfall remains deferred.

See Leverage and margin.

Wallet and key risk#

• Anyone with access to your wallet can withdraw your collateral. Protect your seed phrase and never share it.
• A compromised browser holding your trading key can trade on your behalf (it cannot withdraw). Revoke trading keys and API keys you no longer use.
• Transactions on Base cannot be reversed.

Automated trading risk#

• Bots follow their configuration mechanically; they can open losing positions, accumulate positions with DCA and keep trading in adverse conditions.
• Connectivity problems, exchange outages, API changes or rejected orders can prevent a bot from acting at the expected time.
• A bot paused or stopped by your tier, by an error or by you does not close its open positions.
• On Uniswap, every bot swap needs a second signature from a BotRadix co-signing service and respects rate limits and a price safety band. Without an available co-signer, Uniswap bots, including their stop-losses, wait until one returns; no band guarantees stop-loss execution.

See Quant bot and Grid bot.

Third-party venue risk#

Bots on Hyperliquid or Uniswap trade on platforms that BotRadix does not control. Their rules, fees, outages or failures, and the custody of the funds you keep there, are their responsibility.

BAQ token risk#

BAQ can be volatile and thinly traded, and its price can fall sharply, even losing most of its value. Its value affects your bot limits and its collateral credit on the DEX. BAQ is not a share in BotRadix and pays no dividends or yield. See BAQ.

Legal, regulatory and tax risk#

• Regulations on derivatives and crypto assets vary by country and can change. You are responsible for using BotRadix only where it is lawful for you.
• You are responsible for your own tax obligations; the history export can help you keep records.
• Read the Terms and Privacy policy.