Risk Disclosure

Last updated: 2026-05-06 · Public Beta

READ CAREFULLY. Trading derivatives is risky. You can lose your entire deposit rapidly due to leverage, liquidation, or contract bugs. XDCTrade is in public beta.

1. Beta software

XDCTrade smart contracts are deployed to XDC Mainnet but have not undergone a third-party security audit. Internal review only (see audit notes). Bugs may exist that result in total loss of deposited funds. Do not deposit more than you can afford to lose.

2. Smart-contract risk

The protocol uses non-upgradeable Solidity 0.8.23 contracts secured with OpenZeppelin libraries. Despite best practices, undiscovered vulnerabilities may exist. Critical functions (pause, role changes) are controlled by an EOA admin key during beta and will migrate to a multisig as TVL grows.

3. Market risk

Perpetual futures use leverage of up to 20x. Adverse price movements can cause partial or full liquidation. Funding payments (positive or negative) may meaningfully affect your PnL over time. Markets in beta may have wide bid-ask spreads and shallow depth.

4. Oracle risk

Mark prices are pushed every 5 seconds by an off-chain feeder reading from Coinbase and CoinGecko. The on-chain Oracle enforces a 60-second staleness limit and a max-deviation guard. Brief outages can cause your positions to liquidate at delayed prices.

5. Sequencer risk

Order matching happens in an off-chain sequencer operated by the protocol team. Sequencer downtime means you cannot place new orders, though you can always withdraw collateral directly from the on-chain Vault contract. Sequencer cannot settle a fill that doesn’t correspond to a valid signed order from both parties.

6. Counterparty risk

PnL is settled from a shared on-chain pool. In extreme scenarios where a liquidation cannot recover enough collateral to cover the counterparty’s profit, the deficit is absorbed by the insurance fund. If the insurance fund is depleted, profitable trades may experience socialized losses.

7. Network risk

XDCTrade is deployed on the XDC Network. Chain reorgs, RPC outages, or fee spikes may temporarily affect order placement, settlement, and withdrawals. The XDC Network has 6-second finality but is not immune to short reorganizations.

8. Regulatory risk

Crypto derivatives are unregulated or restricted in many jurisdictions. You are responsible for ensuring your use of XDCTrade complies with applicable laws in your country, state, or region. XDCTrade does not provide investment, tax, or legal advice.

9. No warranty

XDCTrade is provided AS-IS with no warranty of any kind. By using the platform you accept all risks. The protocol developers are not liable for any losses arising from use of the software, smart contracts, or front end.

10. Reporting issues

If you discover a security vulnerability, do not exploit it. Report to security@xdctrade.xyz. Bug bounties may be paid case-by-case during beta.

By using XDCTrade you acknowledge that you have read, understood, and accept all of the above risks.