Risks

A delta-neutral trade removes the direction of price. It does not remove every risk. Know these before you trade.

Funding changes

Funding is set by the market every interval. A spread can narrow, vanish or reverse — then the trade costs you funding instead of paying it. Use the Funding APR floor to get out when it goes.

Liquidation of one leg

Each leg is a leveraged position on its own venue, with its own margin. A sharp move pushes one leg toward liquidation while the other gains on a different venue, where its profit cannot cover the loss. The emergency close exists for this; lower leverage makes it less likely.

Costs

Fees and slippage are paid up front. A trade closed early — by you or by a rule — may not have earned them back. Check Break-even in the review.

Price gap

The two venues’ prices can drift apart while the trade is open. The legs still cancel when you close at the same gap, but at a wider gap the difference is a loss.

Execution

Between review and fill the market moves. The worst-price band caps how much, but a fast market can refuse a leg, and the trade is then unwound — at a cost.

Venues

Your funds sit on the venues, not with us. A venue can halt withdrawals, change rules, delist a market, run auto-deleveraging (closing your profitable leg early) or fail. On-chain venues add smart-contract and bridge risk. Spreading across several venues limits any one of them.

Collateral

Venues settle in different stablecoins (USDT, USDC and others). A stablecoin losing its peg changes the value of the margin on that venue.