Risk Disclosure

Risk tips you need to understand before participating in this project

1 Market Risk

For tokens in farming pools, xDEX hope liquidity providers fully understand various type of market risk: market price risk exposure, impermanent loss, volatility of XPT portfolio, and loss under extreme scenarios like market flash-crash.

xDEX hope liquidity providers fully understand the profit and loss during market making processes.

xDEX team and community volunteers will routinely give advices for token choosing.

2 Options In Extreme Scenarios

xDeFi Ethereum option is under testing.

Beta version.

3 Stable Coin Crisis

xDeFi defines xSTA as its native stable coin, to get rid the risk of:

  • Any other stable coins unpegged from USD

  • USD unpegged from 8 main-stream fiat

4 Extreme Market Volatility

Some ERC-20 tokens with very low marketcap will suffer a heavy slippage, especially when market crashes. xDEX will warn users to notice those ERC-20 tokens.

5 FlashLoan Attacks

In history, price attackers manipulates markets with low depth (specially for those with orderbooks), and make profit in AMM. In our experience, LP of AMM DEXes with also make profit under this situation.

6 Failure of Oracles

ERC-20 with very low LP TVL may cause failure of oracles insider xDEX. Under extreme situation, we will refer to AMM DEXes (Uniswap, BAL, Kyber Network) to get price feeding first, and then LINK, BAND, NEST APIs to make sure the continuous and unbiased price feeding still being available.

7 Hacking events

5% Initial Liquidity, and SAFU fund (right after xDEX start to make profit) is the defenses of xDEX from hacking events. xDEX will be audited at least once before online.

Each xDEX upgrade will cause additional audit.

Audit from several more authoritative audit service providers will be listed as soon as the report is ready.