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Onchain finance gives you full control of your assets, and full responsibility for them. Read this page before you use DYXY. It is not an exhaustive list.
Only use funds you can afford to lose. Nothing on DYXY or in these docs is financial, investment, legal or tax advice.

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General risks

  • Smart contract risk. DYXY and the protocols it integrates run on smart contracts. A bug or exploit in any of them can lead to a loss of funds, even after audits.
  • Third-party protocol risk. Swaps, pools, staking, lending and trading engines rely on external protocols such as Aster, Hyperliquid, PancakeSwap, Uniswap, Aerodrome, StakeWise, Marinade, BENQI, Aave, Morpho, Kamino and Fluid. Their failures, governance decisions or parameter changes are outside DYXY’s control.
  • Network risk. Blockchains can be congested, halt or reorganize. Transactions can be delayed or fail.
  • Oracle risk. Liquidations and prices often depend on oracles. A faulty or manipulated price feed can trigger wrongful liquidations.
  • Wallet security. Anyone with your seed phrase or private key controls your funds. Lost keys cannot be recovered.

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Trading risks

  • Leverage. Leverage multiplies losses as much as gains. At high leverage, small price moves can liquidate your whole margin. At 1000x in Degen mode, a 0.1% move is enough.
  • Liquidation. Leveraged positions and loans can be closed automatically at a loss, with a penalty.
  • Funding costs. Holding perps positions can cost funding over time.
  • Slippage and price impact. Large trades and illiquid tokens can execute at worse prices than expected.
  • Fake tokens. Anyone can deploy a token with any name. Always verify the contract address.
  • Bot risk. Trading bots follow their rules whatever the market does, and can accumulate losing positions in strong trends.

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Tokenized stock risks

  • Issuer and custody risk. Tokenized stocks depend on the issuer and custodian holding the underlying shares.
  • Off-hours pricing. Outside US market hours, token prices can move away from the share’s next opening price.
  • Eligibility. Tokenized stocks are restricted in some jurisdictions, including the US.

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Earn risks

  • Impermanent loss. Liquidity positions can be worth less than holding the tokens.
  • Variable yields. APRs and APYs change constantly and are never guaranteed.
  • Unstaking delays. Native and pooled staking have waiting periods, and some delegations, such as AVAX, cannot be ended early.
  • Depeg risk. Liquid staking tokens and stablecoins can trade below the value of their underlying asset.
  • Lending liquidity. Highly utilized lending markets can delay withdrawals.
  • Validator risk. Validator downtime reduces rewards, and some networks can penalize misbehaving validators.

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Regulatory risk

The legal status of DeFi, derivatives and tokenized securities differs by country and can change. You are responsible for complying with the laws that apply to you.