Price market risks

Leverage and funding

Leverage increases sensitivity to price changes. Funding can lower equity even without a price move. Configured utilization and skew affect non-negative trader-to-LP rates; a minority-side discount does not mean you receive funding.

Pool-level solvency

LPs back trader outcomes. psi changes the conversion of signed mass into collateral, so a profitable price direction alone does not determine your payout. Negative settlement can use authorized debtor coverage and Safety Reserve and leave uncovered loss. Do not assume risk is universally capped at the original position deposit.

Exit availability

A position can close to Direct payment, settlement escrow, or an allowed deferred mass claim. These are different outcomes. An accepted deferred exit removes directional exposure but does not promise a fixed or immediately withdrawable collateral amount. LP exits can also leave deferred funding entitlements.

Price and minimum-cash guards do not automatically protect deferred claim amounts. Inspect allowDeferredExit, minDeferredMass, and partial-to-full promotion permission. EmergencyPause, Recovery, risk headroom, custody incidents, and unavailable oracle reads can restrict exits and claims.

Margin-account risk

Cross positions share account equity within the supported collateral and pool cohort. Losses in one position can put other positions at risk. Incomplete reads, custody deficits, and Recovery pools prevent ordinary healthy-account assumptions. LP and deferred-claim displays are not free collateral.

Trading agents can lose funds through permitted trades even though they cannot withdraw custody. Bound their pool access, amounts, fees, and expiry.

Recovery and reserves

Non-positive total effective mass can start a guarded Recovery episode. Repair, cleanup, healthy risk targets, and observation are required before normal activity resumes. Safety Reserve and recovery capital are not guaranteed insurance, and recovery-capital claims may not be immediately redeemable.