Risks

Leveraged trading carries a substantial risk of loss. Perpy does not sell tokens or investment products, and nothing here is financial advice.

#The position can be liquidated

At 2x, 3x or 5x, a large enough move against the position closes it and its margin is lost. A liquidation costs that position's margin and nothing more, but the loss is real, and the coin gets no profit from that run until the loss book is paid down.

#Dip buys average down, they do not protect

A dip buy adds margin at a lower price. It moves the entry and the liquidation price down, which helps a recovery and makes a deeper fall hurt more, because there is more margin in the position.

#The venue is a counterparty

Margin sits at Lighter, the perp venue, while a position is open. Lighter is a zero-knowledge rollup with a contract on Robinhood Chain. An outage, a pause, a bug or a failure there can delay or lose that margin, and withdrawals are not instant: they mature minutes to days after they are requested. The vault cannot read the rollup, so fills and balances at the venue are only as reliable as the venue.

#Prices and funding

A perp pays or charges funding while it is open. A position held for a long time can lose to funding even if the price goes nowhere. Price feeds can lag in a fast market.

#The coin is still a memecoin

The buyback supports the coin, but it does not set a floor. A holder can lose all the money they put in.

#Contracts and keepers

Vaults are contracts and the claimer, trader and payout keeper are programs. Any of them can have bugs. Each coin keeps its own vault so a problem is bounded to one coin, but a bounded loss is still a loss.

#What to do about it

Choose the leverage and the preset with the loss in mind, start with Balanced, read the coin page before buying a coin, and never hold what you cannot afford to lose.