Perpetual trading is inherently high risk. Emofi provides transparent mechanisms and risk controls, but no protocol can remove exposure to market volatility, leverage amplification, or execution uncertainty.
Directional risk remains primary. Price can move sharply and continuously against open exposure, especially in high-volatility conditions.
Leverage magnifies both gains and losses. A modest adverse move can produce significant equity drawdown when leverage is high.
When account equity drops below maintenance requirements, positions may be forcibly reduced or closed by protocol rules. Thin collateral buffers increase liquidation probability.
Even with audits and review processes, smart contract systems carry non-zero implementation and integration risk.
Pricing references depend on data quality and resilience. Abnormal or delayed data conditions can affect mark logic and liquidation pathways.
Onchain operations are sensitive to network conditions, including congestion and confirmation delay. These factors can impact timing-sensitive risk actions.
Strong user security practices include:
hardware wallet usage for larger balances,
strict transaction verification before signing,
separation between long-term custody and active trading wallets,
avoidance of unverified interfaces and unknown approvals.
trade with explicit downside limits,
use conservative leverage until strategy is proven,
monitor account health continuously,
avoid allocating capital you cannot afford to lose.
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