Risk Reminder

1. Liquidity Risk

The risk of being unable to open or close positions smoothly.

· Affected Parties: Traders and market makers

2. Funding Rate Risk

The risk of potential losses caused by changes in funding fee direction or rising funding rates.

· Affected Parties: Traders and market makers

3. Market Risk

The risk of potential losses due to price fluctuations of the underlying asset.

· Affected Parties: Traders, market makers, liquidity providers.

4. Smart Contract Risk

The risk of potential losses caused by vulnerabilities in smart contracts.

· Note: While SunX has undergone rigorous testing and auditing, it is still in the testing phase. Undiscovered vulnerabilities may exist and could be exploited. Core smart contracts are non-upgradable, and users bear all risks associated with usage.

5. Market Maker Risk

The risk of potential losses due to protocol malfunction caused by inactive or malicious behavior from market makers.

· Risk Management: Market makers are strictly vetted and required to stake assets. Malicious or non-compliant behavior may result in significant slashing of the staked cryptos.

· Affected Parties: Traders, market makers, liquidity providers.

6. Slippage Risk

The risk of potential losses from price fluctuations between order submission and execution.

· Note: All trades are executed at the oracle price, eliminating market impact. Traders bear the risk of price fluctuations during the confirmation window.

7. Liquidity Provider Risk

Liquidity providers (LPs) may be unable to withdraw funds when pool utilization is high.

· Affected Party: Liquidity providers

8. Network Stability Risk

The risk of potential losses caused by network outages or congestion, which may prevent position opening/closing, liquidation, or minting/burning of liquidity tokens.

· Affected Parties: Traders, market makers, liquidity providers.