Risk disclosure.

1. Market risk

Cryptocurrency prices are highly volatile. Movements of 5–10% in an hour are not unusual on major pairs and can be larger on long-tail markets. A leveraged position amplifies these movements proportionally — a 4% move against a 25× leveraged position liquidates the position.

Past performance — yours, anyone's, the market's — does not predict future returns. Strategies that worked in the last regime may underperform or fail in the next.

2. Leverage risk

Dexter offers leverage up to 25× on major pairs. Leverage magnifies both gains and losses:

• A 10% favorable move at 25× = 250% gain on margin
• A 4% adverse move at 25× = 100% loss of margin (liquidation)

Higher leverage does not increase your edge — it only increases the speed at which you find out whether you have one.

3. Drawdown floors

Both evaluation and funded accounts have protocol-enforced drawdown limits:

• Daily floor: −4% in any rolling 24h window closes the account
• Total floor: −8% absolute from starting balance closes the account

These are hard rules. There is no manager who reviews and waives them. If you hit a floor — including via a single bad trade, a flash crash, or oracle stress — the account closes and your evaluation or funded status ends.

4. Liquidation risk

When position margin falls below maintenance threshold, the matching engine issues an IOC liquidation order at the prevailing mark price. In thin liquidity or fast markets, the actual fill price can be worse than the trigger — this is called slippage. Slippage between trigger and bankruptcy is absorbed by the insurance reserve; slippage beyond bankruptcy is socialized via the ADL (auto-deleveraging) mechanism described in the whitepaper.

5. Oracle & smart contract risk

Dexter's mark price depends on Pyth Network. A Pyth oracle outage, manipulation, or stale feed can produce incorrect marks. Dexter's degraded-state handling caps the damage but cannot eliminate it.

Dexter's vault and registry contracts are audited but not bug-free. A previously unknown vulnerability could result in partial or total loss of vault collateral. Audit reports and any known limitations are linked from /docs-security-controls.

Base (the L2 chain) and the underlying Ethereum mainnet inherit their own risks: sequencer downtime, bridge exploits, base-layer reorganizations. Dexter cannot guarantee uptime that exceeds the underlying chain's.

6. Wallet & key risk

You hold your own keys. If you lose your wallet's seed phrase or private key, Dexter cannot recover your account or funds. There is no email recovery, no support reset — the chain doesn't have one. Use a hardware wallet for amounts you care about.

Phishing attacks targeting wallets are common. Always verify the URL is https://dexter.market or https://app.dexter.market before connecting a wallet or signing a transaction.

7. Counterparty risk (Dexter itself)

Dexter operates the matching engine, treasury, and infrastructure. While vault collateral and trader payouts are non-custodial, the off-chain matching engine is a service Dexter runs. If Dexter stops operating, trading halts. Withdrawals against the last published state root remain valid indefinitely.

The treasury is managed by a 3-of-5 multi-sig with two independent signers. This is stronger than a single-key custodian but is not zero-trust. See /status for current signers and treasury state.

8. Pack price is non-refundable

Once a pack is purchased, the price is not refundable, including if you fail the evaluation, change your mind, or your jurisdiction restricts the service after purchase. Reset packs (at discounted prices) are the supported path to retry after a failed eval.

9. Regulatory & tax risk

Dexter does not provide legal, tax, or investment advice. Trading profits paid to your wallet may constitute taxable income in your jurisdiction. You are solely responsible for your tax compliance.

Crypto regulation varies by country and changes frequently. Dexter restricts service to residents of OFAC-sanctioned countries (Iran, North Korea, Syria, Cuba) and may restrict service to other jurisdictions as legal requirements evolve. Continued availability in your country is not guaranteed.

10. No representation of profit

Dexter's marketing materials, payout calculator, leaderboards, and testimonials describe what is possible on the platform, not what is likely for any individual trader. Most traders who attempt prop firm evaluations fail. Most funded accounts ultimately end in drawdown. Plan accordingly.

11. Acceptance

By depositing collateral or purchasing a pack, you confirm that you have read and understood this disclosure, that you are at least 18 years old (or legal age in your jurisdiction), that you accept the risks above, and that you can afford to lose the entire pack price. If any part of this disclosure is unclear, contact support@dexter.market before proceeding.