Risk Disclosure Statement

Last updated: 2026-04-18 · Version 1.0

1. Leverage magnifies losses as much as gains

bayanX offers up to 50× leverage. A 2% move against your position at 50× leverage wipes out 100% of your margin. In volatile markets, such moves can happen in seconds. Your entire position can be liquidated before you have time to react or add margin.

2. You could lose MORE than you deposited

During extreme volatility (circuit-breaker events, oracle anomalies, flash crashes), liquidation may not execute at the liquidation price. Shortfall positions are absorbed by the Insurance Fund, but if the Insurance Fund is depleted, losses are socialized across profitable counterparties via Auto-Deleveraging (ADL). A position can also be force-closed at a price far worse than expected.

3. Smart-contract and protocol risk

bayanX is a hybrid exchange: trades match off-chain, settle on-chain via smart contracts on the Arbitrum L2. Smart contracts carry inherent risk — bugs, exploits, or governance errors could result in partial or total loss of deposited funds. Audit reports are publicly available on our documentation site. No audit is a guarantee.

4. Oracle and price-feed risk

Liquidations, funding rates, and mark prices depend on external oracles (Binance / Coinbase / Chainlink). If an oracle is compromised, laggy, or temporarily incorrect, positions may be liquidated based on faulty data. We run divergence monitoring, but cannot guarantee all oracle issues are caught before a liquidation occurs.

5. Funding rate risk

Perpetual futures charge a funding rate every 8 hours, paid between long and short holders. Rates can be negative for either side and can compound quickly. Holding a leveraged position for a long time can incur funding costs that exceed your P&L. Funding rates are capped per bayanX's funding engine, but the cap does not eliminate cost.

6. Slippage and market impact

Market orders fill at the best available price on the order book. Large orders or thin books can cause significant slippage. We reject orders with estimated slippage above 0.2% by default, but you can raise your tolerance. Doing so at your own risk.

7. Illiquid or new markets

Newly-listed markets may have insufficient liquidity, leading to wider spreads, slippage, and larger maintenance margin. Do not put significant capital into markets with obvious thin order books.

8. Regulatory and geographic risk

Cryptocurrency and derivatives regulations evolve rapidly. Regulatory action in your jurisdiction — or globally — may force the Service to restrict features, freeze accounts, or suspend withdrawals with little notice. You are solely responsible for determining the legality of your use of the Service in your location.

9. Technical and operational risk

• Server outages may prevent you from closing a position or placing a trade.
• DDoS attacks, though we mitigate them, can cause temporary latency or unavailability.
• Wallet or network issues on your end (gas, RPC, ledger) may block actions.
• Scheduled maintenance is pre-announced via the Notice CMS; emergency maintenance may not be.

10. Counterparty and insolvency risk

While bayanX is non-custodial and user funds remain in the on-chain Vault, extreme adverse events could still result in insolvency scenarios, such as Insurance Fund depletion combined with bankrupt positions exceeding available capital. In such cases, withdrawals may be paused while losses are distributed fairly.

11. Security risk on your side

• Private key theft: if your wallet is compromised, attackers can withdraw your funds up to the cool-down limit.
• Phishing: bayanX staff will NEVER ask you to paste code in DevTools or share your private key.
• Scam relays: always check you are on bayanx.com.

12. Taxes

You are responsible for reporting and paying any taxes on your trading activity. We provide annual CSV exports of realized PnL and fees, but these are not tax advice. Consult a qualified tax professional in your jurisdiction.

13. No investment advice

Nothing on the Service constitutes investment, legal, or financial advice. Backtests, leaderboards, and AI support responses are for informational purposes only. Past performance does not guarantee future results.

14. Acknowledgement

By trading on bayanX, you acknowledge that you have read this document, understand the risks, can absorb a total loss of your invested capital, and are trading with your own funds — not borrowed capital. You agree not to hold bayanX liable for losses arising from normal operation of the Service.