# Risks

We've designed MoveX with as many safety rails as we can, but derivatives trading is inherently risky. Here's what you need to understand before you commit real capital.

#### Market risk

If the underlying moves against you (or doesn't move enough, for short MOVE), your position loses value. With 3× leverage, a \~33% adverse move in the mark price wipes out your collateral. You can lose everything you put into a position.

#### Liquidation risk

If your `account_value` falls below maintenance margin, your position is force-closed at the prevailing market price. In thin order books or fast-moving markets, the close fill may execute at a price significantly worse than the estimated liquidation price.

#### Smart contract risk

The MoveX contracts may have undiscovered bugs. Funds locked in a smart contract can in principle be lost to a critical bug.

#### Oracle risk

MoveX prices off the HyperCore precompiles as the primary feed and uses Pyth Network as a safety cross-check. If both feeds simultaneously go stale, deliver bad data, or are manipulated, MoveX may settle trades or liquidate positions at incorrect prices. We mitigate this with cross-source divergence circuit breakers and pause mechanisms, but the risk of a coordinated dual-feed failure, while small, is non-zero.

#### Sequencer risk

The off-chain sequencer is centralized during this phase of the protocol's life. If it goes down, trading stops. Your collateral is safe (it lives in on-chain contracts), but you may not be able to open or close positions until the sequencer recovers. Position claims after epoch expiry work even if the sequencer is offline; those go directly to the chain.

#### Regulatory risk

Derivatives regulation is jurisdiction-specific and evolving. Your ability to use MoveX may be restricted in your country, now or in the future. We geofence accordingly. See the [Terms of Use](https://app.movex.market/terms) for specifics.

{% hint style="danger" %}
**Only trade with what you can afford to lose.** MoveX is not a savings account; it is a derivatives venue. There are no guarantees, only carefully managed risks.
{% endhint %}

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