Risks
Caution should be exercised when interacting with any smart contract or blockchain application. While risks are attempted to be mitigated through testing, audits and bug bounties, there is always a risk of vulnerabilities in smart contract code.
For details of contract operation please see our contract.
A non-exhaustive list of risks:
Smart contract risks
Counterparty risks: The OM pool is the counterparty to traders, if traders make a profit that comes from the value of the OM pool
Token risks: Bridged tokens may depend on the security of the bridge, pegged tokens have risks of depegging
While counterparty risk is attempted to be minimized through funding fees and price impact it is not guaranteed that long and short positions will always be balanced. An additional case to note is that if, for example, long positions happen to be balanced with high leverage short positions and there is a sudden price spike, the high leverage short positions could be liquidated, temporarily causing an imbalance of longs and shorts.
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