Risk Disclaimer
General Disclaimer
Dextrabot is a non-custodial, automated copy trading system that interacts with blockchain-based order books to replicate trading strategies. While our infrastructure ensures seamless trade execution, certain external factors beyond our control can impact performance. By using Dextrabot, you acknowledge and accept the risks associated with blockchain-based trading.
๐น Latency, Network Delays & Order Execution Risks
1. Blockchain & Order Book Mechanics
Dextrabot operates on Hyperliquid, a decentralized exchange where trade execution depends on real-time order books and blockchain confirmation times. Unlike traditional centralized systems, blockchain transactions can experience delays due to network congestion, validator performance, and transaction finalization times.
2. Order Execution Risks
Copy trades are executed in real-time, but execution speed is subject to blockchain congestion, network latency, and Hyperliquidโs matching engine responsiveness.
If a copied trader executes a position but network delays occur, Dextrabot may not mirror the trade at the exact price or volume, leading to slippage or missed trades.
Market volatility can cause rapid price fluctuations, affecting entry, exit, stop-loss, and take-profit levels.
3. Partial or Missed Order Replication
If a trader opens a large position and liquidity is insufficient at the same price level, your mirrored trade might only be partially filled or executed at a different price.
In extreme cases, if the trader closes a position while your trade is still pending, your order might not get executed as intended.
4. Network Delays and Dextrabot Responsiveness
Dextrabot's infrastructure is optimized for low-latency execution, but order replication speed depends on Hyperliquidโs order book depth, blockchain validators, and transaction finalization times.
Dextrabot does not control network speeds, order matching, or blockchain congestion.
If Hyperliquid experiences delays, your trade replication might be affected, and any price discrepancies due to delay are not within Dextrabotโs responsibility.
๐น Stop-Loss, Take-Profit & Risk Mitigation
1. Importance of SL & TP
To mitigate risks, users are strongly advised to set Stop-Loss (SL) and Take-Profit (TP) levels. Without these settings, if an execution delay occurs, your position may remain open longer than intended, leading to unexpected losses.
2. Risk Scenarios Without SL/TP
Sudden Network Outages: If Hyperliquid experiences downtime or major blockchain delays, open positions may remain active until resolved.
High Volatility Events: In times of extreme price movement, if SL is not set, liquidation risks increase.
Bot Processing Queue: If too many transactions are processed at once, trade execution may be prioritized or delayed, impacting profitability.
๐น User Responsibility & Final Notes
Dextrabot is an execution-based system; it does not provide financial advice or risk assessment services.
Users must understand the risks of copy trading, market volatility, and execution delays before using the platform.
Dextrabot does not take responsibility for potential financial losses due to blockchain network issues, Hyperliquid downtime, or unforeseen order book inefficiencies.
Your risk settings, position limits, and stop-loss mechanisms are solely your responsibility.
By using Dextrabot, you acknowledge and agree to these terms. Always trade responsibly. ๐
For more details, visit Dextrabot Docs.
Last updated