Risk Disclosure

This Risk Disclosure is part of the agreement between you and Celebit Ltd. It sits alongside our Terms of Service and Privacy Policy, and you should read all three. None of them is legal or financial advice. None of them is exhaustive. They are an honest attempt to set expectations before you put real money at risk.

The risks below are not hypothetical. Every one of them has happened to real traders, on real exchanges, in real market conditions. By the time you finish reading this page, you should be able to picture the scenarios in which you lose money on Perpex — and you should be comfortable with that picture.

Perpex is a self-custodial software interface that connects to Hyperliquid, a third-party decentralized exchange protocol. The Perpex apps are operated by Celebit Ltd, a company registered in England and Wales, with a registered office at Unit 501, Leroy House, 434–436 Essex Road, London, England, N1 3FY. Celebit Ltd is the entity issuing this Risk Disclosure.

Celebit Ltd is not a regulated broker, dealer, exchange, or investment adviser in any jurisdiction. Perpex does not offer any regulated investment service. We are a software company that publishes a dashboard.

Perpetual futures are leveraged derivatives. They are designed for experienced traders who understand how margin works, how liquidation engines work, and how to size positions in volatile markets. They are not a way to grow your savings, build a retirement fund, or generate passive income. They are a high-volatility, zero-sum environment in which counterparties take money from each other.

Perpex is appropriate for you only if every one of the following is true:

• you are an adult and legally permitted to trade crypto derivatives in the country where you live;
• you understand what leverage is, what liquidation is, and what funding rates are, in technical terms;
• you can afford to lose, in full, every cent you commit to a trade — without that loss affecting your housing, food, dependants, or solvency;
• you are not trading with borrowed money, credit-card debt, or funds entrusted to you by someone else;
• you are emotionally able to walk away from a losing position rather than chase it.

If any of those statements is uncertain, this is not the right product for you, and no amount of clever interface or copy-trading feature changes that.

The single most important thing on this page: you can lose 100% of the funds you allocate to a trade, and in some scenarios more than that. Crypto markets do not have circuit breakers, do not pause overnight, and do not wait for you to be at your screen. A position you opened on Monday afternoon can be liquidated on Tuesday at 3 a.m. while you sleep.

Most retail traders who use leveraged crypto products lose money over time. This is true on every venue, regulated or otherwise. Treat any capital you allocate to Perpex as money you have already mentally written off.

Hyperliquid offers leverage up to 50× on supported markets. Leverage is a multiplier on both your gains and your losses. At 50× leverage, a 2% adverse price move wipes out 100% of your margin. At 20× leverage, a 5% move does the same. The maths is unforgiving and applies regardless of how confident you feel about the trade.

There is no "safe" level of leverage in volatile markets. Even 2× or 3× positions can be liquidated during sharp moves, especially in lower-cap markets where liquidity is thin and price action is jumpy. Adding more margin to a losing position to avoid liquidation simply increases the size of the eventual loss.

Hyperliquid has an automated liquidation engine. When the mark price of an asset moves through your maintenance margin level, the protocol closes your position — instantly, automatically, and without asking you. Liquidation is brutal:

• it can happen in milliseconds, in the middle of the night, while you have no internet, while you are flying, or while the app is closed;
• the closing price you receive can be significantly worse than the price displayed on the screen a moment earlier;
• liquidation fees and the auto-deleveraging system can compound losses;
• once liquidated, your position is gone; the protocol does not re-open it if the price reverses;
• during cascading liquidations, an asset can move several percent in seconds and take hundreds of positions with it.

Perpex displays liquidation prices in the trade form, in the position table, and on charts where possible. Those displays are best-effort estimates, not guarantees. Treat them as approximate.

Perpetual futures use a funding mechanism to keep the contract price tied to the underlying spot price. Holders of long positions periodically pay holders of short positions, or vice versa, depending on market direction. Funding rates can flip from positive to negative and back, and they can spike during periods of strong directional sentiment.

For positions you intend to hold for more than a few hours, funding can quietly erode your PnL — sometimes faster than the underlying price moves in your favour. Always factor funding into your expected return, and do not assume that today's rate will hold tomorrow.

The price displayed in the Perpex order ticket is a snapshot taken a moment ago. By the time your order arrives at the exchange and is matched, the order book may have moved — sometimes significantly. Market orders fill at whatever the book offers. Limit orders may not fill at all. Stop orders may trigger at one price and execute at another. None of this is a bug; it is how every order book in the world works.

Slippage is worse in three situations: large orders relative to the order book, low-liquidity markets, and volatile periods. When all three line up, slippage can be measured in percent rather than basis points.

Crypto trades 24/7. There is no closing bell. News, hacks, regulatory announcements, large-wallet movements, or even a single tweet can move markets several percent in seconds. Stop-loss orders do not protect you from gaps — if the price jumps clean through your stop, you exit at the next available price, which may be much worse than the level you set.

Lower-liquidity perpetuals can move tens of percent in moments. New listings, low-cap altcoins, and weekend overnight sessions are particularly dangerous. Position size accordingly.

Liquidity is not constant. A market that looks deep at noon can become hollow at 4 a.m. or during a panic. When liquidity dries up, spreads widen, slippage increases, and exit doors get smaller. If everyone wants to leave at the same time, the door is small for everyone, including you.

A position that looks comfortable to enter may be very expensive to exit. Always ask yourself: if I needed to close this right now, how much would it cost me? If the answer is "I do not know", the position is too large.

Perpex offers copy trading: a feature that lets you mirror the trades of another wallet. It is a powerful tool, and it carries powerful risks. Before you copy anyone, you should accept the following:

• Past performance proves nothing. A trader with a 90% win rate over six months can blow up in a single bad afternoon. Leaderboard positions, PnL graphs, and ROI numbers shown in Perpex are derived from public on-chain history — they are not a forecast.
• You inherit their risk appetite. If the trader you follow takes 50× leverage on a low-cap coin, your wallet does the same.
• Style drift is real. A trader who built their record on patient swing trades may suddenly switch to high-frequency scalping or chase a losing position. You will only find out after it has affected your account.
• Replication is not perfect. Network delays, partial fills, fee differences, and slippage mean your trades will not exactly match the source trader's trades.
• Traders can quit. They can go silent, switch to other venues, or stop trading altogether — leaving your strategy stranded.
• Some leaderboard accounts are bots, sybils, or marketing fronts. Celebit Ltd does not vet, endorse, or audit individual traders.

Use the limits Perpex gives you (per-trade allocation, max position size, stop-loss thresholds), and start with amounts you would be willing to lose entirely as a test.

Grid bots, conditional orders, algorithmic strategies, and similar automation execute trades on your behalf based on parameters you choose. These tools are useful, but they are also a way to lose money quickly without paying attention. The most common failure modes are:

• Range break. A grid configured for a sideways market can accumulate a one-sided position when price trends out of the range, leading to large unrealised losses or liquidation.
• Parameter error. A misplaced decimal in your stop-loss, take-profit, or grid spacing can cost the entire position. Always double-check before activating.
• Execution delay. A bot that should have closed a position at $X may execute at $Y because of network latency, RPC failure, or backend incidents.
• Backtest mirage. Strategies that look great on historical data often fail in live markets. Survivorship bias, slippage assumptions, and curve-fitting all conspire to flatter past performance.
• Set-and-forget. A bot is not an excuse to stop watching your positions. You are still responsible for everything it does on your account.

Because Perpex is non-custodial, you sign every meaningful action with your own wallet, and you carry the full security burden that comes with that. To make trading practical, Hyperliquid supports an agent wallet mechanism: a separate session key, generated on your device, that can place trades on your behalf without exposing your main wallet on every action. The agent wallet has narrow powers — it cannot withdraw funds — but it can open and close positions.

Risks you should be aware of:

• if your device is compromised, the agent wallet can be used to trade your account until you revoke it;
• if you sign an agent approval transaction without reading what you are signing, you may grant powers you did not intend;
• losing your main wallet, your seed phrase, or your recovery method means losing the funds — Celebit Ltd cannot help you recover them;
• phishing sites and fake apps that imitate Perpex try to harvest signatures from inattentive users; only download Perpex from official app stores or perpex.co.

Hyperliquid is a third-party protocol that Celebit Ltd does not develop, control, or audit. All trades placed through Perpex settle on the Hyperliquid network. That means:

• bugs, exploits, or unexpected behaviour in Hyperliquid's smart contracts or off-chain components can affect your funds;
• protocol upgrades, governance decisions, parameter changes, or new listings can change the risk profile of an open position without warning;
• insurance funds, auto-deleveraging, and clawback mechanisms exist on Hyperliquid but are not guarantees — their behaviour during stress events is uncertain;
• if Hyperliquid suspends a market, halts trading, or de-lists an asset, your ability to manage open positions may be temporarily or permanently affected.

Celebit Ltd has no power to override, fix, or insure against any of the above.

Trading through Perpex depends on a chain of components that can each fail: your device, your internet connection, the wallet provider, our backend, the RPC and WebSocket providers we use, the Arbitrum chain that hosts Hyperliquid, and the Hyperliquid protocol itself. Any of these can be slow, unreachable, or buggy at the exact moment you need them.

Possible consequences include trades that you cannot place, trades that you cannot cancel, stop-losses that do not trigger, position data that lags reality, and notifications that arrive late or not at all. Plan for these failures before they happen — do not assume that the app will always be there for you when the market moves against your position.

Perpetual futures rely on price oracles to determine mark prices, funding rates, and liquidation thresholds. Oracles can be wrong, can be manipulated, or can lag the broader market. A faulty oracle print — even for a few seconds — can trigger liquidations on otherwise healthy positions, and there is usually no recourse after the fact. The price feeds shown inside Perpex are sourced from Hyperliquid and from other providers; they are best-effort and may briefly diverge from one another.

Crypto regulation is evolving in every jurisdiction, and the rules that apply to perpetual futures, derivatives, and decentralized exchanges differ widely. A product that is legal where you live today may not be legal tomorrow. Restrictions can apply to retail traders, to specific asset types, or to leverage levels. Some jurisdictions ban these products entirely.

You are responsible for:

• understanding whether you are legally allowed to trade crypto derivatives in your country;
• declaring and paying any tax owed on profits, losses, fees, funding payments, and any other taxable events;
• keeping records adequate for your local tax authority — Perpex does not provide tax reports or fiscal statements;
• complying with any sanctions or anti-money-laundering rules that apply to you, including OFAC, UK HMT, EU, and UN sanctions regimes where relevant.

Celebit Ltd does not provide tax, legal, or regulatory advice. If you are unsure, talk to a qualified professional in your jurisdiction.

Perpex is software, written by humans, deployed on servers run by humans. Software has bugs. Servers go down. Engineers ship mistakes. We do everything we reasonably can to prevent that, but we cannot promise that Perpex will be perfect, that it will always be available, or that every number on the screen will be exactly right at every instant.

In particular:

• Perpex may go offline for maintenance, hot-fixes, or incident response;
• features may be added, changed, or removed at any time;
• data shown in the app — positions, balances, PnL, leaderboards, statistics — is best-effort and may briefly disagree with on-chain reality;
• notifications and price alerts may arrive late, out of order, or not at all;
• copy-trading replication may be paused, throttled, or stopped if our backend cannot keep up.

The on-chain network is the source of truth for your positions, not Perpex's display.

Putting most of your capital into a single venue, a single asset, a single trader, or a single strategy is the fastest way to turn a recoverable loss into a permanent one. Hyperliquid is one venue out of many. Any single market, however well-known, can experience an outage, an exploit, or a regulatory action that impairs your access to funds for hours, days, or longer.

Diversify your exposure where it makes sense, keep emergency funds outside any trading venue, and never assume that any single platform — including Perpex — will always work the way it did yesterday.

By installing the Perpex apps, connecting a wallet, or placing any order through Perpex, you confirm that:

• you have read and understood this Risk Disclosure;
• you understand that perpetual futures and leveraged crypto trading are high-risk activities;
• you understand that you may lose part or all of your capital;
• you are using only money you can afford to lose;
• you accept full responsibility for every trade placed on your account, manually or by automation;
• you accept that Celebit Ltd is not your broker, your adviser, or your counterparty, and is not liable for trading losses.

If any of the above is not true for you, the right action is simple: do not use Perpex, or stop using it now. The market will still be here when you are ready.