Legal

Risk Disclosures

Last updated 31 August 2026

1. 01Leverage can lose you everything

   Perpetual futures are leveraged instruments. At 20× leverage, a move of roughly 4–5% against your position can eliminate the margin behind it. Losses can consume your entire account balance — including collateral backing other positions, because the account is cross-margined. Never trade with funds you cannot afford to lose entirely.

2. 02Liquidation is automatic

   If your equity falls below the maintenance margin your positions require, they are closed automatically by a fixed rule, at the prevailing mark price, with a liquidation fee. Fast markets can move through your estimated liquidation price; the price you are closed at may be worse than you expected.

3. 03Funding is a cost as well as an income

   Funding payments are exchanged between longs and shorts every hour. Depending on your side and market conditions, funding can be a recurring cost that erodes a position even when the price does not move against you.

4. 04Rewards are promotional, not interest

   Rewards points are a promotional loyalty program, earned by trading activity and redeemable only within the exchange. Points are not money, carry no cash value, pay no interest, and are not a right to any payment. Earn rates, redemption terms and tiers can change or be discontinued, and points can expire. Holding USDλ earns nothing by itself — it pays no interest and is not a bank deposit or insured by any government scheme.

5. 05USDλ depends on its backing

   USDλ is backed by reserves held in escrow contracts. Its value depends on those reserves — including the stablecoins and instruments that constitute them — remaining sound and redeemable. A failure, depeg or redemption suspension in an underlying asset would affect USDλ.

6. 06Smart contracts can fail

   The Protocol is software: smart contracts, cryptographic circuits, bridges and infrastructure. Software has bugs. A defect, exploit or design flaw — in the Protocol, in a chain it runs on, or in a system it depends on — could cause loss of funds. Proofs verify that stated rules were followed; they cannot prove the rules themselves are free of flaws.

7. 07Bridges and other chains

   Deposits and withdrawals cross between blockchains. Cross-chain transfers depend on the correct operation of multiple networks, contracts and relayers, and can be delayed by congestion, finality or outages on chains we do not control.

8. 08Your keys, your responsibility

   Lambdachain is self-custodial. Whoever holds your keys holds your funds; a lost key, a compromised device or a signed transaction cannot be reversed by us. There is no password reset and no support line that can restore access.

9. 09Oracles and market data

   Mark prices, index prices and funding depend on oracle data. Incorrect, stale or manipulated data — or thin liquidity in an underlying market — can affect valuations, funding and liquidations.

10. 10Liquidity is not guaranteed

    You may not be able to open, close or exit a position at the price or size you want. Order books can be thin, spreads can widen, and withdrawals of size can take longer than usual while reserves are rebalanced.

11. 11Regulation is unsettled

    The legal treatment of perpetual futures, stablecoins and yield-bearing instruments varies by jurisdiction and is changing. Regulatory action could restrict, alter or end the availability of some or all of the Protocol’s features, in some or all places, with little notice.

12. 12The testnet is a rehearsal

    Today the Protocol runs on a test network with play money. Testnet behaviour — performance, liquidity, yield, uptime — is not a prediction of mainnet behaviour, and testnet balances have no value and may be reset at any time.

13. 13Forward-looking statements

    Roadmap items — new markets, options, prediction markets, public vaults, spot — are intentions, not commitments. They may ship differently, later, or not at all.