Risk management in DEX
vDEX is the only DEX that offers full-scale, level-5 risk management. Why is this unprecedented level of risk management essential for traders & LPs?
Level 1 (LP Basic Hedging)
Funding Rate, Diversify exposure.
Utilizing funding rates to offset costs and diversifying exposure to minimize risks associated with single-asset fluctuations
Level 2(LP Advance Hedging)
Auto exposure hedges, Zero impermanent loss
Automated exposure hedges that dynamically adjust to the trader’s open interest. VLP model suffers no IL, unlike Uniswap.
Level 3 (LP Ultimate Hedging)
Tail-risk protection
The VLP pool acts as an automatic dual investment buyer, which means traders can sell insurance to the VLP pool to earn a premium.
Level 4 (Trader Basic Hedging)
Stop-Loss/Take-Profit, Conditional order
For traders, basic hedging starts with strategic tools such as stop-loss and conditional orders to manage risks and lock in profits in the ever-changing market tides.
Level 5 (Trader Ultimate Hedging)
Perpetual Options
The ultimate hedging tool for traders is perpetual options, offering unparalleled flexibility and control over your trading positions.
