Risk Disclosure

Last updated: 2026-05-06 · Public Beta

1. Beta software

Mersennet Trade runs on the Mersennet testnet and has not undergone a third-party security audit. Bugs may exist that result in total loss of deposited funds. Do not deposit more than you can afford to lose.

2. Protocol risk

Order matching, margin, and collateral accounting run inside Mersennet’s native order-book engine (the CLOB precompile at 0x…0100). Despite best practices, undiscovered vulnerabilities may exist in the chain engine or this interface. The network is a testnet and may be reset at any time.

3. Market risk

Perpetual futures use leverage of up to 20x. Adverse price movements can cause partial or full liquidation. Funding payments (positive or negative) may meaningfully affect your PnL over time. Markets in beta may have wide bid-ask spreads and shallow depth.

4. Price-reference risk

Mark prices derive from the on-chain order book mid, with external reference feeds used for display and chart seeding. Thin books can produce stale or skewed marks, which may affect liquidation timing.

5. Infrastructure risk

Matching happens atomically on-chain — there is no off-chain sequencer. However, RPC or indexer downtime means this interface may not reflect live state or accept new orders, though you can always interact with the Mersennet order-book engine directly over RPC.

6. Counterparty risk

PnL is settled from a shared on-chain pool. In extreme scenarios where a liquidation cannot recover enough collateral to cover the counterparty’s profit, the deficit is absorbed by the insurance fund. If the insurance fund is depleted, profitable trades may experience socialized losses.

7. Network risk

Mersennet Trade is deployed on the Mersennet. Chain reorgs, RPC outages, or fee spikes may temporarily affect order placement, settlement, and withdrawals. The Mersennet has 6-second finality but is not immune to short reorganizations.

8. Regulatory risk

Crypto derivatives are unregulated or restricted in many jurisdictions. You are responsible for ensuring your use of Mersennet Trade complies with applicable laws in your country, state, or region. Mersennet Trade does not provide investment, tax, or legal advice.

9. No warranty

Mersennet Trade is provided AS-IS with no warranty of any kind. By using the platform you accept all risks. The protocol developers are not liable for any losses arising from use of the software, smart contracts, or front end.

10. Reporting issues

If you discover a security vulnerability, do not exploit it. Report to security@mersennet.com. Bug bounties may be paid case-by-case during beta.

By using Mersennet Trade you acknowledge that you have read, understood, and accept all of the above risks.