FXED Labs Co. LLC · Risk disclosure
Capital is at risk. Read this before you deposit.
Perpetual contracts can result in the total loss of posted margin. Liquidity provision can result in the loss of vault deposits. This disclosure is a summary of material risks. It is not complete. The specification is Whitepaper FXED-WP-3.0. Settlement is the contracts on Arbitrum One.
FXED Labs Co. LLC is not a broker-dealer, FCM, bank or registered exchange. Not offered to US persons. No APY is quoted. No result is guaranteed.
1. What we are not
The operator does not take custody of your USDC. It does not guarantee fills, marks, uptime, or vault NAV. It does not give investment advice. vFX is a vault share, not a deposit, not a note, and not a promise to repay.
2. Trader: leverage and liquidation
Leverage amplifies gains and losses. Isolated positions can go to zero on the locked margin. Cross positions can consume available collateral. Liquidation may occur in seconds when the mark moves. A weekend gap on FX can skip through maintenance. You may lose the entire posted margin. You cannot lose more than the USDC attributed to your sleeves in the vault — unless you sign a transaction that moves more.
3. Trader: payout risk
A profitable close is a credit against vault cash. Credits print only if solvency after the credit is at least 110% (constructor) and the daily LP loss cap is not exhausted. Otherwise the gain can be delayed or unpaid. You are an unsecured receivable against a capped book. Size tickets as if payout can fail.
4. LP: underwriting
LPs are the other side of the ticket. Trader losses increase residual; trader gains decrease it. NAV can fall, including to zero if liabilities exceed cash. A four-day lock (constructor) applies from the last deposit. Pause and owner functions can halt redeem. This is not a savings account. No APY is offered. Informed flow can hurt LPs.
5. Oracle and operator
Marks are a push feed. A single updater publishes mid and spread. Execution is operator-submitted: the engine does not pull the oracle on open. A stale, silent or wrong print can move PnL and liquidations. A compromised updater or owner is not “on-chain safety.” There is no timelock specified in the whitepaper. Read FXED-WP-3.0 §10, §13, §20 and §25.
6. Hours and gaps
FX book: closed Friday 21:00 UTC to Sunday 21:05 UTC. Positions may remain open. They are not marked while the FX feed is down. Metals, energy, indices and crypto print if the updater is live. A gap on reopen can liquidate.
7. Venue and quote
Settlement is on Arbitrum One. Sequencer halt, reorg, congestion or a USDC event can freeze withdraw, liquidation and marking. Smart-contract bugs remain possible. ZeroDrift in-scope and Immunefi live are process facts, not a warranty.
8. Who bears what
| Risk | Bearer | Note |
|---|---|---|
| Leverage / liquidation | Trader | Posted margin can go to zero. |
| Trader net gains | LP | NAV falls. Daily cap may stop paying traders. |
| Solvency below 110% | Trader (receivable) | Gains delayed or unpaid. |
| Oracle / operator / owner | Both | Trusted marks, execution, parameters. |
| Pause / four-day lock | LP and trader | Normal flow can halt. |
| Unhedged book | LP | Hedger is a ledger, not a fill. |
| Chain / USDC | Both | External. No protocol hedge. |
| Access / law | User | Not offered to US persons. |
FXED Labs Co. LLC, Delaware. FXED-RSK-1.0 · 16 September 2026. Read FXED-WP-3.0 before you deposit.