Risk Management
Crypto and leverage trading are both high risk territories
Risk Recognition
Crypto market and especially decentralize finance (DeFi) is at the frontier of the financial markets. This is the area of great opportunities and risks for financial returns. Please be aware and proceed with care and prudence. Trading is a sophisticated act of money making. Trading with leverage increases both opportunities for money making as well as amplifies risks of losing money. Only use leverage for high conviction trades and when in doubt, deleverage and don't trade at all.
Smart Contract Risk
Smart Contract Risk remains one of the largest risks in the blockchain space. This is appliable to any project, large or small. Thus, it is advisable that you take caution when interacting with any smart contract applications. We take this security risk to the top concern of our team and code, review code, audit, test, set bug bounties program, and frequently stress test the protocol, however, there is always the risk of vulnerabilities in the smart contract code.
Price Slippage
Thanks to Oracle for price discovery mechanism (ChainLink's price feed aggregated from leading exchanges), OpenWorld's traders is cover from bid-ask spreads and actual price slippage through their own orders, however, there is still potential price slippage that is caused by the time the trader execute the trade to the time the trade is registered on-chain with the blockchain. Unless during extreme market conditions, this should not be materially impact the trader's order execution. The trader is able to set how much tolerance she is comfortable with taking this price slippage through the setting in the trading dashboard.
Fraud, Scam, Impersonation Risk
Unfortunately with anonymity, technological complexity, and notoriously unfriendly user experience front-ends of crypto space, the place is plagued with frauds, scams, and impersonators. Please be advised to exercise great caution when interacting with any person online and project applications. Please check:
URL has https://. The https is an extension of http that used for secure communication over computer networks. Reduce risk of attacks to your computer.
Make sure the website you are interacting is, correct to each letter: https://openworld.vision.
When exercise purchase OPEN from decentralize exchange, make sure the contract address is:
0x27a339d9B59b21390d7209b78a839868E319301B
BSC Smart Contract Address to verify: [Link]
No OpenWorld team member will ask for funding from anyone. We also generally do not reach out in cold contact manner.
Risks We Are Exempted From
Custodial Risk, Embezzlement: Traders trade directly from their wallets and the OpenWorld protocol has no access to traders' assets. Thus there is no possible way for us to misuse users' funds like cases with centralized exchanges such as FTX, QuandrigaCX, or lose trader's money as in the case of Mt. Gox.
Stop Hunt, Conflict of Interests: OpenWorld is a trade facilitator, connect liquidity providers to traders and make money through fees such as transaction fee for trading and subscription fee for staking. OpenWorld does not trade against traders nor have a dealing desk of it own. OpenWorld also does not make the market as the price making mechanism is from third party through ChainLink Oracle.
Market Manipulation: As we don't take position against traders and have our own dealing desk, we have no interest in impacting market prices.
Risks We Have To Deal With
Market manipulation from large traders: Large volume traders might try to exploit our system and set trades that can inflict large losses to liquidity providers, especially during unusual market conditions.
High Frequency Bot Traders: High frequency bot traders can try to exploit the system and take advantage of the exempt of price impact on perpetual decentralized exchange that use Oracle for pricing, as well as zero price impact for swapping on spot market.
Hackers.
Risks from infrastructure providers: such as integrity of ChainLink Oracle, stability of the Layer 1 protocol we work upon, security parties such as Gnosis for treasury function, and so on.