Risk Disclosure

Perpetual futures on Alakazam allow you to open positions whose notional value is a multiple of your margin (leverage). Leverage amplifies both gains and losses.

• A small adverse move in the underlying reference price can wipe out your entire margin and result in a total loss of the posted collateral for that position.
• The maximum leverage permitted on a market is a platform parameter and may be lowered at any time without notice.
• Fees, funding, and slippage are applied on the full notional, not on your margin. At high leverage, routine frictions can consume margin quickly.

When your margin ratio falls below the market's maintenance margin, your position is subject to liquidation.

• Phase I liquidations are admin-triggered. An off-chain keeper monitors positions and submits on-chain liquidation transactions when thresholds are breached.
• Liquidations incur a 50 basis-point (0.50%) liquidation fee on the notional value of the closed position.
• Losses exceeding remaining margin are absorbed by the insurance-fund waterfall: position margin, protocol insurance fund, then auto-deleveraging of profitable counterparties in extreme cases.
• Keeper availability, network congestion, or oracle latency can delay a liquidation and result in a worse fill than the marked liquidation price.

Perpetual futures do not expire. Alakazam applies a funding payment between longs and shorts to tether the mark price to the underlying index.

• Funding accrues hourly.
• The sign of funding can flip between hours. You may pay funding minutes after receiving it.
• Long-term funding drag can be material and can cost several percent of notional per week in structurally one-sided markets.
• Funding is charged on notional, so at high leverage the effective drag on your margin is magnified.

Alakazam offers perpetuals on underlying assets whose primary cash markets have defined trading hours.

• When the underlying cash market is closed, Alakazam references a synthetic reference price. This is an approximation and may diverge from where the cash market reopens.
• Gap risk at the open is material. Positions that looked safe during off-hours can be liquidated within seconds of the cash market reopening.
• Scheduled and unscheduled market closures can extend the off-hours window and increase gap risk.

• Single-source dependency. Phase I markets depend on a single primary oracle feed per market. Feed failure halts price updates for the affected market.
• Staleness guard. Oracle updates older than 60 seconds are rejected. During a stale-oracle window, new orders may be rejected and liquidations paused, but market risk on your open position continues.
• Manipulation. Oracles can be manipulated by adversaries targeting low-liquidity reference venues or compromised publishers.
• Keeper availability. Oracle publishers, funding keepers, and liquidation keepers are off-chain services subject to outages.

• The code is under internal review by the team; a full external audit is planned pre-mainnet. Alakazam does not currently claim a completed external audit.
• Immutability is pending. The decision on whether to renounce admin keys is an open architectural question. Until then, privileged roles can upgrade or pause contracts.
• A circuit breaker and insurance fund backstop extreme events but do not guarantee protection against loss.

• Sui network availability. Validator incidents, consensus halts, or fee-market congestion can prevent trading for extended periods.
• Wallet and signer risk. You are responsible for the security of your wallet, private keys, and signing devices. Alakazam cannot recover compromised wallets.
• Web UI availability. The Alakazam web UI, API, and websocket services depend on commercial cloud providers and CDNs that can fail or degrade.

• Orderbook thinness. Market makers are not obligated to quote. Fills may be at significant slippage from the last trade price.
• MM bots can pause at any time without notice. Spreads widen and large orders can move the mark materially.
• There is no guaranteed exit. You may not be able to close a position at or near the displayed mark price, or at all, during stressed conditions.

Decentralized perpetual-futures trading is not permitted in all jurisdictions. Alakazam restricts access from a set of blocked jurisdictions and reserves the right to restrict access at any time. See the Geo Policy for the current list and attestation requirements.

You are responsible for understanding and complying with the laws of your own jurisdiction, including tax treatment of derivatives trading.