Primex is a non-custodial protocol, meaning only you control your funds and interact with smart contracts. Before the launch, the protocol will be audited, and the results will be public. The code will be open-source, so everyone will get a chance to review it.
In Margin trading, Traders can use larger sums of liquidity than they can really return. Crypto assets are very volatile, so there is always a risk for any trade to become unprofitable and, indeed, gap below the initial margin.
We build several “lines of defense” to guarantee the safety of Lenders’ funds:
Liquidity usage is limited by specific actions - borrowed assets can only be swapped for a specific list of assets and swapped back.
Prices are verified with a decentralized oracle to protect from price manipulation.
Positions that become too risky are liquidated by decentralized Keepers, and Traders’ deposit is used to cover losses.
Bucket parameters are regularly updated to correspond to market conditions.
An emergency shutdown system continuously monitors Buckets and assets for abnormal activity or price fluctuations to pause suspicious pairs or risky Buckets.
Fees accumulated in the Reserve and Treasury are used to pay debts.
In a fatal situation, the whole protocol can be stopped.