Trading puts your active collateral at risk. Payout funding, oracle prices, software, governance, and account security also affect your funds.
Leverage and execution
Section titled “Leverage and execution”Each market sets its leverage range within 1×–1,000×. At 1× and 1,000×, the initial liquidation distances are about 99.96% and 0.06% with the illustrative 0.02% buffer at the launch 2× multiplier, before rounding: the margin’s distance less the market’s 0.02% liquidation buffer times the multiplier. Liquidation still takes all active collateral. A small price move can trigger it.
Orders and closes use later oracle prices. A touch of the liquidation price settles before margin activations and closes, including take-profits and stop-losses. Added margin increases the amount at risk; its protection begins at activation.
Payout liquidity
Section titled “Payout liquidity”With enough treasury cash, profit is paid at settlement. If a payout exceeds available cash, the unfunded portion enters the queue as an unpaid claim. Its payment depends on future cash flow and can be delayed indefinitely.
You can also give up a claim for MOG. That is final: you receive MOG, not cash, and its value is not guaranteed.
Oracles and infrastructure
Section titled “Oracles and infrastructure”Mog relies on accurate source prices, verified oracle updates, and correct settlement. Incorrect or manipulated updates can cause losses. Each market’s open-interest rules limit how fast the gap between longs and shorts can grow and how large one side can get, so a push of the source price needs time to build a large position and must hold it at risk while it ages. While one side leads, its profits grow more slowly. The rules do not limit matched positions on both sides, and they are only as good as the depth estimate behind them. Network congestion, outages, and delayed updates can extend exposure and delay actions.
Positions remain exposed during interruptions. Recorded barrier touches can close them when processing resumes. Smart-contract or integration defects can also put funds at risk.
Governance
Section titled “Governance”The launch governance delay is 24 hours. Global parameter bounds and protocol module replacements use the timelock. The threshold, the liquidation buffer multiplier and the skew dial use it too, and so do each market’s open fee rate and cap. A threshold change moves the buyback allocation, the buffer rule, the split of each minted dollar between trading and deposits, the team share and the unlock count at once. A lower threshold can start the token’s unlock, which cannot be reversed. A multiplier change reaches only later fills. Governance can change an asset’s close-curve width, liquidation buffer, leverage range, open-interest rules and price-signing key, and the venue’s fade time and curve exponent k, in either direction, without that delay. An order with no room on its side at fill is voided, and its collateral and open fee return. Payout and entry terms stay within the global bounds. An asset change takes effect only after every published price update for that market has been processed, so it affects only fills priced after it; open positions keep their frozen terms. A fade time or k change can be made only while every market is at rest, with every published price update on every market processed. In practice each wait takes seconds. The side cap, the drift and volatility dials and the fade time are the exception to frozen terms: a change reaches every open position’s future profit through the drift charge and the volatility charge. Emergency pauses can stop new orders and margin requests sooner; accepted actions continue under their settlement rules.
The protocol has authority to mint MOG. A malicious upgrade could break its mint rules. The supply cap and the token lock are in the token itself, so an upgrade cannot move them. Governance can also airdrop MOG through the timelock, inside the supply cap, until it gives that power up.
Where are your funds?
Withdraw with your main wallet.
Wait for settlement, refund, or claim payment.
Funds in positions, pending orders or margin additions, and unpaid claims can remain committed beyond the governance delay.
Wallets and sessions
Section titled “Wallets and sessions”A compromised main wallet can control the account, withdraw cash, and give up claims. A compromised session can put funds at risk through trading and margin additions. Revoke affected sessions and review pending actions.
USDG and MOG
Section titled “USDG and MOG”USDG depends on its issuer, network, and availability. Test deployments use test assets.
MOG’s price and liquidity depend on market conditions. MOG can be worth less than the fees you paid, the claim you gave up or the USDG you contributed to the treasury. A contribution is one-way: you can never withdraw it. The MOG rate falls as supply grows, so the rate for giving up a claim can fall while you wait. The skew multiplier for an open position is an estimate until the position settles. MOG is locked until the venue has stood at the threshold for 7 days, and that may never happen. Buybacks depend on the operator, available funding, and market liquidity.