HedgerX risk disclosure: trading, programs and token
Crypto trading can lose all your money, and futures with leverage can do it fast. The programs HedgerX offers carry further risks of their own. This page collects them in one place and links to the detail.
This site is independent and gives information, not financial, investment, tax or legal advice. Do not put in money you cannot afford to lose.
Trading risks
- Leverage. It multiplies losses as well as gains. HedgerX says a 10% move against you liquidates a 10x position, and a 1% move liquidates a 100x one. If you set nothing, HedgerX defaults to 20x.
- Liquidation and auto-deleveraging. The exchange can close positions by force. In extreme conditions it can also close profitable positions to cover shortfalls. See forced liquidation.
- Orders. An executed order cannot be cancelled, and market orders can fill at worse prices.
- Funding fees. Holding a futures position across a settlement can cost money.
- Changing rules. HedgerX may change leverage, position limits and margin requirements, and may suspend trading in extreme markets.
Exchange and counterparty risks
- Reserves and audits. HedgerX publishes no proof of reserves and no audit report. Its claims about cold storage and licences are not yet confirmed.
- Regulation. The only regulatory status it names is a FinCEN registration. Its terms cap liability at the fees you paid and name no jurisdiction for disputes.
- Access. It says services are not available in China, Turkey, Kazakhstan and Indonesia, and it may restrict, freeze or close accounts.
- Withdrawals. A security change locks withdrawals for 24 hours, and risk control can restrict them.
- Scams. Fake sites, fake support accounts and phishing messages target exchange users. See phishing protection.
Program risks
- Hedger AI. HedgerX states that benefits stop at five times the Core Charging amount, that half is paid in HEX and that withdrawals need futures trading. The results shown in the app are self-reported and not independently audited. See Hedger AI.
- Hedger Pay. Payouts stop at three times the amount invested, half is paid in the HedgerX token and withdrawal needs futures trading. See Hedger Pay.
- Nodes and referral plans. Payouts depend on team performance, and one benefit has no stated base.
Token risks
HEX is a utility token with a supply target that has no dates, and its value depends on supply and demand. The whitepaper publishes no vesting schedule, burn addresses or audit report. See the HEX page.
Risks in this information
HedgerX changes its rules and documents. Each of our pages shows the date it was checked. If you spot an error, write to [email protected] and we will correct the page.
Frequently asked questions
Does HedgerX guarantee profits?
No. Its contract risk disclosure says it does not guarantee profits and will neither share gains nor cover losses.
Can I lose more than I deposit?
HedgerX describes liquidation as closing the position and returning any remaining margin. In cross margin mode you can lose the whole balance in that currency. Auto-deleveraging can also close profitable positions in extreme conditions.
Are my funds insured?
No statement of insurance is published. HedgerX mentions an insurance fund that covers shortfalls in liquidations, which is not deposit insurance.