Is Extended Safe?

|Derivatives
B-

Risk Grade: B- (33/100)

Extended is rated as moderate risk — some novel mechanisms, generally well-understood.

Moderate risk — novel Starknet-native architecture and sequencer dependency create meaningful infrastructure risk, balanced by experienced team and comprehensive documentation.

Extended is a perpetual futures DEX on Starknet built by a former Revolut team, offering crypto and TradFi asset perpetuals with cross-asset collateral and up to 100x leverage. With $216M in trading volume and $6.5M in funding, its B- grade reflects solid documentation and institutional backing, balanced against sequencer dependency and limited operational history since its August 2025 mainnet launch.

TVL

$205M

Mechanisms

6

Interactions

5

Value Grade

D+

Key Risks for Extended Users

1.

The protocol runs entirely on Starknet, meaning if the Starknet sequencer goes down during volatile markets, your positions cannot be managed or liquidated. This has happened on other chains like Solana.

2.

Cross-asset collateral means a crash in one asset could trigger liquidations that affect your entire portfolio across different asset types, even positions that are individually healthy.

3.

The protocol launched on mainnet in August 2025 and has not yet been tested through a major market crash or black swan event.

Top Risk Factors

  • Built on Starknet with unified margin logic embedded in the base layer, creating deep coupling between the exchange and the underlying chain. Any Starknet sequencer downtime or censorship could halt all trading and liquidations.
  • Cross-asset collateral and unified margin mean a severe price dislocation in one asset class (e.g., TradFi perps) could cascade into liquidations across all user positions, including crypto holdings.
  • Relatively new protocol (mainnet August 2025) with limited track record through extreme market conditions. The unified margin system has not been stress-tested through a major market crash.
  • Oracle dependency for both crypto and TradFi asset pricing creates a broad attack surface, particularly for less liquid TradFi instruments where price manipulation may be easier.

Risk Score Breakdown

Extended's highest risk area is Oracle Surface (5/10). Here's how each dimension contributes to the overall 33/100 score:

Mechanism Novelty3/15
Interaction Severity6/20
Oracle Surface5/10
Documentation Gaps2/10
Track Record6/15
Scale Exposure5/10
Regulatory Risk3/10
Vitality Risk3/10

Read the Full Extended Risk Report

This protocol has 2 collapse scenarios. 3 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

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Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.