Is Gains Network Safe?

|Derivatives
C+

Risk Grade: C+ (40/100)

Gains Network is rated as elevated risk — multiple novel mechanisms and notable interaction risks.

Moderate risk — extreme leverage amplifies every oracle error by up to 1000x, with vault depositors bearing all the losses

A synthetic trading platform offering up to 1000x leverage on forex, 150x on crypto, and 100x on stocks, all settled through price feeds rather than actual asset swaps. It holds $50M in its vault that acts as the house against all trades. Its C grade reflects extreme oracle sensitivity at 1000x leverage.

TVL

$23M

Mechanisms

8

Interactions

6

Value Grade

B-

Key Risks for Gains Network Users

1.

At 1000x leverage on forex, a tiny 0.1% price feed error creates a 100% profit for the exploiter, paid directly from the vault that holds your deposits

2.

If traders consistently win more than the vault earns in fees, new GNS tokens are printed and sold to cover the gap. This dilution can spiral if it shakes confidence

3.

Security auditors found vulnerabilities in copies of this code that allowed 900% abnormal profits. The core code may have similar issues

Top Risk Factors

  • Up to 1000x leverage on forex pairs amplifies oracle manipulation risk; a 0.1% price manipulation at 1000x creates a 100% position profit extracted from vault depositors
  • GNS token minting backstop for vault shortfalls creates a potential dilution death spiral if trader wins consistently exceed vault income
  • Zellic audit found vulnerabilities in Gains fork protocols allowing 900% abnormal profits via stop-loss/take-profit manipulation, raising concerns about core logic robustness

Risk Score Breakdown

Gains Network's highest risk area is Oracle Surface (7/10). Here's how each dimension contributes to the overall 40/100 score:

Mechanism Novelty5/15
Interaction Severity10/20
Oracle Surface7/10
Documentation Gaps3/10
Track Record3/15
Scale Exposure3/10
Regulatory Risk3/10
Vitality Risk6/10

Read the Full Gains Network Risk Report

This protocol has 2 collapse scenarios. 1 critical and 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.