Is GMX Safe?

|Derivatives
C

Risk Grade: C (48/100)

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

High risk — proven hack history and structural vulnerability where oracle delays create guaranteed extraction from the liquidity pool

A perpetual futures exchange where liquidity providers act as the house against all trades, earning fees but absorbing trader profits. It holds $600M in its liquidity pool across Arbitrum and Avalanche. Its C- grade reflects a $42M hack in July 2025 and persistent oracle exploitation risk.

TVL

$267M

Mechanisms

8

Interactions

6

Value Grade

B-

Key Risks for GMX Users

1.

GMX was hacked for $42M in July 2025 through a reentrancy bug in old V1 contracts that are still holding user funds alongside the newer V2

2.

All trades are priced by Chainlink oracles. Even a brief delay or inaccuracy in the price feed lets traders extract guaranteed profits from the liquidity pool at your expense

3.

When the market trends strongly in one direction, traders win big and the liquidity pool pays out. Pool depositors lost 15-20% during past crypto rallies, wiping out months of earned fees

Top Risk Factors

  • $42M reentrancy exploit in July 2025 on V1 contracts demonstrates persistent legacy code risk despite V2 migration
  • Heavy oracle dependency for zero-slippage pricing creates systemic exposure to Chainlink feed manipulation or downtime
  • GLP/GM pool liquidity providers act as counterparty to all trades, concentrating directional risk during trending markets

Risk Score Breakdown

GMX's highest risk area is Oracle Surface (7/10). Here's how each dimension contributes to the overall 48/100 score:

Mechanism Novelty3/15
Interaction Severity10/20
Oracle Surface7/10
Documentation Gaps3/10
Track Record10/15
Scale Exposure5/10
Regulatory Risk3/10
Vitality Risk7/10

Read the Full GMX Risk Report

This protocol has 2 collapse scenarios. 4 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.