Moderate risk — 5+ year track record with standard perpetual design, balanced against cross-chain oracle risks and LP counterparty exposure to high-leverage trading.
Top Risks
1
MUX pools cross-chain liquidity from multiple networks to provide zero-price-impact leveraged trading up to 100x, but this aggregated liquidity model means a smart contract failure on any single chain could affect the unified liquidity pool and expose LPs across all chains.
2
MUXLP liquidity providers serve as counterparty to traders. During sustained one-directional market moves, trader profits are paid from the LP pool, creating potential for significant LP losses if risk management mechanisms (funding rates, position limits) fail to balance open interest.
3
MUX relies on external oracle feeds for position pricing and liquidations across multiple chains. Oracle latency or manipulation on any chain could enable traders to exploit price discrepancies at the expense of liquidity providers.
4
As a derivatives aggregator, MUX routes trades to underlying perp DEXs (like GMX). This creates dependency on third-party protocol availability and introduces composability risk where MUX's positions could be affected by incidents at integrated protocols.
Risk Breakdown
Frequently Asked Questions
Is MUX Perps safe to use?
MUX Perps receives a B- risk grade (28/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — 5+ year track record with standard perpetual design, balanced against cross-chain oracle risks and LP counterparty exposure to high-leverage trading. MUX Protocol is a decentralized leveraged trading platform and perpetual futures aggregator offering up to 100x leverage with zero price impact, operating across Arbitrum, BSC, Optimism, and other chains with approximately $10M in total value locked. Founded in 2019 as MCDEX, the protocol's B grade reflects its relatively long track record of over 5 years with no major exploits, standard perpetual futures design, and use of Chainlink oracle feeds, balanced against the inherent risks of cross-chain liquidity aggregation, LP counterparty exposure to high-leverage traders, and dependency on integrated third-party perp DEXs.
What are the main risks of using MUX Perps?
The key risks identified for MUX Perps are: (1) MUXLP liquidity providers serve as counterparty to traders. When traders profit on leveraged positions up to 100x, those profits come directly from the LP pool. Sustained directional market moves with high open interest can cause significant LP losses. (2) MUX aggregates liquidity across multiple blockchains, which creates deeper markets but also means oracle price feed latency differences between chains could be exploited by sophisticated traders at LP expense. (3) As a derivatives aggregator, MUX routes trades to underlying protocols like GMX. An exploit or failure at an integrated venue could affect MUX positions and users may not be aware of the underlying routing risk. (4) MCB token emissions incentivize liquidity provision. If emissions are reduced or end, some LPs may withdraw, potentially reducing trading liquidity and increasing slippage for traders.
What is MUX Perps's risk score breakdown?
MUX Perps scores 28/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 5/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 2/15, Scale Exposure: 3/10, Regulatory Risk: 5/10, Vitality Risk: 4/10. The highest risk area is Oracle Surface at 5/10.
How does MUX Perps compare to other Derivatives protocols?
Among 53 rated Derivatives protocols on Hindenrank, MUX Perps ranks #2 by safety (lowest risk score = safest). Its 28/100 risk score and B- grade place it among the safer Derivatives protocols.
Has MUX Perps ever been hacked or exploited?
MUX Perps scores 2/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.