What is HFDX?
HFDX is a non-custodial, on-chain decentralized exchange (DEX) that allows users to trade perpetual contracts directly from their own wallets. In addition to trading, HFDX offers optional protocol features that allow users to participate in liquidity loan note arrangements designed to support platform liquidity and operations.
Does HFDX ever take custody of my funds?
No. HFDX does not take custody of user funds. All trading and participation features operate through smart contracts. Users retain control of their assets at all times, subject to the rules of the smart contracts they choose to interact with.
What are Liquidity Loan Notes?
Liquidity Loan Notes are optional on-chain arrangements where participants may make digital assets available to protocol-controlled smart contracts for a defined period. These assets are used to support liquidity, risk management, or protocol operations, and may generate returns based on predefined terms.
How are returns generated?
Returns, where applicable, are derived from protocol-level activity, which may include trading fees, funding rates, liquidity utilization, and other on-chain mechanisms. Returns depend on overall market conditions and protocol usage.
Can I withdraw early from a Liquidity Loan Note?
Early withdrawal availability depends on the specific terms of the loan note selected. Some arrangements may include lock-up periods or reduced liquidity. Where early exit is permitted, it may be subject to conditions or penalties.
What are the risks involved in investing into a Liquidity Loan Note (LLN)?
Liquidity Loan Notes involve risk, including potential loss of capital. Returns are not guaranteed and may vary due to market conditions, smart contract risk, liquidity constraints, and regulatory factors.
Who can use HFDX?
HFDX is a permissionless protocol. However, HFDX does not actively market, solicit, or target users in certain jurisdictions, and access to certain features may be restricted depending on applicable laws. Users are responsible for ensuring their use of the platform complies with local regulations.
