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  • Electra
    • About Electra
  • Electra Terminal Guide
    • 1.1 Connecting your EVM wallet
    • 1.2 BNB/ETH Gas Fees
    • 1.3 Deposits and Withdrawals
    • 1.4 1-Click Trading
    • 1.5 Notifications
    • 1.6 Electra Security & Audit Report
    • 1.7 Airdrop Checker FAQ
  • Electra Trading School
    • 2.1 What Are Perpetual Futures?
    • 2.2 Competitive Advantages of Electra for Perpetual Futures Trading
    • 2.3 Trading Fees on Electra
    • 2.4 Overview of Primary Order Types on Electra
    • 2.5 Futures Liquidation Protocols on Electra: Formula and Process
    • 2.6 How to Reduce the Risk of Liquidation on Electra
    • 2.7 Automatic Negative Balance Reset on Electra
    • 2.8 How to Adjust Leverage on Electra
    • 2.9 What Is Slippage?
    • 2.10 How to Use the Order History Feature on Electra
    • 2.11 Order Errors on Electra: Causes and Solutions
    • 2.12 Referral Program
  • Electra Tournaments
    • SQUAD Games Season 2
      • General Rules
      • How to Participate
      • Squad Formation
      • Squad Referral Links
      • Tournament Prizes
      • FAQs
    • SQUAD Games Season 1
      • Tournament Prizes
      • Tournament Schedule
    • PnL Challenge
  • Electra Liquidity Provider Pool
    • Introduction to ELPP
    • How ELPP Works
    • ELPP Tokens
    • Withdrawal System
      • Understanding Epochs
      • Timelock Calculation
      • Token Transfer Restrictions
      • Partial and Flexible Withdrawals
    • Collateralization
    • APY Calculation
    • Risks and Considerations
    • FAQ
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On this page
  • Trading Performance Risk
  • Withdrawal Timelock Considerations
  • Smart Contract and Market Risks
  • Important Disclaimers
  1. Electra Liquidity Provider Pool

Risks and Considerations

While ELPP offers many advantages, it is important to understand the inherent risks:

Trading Performance Risk

The value of ELPP tokens is directly tied to broker trading performance:

  • During profitable periods, ELPP value increases

  • During unprofitable periods, ELPP value decreases

  • Historical performance is not indicative of future results

Withdrawal Timelock Considerations

The epoch-based withdrawal system means:

  • You cannot instantly withdraw your funds

  • Withdrawal periods extend during times of negative performance

  • You must plan ahead for liquidity needs

Smart Contract and Market Risks

As with any DeFi protocol:

  • Smart contracts may contain vulnerabilities despite audits

  • Technical issues could affect accessibility or functionality

  • Extreme market volatility could affect broker performance

  • Liquidity crises in external markets might impact trading operations

Important Disclaimers

  • Variable Returns: Unlike fixed-rate products, returns are variable and dependent on broker performance

  • Timeframe: Performance should be evaluated over longer periods rather than daily fluctuations

  • Tax Implications: The automatic reinvestment may have tax implications in some jurisdictions

  • Please note: As with any investment, there are inherent risks. Past performance does not guarantee future returns, so invest responsibly and consider your risk tolerance before participating.

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Last updated 2 months ago