Paradex

Liquidation and auto-deleveraging 13/20

How positions are picked for auto-deleveraging

Published, without the formulaThe docs describe a 'Last Resort' mechanism that settles counterparty positions under time-based rules, with no selection formula published.docs.paradex.trade (opens in a new tab) · 3 November 2026

Partial liquidation

Yesdocs.paradex.trade (opens in a new tab) · 3 November 2026

Auto-deleveraging in the last 24 months

None foundNo Last Resort or socialized-loss event found in the docs or news since Nov 2024; the Jan 2026 rollback is logged separately.docs.paradex.trade (opens in a new tab) · 3 November 2026

Risky markets isolated or capped

Not disclosedThe docs and /v1/markets show only per-account position limits per instrument; no open-interest caps or isolated-only markets are published.docs.paradex.trade (opens in a new tab) · 3 November 2026

Insurance fund and who absorbs losses 13/15

Backstop balance readable on-chain

Yesdocs.paradex.trade (opens in a new tab) · 3 November 2026

Backstop against total open interest

3.6%Insurance fund $361,910 (/v1/insurance) divided by total perp OI of about $10.19M (sum of open_interest x mark_price over 66 perps in /v1/markets/summary), both read 2026-11-03.api.prod.paradex.trade (opens in a new tab) · 3 November 2026

Order of loss absorption published

Yesdocs.paradex.trade (opens in a new tab) · 3 November 2026

Price oracle 5/15

Independent sources in the liquidation price

TwoThe spot oracle comes from Pyth and Stork; the fair-basis adjustment also uses Paradex's own book and five external venues.docs.paradex.trade (opens in a new tab) · 3 November 2026

Price update interval

Not disclosedThe page describes EWMA smoothing but gives no update interval.docs.paradex.trade (opens in a new tab) · 3 November 2026

Who signs prices

Many partiesThe spot price comes from the Pyth and Stork oracle networks, but the docs do not say who publishes the final mark price into Paraclear.docs.paradex.trade (opens in a new tab) · 3 November 2026

Oracle failure with user losses, last 24 months

Yestheblock.co (opens in a new tab) · 19 January 2026

Custody and withdrawal 4/15

Users hold their own funds

Yesl2beat.com (opens in a new tab) · 3 November 2026

Contract-level exit if the operator stops

Nol2beat.com (opens in a new tab) · 3 November 2026

Withdrawals can be frozen without a delayed vote

Yesl2beat.com (opens in a new tab) · 3 November 2026

Delay before upgrades apply

None: upgrades can apply at oncel2beat.com (opens in a new tab) · 3 November 2026

Incidents in the last 24 months 3/15

• 19 January 2026Price or setup error that caused liquidations−5

  A database migration error during maintenance priced BTC at $0 and set off mass liquidations.

  theblock.co (opens in a new tab)

• 19 January 2026Outage over 4 hours−4

  The venue was down about 8 hours around the BTC $0 pricing error.

  theblock.co (opens in a new tab)

• 19 January 2026Discretionary intervention−3

  Paradex rolled chain state back to block 1,604,710 and cancelled open orders except TP/SL.

  coin360.com (opens in a new tab)

Liquidity 3/10

A $100,000 market order in BTC or ETH, buying and selling, moved the price by 1.41 basis points on average (2 readings, 3 November 2026). The median across the venues we measure was 1.00.

Who provides the liquidity

Not disclosedThe docs do not publish who provides liquidity or how much of it each provider or vault supplies.docs.paradex.trade (opens in a new tab) · 3 November 2026

Transparency and operations 6/10

Public audits of core code, last 24 months

1The five rows are one Cairo Security Clan report from May 2025; the Zellic bridge audit is Oct 2024 and the March 2025 HackerOne pentest covers only the API and web app.docs.paradex.trade (opens in a new tab) · 3 November 2026

Core code public

NoThe org's public repos hold SDKs, docs and a StarkGate bridge fork, but no Paraclear, vault or engine source.github.com (opens in a new tab) · 3 November 2026

Public status page

Yesstatus.paradex.trade (opens in a new tab) · 3 November 2026

Operating company named in the terms

YesThe terms say 'Paradex' means Paradex Corp. and its affiliates.paradex.trade (opens in a new tab) · 3 November 2026