How to Use MYX Finance Safely: Risk Management for Perpetual Trading

Yael

/Nov 4, 2025

Key Takeaways

• Always verify official resources and access MYX through trusted links.

• Use a hardware wallet to enhance security and manage approvals carefully.

• Understand the risks associated with leverage, liquidation, and oracle dependencies.

• Implement a strict position sizing strategy to manage risk effectively.

• Monitor funding rates and execution quality to optimize trading performance.

On-chain perpetuals are having a moment. As decentralized derivatives mature, on-chain perpetual trading has grown meaningfully in early 2025, with real-time dashboards showing rising open interest and volumes across decentralized exchanges. You can track this trajectory live on DefiLlama’s Derivatives dashboard for context and peer benchmarking of markets you might trade on MYX Finance. See data on decentralized perp activity here: DefiLlama Derivatives.

Perpetuals are powerful but unforgiving. Trading them on a decentralized venue like MYX Finance requires a security-first mindset, precise execution, and disciplined risk management. This guide distills a pragmatic checklist and operating playbook you can apply immediately.

The perp DEX difference: risks to respect

Product complexity: Perpetual futures have no expiry and use funding payments to anchor prices to spot markets. If you’re new, start with the basics: Binance Academy: Perpetual Futures Contracts Explained.
Leverage and liquidation: Leverage magnifies both PnL and liquidation risk. Liquidation engines on perp DEXs are strict and mostly mechanical—there’s rarely a second chance once margin is breached.
Oracle dependencies: Prices often rely on external oracles and index feeds. Understanding how oracles work—and their failure modes—matters. Learn more here: Chainlink: DeFi Price Oracles Explained.
Smart contract risk: Contracts can have bugs or economic vulnerabilities. Many protocols run bug bounties to reduce residual risk; see active programs at Immunefi.
MEV and execution: On-chain transactions are publicly visible before inclusion, exposing you to MEV and sandwich attacks. Background on MEV and its impact: ethereum.org: MEV.

Before you trade on MYX: a safety checklist

Confirm official resources
- Always access MYX through verified links (official social profiles, docs) and cross-check that the app URL matches the one referenced by reputable tracking sites. For market-level due diligence, you can reference volumes on DefiLlama Derivatives.
Use a clean, hardware-backed wallet
- Create a dedicated address for perp trading. Keep your long-term holdings separate.
- Prefer a hardware wallet and disable blind signing; ensure you can review contract calls and spending caps on-device. Learn why typed data helps prevent confusion: EIP-712: Typed Structured Data.
Add networks from authoritative registries
- Only add chains/RPCs via reputable sources to avoid malicious endpoints. A convenient resource: Chainlist.
Protect against MEV where possible
- For supported EVM chains, consider a MEV-protected RPC to reduce frontrunning risk. Example: MEV Blocker.
Manage approvals and spending caps
- Grant the smallest necessary token allowance, per token, per dApp. Periodically review and revoke unused approvals: Etherscan Token Approval Checker or Revoke.cash.
Simulate and test small
- When available, simulate transactions before broadcasting, then start with tiny size to validate behavior: Tenderly Transaction Simulator.
Confirm audits and disclosures
- Review security audits from reputable firms and read the protocol’s documentation to understand liquidation, funding, insurance mechanisms, and emergency response processes.

Position sizing and leverage discipline

Define max risk per trade: Many professionals cap loss at 0.5–1% of account equity per trade, factoring in slippage and fees. Reference concept: Investopedia: Position Sizing.
Prefer isolated margin: Isolated positions prevent one trade from draining your entire account in a cascade.
Maintain a margin buffer: Keep extra collateral so normal volatility doesn’t push you near liquidation. Avoid trading right before major events.
Always place stops: Use stop-losses or conditional orders if the venue supports them. If the UI lacks native stops, size smaller and increase your safety buffer.

Funding payments: know your carry

Funding rates periodically transfer value between longs and shorts to nudge perp prices toward spot. High positive or negative funding can erode your PnL while you wait for a move. Learn the mechanics and how funding is computed here: Binance Academy: Funding Rates.

Practical tips:

Avoid holding positions with extreme funding against you unless the trade thesis is strong and time-sensitive.
Monitor funding timers, as small timing differences can materially impact costs.

Execution quality: slippage, liquidity, and MEV

Check market depth: Thin or fragmented liquidity increases slippage and liquidation risk. Prefer limit orders over market orders in illiquid pairs.
Set sensible slippage tolerances: Tight for entries; slightly wider for exits to ensure fills under volatility.
Be gas-aware: Congestion can delay your transactions. During fast moves, consider a higher priority fee to avoid stale fills.
Reduce MEV impact: Use MEV-protected RPCs where supported and favor limit orders. Understand MEV basics here: ethereum.org: MEV.

Collateral selection and stablecoin considerations

Collateral resilience: If MYX supports multiple collateral types, prefer high-quality, liquid assets. Remember that volatile collateral increases liquidation risk.
Stablecoin risk: Stablecoins can depeg or face issuer risks. Diversification and conservative sizing can mitigate tail events.

An operating playbook for MYX

While specific UI steps depend on the latest MYX interface, the following workflow is broadly applicable:

Connect via a hardware wallet using WalletConnect
- Open MYX’s official app link. Use WalletConnect to connect your wallet securely.
- Verify connection prompts on-device and confirm the requested spending caps.
Prepare collateral and margin mode
- Deposit only the amount you plan to trade.
- Prefer isolated margin to compartmentalize risk unless you fully understand cross margin behavior.
Plan the trade
- Identify entry, invalidation, stop-loss, and take-profit areas before placing orders.
- Calculate position size so that if your stop hits, the realized loss is within your pre-defined risk budget.
Place the order
- Use limit orders for better control when possible.
- Confirm fees, funding rate, slippage tolerance, and oracle/index price references on the order ticket.
Post-fill management
- Immediately place your stop and targets, if supported.
- Monitor funding timers and adjust if carry turns unfavorably.
- Avoid adding to losers; reduce leverage during high-volatility events.
After the trade
- Revoke unused allowances if you won’t trade that market again: Revoke.cash.
- Log trades and outcomes for continuous improvement. If you rely on alerts, services like TradingView can help track price levels.

Smart contract and protocol safeguards

Insurance/backstop funds: Understand whether the protocol uses an insurance fund or backstop liquidity and how shortfalls are socialized. Reviewing peer DEX documentation can help you frame the right questions for any protocol; for example, see how a leading perp DEX explains protocol risks and mechanisms: GMX Docs.
Governance and upgrades: Know how upgrades are managed and who can pause markets in emergencies. Transparent governance and timelocks add confidence.
Bug bounties: A well-funded, ongoing bounty program can reduce residual smart contract risk: Immunefi.

Incident response: what to do if something goes wrong

Transaction stuck: Speed up or cancel the transaction with a replacement transaction using a higher fee.
Suspect compromise: Immediately move funds to a new, uncompromised hardware-backed address, rotate seed storage, and revoke all approvals: Etherscan Token Approval Checker.
Protocol issue: Stop trading, monitor official channels, and wait for clear remediation steps before interacting further.

Why self-custody and hardware matter for perps

Perp trading involves frequent signing and allowance management. A hardware wallet reduces key-exposure risk and helps you verify exactly what you’re approving or executing.

If you want a security-focused setup that fits this workflow:

OneKey is an open-source hardware wallet that supports WalletConnect, multi-chain EVM usage, and clear on-device transaction review. For MYX-style perp trading, this means you can safely connect, set conservative spending caps, and confirm each action with strong physical assurance—without sacrificing execution speed. Pair it with MEV-protected RPCs and disciplined approvals for a robust, production-grade trading setup.

Final thoughts

On-chain perpetual trading rewards preparation and punishes complacency. With a careful pre-trade checklist, tight position sizing, diligent funding and execution management, and strong wallet hygiene, you can materially reduce avoidable risk when using MYX Finance. Combine these habits with self-custody via a hardware wallet and vigilant allowance control to trade more confidently through all market conditions.

References and further reading: