Security and Risk
Deep dive into the L1 security architecture and a comprehensive risk management checklist for on-chain traders.
Key takeaways
- Dexly is a non-custodial interface for the Hyperliquid L1, so your funds stay in audited smart contracts and Dexly cannot freeze accounts, block withdrawals, or lend out your assets.
- Hyperliquid is a purpose-built Layer 1 secured by a decentralized validator set, formal verification of core protocol logic, and open-source components.
- Because funds live on-chain, you can always reach the protocol through the Hyperliquid explorer or other interfaces if the Dexly website goes down.
- Core trading risks to manage include phishing domains, oracle-driven liquidations during volatility, and local device compromise, so verify URLs and revoke agent permissions when in doubt.
Non-Custodial Architecture
The most important rule of DeFi is: "Not your keys, not your coins." At Dexly, your funds stay in your control at all times via audited smart contracts on the Hyperliquid L1.
Self-Sovereignty
L1 Chain Security
Hyperliquid is not a sidechain or a bridge; it is a purpose-built Layer 1 blockchain optimized for trading. Its security is derived from its decentralized validator set and high-performance consensus protocol.
- Formal Verification: Core protocol logic is mathematically proven to be correct.
- Validator Set: A diverse group of independent entities secures the network.
- Open Source: The protocol components are open for public audit.
Risk Management Checklist
While the protocol is secure, trading involves inherent market and technical risks. Use this checklist to protect your capital:
Domain Check
Always verify the URL. Dexly will never ask for your seed phrase.
Smart Contract Risk
New features may carry bugs. Never trade more than you can afford to lose.
Oracle Risk
Prices depend on decentralized oracles. Extreme market volatility can affect liquidations.
Agent Security
While Agents are limited, always revoke permissions if you suspect local device compromise.
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Related topics
Keep Learning
Risk Warning: Trading perpetual futures involves significant risk of loss. Only trade with capital you can afford to lose. Dexly is a non-custodial interface; you are responsible for your own funds and trading decisions.
Frequently Asked Questions
Trade self-custodial on Dexly