On-Chain Perpetual DEX (Perp DEX)
The on-chain perpetual ecosystem is rapidly evolving. Ave AI is delivering CEX-level performance with on-chain transparency and capital efficiency.
Perp Trading Flow on DEX
Connect wallet (e.g., Phantom, OKX Wallet)
Select asset (BTC, ETH, etc.) and leverage
Deposit margin → system calculates max position size and risk
Open position (long/short)
Funding rate settlement (based on perp vs. spot price)
Manage position: close, add margin, or get liquidated
PnL settlement → funds returned to wallet
DEX vs. CEX Comparison
Custody
CEX: assets held by platform
DEX: non-custodial, wallet-based
Transparency
DEX: positions and risk mechanisms are verifiable
Trading Model
DEX: AMM / hybrid / on-chain order book
CEX: centralized matching engine
Liquidity & Cost
CEX: deeper liquidity, lower slippage
DEX: trustless but may face liquidity constraints
Risk Profile
CEX: platform and regulatory risk
DEX: smart contract, oracle, and liquidation risks
Risk Management Guidelines
Manage Margin Carefully: Ensure sufficient collateral to avoid forced liquidation
Monitor Funding Rates: Persistent unfavorable funding can erode profits
Choose Strong Platforms: Look for deep liquidity, robust liquidation systems, and reliable oracles
Control Leverage: Higher leverage ≠ better returns; use stop-loss and position sizing
Account for On-Chain Costs: Gas fees, slippage, and execution delays can impact outcomes
Review Protocol Security: Prefer audited, transparent protocols with strong track records
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