Risk
Trading is risky. Leveraged trading is riskier. Understand before you trade.
Leverage
Leverage amplifies gains and losses.
| Leverage | Price move | P&L impact |
|---|---|---|
| 2x | +10% | +20% |
| 2x | -10% | -20% |
| 3x | +10% | +30% |
| 3x | -10% | -30% |
At 3x leverage, a 33% adverse move wipes out your position.
Liquidation
If losses approach your margin, Pear liquidates the position.
Liquidation threshold varies by asset. Generally around 80–90% of margin consumed.
When liquidated:
- Position closes automatically
- Remaining margin returned (if any)
- You cannot prevent it
Basket risk
Baskets have correlation risk. If both legs move against you simultaneously, losses compound.
Example: "Risk On/Risk Off" market
- Long: BTC, GOLD
- Short: ETH, SOL, ARB
In a true black swan, everything correlates. Your hedge might not hedge.
Market hours
Geopolitical markets use equity synthetics. They only trade during US market hours.
Risk: Price gaps. Markets can open significantly different from Friday close. Your position might be underwater before you can react.
Liquidity
Some assets have thinner liquidity. Large positions may experience slippage.
war.market position sizes are capped to reduce this risk.
Smart contract risk
Pear Protocol is the execution layer. war.market is just a frontend.
Risks:
- Pear smart contract bugs
- Hyperliquid infrastructure issues
- Bridge/oracle failures
war.market has no control over these systems.
Not financial advice
war.market provides a trading interface. We don't advise, recommend, or suggest trades.
You are responsible for:
- Your own research
- Position sizing
- Risk management
- Tax implications
Best practices
- Start small. Test with amounts you can afford to lose.
- Understand the thesis. Don't trade markets you don't understand.
- Monitor positions. Set calendar reminders if needed.
- Don't over-leverage. Just because you can use 3x doesn't mean you should.
- Have an exit plan. Know when you'll close, win or lose.
Real money
This is not a game. Losses are real. Only trade what you can afford to lose completely.