Frequently Asked Questions about App GMX

App GMX is a decentralized perpetual exchange that allows traders to open leveraged positions on cryptocurrencies directly from their wallets — without any KYC or centralized intermediary.

App GMX operates on Arbitrum and Avalanche networks, using multi-asset liquidity pools to enable seamless trading. Liquidity providers deposit assets into GM pools and earn a share of the fees generated by traders.

Key features include:

• Up to 100x leverage on perpetual futures
• Spot trading with zero price impact swaps
• Non-custodial — your assets stay in your wallet
• Low trading fees with dynamic fee adjustments
• Transparent, on-chain settlement

App GMX is currently live on the following networks:

• Arbitrum — The primary network with the deepest liquidity and widest selection of markets.
• Avalanche — An alternative network offering fast transactions and lower gas fees.

You can switch between networks from the network selector in the top right corner of the app. Your wallet must be connected to the corresponding network to trade.

Connecting your wallet to App GMX is simple:

• Click the "Connect Wallet" button in the top right corner of the app.
• Choose your preferred wallet from the list — MetaMask, WalletConnect, Coinbase Wallet, and many more are supported.
• Approve the connection request in your wallet extension or app.
• Make sure your wallet is set to the Arbitrum or Avalanche network.

No registration, email, or KYC is required. App GMX is fully permissionless.

App GMX supports trading for a wide range of major cryptocurrencies, including:

• BTC/USD (Bitcoin)
• ETH/USD (Ethereum)
• SOL/USD (Solana)
• AVAX/USD (Avalanche)
• LINK/USD (Chainlink)
• DOGE/USD, XRP/USD, and more

Both long and short positions are available on all listed markets. New markets are added through governance proposals by the App GMX community.

App GMX offers leverage trading through a perpetual futures model. You can open leveraged positions of up to 100x on supported assets. Here's how it works:

• Deposit collateral — Choose an accepted collateral token and deposit it as margin.
• Select leverage — Choose your desired leverage multiplier (e.g., 10x means your position size is 10× your collateral).
• Go long or short — Profit if the asset moves in your predicted direction.
• Manage your position — Add collateral, take partial profits, or close the position at any time.

Be aware that higher leverage increases both potential gains and the risk of liquidation. A position is liquidated when losses reduce your collateral below the maintenance margin threshold.

App GMX charges the following types of fees:

• Opening / Closing fee — Typically 0.05%–0.07% of the position size.
• Borrowing fee — An hourly rate charged for holding a leveraged position, based on pool utilization.
• Price impact fee — Applied based on the net open interest imbalance in the pool. Trading in the direction that helps balance the pool may receive a rebate.
• Swap fee — Charged when swapping tokens as part of opening or closing a position.

Fees are distributed to liquidity providers (GM pool holders), GMX stakers, and the protocol treasury. You can view estimated fees in the trade confirmation panel before submitting any transaction.

App GMX uses a decentralized oracle network (Chainlink and custom price feeds) to determine asset prices in real-time. Prices are aggregated from multiple high-volume centralized exchanges to ensure accuracy and resistance to manipulation.

The oracle system is designed to minimize the risk of price manipulation attacks and flash loan exploits. Prices update frequently and positions are marked to market based on these oracle prices.

The GMX token is the utility and governance token of the App GMX protocol. GMX holders who stake their tokens receive multiple benefits:

• Fee revenue — A portion of trading fees generated by the platform is distributed to staked GMX holders.
• Governance — GMX stakers participate in governance votes that shape the future of the protocol.
• Escrowed GMX (esGMX) — Additional token rewards distributed as escrowed GMX, which can be vested over time to become regular GMX.
• Multiplier Points — Earned for long-term staking, boosting fee rewards without diluting other stakers.

The total supply of GMX is capped at 13.25 million tokens.

GM tokens are the liquidity provider (LP) tokens for App GMX V2 markets. Each GM token represents a share of a specific trading pool (e.g., GM ETH/USD or GM BTC/USD).

When you provide liquidity by depositing assets into a GM pool, you receive GM tokens in return. As a GM holder you earn:

• 63% of trading fees generated in that specific V2 market.
• Price exposure to the underlying assets in the pool (long and short components).

To get started, navigate to the Pools section of the App GMX app, select a market, and deposit the required tokens. You can withdraw your liquidity at any time.

Providing liquidity on any DeFi protocol carries risks. On App GMX, the main risks include:

• Counterparty risk — Liquidity providers act as the counterparty to traders. If traders profit significantly, LP values may decrease.
• Smart contract risk — Despite multiple audits, all smart contracts carry some inherent risk of bugs or exploits.
• Price risk — GM pools hold real assets. The value of your LP position is affected by the price movements of the underlying tokens.
• Oracle risk — Extreme market conditions or oracle failures could affect pricing accuracy.

Always do your own research and only supply assets you can afford to lose. App GMX has undergone multiple independent security audits to minimize protocol risk.

App GMX smart contracts have been audited by multiple leading blockchain security firms. The protocol also maintains an ongoing bug bounty program to incentivize responsible disclosure of any vulnerabilities.

While App GMX takes security very seriously, no smart contract system is completely risk-free. The protocol has been operating securely and has processed hundreds of billions of dollars in trading volume since its launch.

Audit reports and security documentation are publicly available in the App GMX documentation.

App GMX offers a tiered referral system that rewards both referrers and traders:

• Tier 1 — 5% fee discount for referred traders, 5% rebate for the referrer.
• Tier 2 — 10% discount for traders, 10% rebate for referrers (requires 15+ active referrals).
• Tier 3 — 10% discount for traders, 15% rebate for referrers (requires 30+ active referrals).

To participate, visit the Referrals section of the App GMX app, create your unique referral code, and share it with others. Rebates are paid out in ETH or AVAX, depending on the network.

App GMX V2 is the current and recommended version of the protocol, featuring significant improvements over V1:

• Isolated GM pools — V2 uses per-market liquidity pools (GM tokens) instead of the shared GLP pool in V1, reducing correlated risk.
• More markets — V2 supports a wider range of trading pairs including altcoins.
• Improved fee model — Dynamic fees and price impact rebates for balancing pool utilization.
• Better capital efficiency — Improvements in how collateral and open interest are managed.

V1 remains accessible at the legacy interface for existing GLP holders and positions. Both versions use the same GMX governance token.