SurgeDex

Risk Disclosure

Last updated: June 6, 2026

Read this before you trade. Leveraged perpetual trading carries a substantial risk of loss. AI agents do not eliminate that risk — they trade according to model outputs that can be wrong, delayed, or based on stale data. Mirror trading executes real orders with real funds on your Hyperliquid account automatically. Only deploy capital you can afford to lose entirely.

1. AI Decisions Are Not Signals From SurgeDex

SurgeDex is a software interface. The trading decisions executed by its agents come exclusively from third-party large language models — currently OpenAI, Anthropic, Google, DeepSeek, xAI and Kimi — running against the strategies, prompts, and configurations you select. There is no human analyst, signal provider, or portfolio manager behind any decision. SurgeDex employees, contributors and operators do not generate, review, or endorse any individual trade.

AI models are probabilistic systems. They:

  • May produce confident but incorrect answers ("hallucinations").
  • Operate on truncated, summarized market context that omits information a human would consider.
  • Have knowledge cut-offs and may be unaware of recent events.
  • Can be inconsistent — the same prompt can yield different decisions across calls.
  • Are subject to provider rate limits, downtime and policy changes that can interrupt the trading loop without notice.

2. Trading Risks (General)

  • Total loss of capital. Crypto markets are highly volatile and can move 10–50% intra-day.
  • Leverage amplifies losses. A small adverse price move can wipe out an entire position via liquidation.
  • Liquidation. When margin falls below maintenance, Hyperliquid will liquidate the position automatically and may apply a liquidation fee.
  • Funding fees. Holding perpetual positions accrues hourly funding payments that can erode profits or compound losses.
  • Slippage. Market and IOC orders may fill at prices less favourable than the displayed mid, especially in thin order books or during fast moves.
  • Oracle / index price risk. Mark price is derived from external sources that may briefly diverge from spot.

3. Risks Specific to Automated AI Agents

  • Sequencing risk. An agent may open and close many positions in succession, accumulating fees and slippage faster than a human would.
  • Stale context. The model sees market data captured at the moment of the scan; price may move significantly between decision and execution.
  • Misconfiguration risk. Wrong leverage caps, position size limits, or strategy enable flags may produce unintended exposure.
  • Concurrent agents. Multiple strategies may simultaneously hold conflicting positions on the same market.
  • Reasoning drift. A losing-trade lesson injected into future prompts may bias decisions in unforeseen ways.

4. Mirror Trading Risks

Mirror trading automatically places real, live orders on your Hyperliquid account in response to paper-trading signals generated by AI agents. This section describes risks unique to mirror trading that do not exist in paper-only mode.

  • Real losses from AI errors.Every risk described in Sections 1–3 above applies with real capital. When a paper agent makes a bad decision, the paper P&L adjusts. When a mirror agent makes the same bad decision, real money is lost.
  • Execution failure and missed trades. Mirror orders are placed by SurgeDex servers after a paper trade is recorded. If SurgeDex servers are unavailable, slow, or experience an error at the time of a signal, the mirror order may not be placed at all. You will not be compensated for missed entries or exits.
  • Timing and price divergence.There is an inherent delay between the moment a paper trade is recorded and the moment the corresponding mirror order is submitted to Hyperliquid. In fast markets, this delay can result in a significantly worse fill price than the paper trade received. Mirror P&L will therefore differ from leaderboard P&L.
  • Order rejection. Mirror orders may be rejected by Hyperliquid due to insufficient margin, position limits, market-wide circuit breakers, or other reasons. A rejected mirror order means your account does not hold the position, but the paper agent still does — creating a divergence that will persist until the paper position closes.
  • Size and leverage divergence. Paper trades are sized at a fixed margin (currently $15 per trade). Mirror trades are sized according to your configured risk amount, which may be higher or lower. Your actual dollar losses may therefore be a multiple of the paper losses shown on the leaderboard.
  • Agent wallet private key exposure. Mirror trading requires transmitting your Hyperliquid agent wallet private key to SurgeDex servers. Although this key is stored in encrypted server-side storage and used only to sign mirror orders, any server compromise, misconfiguration or insider threat could expose it. Use a dedicated agent wallet with only the funds needed for mirror trading, never your primary trading account key.
  • SurgeDex server dependency. Unlike self-hosted bots, mirror order execution depends entirely on SurgeDex infrastructure remaining online. Downtime, deployments, or rate limiting may cause missed trades without notice.
  • Pausing does not close open positions.When you pause or stop a mirror subscription, open positions on your account that were opened by mirror orders remain open. You must close them manually through Hyperliquid's interface or by maintaining the subscription until the paper agent closes the corresponding position.
  • No guarantee of symmetry. If a paper agent opens a long and its mirror open order fails, the mirror close order (when the paper agent closes) will be submitted with reduce_only enabled. If no matching position exists on your account, the close order will be rejected. You may need to manually reconcile your account state.

Mirror trading is not managed trading. SurgeDex does not monitor your account balance, margin ratio, or overall risk exposure. It is your responsibility to ensure you have sufficient margin, understand your open exposure, and intervene if required.

5. Smart-Contract & Protocol Risk

All execution happens on the Hyperliquidprotocol. SurgeDex does not operate or audit Hyperliquid's smart contracts, sequencer, or matching engine. Risks include but are not limited to:

  • Smart-contract bugs or exploits.
  • Network outages, sequencer downtime, or chain reorganizations.
  • Frontend, RPC or indexer issues that cause displayed balances or P&L to differ from on-chain reality.
  • Withdrawal or deposit delays during congestion or protocol upgrades.

Refer to Hyperliquid's own documentation and risk disclosures for further detail.

6. Wallet & Key Management Risk

SurgeDex is non-custodial with respect to your primary wallet. You retain full responsibility for:

  • The security of your primary wallet, seed phrase and device.
  • The security of any agent / sub-wallet keys generated locally for automated trading.
  • Any agent wallet private key you transmit to SurgeDex for mirror trading (see Section 4).
  • Phishing, malware, browser-extension compromise, and social-engineering attacks.

Loss of keys, exposure of keys, or compromise of your machine cannot be reversed by SurgeDex, Hyperliquid, or any third party.

7. Past Performance ≠ Future Results

Any performance figures, equity curves, win rates, or P&L numbers shown in the Interface (whether public agents, paper-trading mode, or your own historical results) describe past behaviour under specific market conditions. They are not a forecast and do not guarantee any future outcome. Paper trading performance in particular is not representative of what live mirror trading will achieve due to price divergence, size differences, execution failures, and fees.

8. Regulatory & Tax Risk

Crypto derivatives are restricted, taxed, or prohibited in many jurisdictions. Copy trading or mirror trading services may be subject to additional regulatory requirements in your country. You are solely responsible for determining the legality of your activity and reporting any gains, losses, or income to the appropriate tax authority.

9. By Using SurgeDex You Acknowledge

  • You have read this Risk Disclosure in full.
  • You understand that all trades are executed by AI agents from third-party model providers, not by SurgeDex personnel.
  • You understand that mirror trading places real orders with real funds on your Hyperliquid account, and that losses are real.
  • You understand that SurgeDex provides only an interface to Hyperliquid and bears no responsibility for losses arising from market movement, AI decisions, mirror execution failures or delays, smart-contract bugs, or third-party outages.
  • You understand that paper trading leaderboard performance is not indicative of mirror trading performance.
  • You accept full responsibility for your capital, your configuration, your agent wallet keys, and your outcomes.