GMX V2 Perps

Summary

Ketju does not approve GMX V2 under its class rule for liquidity pools: GM and GLV pools supply the capital that traders swap against and take leveraged perpetual positions against. LP value changes with the pool’s assets, fees, funding and traders’ net profit and loss. The payoff differs from the constant-product formula, but the LP still holds trading inventory and takes the other side of traders. We made no finding of a security defect at GMX.

Review triggers
• GMX ships a product line without impermanent-loss exposure that merits its own review

Ketju checks this memo every night and opens a review if its venues or files show a warning or a cited document changes. The first confirmation is due 2026-11-15.

Research

How it works

Each GM market holds one long token and one short token and backs trading in that market. A GM token’s value includes the pool’s assets plus traders’ pending profit and loss. When traders profit, the pool loses, and when traders lose, the pool gains. GLV vaults spread capital across eligible GM markets, within utilization limits.

Who controls it

GMX documents caps on trader profit, automatic deleveraging, virtual inventory, price-impact settings and a two-phase oracle process. These are real protections, and risk settings may draw on outside analysis such as Chaos Labs. They limit the pool’s exposure to oracles, utilization, asset prices and winning traders, but they do not remove it.

Withdrawals

A withdrawal returns the market’s available long or short tokens at the current oracle price and price impact. Pending trader profit, pool imbalance, caps and any paused deposit or withdrawal function can lower what the holder receives. A holder cannot demand the original token mix or principal.

Class rule

The LP chooses to supply inventory and take the other side of leveraged traders. Fees pay for that risk, which depends on how prices move. Ketju’s class rule for liquidity pools therefore applies, however strong GMX’s controls and however long its history. Ketju will review it again for a product whose return does not come from pooled trading inventory.

Sources

Each claim above comes from one of these sources. Where Ketju could not verify a number, the memo states that.

• GMX Docs: providing liquidity · primary · accessed 2026-08-14
  Supports: providing liquidity
• GMX Docs: liquidations, ADL and trading risks · primary · accessed 2026-08-14
  Supports: ADL reduces profitable positions when pool PnL limits are exceeded, pool-solvency controls limit but do not eliminate trader-counterparty risk
• GMX Docs: order and oracle execution · primary · accessed 2026-08-14
  Supports: order, oracle execution
• Chaos Labs: GMX risk framework · secondary · accessed 2026-08-14
  Supports: GMX risk framework

The asset and the chain

This memo covers the protocol. A position also holds an asset and settles on a chain. Whichever of the three holds the most power over the position decides who can freeze it. These tables describe control and do not judge quality.