1. General Trading Risks
Trading perpetual futures, spot assets, and other digital financial instruments carries a high level of risk and is not suitable for all investors. You can lose some or all of your invested capital. You should not invest money that you cannot afford to lose.
- Digital asset markets are highly volatile. Prices can move dramatically in short periods.
- Leveraged trading (perpetual futures) amplifies both gains and losses. Liquidation can result in total loss of your position.
- Past performance of any agent, strategy, or indicator is not indicative of future results.
- Market conditions change. A strategy that performed well historically may perform poorly in different conditions.
2. Autonomous Agent Risks
Vesper Labs deploys autonomous trading agents that execute trades without manual intervention. This introduces specific risks:
- Automated execution - Agents execute trades based on algorithmic signals. They operate continuously and will open and close positions according to their strategy, even during periods of extreme volatility.
- Signal latency - There is inherent delay between signal generation on Vesper servers and order execution on HyperLiquid. Market conditions may change during this window.
- Strategy risk - No strategy is infallible. Backtested performance does not guarantee live performance. Overfitting to historical data is a known risk in quantitative trading.
- Swarm coordination risk - Multi-agent swarms coordinate signals across agents. Correlated positions across a swarm can amplify losses during adverse market moves.
- Configuration risk - Incorrect agent parameters (excessive leverage, insufficient stop-losses, wrong asset pairs) can lead to outsized losses. You are responsible for your agent configuration.
3. Technology Risks
- Software bugs - Despite testing, software may contain defects that affect trading behavior or order execution.
- Network failures - Internet connectivity issues, HyperLiquid downtime, or API outages may prevent agents from executing trades or managing positions.
- Smart contract risk - HyperLiquid operates on blockchain infrastructure. Smart contract vulnerabilities or chain-level issues are outside Vesper Labs' control.
- Infrastructure dependencies - Vesper's Intelligence API relies on server infrastructure. Outages or degraded performance of Vesper servers may affect signal quality or availability.
4. Liquidity & Market Structure Risks
- Slippage may occur during high-volatility or low-liquidity periods, resulting in execution prices different from expected prices.
- Funding rates on perpetual futures can be significant and may erode returns on held positions.
- Market manipulation, flash crashes, and oracle failures can cause sudden, extreme price movements.
- HyperLiquid-specific mechanisms (auto-deleveraging, insurance fund dynamics) may affect your positions in ways that differ from centralized exchanges.
5. Regulatory Risks
The regulatory environment for digital assets and algorithmic trading is evolving. Changes in laws or regulations in your jurisdiction may affect your ability to use Vesper Labs, trade on HyperLiquid, or hold digital assets. You are solely responsible for determining whether your use of Vesper Labs complies with applicable laws.
6. Non-Custodial Architecture
Your keys stay on your machine. Vesper returns signals and risk outputs through the API, not wallet control. The SDK signs every order locally on infrastructure you control, then submits it to HyperLiquid with Vesper's builder code attached as transparent protocol-level revenue sharing.
- Private keys never leave your machine.
- The API returns intelligence outputs. It never receives signing authority or direct control of your wallet.
- The SDK signs and submits orders locally on infrastructure you control.
- Every order includes Vesper's builder code as transparent revenue sharing through HyperLiquid. It does not give Vesper custody of funds.
While this protects you from custodial risk, it also means:
- You are solely responsible for securing your private keys and API credentials.
- Lost or compromised keys cannot be recovered by Vesper Labs.
- Trades executed by your agents are irrevocable once submitted to HyperLiquid.
7. No Financial Advice
Vesper Labs is software infrastructure. Nothing on this platform constitutes financial advice, investment advice, trading advice, or any other sort of advice. Vesper Labs does not recommend any specific asset, strategy, or trading action. You should consult a qualified financial advisor before making trading decisions.
8. Performance Verification Limitations
Agent performance metrics displayed on Vesper Labs (win rate, PNL, drawdown) are verified against on-chain HyperLiquid data and reflect actual historical trades. However:
- Historical performance does not predict future performance.
- Performance metrics may not account for slippage, funding costs, or other execution costs in aggregate.
- Copying or following a high-performing agent does not guarantee similar results. Market conditions, timing, and position sizing all affect outcomes.
9. Acknowledgment
By using Vesper Labs, you acknowledge that you have read and understood this Risk Disclosure, that you accept the risks described herein, and that you are solely responsible for your trading decisions and any resulting financial outcomes. Vesper Labs bears no liability for trading losses incurred through use of the platform.