DEX EVIDENCE INTERFACE
Paradex
Starknet-stack appchain DEX with offchain order matching and onchain / validity-proof settlement to Ethereum.
How does this DEX actually work?
Structural flow from documented architecture — not a performance or safety claim.
- Trader
Places order via Paradex UI/API
- Offchain matching engine
Central limit order book matching
- Batch + prove
Trades batched; STARK proof generated (SHARP)
- Ethereum verification
Proof verified; state finalized
- Onchain custody / margin
Funds in chain contracts — not CEX wallet custody per official narrative
Where is collateral held?
Follow the path from wallet to settlement. Smart-contract custody is still custody risk.
- BridgeUser wallet / bridge deposit
- Margin accountParadex margin account (onchain)
- UnknownOffchain match (execution)
Unknown
- SettlementAppchain + L1 validity settlement
Custody model: Smart-contract custody — Not labeled simply “non-custodial.” Unknown edges stay Unknown.
Key structural facts
- Liquidity model
- ORDERBOOK / MARKET MAKERS
- Counterparty
- Other traders / makers on CLOB
- Chain / settlement
- Paradex Chain (Starknet appchain → Ethereum) · Appchain
- Chains
- Paradex Chain, Ethereum
Offchain book; settlement onchain
Who controls what?
Governance processes do not by themselves prove decentralized operational control.
Operational admin
Roles that can change contracts, parameters, or day-to-day operations.
- Sequencer / block proposal
Controller Appchain operator (official research notes operator EOA risk)
Mechanism Operational sequencing of Paradex Chain
Timelock Unknown / none documented
- Matching engine
Controller Exchange operator — operational
Mechanism Offchain CLOB
Timelock Unknown / none documented
- Upgrade authority
Controller Unknown
Mechanism Unknown
Timelock Unknown / none documented
- Market listing / risk parameters
Controller Unknown
Mechanism Position limits and price bands documented; listing authority not named
Timelock Unknown / none documented
Protocol & operator surfaces
- ProtocolNo verified legal name on this surface
Paradex Chain exchange / settlement
Appchain settles to Ethereum via STARK proofs (official blog/docs)
Verified structured - FoundationLegal operator unresolved
Paradex Foundation referenced in official research posts
Named in operator/trust discussions — legal details unresolved here
Verified not structured - Frontend operatorLegal operator unresolved
paradex.trade interface / matching operator
Offchain matching operated separately from L1 settlement
Researched unresolved
How are prices determined?
Oracle provider presence is not a claim that the oracle is secure or endorsed.
- Primary oracle
- Pyth Network & Stork Network (spot oracle price)
- Price / index construction
- Mark = SpotOraclePrice × (1 + FairBasis); Fair Basis from EWMA-smoothed medians of internal and external bases, liquidity-weighted
- Fallback
- Liquidity weight w→0 when thin: Fair Basis follows external venue consensus; TradFi uses weighted median source scores including closing/internal prices
- Update mechanism
- Mark used for margin, PnL, liquidations; funding recomputed every 1s (funding docs)
- Dependencies
- Pyth · Stork · External CEX/perp venues for Fair Basis · USDC oracle (funding)
- Last verified
- 2026-08-30 · Verified structured
What happens if margin falls too low?
Liquidation mechanics in plain language — not a guarantee of user outcomes.
- Maintenance / trigger
- Maintenance margin / risk health checks against mark price
- Partial / full
- Partial liquidations preferred; full close when required
- Liquidator / keeper
- Platform liquidation engine (partial liquidations documented)
- Liquidation fee
- Unknown
- Insurance / backstop
- Insurance fund absorbs losses from liquidated positions
- Bad debt handling
- Socialized losses and deleveraging documented as last resort when insurance fund insufficient — UNKNOWN amounts
Insurance or buffer existence is not a solvency guarantee. · Verified structured
Who is on the other side of the trade?
Counterparty models differ by protocol — not every perpetual DEX shares the same structure.
ORDERBOOK / MARKET MAKERS
Counterparty Other traders / makers on CLOB
Offchain book; settlement onchain
Verified structuredFees
Snapshot mechanisms and rates where documented. Not labeled cheapest or best value. Funding ≠ borrow unless documented.
- maker taker retailRetail makers and takers: 0% on Perps, Spot, Options
- maker proPro maker 0.003% (0.3 bps) on Perps & Spot (effective per fee docs)
- taker proPro taker 0.045%–0.035% by 14D volume tier; discounts apply; floor 0.0175%
- fundingContinuous funding from multi-venue impact premium; EWMA + clamps (e.g. ±2% BTC/ETH/SOL per funding docs)
Funding ≠ trading fees. Multi-venue weighted median impact premium; 1s updates; paused when oracle maintenance / invalid USDC / market halted.
Market coverage
Only officially supported classes from primary evidence. Presence is not a recommendation.
- CryptoSupported
- FXUnknown
- CommoditiesUnknown
- IndicesUnknown
- StocksUnknown
- ETFsUnknown
Docs: 90+ markets Futures and Spot (unified margin)
Security evidence
Smart-contract audits are not financial audits. No combined “audited” badge. No security score.
Additional audit evidence not yet fully cataloged in this pack — not a negative security judgment.
No structured audit rows in this local pack.
Material incidents
None structured in this pack (not a claim that none occurred).
Access surfaces
Protocol access, frontend access, and terms eligibility are separate. Not “available globally” unless evidenced.
- Protocol access
Appchain/contract access ≠ frontend ToS eligibility.
Verified not structuredSource - Frontend access
Official Restricted Persons page lists US, Canada, sanctioned territories and related US territories as ineligible for Paradex products/services.
Verified structuredSource - Terms of service
Restricted Persons (incl. U.S. person / Canadian person as defined) are not eligible to utilize Paradex products and services per official Restricted Persons page.
Verified structuredSource - Geo block
Exact geo-block enforcement mechanism not separately documented beyond Restricted Persons eligibility.
Researched unresolvedSource - Legal eligibility
Eligibility restriction is terms/services language — not a regulatory authorization conclusion.
Verified structuredSource
Direct answers
How does Paradex work?
Orders match offchain on a CLOB; batches are proven with STARKs and settled on the Paradex appchain with Ethereum verification.
Where is collateral held on Paradex?
Official materials describe onchain self-custody / margin on the chain with bridge deposits — exact contract addresses not listed in this pack without an official deployment manifest.
What is Paradex's settlement model?
OFFCHAIN_MATCH_ONCHAIN_SETTLE on an APPCHAIN with VALIDITY_PROOF settlement to Ethereum.
Who controls Paradex upgrades?
Upgrade authority remains RESEARCHED_UNRESOLVED. Sequencer/operator centralization is discussed in official research posts but is not translated into a safety score here.
What does this DEX depend on?
Material dependencies only. Dependency count is not a risk score.
- AppchainParadex ChainExecution environment
- BlockchainEthereum L1Proof verification / settlement
- SequencerAppchain operator/sequencerLiveness
- MatchingOffchain matching engineOrder execution
- ProverSHARP / STARK provingValidity proofs
Contracts (primary-sourced)
- Ethereum verifier / bridge (SHARP path) (Ethereum): Address not listed — Validity proof verification for state transitions
Open gaps
- Verified contract address manifest not ingested
- Upgrade authority unresolved
- Smart-contract audit catalog not researched
- Legal operator: LEGAL_OPERATOR_UNRESOLVED
- Liquidation fee rate not published in overview pack
Primary sources
DEX Architecture / Control / Custody evidence only. No DEX score. Unresolved states remain unresolved.