RISKS TO KNOW BEFORE TRADING.

Lose-to-earn emissions are a capped consolation mechanic. They are always worth less than what a losing trade costs, so trading just to farm them loses money. See Lose-to-Earn.

KLP holders are the counterparty to every trader and hold price exposure to the pool basket. Trader profits and falling markets both reduce KLP value. dKLP, when it ships, underwrites markets on young, volatile tokens and carries elevated risk by design: bounded, but real. See KLP Liquidity.

• Smart contract risk. Punch is a GMX v1 fork. The architecture is battle-tested, but no code is risk-free, forks included.
• Oracle risk. Prices come from external feeds with staleness and confidence gates. A feed failure can delay execution; a bad print inside the gates can execute.
• Execution and oracle path. Keepers execute queued orders, and future dKLP markets use a protocol signed median feed alongside TWAP. Those inputs are bounded by on-chain cross-checks; see Architecture. On dKLP, oracle-leg disagreement pauses new opens only; closes and liquidations remain available.
• Parameter risk. Protocol parameters like fees, leverage limits, and listed markets can change. Changes are announced before they take effect.

The protocol layer is permissionless, immutable software with no allowlists. Access restrictions are enforced at the Punch interface:

• The trading interface is not available to persons in the United States or its territories, persons on sanctions lists, or persons in other restricted jurisdictions.
• Wallets are screened against sanctions lists regardless of geography.
• Users in open jurisdictions attest to their eligibility on first interaction.
• The same jurisdiction rules apply to every incentive ledger: trade-to-earn accrual, points, and airdrop claims are checked at eligibility and claim time, not just at the front door.

Circumventing these restrictions (including via VPN) violates the terms of use and forfeits incentive eligibility.