What is Dexetera?
Dexetera is a decentralized exchange (DEX) for trading synthetic futures contracts. Unlike centralized exchanges (like Coinbase, Binance or Kraken), Dexetera has no company, and no central authority. It operates entirely through smart contracts on the Hyperliquid blockchain. Decentralized means that no single entity controls the platform, and users have full control over their funds.
Core Concepts Explained
Decentralized vs. Centralized
| Centralized Exchange (CEX) | Dexetera (DEX) |
|---|---|
| A company controls your funds | No company controls your funds |
| You trust the company with your money | You control your funds |
| They collect personal information | No registration required |
| They can freeze accounts or restrict access | No restrictions |
| Risk: Company gets hacked or goes bankrupt | No risk of company failure |
No Company Approval
You don't need Dexetera's permission to:
- Create new contracts
- Trade existing contracts
- Use leverage
- Withdraw your money
Everything is permissionless, controlled by smart contracts, not people. No registration is needed. Users directly connect their wallets to the platform and can start trading immediately.
How Dexetera Makes Money (Fees)
Dexetera charges trading fees when you:
- Open a position
- Close a position
- Roll over a contract
These fees are:
- Transparent: Shown before you trade
- Blockchain-recorded: You can verify them on-chain
- Used to improve the platform: Funding development and infrastructure
All trades are gas-free, the platform pays the gas fees for all trades.
Decentralized Exchange (DEX) like Dexetera
- Smart contracts control the trading mechanism
- You always control your own wallet and private keys
- No personal information required
- No company can freeze your account
- Risk: Only you are responsible for your wallet security
Futures Contracts
A futures contract is an agreement to buy or sell something at a future date. On Dexetera:
- 1-year expiration: Each contract lasts for 1 year from creation
- Price prediction: You predict if a price will go up or down
- Leverage: You can control larger positions with smaller deposits (amplifies both gains and losses)
- Settlement: When the contract expires, it settles based on the final price
Example: You create a futures contract on "Bitcoin price" expiring in 1 year. You go LONG (bet it goes up) with 10 USDC at 5x leverage. If Bitcoin goes up 20%, you might make a profit. If it goes down 20%, you might lose your entire deposit.
USDC: Why We Use It
While the entire trading happens on the Hyperliquid network, we use USDC on Arbitrum for deposits and withdrawals.
USDC (USD Coin)
- A stablecoin pegged to the US Dollar
- 1 USDC = 1 USD
- Easier to understand than other cryptocurrencies
- Reduces confusion about deposits and withdrawals
All Dexetera transactions use USDC on Arbitrum. You cannot trade with Bitcoin, Ethereum, or other cryptocurrencies directly on Dexetera.
Arbitrum Network
Arbitrum is a Layer 2 blockchain that runs "on top of" Ethereum:
- Faster: Transactions confirm in seconds, not minutes
- Cheaper: Gas fees are 100-1000x lower than Ethereum mainnet
- Safe: Backed by Ethereum's security
- Same assets: You can use Ethereum-based tokens like USDC
Before using Dexetera, you need USDC on Arbitrum. If you have USDC on Ethereum or another blockchain, you'll need to bridge it first.
The Dexetera Trading Model
User-Created Markets
Unlike traditional exchanges where a company decides what you can trade, on Dexetera, anyone can create a new contract:
- Create a contract on Bitcoin price
- Create a contract on the price of Tesla stock
- Create a contract on the price of real estate in New York
- Create a contract on any measurable metric
The creator sets:
- The metric being tracked
- The initial price or starting point
- The official source for the price (URL) that determines the final price
The Dexetera Trading Model
Dexetera is oracle-free. At expiration, contracts are settled based on the last price of the underlying asset at the time of expiration. When creating a contract, the user must specify the underlying asset, the expiration date, and an official source for the price (URL). The platform will automatically settle the contract at the last price of the underlying asset at the time of expiration.
Anyone Can Trade
Once a contract exists, any user can:
- Go LONG (bet the metric goes up)
- Go SHORT (bet the metric goes down)
- Use leverage (Coming soon - optional, controlled by the user)
- Close positions anytime before expiration
- Roll over to extend before expiration
No Company Approval
You don't need Dexetera's permission to:
- Create new contracts
- Trade existing contracts
- Use leverage
- Withdraw your money
Everything is permissionless, entirely controlled by smart contracts, not people.
Dexetera vs. Other Exchanges
| Aspect | Dexetera | Centralized Exchange | Traditional Broker |
|---|---|---|---|
| Control | You (wallet) | Company | Company |
| Speed | Instant (blockchain) | 1-2 seconds | Instant |
| Privacy | High | Low | Low |
| Asset variety | Any measurable metric | Pre-selected assets | Limited |
| Leverage | User-controlled | Company-controlled | Company-controlled |
| Fees | Transparent (blockchain) | Hidden | Hidden |
| 24/7 trading | Yes | Limited | Limited |
Risks You Must Understand
- Leverage Amplifies Losses: 5x leverage means a 20% loss wipes out your deposit
- Liquidation: If your position loses enough value, it can be automatically closed
- No Customer Support: If you send funds to the wrong address, they're gone
- Smart Contract Risk: Even decentralized exchanges have technical risks
- Market Risk: The metric you're trading could move against you quickly
You Are Responsible
- Dexetera has no insurance on deposits
- There's no way to reverse transactions
- You control your private keys—no recovery option
- You must secure your wallet against phishing and hacks
What's Next?
- How does trading work? → How It Works
- Ready to start? → Wallet Setup
- Understand contracts? → Contracts & Futures
Remember: Only trade with money you can afford to lose. Leverage trading carries significant risk.