Before trading any crypto asset, it is important to understand the risks. This overview summarizes certain risks associated with this asset. No securities regulatory authority has issued an opinion regarding this asset, including an opinion that it is not itself a security and/or derivative.

Investors in Canada are reminded that no securities regulatory authority or regulator in Canada has assessed or endorsed any Crypto Contract or Crypto Asset made available through the Uphold Platform.

Token Description & Project Background

GMX is a decentralized exchange designed for perpetual and spot trading, offering users the convenience of setting up an account and engaging in trades as well as short or long postions with leverage of up to 50x. Originally known as Gambit Financial on the Binance Smart Chain (BSC), GMX underwent a rebranding and now operates on Arbitrum, a popular layer 2 scaling solution built on the Ethereum Network. It also operates on Avalanche and has future plans for expansion to other chains. 

Traders on GMX can easily swap various cryptocurrencies such as ETH, BTC, LINK, UNI and stablecoins. Since its launch on Arbitrum, GMX has facilitated a total volume of over $20 billion. The protocol generates revenue through fees charged on the opening and closing of trades, as well as a “borrow fee” deducted hourly for leveraged positions. 

The GMX token services as both the platform’s utility and governance token. Token holders have the power to vote and actively participate in shaping the future rules and objectives of the protocol. Additionally, users who stake GMX tokens earn 30% of the platform fees, which are generated by providing liquidity to the protocol. 

GMX was developed by an anonymous team, with the lead developer known solely as @xdev_10 on Twitter. 

Risks of GMX

Like an investment in other crypto assets, there are some general risks to investing in GMX. These include: (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in GMX is subject to the following specific risks:

  • GMX operates on Arbitrum, a layer two solution that introduces certain smart contract risks. In a rollup, tokens are locked within a smart contract, which means there is a potential vulnerability where funds could be stolen in the event of a smart contract bug or hack. Furthermore, GMX faces competition from both centralized exchanges (CEXs) and decentralized exchanges (DEXs) and will encounter ongoing competition as it expands to new networks. It is important to consider that the original development team remains anonymous, which presents challenges in assessing credibility through traditional means.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with GMX. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The GMX foundation are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of GMX have no recourse to GMX developers, or Uphold if GMX declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing GMX on the Uphold Platform, Uphold performed due diligence on GMX and determined that GMX is unlikely to be a security or derivative under Canadian securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

  • The creation, governance, usage, and design of GMX, including the source code being open source, peer-reviewed and audited by a credible third party, security, and roadmap for growth in the developer community and the risks associated with an anonymous development team. 
  • The supply, demand, maturity, utility, and liquidity of GMX.
  • Marketing materials put forward by the GMX social team including, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
  • Material technical risks associated with GMX, including any code defects, security breaches and other threats concerning GMX and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
  • Legal and regulatory risks associated with GMX, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of GMX.


Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.

How to buy GMX (GMX)

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