GMX
score
Fees: ~0.05–0.07% open/close + borrow/funding fees
GMX suits traders who prefer a straightforward pooled-liquidity venue and LPs comfortable with directional exposure. Its model is proven but the 2025 exploit is a real mark against its security, so size positions accordingly. Not financial advice.
What GMX is
GMX is a decentralized perpetual and spot-style exchange, launched in 2021, best known for pioneering the pooled-liquidity model. Rather than matching orders on a book, traders take positions against a shared liquidity pool (the GLP and later GM pools), with pricing supplied by oracles. It operates across multiple chains, most prominently Arbitrum and Avalanche, and has become a reference point for the pool-based approach to on-chain perps.
How it scores
Liquidity and depth (7.5) and reliability and UX (7.5) are its best criteria, reflecting deep LP backing and a simple, predictable interface where trades execute against the pool with zero price impact within limits. Fees and funding (7) and products and leverage (7) are middling by design, since its market breadth and leverage are narrower than order-book competitors. The pooled model favors clarity and ease of use over the flexibility a full order book provides.
Fees and costs
GMX charges modest open and close fees, plus borrow and funding-style fees that accrue while a position is held. The borrow component means the longer you hold a leveraged position, the more it costs, so the model tends to reward shorter, more directional trades. Within pool limits, execution carries no price impact, which keeps costs predictable for straightforward trades. Check the current fee schedule for the specific market and chain you use.
The security caveat
Security and audits is the weakest score at 6.5, and there is a specific reason: GMX suffered a significant smart-contract exploit on its v1 in 2025, which is a real mark against its record. Beyond that event, its oracle-based pricing can lag live markets and exposes liquidity providers to informed-flow and toxic-trade risk. These are genuine considerations for both traders and anyone providing liquidity to the pools.
Who it is for
GMX suits traders who want a straightforward, pooled-liquidity venue for spot-like perp trades on blue-chip assets, and liquidity providers who are comfortable taking directional exposure. Those needing wide market breadth, high leverage or a spotless security history may prefer alternatives. Given the 2025 exploit, size positions accordingly and understand the LP side before depositing. Not financial advice.
Overall 7.1 / 10 — the weighted average of the criteria above. How we score →
- + Pioneered the pooled-liquidity (GLP/GM) model with zero price impact within limits
- + Established multi-chain presence on Arbitrum and Avalanche with deep LP backing
- + Simple UX and predictable oracle-based execution for spot-like perp trades
- − Suffered a significant smart-contract exploit on its v1 in 2025, denting its security record
- − Oracle-based pricing can lag and exposes LPs to informed-flow and toxic-trade risk
- − Leverage and market breadth are narrower than order-book competitors
Is GMX safe after the 2025 exploit?
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Its security is our lowest-scored area at 6.5, largely because of a significant v1 smart-contract exploit in 2025. The pooled model itself is proven and widely used, but that incident is a real mark against its record, so trade and provide liquidity with appropriate caution and position sizing.
What are GMX's fees?
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GMX charges modest open and close fees, plus borrow and funding-style fees that accrue while a position stays open. Because the borrow cost grows over time, the model tends to favor shorter-duration, directional trades rather than long holds. Check the current schedule for the market you trade.
How does GMX's liquidity pool work?
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Traders take positions against a shared pool (GLP and the newer GM pools) instead of matching on an order book, with oracle-based pricing and zero price impact within set limits. Liquidity providers earn fees but take on the other side of trader flow, which carries informed-flow risk.
Which networks does GMX support?
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GMX has an established multi-chain presence, most prominently on Arbitrum and Avalanche, both backed by deep LP liquidity. This gives it broad reach among layer-2 and alternative-L1 users.
Is GMX a good perp-dex?
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It is a proven pioneer of the pooled model and earns 7.1 overall, with strong marks for depth and simple UX. The main drawbacks are the 2025 exploit, oracle pricing that can lag, and narrower markets and leverage than order-book venues.