Skip to main content1. Acceptance of Terms
By accessing or using Lemon Markets (the “Platform,” “Protocol,” or “Service”), you agree to be bound by these Terms of Use (“Terms”). These Terms constitute a legally binding agreement between you (“User,” “you,” or “your”) and the Lemon Markets development team and community. If you do not agree to these Terms, you must immediately cease all use of the Platform.
2. Experimental “Beta” Status
Lemon Markets is currently in a “Beta” development phase. The Protocol is experimental, and its underlying smart contracts are subject to change. Use of the Platform involves a high degree of technical and financial risk, including the potential for total loss of funds.
The Service is provided on an “AS IS” and “AS AVAILABLE” basis. We make no warranties, express or implied, regarding the stability, security, or functionality of the Protocol. You acknowledge that you use the Protocol at your own risk.
3. Eligibility and Compliance
3.1. Age Requirements
You must be at least 18 years of age or the age of legal majority in your jurisdiction, whichever is higher, to use the Platform. By using Lemon Markets, you represent and warrant that you meet this requirement.
3.2. Jurisdictional Restrictions
The Platform is not intended for use by persons in jurisdictions where such use would be illegal or subject to registration requirements. Specifically, you may not use the Platform if you are:
- A national or resident of a country sanctioned by the UN, OFAC, or other relevant authorities.
- A US Person (as defined under US securities laws) or resident of a jurisdiction where synthetic asset trading is prohibited.
- Subject to legal restrictions that prevent you from interacting with decentralized finance (DeFi) protocols.
3.3. Compliance with Laws
It is your sole responsibility to ensure that your use of Lemon Markets complies with all applicable local, state, national, and international laws, including tax obligations and securities regulations.
4. Nature of the Protocol
Lemon Markets is a decentralized, non-custodial protocol for trading synthetic perpetual contracts.
4.1. Non-Custodial
Lemon Markets does not at any time take custody of your funds. All transactions are executed directly between your wallet and the Protocol’s smart contracts on the Base blockchain (or other supported networks). You are solely responsible for the security of your private keys and wallet recovery phrases.
4.2. Virtual Market Model
The Protocol utilizes a “Dumb Market, Smart Manager” model. You trade against a unified liquidity layer rather than a central counterparty. The “Virtual Markets” system allows for the permissionless creation of trading pairs for any asset with a reliable price feed.
4.3. Payout Waterfall
To ensure Protocol solvency, payouts follow a tiered waterfall mechanism:
- Local Settlement: Attempting to pay out from the specific market’s localized liquidity.
- Buffer Pool: Drawing from the Protocol’s internal reserves.
- Insurance Pool: Utilizing the liquidity provider-funded backstop as a final resort.
You acknowledge that payouts are subject to the availability of funds within this waterfall.
4.4. NFT-Based Positions
All trading positions are encapsulated as ERC-721 NFTs. This provides onchain transparency and composability but also means that loss of access to the NFT results in loss of access to the position.
5. Trading Rules and Mechanics
5.1. Margin and Leverage
Users must provide collateral (Margin) to open positions. The Protocol enforces minimum and maximum margin requirements. Leverage allows for increased market exposure but carries a significantly higher risk of liquidation.
5.2. Position Lifecycle
Positions remain open until:
- Manually closed by the User.
- Triggered by a Stop-Loss or Take-Profit order (if supported/implemented).
- Executed for Liquidation due to insufficient margin.
5.3. Fees
The Protocol charges various fees to maintain operation and reward participants:
- Opening/Closing Fees: A percentage of the position’s notional value (e.g., 0.1% to 0.2%).
- Funding Fees: Periodic payments between Longs and Shorts to align the synthetic price with the index price. These are peer-to-peer and are not collected by the Protocol.
- Liquidation Fees: A penalty charged when a position is liquidated, used to incentivize keepers and cover execution costs.
6. Liquidation Policy
6.1. Liquidation Threshold
Positions are subject to liquidation when the margin ratio falls below the maintenance threshold (e.g., 80% loss of initial margin).
6.2. Execution
Liquidations are executed by automated “Keepers” when the threshold is reached. Once a liquidation process is initiated, it cannot be reversed. You are responsible for monitoring your positions and maintaining sufficient margin to avoid liquidation.
7. No Investment Advice
The information provided on the Platform, in the documentation, or through community channels does not constitute financial, investment, legal, or tax advice. Trading perpetuals is a high-risk activity and may not be suitable for all individuals. You should consult with professional advisors before engaging in DeFi trading.
8. Risk Disclosures
8.1. Market Volatility
Global financial and cryptocurrency markets are highly volatile. Price swings can result in rapid liquidation and total loss of collateral.
8.2. Smart Contract Risk
The Protocol relies on complex smart contracts. While efforts are made to ensure security, bugs, vulnerabilities, or exploits could occur, leading to the loss of user funds.
8.3. Oracle Failure
Lemon Markets relies on decentralized oracles (e.g., Chainlink, Pyth) to provide asset prices. If an oracle provides inaccurate data, fails to update, or is manipulated, it could result in erroneous liquidations or trading losses.
8.4. Counterparty Risk
While the protocol is peer-to-pool, the ultimate liquidity is provided by the Insurance Pool and Buffer Pool. In extreme market conditions, these pools could be depleted, impacting the ability to pay out winning trades.
8.5. Technical Failures
Network congestion on the Base blockchain, API downtime, or frontend bugs may prevent you from managing your positions. The Protocol is not liable for losses resulting from such technical issues.
9. Prohibited Activities
Users are strictly prohibited from:
- Exploiting smart contract vulnerabilities or gaming the protocol logic.
- Engaging in market manipulation, wash trading, or sybil attacks.
- Attempting to bypass jurisdictional restrictions through VPNs or other masking tools.
- Using the Platform to facilitate money laundering or other illegal activities.
- Interfering with the operation of the Protocol’s keepers, relayers, or API.
10. Intellectual Property
Unless otherwise stated, all intellectual property rights in the Lemon Markets Protocol, including the UI, branding, and smart contract code (if not under open-source licenses), are owned by the project’s contributors. No license is granted to use these assets for commercial purposes without prior written consent.
11. Privacy
Lemon Markets is a decentralized protocol. We do not collect personal information like names, emails, or physical addresses. Your transactions are recorded on the public blockchain. Please refer to our Privacy Policy for more details on data handling.
12. Limitation of Liability
TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL LEMON MARKETS, ITS DEVELOPERS, CONTRIBUTORS, OR AFFILIATES BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING LOSS OF PROFITS, DATA, USE, GOODWILL, OR OTHER INTANGIBLE LOSSES, RESULTING FROM:
- YOUR USE OR INABILITY TO USE THE PLATFORM.
- ANY CONDUCT OR CONTENT OF ANY THIRD PARTY ON THE PLATFORM.
- UNAUTHORIZED ACCESS, USE, OR ALTERATION OF YOUR TRANSMISSIONS OR CONTENT.
- ANY BUGS, VIRUSES, OR TROJAN HORSES TRANSMITTED TO OR THROUGH THE SERVICE.
13. Indemnification
You agree to indemnify and hold harmless Lemon Markets and its contributors from and against any claims, damages, obligations, losses, liabilities, costs, or debt, and expenses (including attorney’s fees) arising from your use of the Platform or your violation of these Terms.
14. Dispute Resolution
14.1. Governing Law
These Terms shall be governed by and construed in accordance with the laws of the jurisdiction where the project’s core contributors reside, without regard to its conflict of law provisions.
14.2. Arbitration
Any dispute arising from these Terms or the use of the Platform shall be resolved through final and binding arbitration, rather than in court.
14.3. Class Action Waiver
YOU AGREE THAT ANY DISPUTE RESOLUTION PROCEEDINGS WILL BE CONDUCTED ONLY ON AN INDIVIDUAL BASIS AND NOT IN A CLASS, CONSOLIDATED, OR REPRESENTATIVE ACTION.
15. Changes to Terms
We reserve the right to modify these Terms at any time. Changes will be effective immediately upon posting to the documentation or the Platform UI. Your continued use of the Protocol following any changes constitutes acceptance of the updated Terms.
For inquiries related to these Terms, please reach out via our official community channels (Discord, Telegram, or Twitter/X). 