GMX launched on Arbitrum in September 2021 and expanded to Avalanche shortly after, making it one of the earliest perp DEXes still running. The protocol pioneered the pooled liquidity model where liquidity providers deposit assets into a shared pool (originally GLP, now GM pools in V2) that acts as the counterparty to all trades. This design eliminates the need for an order book and provides guaranteed execution at oracle prices, powered by Chainlink's low-latency feeds. The V2 upgrade went live in mid-2023 and introduced isolated GM pools for individual markets, reducing systemic risk and giving LPs more granular exposure control.

V2 also introduced synthetic markets. Each market consists of a long collateral token, a short collateral token (typically USDC), and an index token that determines the price feed. For example, the ETH/USD market uses WETH as long collateral and USDC as short collateral, with the ETH/USD Chainlink price feed as the index. This structure allows GMX to list synthetic perpetuals for assets that don't exist natively on Arbitrum or Avalanche without requiring actual token liquidity. Traders get zero price impact on most standard-sized trades because execution happens directly against the oracle price rather than through an order book.

The fee structure on GMX runs higher than order book-based competitors. Position opening and closing fees are either 4 or 6 basis points depending on the market's open interest balance (4 bps if the trade reduces the long/short imbalance, 6 bps if it increases it). Borrow fees accrue hourly based on utilization, and funding rates incentivize balanced open interest. These fees are a drawback for high-frequency traders, but they fund strong LP yields. GM pool APYs consistently range from 10-40% depending on market conditions and pair volatility. The escrowed GMX (esGMX) staking rewards add another yield layer for long-term protocol participants.

GMX has been live since 2021 and has not lost user funds through any of the market crashes, competitor exploits, or volatility events during that time. Multiple audits by ABDK, Sherlock, and Guardian Audits provide formal verification. The Sherlock coverage is worth noting because it provides active bug bounty insurance through its audit marketplace. The multi-chain deployment also adds resilience: if one chain has issues, the other deployment keeps running independently. GMX works well for traders who prioritize security and reliable execution over the lowest possible fees.

Related Resources

hyperliquid comparison dydx comparison jupiter-perps comparison drift comparison GMX deal — Fee Discount What Are Perpetual Futures? A Complete Beginner's Guide How to Trade Perpetual Futures on a DEX: Step-by-Step Guide Understanding Funding Rates: How They Work and How to Profit Fee Cost Calculator Live Funding Rates

Frederick Cormack

VC & Crypto Derivatives Analyst

Derivatives analyst with 8+ years in crypto & venture capital. Tested every protocol on PerpFinder with real funds.

8+ years in crypto derivativesFormer VC analystTested 40+ perp protocols with real fundsOn-chain data verification specialist

Last reviewed: April 4, 2026LinkedIn |Our Methodology

Affiliate Disclosure: This page contains affiliate links. We may earn a commission when you sign up through our links, at no extra cost to you. This does not influence our ratings or recommendations.

Risk Warning: Trading perpetual futures involves substantial risk of loss and is not suitable for all investors. Past performance does not guarantee future results. Only trade with funds you can afford to lose.

Key Features

Synthetic asset markets (V2)GM liquidity poolsOracle-based pricing (Chainlink)Multi-chain deploymentZero price impact on supported routesEscrowed GMX staking rewards

Audits

ABDKSherlockGuardian Audits

Frequently Asked Questions

What is the maximum leverage on GMX?▾

GMX supports up to 100x leverage on major pairs via its V2 synthetic markets. Maximum leverage varies by pair based on available liquidity and open interest balance in the relevant GM pool.

What are GMX trading fees?▾

GMX charges 4 basis points (0.04%) when your trade reduces the open interest imbalance, or 6 basis points (0.06%) when it increases the imbalance. There is no maker/taker distinction since GMX uses oracle pricing, not an order book. Additional costs include hourly borrow fees based on pool utilization and funding rates to balance long/short open interest.

How many trading pairs does GMX support?▾

GMX lists around 30 perpetual markets, focusing on major and mid-cap assets. V2 introduced synthetic markets that allow GMX to list assets without requiring native token liquidity on Arbitrum or Avalanche.

Has GMX been audited?▾

GMX has been audited by ABDK, Sherlock, and Guardian Audits. The Sherlock audit is particularly notable as it provides active bug bounty insurance coverage. GMX has been live since September 2021 without a significant security incident.

How does the GMX referral program work?▾

Using referral code PRO gives referred traders a 10% fee discount on their trades and earns referrers esGMX (escrowed GMX) token rewards. esGMX vests over 12 months and can be staked to earn protocol fees in the interim.

What chains does GMX operate on?▾

GMX is deployed on both Arbitrum and Avalanche. The two deployments operate independently, so if one chain experiences issues the other continues running. Most trading volume concentrates on the Arbitrum deployment.

What are GMX V2 synthetic assets?▾

GMX V2 introduced isolated GM pools where each market uses a long token, a short token (typically USDC), and an oracle price feed as the index. This synthetic structure lets GMX list perpetuals for assets that don't exist natively on the chain, expanding the range of tradable markets without requiring real token liquidity.

Trading Tools

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Trading perpetual futures carries significant risk, including potential total loss of capital. Past performance is not indicative of future results.