Paradex

Paradex is a decentralized cryptocurrency exchange focused on derivatives and spot trading. The platform supports perpetual futures, spot markets, pre-markets, and options across a broad range of digital assets.

Paradex operates on Paradex Chain, a high-performance Layer-2 blockchain built using Starknet technology in collaboration with StarkWare. The exchange combines off-chain order matching with on-chain settlement, enabling users to retain custody of their assets while maintaining verifiable settlement on Ethereum. This architecture is designed to reduce counterparty risk while preserving transparency of final balances and state updates.

The platform incorporates a privacy-oriented execution model. Encrypted state commitments are periodically posted to Ethereum, while authenticated RPC access and off-chain matching help prevent public exposure of sensitive trading data such as open positions, entry prices, liquidation levels, and unrealized profit and loss. Final balances and settlements remain verifiable on-chain.

Paradex applies a zero-fee trading model for eligible retail users across a large set of perpetual futures and spot markets. Under this structure, qualifying retail participants are not charged maker or taker trading fees on supported markets. Platform revenue is generated through alternative mechanisms, including professional trading tiers, market maker programs, and liquidation-related fees.

The exchange supports unified margin across instruments, allowing traders to manage collateral across perpetual futures, spot markets, and options within a single account. Portfolio-level margin calculations enable capital efficiency by considering offsetting exposures in risk management. The platform also includes isolated and cross-margin modes to support different trading strategies.