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Asset Security War: How the decentralized trading platform ApeX Pro avoids the FTX incident

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Support mandatory cash withdrawal, user assets come and go freely.

Original source: ApeX Pro

< p dir="ltr">The recent FTX incidents have caused shocks in the industry, especially CZ, the founder of Binance, who used to be an early investment in FTX and held a large number of FTT Tokens, tweeted that he wanted to liquidate his FTT holdings. It is bound to cause the price of FTT to drop sharply, so the FTX platform with a market value of over 3 billion US dollars has been pushed by everyone. Token FTT has generated huge volatility and is subject to increasingly severe selling pressure.

The cause of the FTX incident is that CoinDesk exposed Alameda’s financial data, which means that FTX provided a large amount of unsecured loans to Alameda. Alameda did not directly respond to the transparency of the relationship between the two, insufficient assets, etc. Users began to compare FTX (centralized trading platform) and Alameda (centralized asset management company) with LUNA, a transaction Platforms and Trading Platforms The long-short battle between trading platforms and users is intensifying. In essence, users worry that FTX no longer has the ability to accept FTT assets.

The frequent occurrence of asset security issues on centralized trading platforms once again shows the importance of decentralization, so what is a decentralized trading platform? How to realize the security of user assets?

As a Dex, ApeX Pro has achieved the best combination of asset security and efficient trading experience. ApeX Pro is a decentralized multi-chain non-custodial derivatives trading platform. Under the new social trading framework, it provides users with perpetual contracts with an order book model that supports up to 20X leverage margin trading. ApeX Pro integrates StarkWare's layer 2 scalability engines StarkEx and Validium, and realizes multi-chain support, low fees, deep liquidity and maximum security guarantee through zero-knowledge proof L2 rollup scheme.

Smart contract management, transparent and safe, no one can misappropriate user assets.

Aiming at the issue of asset security, how does ApeX Pro enable users to fully control their funds, so as to ensure the absolute security of assets in and out of users? ? Unlike centralized trading platforms that host users' funds, users' recharged funds in ApeX Pro transactions will be stored in smart contracts on the chain, which is completely transparent and open. The operator has no right to embezzle the user's funds, and the security of the user's funds is fully guaranteed through cryptography technology. Only the user holds the private key of the account to use the assets. Regularly synchronize the status to the L1 custody contract, and no one, including the operator, can misappropriate user assets by constructing false transactions, which completely prevents the occurrence of situations similar to the misappropriation of user assets by centralized trading platforms.

Support mandatory cash withdrawal, user assets come and go freely.

In order to ensure the safety of user assets under any market conditions, ApeX Pro realizes the freedom of user assets through the mandatory withdrawal function. Even if the transaction function is closed, users can still make a forced request to withdraw successfully, so as to avoid the problem of asset security that cannot be withdrawn similar to FTX at present.

When the user chooses to force the withdrawal, the forced withdrawal request is initiated by the user from the L1 (ETH chain) to avoid the transaction platform from the L2 layer Review, that is, if ApeX Pro does not process the transaction request within a specific time frame for any reason, this forced withdrawal operation will freeze the StarkEx contract (hereinafter referred to as the starkEx contract) used by ApeX Pro, and users can use force withdrawal and force transaction to get them back funds.

Specifically, a forced withdrawal request will alert the ApeX system that you are requesting a forced withdrawal of your funds from the StarkEx contract. If your withdrawal has not been processed within the limited time, it will trigger the freeze function of StarkEx, allowing users to actively withdraw funds (USDC) from the contract. The final amount is calculated based on the total value of their positions in the last accepted batch on-chain.

ApeX Pro relies on StarkEx's STARK proof, without proof that the state is actually valid, no state update will happen on L1. This means that within the Apex Pro trading system, funds can only be transferred according to the logic defined by StarkEx Cairo, which enforces the following actions:

- Funds cannot be transferred from a user without a valid signature from the user on the relevant transfer request

- The committed StarkEx status on L1 reflects all assets occurring in the L2 environment Transfer record

- StarkEx cannot execute the same asset transfer request twice

This result Yes, operating nodes (such as trading platforms) cannot steal users' assets. Forced transactions, forced withdrawals, and a dedicated upgrade mechanism complete the trustless landscape, making the StarkEx-based Apex Pro system fully self-hosted.

By combining the off-chain matching model based on the StarkWare Layer 2 scalability engine (StarkEx), ApeX Pro can not only provide users with Defi Non-custodial features, and can achieve the high efficiency and availability of the centralized trading platform (CEX), and maximize the protection of the rights and interests of traders who are concerned about data privacy, while ensuring the efficient transaction settlement capabilities of ApeX Pro, it strengthens every trade on the trading platform. Transactions are securely verified and traders' privacy in terms of personal transaction data and activities is guaranteed.

It is particularly worth mentioning that ApeX Pro supports multi-chain deposit and withdrawal. This strategy provides traders with low-fee and low-latency deposit and withdrawal options.

All the security guarantees of ApeX Pro are preparing for entering Web3. Please remember the Not your keys and Not your coins that ApeX Pro has always followed and pursued.