Risk Disclosure
Important Warning
Trading in prediction markets involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is appropriate for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Only trade with funds you can afford to lose.
1 General Risk Warning
Before using Polymarket Copy Trade, you should be aware that prediction market trading carries inherent risks. Past performance of any trader or strategy is not indicative of future results. The value of positions can fluctuate significantly, and you may receive back less than your original investment.
By using our platform, you acknowledge that you understand these risks and accept full responsibility for your trading decisions and their outcomes.
2 Market Risks
Prediction markets are subject to various market risks including:
- Price Volatility: Market prices can change rapidly and unpredictably based on news, events, and market sentiment
- Liquidity Risk: Some markets may have limited liquidity, making it difficult to enter or exit positions at desired prices
- Event Risk: Unexpected events can cause sudden and significant price movements
- Resolution Risk: Market resolution may be delayed or disputed, affecting the settlement of positions
3 Copy Trading Specific Risks
Copy trading introduces additional risks beyond traditional trading:
- Performance Risk: A trader's past performance does not guarantee future results. Successful traders can experience significant losses
- Execution Delay: There may be delays between when a trader executes a trade and when your copy trade is executed, potentially affecting entry/exit prices
- Position Sizing Risk: Proportional position sizing may not be suitable for all account sizes and risk tolerances
- Trader Behavior: Traders you follow may change their strategy, increase risk, or stop trading without notice
- Concentration Risk: Following few traders may lead to concentrated risk exposure
4 Technology & Platform Risks
Using an automated trading platform involves technology-related risks:
- System Failures: Technical issues, server downtime, or software bugs may prevent trade execution
- Network Issues: Internet connectivity problems may affect platform access and trade execution
- Smart Contract Risk: Interactions with blockchain smart contracts carry inherent risks
- Cybersecurity: Despite security measures, no system is immune to potential security breaches
5 Cryptocurrency Risks
Trading involves cryptocurrency assets which carry their own unique risks:
- Wallet Security: You are responsible for securing your wallet and private keys. Lost keys cannot be recovered
- Blockchain Risk: Blockchain networks may experience congestion, forks, or other issues
- Irreversible Transactions: Cryptocurrency transactions are generally irreversible once confirmed
- Gas Fees: Network transaction fees can vary significantly and impact trading costs
6 Regulatory Risks
Prediction markets and cryptocurrency are subject to evolving regulatory frameworks:
- Regulations vary by jurisdiction and may change without notice
- You are responsible for understanding and complying with laws in your jurisdiction
- Regulatory changes may impact the availability or operation of our services
- Tax implications vary by jurisdiction; consult a tax professional
7 No Financial Advice
Polymarket Copy Trade does not provide financial, investment, legal, or tax advice. All information provided on our platform is for informational purposes only and should not be construed as professional advice.
You should consult with qualified professionals before making any financial decisions. We do not recommend any specific traders, strategies, or markets.
8 Risk Mitigation Recommendations
While we cannot eliminate risks, we recommend the following practices:
- Only invest funds you can afford to lose completely
- Diversify by following multiple traders with different strategies
- Use appropriate position sizing relative to your account
- Regularly monitor your positions and adjust settings as needed
- Educate yourself about prediction markets before trading
- Set stop-loss limits when available
9 Acknowledgment
By using Polymarket Copy Trade, you acknowledge that:
- You have read and understood this Risk Disclosure
- You understand that trading involves substantial risk of loss
- You are solely responsible for your trading decisions
- You will not hold Polymarket Copy Trade liable for any trading losses
10 Questions
If you have any questions about the risks involved or need clarification on any points, please contact us before using our platform.
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