Risk Disclosure

Trading Prediction Markets Involves Significant Risk

Before depositing funds, you must understand the following risks. You could lose some or all of your capital.

1. Oracle Risk (The "Split Reality" Scenario)

Oraclyst aggregates markets from different sources that may use different "Oracles" (Truth Sources) to resolve events.

• Risk: It is possible for Polymarket (UMA Oracle) to say "Candidate A won" while Kalshi (Federal Data) says "Candidate B won."

• Our Policy: SOTs settle based on their Source Venue, not a global consensus. If you hold a Polymarket-derived SOT, you are subject to UMA's decision, even if the rest of the world disagrees.

2. Smart Contract Risk

While audited, smart contracts are software and may contain bugs. A critical exploit could result in the freezing or loss of funds held in the Virtual Liquidity Vaults.

3. Regulatory Risk

The regulatory landscape for prediction markets is evolving rapidly.

• Venue Shutdown: If a venue like Polymarket is blocked or shut down, liquidity for those specific SOTs may dry up instantly.

• Interface Blocking: Oraclyst Labs may be forced by court order to block access to the interface in certain regions. (Note: The underlying blockchain protocol would likely remain accessible via direct contract interaction).

4. Liquidity & De-pegging Risk

• Liquidity: Low-volume markets may have high slippage. You may not be able to exit a large position at the current market price.

• USDC Risk: The platform relies on USDC. If USDC loses its peg to the US Dollar, the value of your holdings will be impacted.