Risk Disclosure
Important notice
Trading on FatTail Markets involves significant risk. Please read this disclosure carefully before participating.
Smart contract risk
FatTail Markets uses smart contracts deployed on Solana. Smart contracts may contain bugs or vulnerabilities that could result in loss of funds. While we strive for security, no smart contract is guaranteed to be bug-free.
Oracle risk
Market resolution depends on oracle systems:
- Price feeds may provide incorrect data
- Optimistic oracle outcomes depend on community voting, which may not always reflect ground truth
- Admin resolution is centralized and depends on operator integrity
Market risk
- Prices can move against your position at any time
- Low-probability events (10% side) will usually lose
- Past performance does not indicate future results
- Liquidity may vary — large trades may experience significant slippage
K-Point system
K-Points are a non-monetary point system. They:
- Have no direct cash value
- Cannot be redeemed for currency
- Are subject to platform terms of service
Regulatory risk
Prediction markets operate in an evolving regulatory environment. Rules may change in your jurisdiction. It is your responsibility to ensure compliance with local laws.
Best practices
- Read resolution rules before trading any market
- Start small — understand the mechanics before committing large amounts
- Diversify — don’t concentrate all KP in a single market
- Understand the Kelly Criterion — especially for tail (10%) positions
- Monitor your positions — market conditions can change rapidly
Contact
For questions about risk or platform mechanics, refer to the documentation or reach out through official channels.
Smart contract risk, oracle risk, and market risk apply. Read the resolution rules before trading.