This document describes key risks of using PolyStreet, including market, execution, infrastructure, wallet, policy, and legal risks. Review all sections before deploying live funds.
1. Important General Warning
Trading and automation involve substantial risk. You should use PolyStreet only if you understand and accept that losses can be rapid, material, and in some cases irreversible.
No content on PolyStreet should be interpreted as investment, tax, accounting, legal, or fiduciary advice. You are responsible for your own decisions, suitability assessment, and risk management approach.
2. Capital Loss Risk
Any allocation to market strategies can lose value. Outcomes can deviate significantly from expected models, and even historically strong strategies may underperform or fail under changing conditions.
Do not allocate funds you cannot afford to lose. You should evaluate your own risk tolerance, liquidity needs, and financial circumstances before using live capital through any strategy workflow.
3. Market Structure and Liquidity Risk
Prediction market prices can move quickly and may gap between observed states. Liquidity may vanish unexpectedly, causing slippage, partial fills, or inability to exit positions at targeted prices.
Displayed quotes, charts, or inferred opportunity metrics may not reflect executable size in real time. Thin order books can make practical execution outcomes materially worse than model assumptions.
4. Automation and Model Risk
Strategy logic can be wrong, stale, or unsuitable for current market behavior. Prompt-based or parameterized systems may produce unintended behavior under edge cases, novel data, or adversarial conditions.
Backtests, historical snapshots, or summary metrics are not guarantees of future performance. Automated behavior can amplify mistakes faster than manual workflows when conditions shift unexpectedly.
5. Data and Infrastructure Risk
PolyStreet depends on external infrastructure such as RPC nodes, market data APIs, authentication systems, and relayer services. Outages, latency spikes, stale feeds, and transport errors can alter system behavior.
Even when systems recover, delayed data can cause execution against outdated assumptions. Temporary outages can also create reconciliation mismatches between expected and observed state.
6. Execution and Settlement Risk
Order placement, cancellation, and settlement may fail or complete differently than expected due to network conditions, chain state changes, or market-level constraints. Confirmed transaction intent does not always guarantee expected downstream effects.
Transaction ordering, nonce handling, replacement behavior, gas conditions, and relayer routing can materially impact execution quality and timing. You accept the possibility of delayed, failed, or unfavorable execution outcomes.
7. Wallet, Key, and Smart Contract Risk
You are responsible for key custody and wallet security. Compromised keys, malicious approvals, phishing events, and unsafe signing behavior can lead to permanent loss of assets.
On-chain interactions carry smart contract and protocol risk, including implementation bugs, integration bugs, and emergent vulnerabilities. Some losses may not be technically or operationally recoverable.
8. Fee, Reward, and Payout Risk
Fee schedules and reward policies can change over time. Reward balances shown in product interfaces are operational accounting values that may be adjusted for reconciliation, abuse prevention, and policy controls.
Claim payout attempts may fail, be delayed, or be reversed due to network failures, treasury constraints, compliance review, destination-wallet issues, or anti-abuse controls. A submitted claim is not a guaranteed immediate settlement.
9. Regulatory, Tax, and Compliance Risk
Laws, regulations, and policy expectations may vary by jurisdiction and may change rapidly. You are responsible for determining whether your use of PolyStreet and related market activity is lawful where you reside or transact.
Tax treatment can vary by jurisdiction and transaction type. PolyStreet does not provide tax advice, and you are responsible for maintaining your own records and consulting professional advisers where appropriate.
10. Operational Interruptions and Force Majeure
Service interruptions may result from events outside PolyStreet control, including provider downtime, network incidents, chain instability, legal restrictions, cyber events, or broader infrastructure outages.
During severe incidents, PolyStreet may limit or pause certain features to protect users and platform integrity. Such protections may reduce immediate functionality and can impact short-term execution availability.
11. User Responsibility and Suitability
You are responsible for assessing whether platform features and strategy behavior are suitable for your goals and risk tolerance. You should independently verify assumptions before allocating significant capital.
If you do not fully understand the technical, financial, and legal risks described in this document, you should not use live trading or reward-claim functionality until you have obtained adequate independent guidance.