Risk Disclosure

Prediction markets are inherently volatile and unpredictable. Market prices can fluctuate rapidly and substantially, potentially resulting in significant losses. Past performance is not indicative of future results.

Leverage amplifies both potential profits and losses. Key risks include: • Magnified losses that can exceed your initial investment • Liquidation risk when positions move against you • Margin calls requiring additional funds • Forced position closure at unfavorable prices

Some markets may have limited liquidity, making it difficult to enter or exit positions at desired prices. This can result in wider spreads and increased slippage, particularly during volatile market conditions.

Trading on our platform involves technology risks, including: • System outages or technical failures • Blockchain network congestion or delays • Smart contract vulnerabilities • Cybersecurity threats and hacking attempts

Prediction markets operate in an evolving regulatory environment. Changes in laws or regulations could affect the platform's operations, market availability, or your ability to trade.

Market outcomes are determined based on objective criteria, but disputes may arise regarding resolution. While we have arbitration processes in place, there is no guarantee that all participants will agree with resolution decisions.

While our platform uses smart contracts to minimize counterparty risk, there remains the possibility of technical failures, bugs, or other issues that could affect trade settlement.

To manage risk effectively: • Never invest more than you can afford to lose • Diversify your positions across multiple markets • Use appropriate position sizing and risk management • Understand the markets you're trading before participating • Consider seeking independent financial advice

If you have questions about these risks or need assistance with risk management, please contact our support team at support@prophex.io