⚠️ Important Warning
Trading on prediction markets involves substantial risk of loss, including the possibility of losing your entire investment. Prediction market trading is not suitable for all investors. Before trading, you should carefully consider your financial situation, experience level, and risk tolerance.
1. Market Risk
- Total Loss — Prediction market positions can go to $0. If the event resolves against your position, you lose your entire investment in that position.
- Volatility — Prices can change rapidly based on news, sentiment, and market dynamics. Short-term fluctuations do not guarantee long-term outcomes.
- Liquidity Risk — Some markets may have low liquidity, resulting in wide spreads, slippage, and difficulty exiting positions at desired prices.
- Resolution Risk — Market resolution depends on the rules set by the venue operator. Outcomes may be disputed, delayed, or resolved differently than expected.
2. Technology Risk
- Blockchain Risk — Transactions on Solana and Ethereum are irreversible. Once a transaction is confirmed, it cannot be undone.
- Smart Contract Risk — Trading through on-chain protocols involves smart contract risk. Bugs, exploits, or vulnerabilities in smart contracts could result in loss of funds.
- Wallet Security — Your funds are only as secure as your wallet. Loss of private keys or seed phrases results in permanent loss of access to your assets.
- Network Congestion — During periods of high activity, blockchain networks may experience congestion, resulting in delayed transactions and higher fees.
- Data Accuracy — While we strive for accuracy, market data from third-party APIs may be delayed, incomplete, or temporarily unavailable.
3. Platform-Specific Risks
- Aggregation Risk — Moon Market aggregates data from multiple venues. Price discrepancies between venues (arbitrage opportunities) may not be immediately exploitable and carry execution risk.
- Cross-Venue Risk — Different venues may have different resolution rules, fee structures, and regulatory status for the same event.
- Copy Trading Risk— Past performance of traders on the leaderboard does not guarantee future results. Copy trading carries the same risks as manual trading, and you may lose money following another trader's positions.
- Signal Risk — Market signals, sentiment analysis, and intelligence data are generated algorithmically and should not be considered trading recommendations.
4. Regulatory Risk
- Jurisdictional Restrictions — Prediction market trading is regulated differently across jurisdictions. Some venues (e.g., Polymarket) may be restricted in certain countries. It is your responsibility to ensure compliance with local laws.
- Regulatory Changes — The legal status of prediction markets may change. New regulations could restrict or prohibit trading, or require additional compliance measures.
- Tax Obligations — Profits from prediction market trading may be subject to taxation in your jurisdiction. You are solely responsible for any applicable tax obligations.
5. Financial Risk Best Practices
- Never invest more than you can afford to lose
- Diversify across multiple positions rather than concentrating in one market
- Use limit orders when possible to control your entry price
- Monitor your positions regularly and set price alerts
- Consider the probability implied by market prices before trading
- Understand the resolution rules and timeline for each market
- Keep your wallet software updated and use hardware wallets for large amounts
6. No Guarantee of Returns
Moon Market does not guarantee any particular investment return. The leaderboard, signals, and analytics features are tools — not recommendations. You are solely responsible for your trading decisions and their outcomes.
7. Acknowledgment
By using Moon Market, you acknowledge that you have read and understood these risk disclosures, and that you accept the risks associated with prediction market trading. If you do not accept these risks, you should not use the Platform.