Risks
While Hedgeyour.fun helps users manage uncertainty, it’s important to understand that hedging and prediction market participation involve risks. We aim to make them transparent, manageable, and educational — but not eliminate them entirely.
1. Market Risk
Prediction markets depend on real-world outcomes. Even well-informed positions can lose value if events unfold differently than expected. Hedging minimizes potential losses but does not guarantee full protection.
Example: If a market resolves unexpectedly or data changes rapidly, both your main and hedge positions may move unfavorably.
2. Liquidity Risk
Some prediction markets — especially smaller or niche ones — may have low liquidity. That means it might be harder to close or resize positions quickly at fair prices.
We work to recommend markets from Polymarket and Kalshi, which generally maintain healthy liquidity, but fluctuations are possible.
3. Platform and Oracle Risk
Our platform aggregates data and does not directly resolve markets. The accuracy of market outcomes depends on the official resolution mechanisms used by Polymarket and Kalshi, and in rare cases, disputes or delays may occur.
4. Smart Contract Risk
While Hedgeyour.fun doesn’t hold user funds, interaction with external smart contracts always carries technical risks such as bugs, exploits, or API failures. Users should verify all transactions and operate with awareness of blockchain limitations.
5. Behavioral Risk
Hedging is meant to protect, not to speculate. Users may be tempted to over-trade or take unnecessary risks, treating hedges as regular bets. We encourage everyone to maintain a balanced, risk-aware approach.
6. Regulatory Risk
Prediction markets operate in a developing regulatory environment. Availability of specific platforms or markets may vary depending on your country or jurisdiction. Users are responsible for ensuring compliance with their local laws.
⚠️ Disclaimer
Hedgeyour.fun provides tools and insights, not financial advice. All decisions are made by the user. Please hedge responsibly and never risk more than you can afford to lose.
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