Risk Disclosure
Trading prediction markets carries material risk of loss. Read this page carefully before placing your first trade.
Trading ForeSeen markets can result in total loss of your capital.
This is not investment advice. Never commit funds you cannot afford to lose.
Total loss of capital
Prediction market shares can settle at $0.00. If you buy a YES share for $0.60 and the market resolves NO, your entire $0.60 per share is lost. There is no partial refund, no insurance, and no compensation mechanism for incorrect predictions.
Resolution risk
Every market declares a resolution source before trading opens, but sources can be delayed, restated, or suspended. Delayed releases pause resolution until the data is published. If a source is suspended indefinitely, the market may resolve invalid and all positions are refunded at cost — meaning P&L opportunity is lost.
Liquidity risk
Early markets and long-dated markets may trade at wide spreads. You may not be able to exit a position at the midpoint price. Holding to resolution guarantees a binary payout ($1.00 or $0.00), but exiting early at an unfavorable spread is a common source of realized loss.
Smart contract risk
ForeSeen contracts are audited but audits reduce, not eliminate, risk. A bug, exploit, or oracle manipulation could result in partial or total loss of funds locked in the contracts. We publish all audit reports at github.com/batetpalf/ForeSeen-Protocol.
Wallet and custody risk
You are solely responsible for the security of your wallet and seed phrase. Losses from phishing, malicious browser extensions, compromised devices, or signing malicious transactions are not recoverable by ForeSeen. Use a hardware wallet for balances above $10,000.
Regulatory risk
The regulatory treatment of prediction markets is evolving in most jurisdictions. Your access to ForeSeen may be restricted or terminated at any time based on changes in your local law. You are responsible for determining whether your use of the protocol is legal where you reside.
Tax risk
Profits and losses from prediction markets may be taxable in your jurisdiction. ForeSeen does not withhold taxes and does not provide tax documents. Keep your own records. Consult a qualified tax professional before trading meaningful size.
Only risk what you can afford to lose
Prediction markets are high-risk instruments. Do not trade with funds needed for rent, food, medical expenses, or any other essential commitment. A responsible allocation is money you would be comfortable setting on fire.
By trading on ForeSeen, you acknowledge these risks and accept full responsibility for your positions. Questions? support@foreprotocol.xyz.