Risk Disclosure

Important: You may lose all funds you commit to predictions on Selano. Only participate with amounts you can afford to lose entirely.

1. Prediction Market Risks

Loss of funds — You may lose your entire position on any prediction. There is no guarantee of returns.
Illiquidity — You may not be able to exit a position before the market resolves, particularly in low-volume markets.
Market manipulation — Other participants may attempt to influence market prices or outcomes.

2. Smart Contract Risks

Bugs and vulnerabilities — Smart contracts may contain undiscovered bugs that could result in loss of funds.
Exploits and hacks — Malicious actors may exploit contract vulnerabilities to drain funds.
Irreversible transactions — Blockchain transactions cannot be reversed once confirmed. Errors in transaction execution are permanent.
Upgrade risks — Contract upgrades may introduce new bugs or change expected behavior.

3. Blockchain Risks

Network congestion — High network traffic may delay transactions or increase gas fees.
Forks and reorganizations — Blockchain forks may cause transactions to be reversed or duplicated.
Network downtime — Base L2 or Ethereum L1 outages may temporarily prevent access to funds.

4. Cryptocurrency Risks

USDC depeg risk — USDC is a stablecoin that aims to maintain a 1:1 peg with the US Dollar, but this peg is not guaranteed and has historically deviated.
Regulatory action — Government regulations may restrict or prohibit the use of stablecoins or prediction markets in your jurisdiction.
Issuer risk — Circle (USDC issuer) may freeze or blacklist addresses, potentially affecting your ability to access funds.

5. Resolution Risks

AI oracle errors — Prediction outcomes are resolved by an AI consensus mechanism (3-AI oracle). This system may produce incorrect or disputed results.
Disputed outcomes — You may disagree with how a prediction was resolved. While dispute mechanisms exist, the final resolution is determined by the oracle.
Resolution delays — Market resolution may be delayed due to ambiguous outcomes or technical issues.

6. No Deposit Insurance

Funds held on Selano are NOT insured by any government deposit insurance program (such as FDIC or SIPC). If the Platform experiences a security breach, smart contract failure, or insolvency, you may lose all deposited funds with no recourse for recovery.

This risk disclosure is not exhaustive. You should carefully consider your financial situation and risk tolerance before participating in prediction markets.