Risk Disclosure

1. Purpose of this disclosure

This Risk Disclosure describes material risks associated with using PredScout analytics, simulations, wallet tracking, copy-trading tools, automation rules and related features.

It does not identify every possible risk and should be read together with our Terms of Service and Privacy Policy. You are responsible for evaluating any additional risks relevant to your circumstances.

2. Risk of loss

Prediction market trading is speculative. A position can lose its entire purchase cost and any associated fees. Do not commit funds you cannot afford to lose.

• Market prices can move quickly and unexpectedly.
• Winning positions are not guaranteed to produce an overall profit after fees, spreads and execution differences.
• Repeated, concentrated or correlated positions can magnify losses.
• A high historical win rate can conceal infrequent but substantial losses.

3. Market, volatility and liquidity risk

Prediction market prices reflect current trading activity and expectations, not certain probabilities or guaranteed outcomes. News, rumors, changing expectations, large orders and low participation can cause rapid price changes.

Some markets may have limited liquidity. You may be unable to open or close a position at the desired price, size or time. A lack of buyers or sellers can increase spreads, slippage and price impact or prevent execution entirely.

4. Market rules and resolution risk

Each prediction market is governed by its own wording, resolution criteria, sources, deadlines and dispute procedures. A market may resolve differently from your personal interpretation or expectation.

• Resolution sources may be delayed, corrected, disputed or unavailable.
• Market wording may contain ambiguity or depend on definitions you interpret differently.
• A market may be paused, canceled, declared invalid or resolved under fallback rules.
• Appeals, oracle decisions or venue determinations may delay or change the final result.

Review the complete market rules before trading. PredScout does not control market creation, trading suspension, settlement or resolution decisions made by Polymarket or another third party.

5. Copy-trading risk

Copying a wallet does not mean you will receive the same trades, prices or results as that wallet. The original transaction and your copied transaction are separate events.

• A source trade may be detected only after it has already occurred.
• Prices, liquidity and available order-book depth may change before your order is submitted.
• Your allocation, balance, limits and settings may produce a different position size.
• Small trades may fall below minimum order requirements and may not be copied.
• The source wallet may modify, hedge or offset a position through activity that PredScout cannot observe.
• The trader may use other wallets, accounts or venues that are not included in the displayed history.
• A profitable source wallet can still produce losses for a user copying it.

Rankings, PnL, ROI, win rate and other performance metrics do not make a wallet safe or suitable to copy.

6. Signal and execution risk

Signals and orders may be delayed, stale, incomplete, duplicated, incorrectly classified or received out of sequence. Automated execution may continue without additional confirmation after you enable a rule.

• Orders may experience latency, slippage, price movement, partial fills, rejection, timeout or complete non-execution.
• An order response may be delayed or lost even when the order reaches the trading venue.
• Retries or recovery processes may create uncertainty about order status or increase the risk of duplicate instructions.
• Partial entries or exits may leave a position different from the one you intended.
• Available balances, allowances, signatures, minimum order sizes, fees or venue controls may prevent execution.
• Manual trades and activity outside PredScout may change balances or positions relied on by an automation rule.

7. Risk controls, pauses and notifications

Allocation limits, per-trade limits, slippage settings, risk caps, pause controls and similar features are best-effort software instructions. They reduce certain risks but cannot eliminate them or guarantee a maximum loss.

A limit may rely on delayed or unavailable information. An order may already have been transmitted, may fill only partly or may execute after market conditions change.

Pausing or deleting a rule, disconnecting a wallet, canceling a subscription, closing your browser or losing internet access does not necessarily cancel open orders, close existing positions, reverse completed transactions or stop settlement.

Alerts and notifications may be delayed, missing, duplicated or incorrect. Do not rely on them as your only method of monitoring positions or automated activity.

8. Paper trading and simulation risk

Paper trading, backtests and simulations are hypothetical. They do not place real orders or compete with other traders for available liquidity.

Simulated results may use assumptions about prices, order-book depth, fill probability, queue position, fees, slippage, latency, cancellation and settlement. They may not reflect changing market conditions, user behavior or the practical difficulty of following a strategy during losses.

Live performance may be materially worse than simulated performance. Strong paper or historical results do not predict future results.

9. Data and analytics risk

PredScout uses public blockchain data, market information and third-party data sources. This information may be delayed, incomplete, duplicated, incorrectly mapped, unavailable or subject to later correction.

• Public wallet activity may not reveal the trader’s full strategy, intent, risk exposure or activity on other wallets and venues.
• Open positions may be valued using stale or estimated prices.
• Different systems may calculate PnL, ROI, cost basis, fees, drawdown and win rate differently.
• Wallet labels, rankings, scores and classifications may contain errors or omit important context.
• Pending or unsettled transactions may temporarily affect balances and performance calculations.

PredScout analytics are not a substitute for venue confirmations, blockchain records or professional financial, accounting, legal or tax records.

10. Wallet and account security risk

PredScout does not custody your funds. You are responsible for protecting your wallet, login credentials, email account, devices and authentication methods.

PredScout will never ask for your private key or seed phrase. Sharing or losing private keys, seed phrases, passwords or wallet recovery information may result in unauthorized transactions or permanent loss of access to funds.

Phishing, malware, compromised devices, malicious browser extensions, fraudulent websites and social-engineering attacks may imitate PredScout, Polymarket or wallet providers. Verify URLs, transaction details and wallet prompts before approving any action.

If you approve wallet permissions or signatures, those permissions may remain active until revoked. Revoking access does not reverse transactions already completed or instructions already transmitted.

11. Blockchain, smart-contract and network risk

Blockchain networks, smart contracts, wallet software and supporting infrastructure may contain defects, vulnerabilities or unexpected behavior. Transactions recorded on a blockchain are generally irreversible.

• Network congestion may delay or prevent transactions.
• Gas fees, protocol fees or other transaction costs may change without notice.
• Forks, reorganizations, validator failures or other network events may affect transaction status.
• Smart-contract defects or exploits may cause incorrect execution or loss of funds.
• Wallet, RPC, API or node failures may display inaccurate balances or transaction states.

PredScout cannot recover assets sent to an incorrect address, reverse blockchain transactions or restore access to a wallet whose credentials have been lost.

12. Third-party dependency risk

PredScout depends on systems operated by third parties, including Polymarket, blockchain networks, wallet providers, data sources, payment providers, hosting infrastructure and communication services.

These services may experience maintenance, outages, rate limits, cyberattacks, API changes, policy changes or permanent discontinuation. A third-party failure can interrupt data collection, signal detection, order submission, cancellation, reconciliation, display or notifications.

PredScout does not control third-party market availability, settlement, account restrictions, fees, security or service continuity.

13. PredScout system risk

PredScout software may contain errors or experience downtime, configuration problems, delayed processing, data corruption or security incidents. Maintenance or recovery may occur only after prices, balances or positions have changed.

No software, risk control or security measure can guarantee uninterrupted operation or prevent every loss. You should maintain independent access to your wallet and relevant trading venue so that you can review or manage positions when PredScout is unavailable.

14. Legal, regulatory and geographic risk

Laws and regulations governing prediction markets, event contracts, digital assets, copy trading and automated execution vary by jurisdiction and may change.

Access to a market or feature may be limited, suspended or prohibited based on your location, eligibility, changes in law or third-party policies. You are responsible for determining whether your use of PredScout and Polymarket is permitted where you live.

You are also responsible for understanding and meeting any tax, reporting or recordkeeping obligations arising from your activity. PredScout does not provide legal or tax advice.

15. No advice, recommendation or suitability assessment

PredScout provides analytical and automation tools only. We do not provide investment, financial, legal or tax advice and do not recommend particular markets, wallets, traders or strategies.

Scores, labels, rankings, alerts, simulations and historical results are not promises, approvals or guarantees. PredScout does not assess your financial situation, experience, objectives or ability to bear loss.

You are solely responsible for deciding whether a trade or strategy is appropriate for you and for reviewing every rule, allocation and risk setting before enabling automation.

16. Your monitoring responsibilities

Automation does not remove your responsibility to supervise your account. You should regularly review:

• Active rules, followed wallets and allocation settings.
• Open orders, positions, available balances and wallet permissions.
• Market rules, resolution criteria and settlement status.
• Unexpected, duplicated, missed or partially filled orders.
• Changes to Polymarket, wallet or network availability.

If you identify unexpected activity, pause the relevant rule where possible, review your wallet and trading venue directly, and contact support.

17. Acknowledgment of risk

By using PredScout, you acknowledge that you understand the risks described in this disclosure, that no disclosure can identify every possible risk, and that losses may occur even when the service and your settings operate as intended.

You accept responsibility for your trading decisions, automation settings, wallet security and use of third-party services. You should not use live copy trading or automated execution unless you understand how the feature works and can bear the potential loss.

18. Changes to this disclosure

We may update this Risk Disclosure as PredScout features, market conditions, technology or legal requirements change. The “Last updated” date shows when the disclosure was most recently revised.

Where appropriate, material changes may also be communicated through the service.

19. Contact us

For questions about this Risk Disclosure or the operation of a PredScout feature, email support@predscout.com.

Do not include private keys, seed phrases, passwords or unnecessary financial information in your message.