At 1,000×, a move of about 0.05% against you liquidates the position and forfeits the full margin.

The Vault is the only counterparty and is not hedged. A run of winning trades can exhaust it. Profit that cannot be paid waits in the settlement queue with no fixed time to payment.

Equity per share falls when traders win, including on open positions. It can fall to zero. A rebate returns a small part of a loss and does not make a losing trade profitable.

Every redemption waits at least 24 hours, pays the lower of two values, is paid only after queued winners and only from the Vault balance, and is suspended while equity is zero or negative.

Deposits may be refused or partly refunded under the external cap, and TLP bought below the floor is worth less than the deposit until the pool recovers.

Oracle outages pause markets; a wrong price that passes validation is executed. There is no price-deviation circuit breaker.

Contracts, the bridge and swap route used for deposits, and the keeper and relayer services can fail or be exploited.

Governance can change parameters through the timelock. Roles may pause, delist or process queues, and none is obliged to act within any time.

Use may be unlawful where you are. See Eligibility.