> ## Documentation index
> Fetch the complete documentation index at: https://hypertake.net/llms.txt
> Use this file to discover all available pages before exploring further.

# Risks

> What can go wrong when you trade prediction markets and perps, said plainly

Source: https://hypertake.net/docs/risks · Last updated: 2026-10-17

Prediction markets and perpetual futures are risky. **You can lose all the money you put into a position.** This page lists the ways that can happen, so you can decide with your eyes open.

## Outcome markets

- **A losing share pays nothing.** If the market settles against you, the full price you paid is gone.
- **Prices can jump.** Close to the deadline, a small move in the underlying price can swing a market from 90¢ to 10¢ in seconds.
- **Liquidity can be thin.** Some markets have few sellers or buyers. Your order fills against what's on the book; if no one is buying, you can't sell before the close.
- **Settlement is decided by the market's deployer, by its template's rules.** Deployers stake HYPE and can be slashed for settling wrongly, but a dispute isn't something Hypertake can resolve.
- **Some markets can settle to a fraction**, not just $1 or $0. See [Payouts](https://hypertake.net/docs/outcomes/payouts.md).

## Perps

- **Leverage magnifies losses.** At 10×, a 10% move against you can wipe out your margin.
- **Liquidation.** If your margin falls below what Hyperliquid requires, your position is closed and the margin lost. See [Liquidation](https://hypertake.net/docs/perps/liquidation.md).
- **Funding.** Holding a position pays or earns funding every hour, which adds up.
- **Triggers aren't guarantees.** A stop loss fires as a market order and can fill beyond its price in a fast market.

## Technology and custody

- **Smart-contract and chain risk.** Your money is on Hyperliquid. A failure there, or in the bridge you deposit through (Relay), could affect it.
- **Your wallet is your account.** Anyone with your wallet's keys controls your funds. Hypertake can't recover a lost wallet.
- **The trading key lives in your browser.** It can place orders (not withdraw). Turn it off on a device you no longer use. See [The trading key](https://hypertake.net/docs/security/trading-key.md).
- **Interfaces can fail.** If Hypertake is down, your positions keep running on Hyperliquid; you can manage them with another interface.

> **Warning: Not financial advice**
> Nothing in these docs is financial, legal or tax advice. Prediction markets and perps may be restricted where you live; it's your responsibility to follow your local laws.