Risk disclosure

Research, not advice

Parallax shows data and simple statistics. It is not investment, legal or tax advice, and no figure on the site is a forecast.

Two contracts, two outcomes

A prediction-market contract and a perp settle on different terms, at different times, against different sources. A move in one says nothing certain about the other. Signals describe a past divergence; they are not evidence of cause, an arbitrage or a hedge.

Leverage and liquidation

Perps are leveraged. A small adverse move can liquidate a position and lose its whole margin. Funding payments accrue every hour while a position is open and can be positive or negative.

Oracle and data risk

Perp prices on-chain come from a Parallax oracle signer that attests public reference prices from the Robinhood Stock Token price API and Coinbase. Stale, delayed or wrong prices can trigger unexpected liquidations or block orders.

Stock-token reference prices pause outside market hours.

Vault risk

Liquidity providers are the counterparty to every trade. When traders win, the vault pays them and share value falls. Profits per position are capped at entry notional, but losses to the vault can still be large.

Smart-contract and network risk

The contracts are owned by a multisig and their review status is published in the repository. Bugs, oracle failures, network outages or an issuer freezing USDG can lose or freeze funds.