Risk Disclosure

Last updated: July 1, 2026

⚠ Important: Trading involves substantial risk of loss and is not suitable for all investors. Past performance, including any performance data displayed on the YieldLayer platform, does not guarantee future results. You should carefully consider your financial situation and risk tolerance before depositing funds.

1. General Risk Statement

The YieldLayer Platform executes automated trading strategies involving prediction markets and betting exchanges. All trading, whether automated or manual, carries inherent risk. You may lose part or all of your deposited funds. You should not deposit funds that you cannot afford to lose.

2. Strategy-Specific Risks

2.1. Execution Risk

Cross-venue arbitrage requires simultaneous execution on two or more venues. If one side of a trade fails to execute, you may be left with a directional position exposed to market movement. Our bots include safeguards to minimize this risk, but it cannot be eliminated entirely.

2.2. Counterparty Risk

Funds deployed on Polymarket, Kalshi, and Betfair Exchange are subject to the counterparty risk of those platforms. A platform experiencing technical issues, insolvency, regulatory action, or security breach could result in loss of deployed capital.

2.3. Liquidity Risk

Prediction markets and betting exchanges may experience periods of low liquidity. During such periods, orders may not fill at expected prices, or may not fill at all. This can result in open positions that cannot be closed at favorable prices.

2.4. Smart Contract Risk

Polymarket operates on blockchain smart contracts. Smart contracts may contain bugs, vulnerabilities, or be subject to exploits that could result in loss of funds.

2.5. Regulatory Risk

The regulatory landscape for prediction markets and cryptocurrency is evolving. Changes in regulation could affect the operation of one or more venues, your ability to withdraw funds, or the Platform's ability to execute trades.

3. Technology Risks

System Failure: The Platform's trading bots, servers, or connectivity may experience outages, bugs, or failures that prevent timely execution.
Network Congestion: Blockchain network congestion may delay deposits, withdrawals, or on-chain settlement.
API Limitations: Rate limits, downtime, or changes to venue APIs could interrupt trading operations.
Cybersecurity: Despite security measures, the Platform may be subject to hacking, phishing, or other attacks.

4. Fee Risk

Performance fees are calculated based on high water mark. In volatile market conditions, frequent fee crystallization across multiple high water marks may impact net returns. Exchange fees, gas costs, and spread costs are embedded in each trade and affect net profitability.

5. No Investment Advice

YieldLayer does not provide investment, legal, or tax advice. Nothing on the Platform should be construed as a recommendation to invest. You are solely responsible for determining whether any strategy, trade, or deposit is appropriate for you based on your personal financial situation and risk tolerance.

6. No Guaranteed Returns

Any performance metrics, projections, or historical data shown on the Platform are for informational purposes only. They are not guarantees or promises of future performance. The Platform's strategies may generate losses in any given period.

7. Withdrawal Risk

Withdrawal requests are processed within 48 hours under normal conditions. However, withdrawals may be delayed if funds are actively deployed in open positions, if venues are experiencing settlement delays, or in the event of extraordinary market conditions.

8. Acknowledgment

By depositing funds to YieldLayer, you acknowledge that you have read, understood, and accepted all risks described in this disclosure. You further acknowledge that you have been advised to consult with independent financial, legal, and tax advisors before using the Platform.