Perpetual and liquidation risk
Leveraged positions can be liquidated rapidly. Displayed liquidation prices are estimates; funding, fees, oracle changes, slippage and keeper timing can move the realized outcome. Remaining collateral may be consumed by losses and liquidation fees.
A fully funded 1× perpetual is not an outcome token. It can continuously pay or receive funding and may be closed if funding exhausts available equity.
Funding, utilization and liquidity
The crowded side may pay funding. Protocol LP utilization fees can vary with inventory and available liquidity. Thin books or stressed LP inventory can cause partial fills, greater price impact or no execution.
Stock-market and oracle state
The protocol trades a computed 0–1 stock-relative value, not shares of NVDA or AMD. Regular hours, after-hours sessions, halts, stale feeds, split adjustments, disputed reports and feed divergence can force lower leverage, reduce-only mode or an emergency close policy.
Liquidity-product and withdrawal risk
HLP shares can lose value from market-making PnL, inventory exposure, oracle error, liquidation shortfall or smart-contract failure. The standalone stock-LP share vault is a separate balance sheet exposed to external Uniswap LP valuation, inventory, rebalancing and sleeve risk; it does not enter HLP NAV. Risk caps do not guarantee principal in either product.
Both share vaults impose a minimum withdrawal delay. Final-architecture requests escrow shares and may be cancelled back to the owner before execution; execution can still wait for enough recallable USDG and a fresh conservative price. A Uniswap NFT first enters cancellable custody and is priced only afterward. Once that custody request settles into shares, later redemption returns USDG rather than the original NFT.
Smart-contract and administration risk
Contracts may contain defects despite testing. Upgradeable proxies and administrative controls create implementation, governance and key-compromise risk. The current admin is a disclosed wallet rather than a multisig.
Outcome-token risk
Advanced spot outcome tokens are separate complete-set-backed claims. They have no funding or liquidation, but remain exposed to contract, liquidity, oracle and market-definition risk. Only one complementary pair merges for 1 USDG; an individual side is not redeemable at the current oracle value and exits only through a spot buyer or by acquiring its complement. Owning a claim does not confer stock ownership, dividends or shareholder rights.