Understand the rules 6 of 8
Risks
The risks and dependencies to understand before taking part.
Read this before launching or trading.
Memecoins are highly speculative
Launch tokens have no intrinsic value. Prices can go to zero, and bonding curves and thin pools move sharply on small trades. Anyone can launch a token with any name or image; it does not mean any person or company is involved. Only use money you can afford to lose.
Prediction markets can lose everything
Shares on the losing side of a market redeem for nothing. Prices in thin markets move sharply, and slippage on large trades can be significant. Liquidity providers take the other side of trades and can lose money when prices move.
Token metrics can be manipulated
Markets about a token's volume, market cap, holders or traders can be influenced by a funded participant, including the token's creator, through wash trading or many wallets. Each market shows its manipulation risk and exact rules. Graduation markets are harder, but not impossible, to force.
Resolution trust
Graduation and price markets are proven from onchain data. Other token metrics rely on an authorised reporter computing values from indexed data, protected by a dispute window. Disputed markets rely on the arbitrator. A compromised reporter or arbitrator could cause a wrong outcome if nobody disputes in time. If resolution fails entirely, markets resolve invalid.
Oracle risk
Price markets depend on Chainlink feeds on Robinhood Chain. A feed that reports a wrong price, or stops updating, can produce a wrong or invalid outcome. Stock prices come from Robinhood stock token feeds, not official exchange closing prices.
Smart contract risk
Predictr contracts have had an internal security review and targeted tests, not an independent audit. Pons V2, USDG and Chainlink are operated by third parties. Bugs in any of them could cause loss of funds.
Pons protocol powers
The Pons owner can, after a public 3 day timelock, redirect where the creator fees of any Pons launch are paid, including launches that pay the Predictr treasury wallet. Pons can also pause new launches, change fees for future launches, and use rescue paths for stuck graduations. Predictr monitors these events but cannot prevent them.
USDG
Prediction markets are collateralised in USDG, an upgradeable token issued by a third party. If USDG loses its peg, is paused or its contract changes, market collateral is affected.
Indexed data can lag
Market figures come from our indexer and live chain reads. They can be delayed or temporarily wrong during network issues. Transactions always settle onchain regardless of what the website shows.