Risk Disclosures
Foresure is a decentralized protocol. While we strive for security, using DeFi applications involves inherent risks. Please read this section carefully before trading or providing liquidity.
Smart Contract Risk
Foresure runs on public smart contracts.
- Bugs: Despite audits, code may contain undiscovered vulnerabilities.
- Immutability: Transactions on the blockchain are irreversible. If you interact with a malicious contract or send funds to the wrong address, they cannot be recovered.
Market Risk
Prediction markets are volatile.
- Loss of Capital: You can lose 100% of your investment if the market resolves against your position.
- Liquidity Risk: Low liquidity may result in high slippage (getting a worse price than expected) or the inability to exit a position large position.
Oracle Risk
We rely on the Optimistic Oracle mechanism.
- Dispute Delays: If a market is disputed, settlement may be delayed by days or weeks.
- Resolution Error: While the dispute system is designed to find the truth, there is a theoretical risk of a "51% attack" on the oracle or jury system, leading to incorrect resolution.
Regulatory Risk
Prediction markets occupy a complex legal gray area in many jurisdictions.
- Compliance: It is your responsibility to ensure that using Foresure is legal in your country of residence.
- Geoblocking: We may restrict access to the frontend interface for users in certain jurisdictions (e.g., USA, OFAC sanctioned countries) to comply with laws.
Technology Risk
- L2 Risk: Base is an Optimistic Rollup. In the event of a sequencer failure or fraud proof dispute, funds could be temporarily inaccessible.
- Wallet Security: You are solely responsible for the security of your private keys. If your wallet is compromised, we cannot help you.