​
TACO is risky

TACO markets are onchain prediction markets. You can lose funds through market moves, liquidation, settlement outcomes, LP losses, oracle issues, contract bugs, or operational mistakes. Nothing in these docs is financial advice.

​
Main risk categories

  • Market risk: your outcome or price view can be wrong.
  • Liquidity risk: exits can be expensive, partial, delayed, or unavailable.
  • Oracle and resolution risk: prices or event outcomes can be stale, disputed, or finalized differently than expected.
  • Smart contract risk: bugs or unsafe integrations can cause losses.
  • Creation and metadata risk: permissionless markets can have bad wording, misleading metadata, or low-quality parameters.
  • Wallet risk: wrong-chain transactions, approvals, and phishing can put funds at risk.

​
Different products, different risks

Event markets settle based on outcomes and rules. Price markets depend on oracle prices, leverage, health ratio, and pool solvency accounting. Do not use a risk mental model from one market type without reading the page for the other.

​
Practical habits

  • Start small on new markets.
  • Check chain, collateral, and market status.
  • Read market rules and metadata before trading.
  • Use slippage and payout guards when available.
  • Keep enough gas for urgent actions.
  • Monitor positions after large price or news moves.