Risk Disclosure
Important risk information for users
Risk Disclosure
Document Version: 1.0
Last Updated: January 2026
MiCA-Aligned Disclosure
Important Notice
This risk disclosure document is provided in accordance with the disclosure, neutrality, and risk transparency principles set out under the Markets in Crypto-Assets Regulation (MiCA).
Please read this document carefully before participating in any Zetarium products or services.
1. General Risk Statement
Participation in Zetarium protocol and its associated products involves significant risks. Users should only participate with funds they can afford to lose entirely.
Warning: The value of crypto-assets can fluctuate significantly. You may lose all or a substantial portion of your investment.
2. Categories of Risk
2.1 Smart Contract Risks
| Risk | Description |
|---|---|
| Code Vulnerabilities | Despite audits, smart contracts may contain undiscovered bugs |
| Exploitation | Malicious actors may exploit vulnerabilities |
| Upgrade Risks | Contract upgrades may introduce new risks |
| Dependency Risks | Third-party dependencies may have vulnerabilities |
2.2 Market Risks
| Risk | Description |
|---|---|
| Price Volatility | Crypto-asset prices can fluctuate dramatically |
| Liquidity Risk | Insufficient liquidity may impact trading execution |
| Slippage | Actual execution price may differ from expected |
| Market Manipulation | Markets may be subject to manipulation |
2.3 Liquidation Risks (ZDEX)
| Risk | Description |
|---|---|
| Margin Calls | Positions may require additional collateral |
| Forced Liquidation | Positions may be liquidated automatically |
| Total Loss | Entire margin may be lost in adverse conditions |
| Cascade Effects | Market conditions may cause rapid liquidations |
2.4 Oracle Risks
| Risk | Description |
|---|---|
| Data Accuracy | Oracle data may be inaccurate or delayed |
| Oracle Failure | Oracle systems may experience downtime |
| Manipulation | Oracle feeds may be subject to manipulation |
| Consensus Failure | AI consensus may produce incorrect results |
2.5 Regulatory Risks
| Risk | Description |
|---|---|
| Regulatory Changes | Laws and regulations may change |
| Jurisdictional Issues | Services may not be available in all jurisdictions |
| Compliance Requirements | New requirements may affect participation |
| Enforcement Actions | Regulatory actions may impact operations |
2.6 Operational Risks
| Risk | Description |
|---|---|
| User Error | Mistakes in transactions cannot be reversed |
| Private Key Loss | Lost keys result in permanent loss of funds |
| Phishing Attacks | Users may be targeted by fraudulent sites |
| Network Issues | Blockchain congestion may delay transactions |
3. Product-Specific Risks
3.1 ZDEX Perpetual Trading
- Leverage Risk: High leverage amplifies both gains and losses
- Funding Rate Risk: Funding payments may significantly impact profitability
- Liquidation Risk: Positions may be liquidated at unfavourable prices
- Settlement Risk: Settlement failures may occur in extreme conditions
3.2 Prediction Markets
- Outcome Risk: All funds allocated to wrong predictions are lost
- Resolution Risk: AI or oracle resolution may be disputed
- Liquidity Provider Risk: LPs may experience impermanent loss
- Market Risk: Illiquid markets may have high spreads
3.3 Staking
- Lock-up Risk: Staked assets may be locked for extended periods
- Reward Variability: Staking rewards are not guaranteed
- Slashing Risk: Protocol violations may result in slashing
- Opportunity Cost: Staked assets cannot be used for other purposes
3.4 Bonds
- Vesting Risk: Tokens are subject to vesting schedules
- Price Risk: Token price may decline during vesting period
- Smart Contract Risk: Bond contracts may have vulnerabilities
- Issuer Risk: Bond issuer may not fulfil obligations
4. No Guarantees
Zetarium makes no guarantees regarding:
| Category | Disclaimer |
|---|---|
| Returns | No guaranteed returns on any product |
| Token Value | No guarantee of $ZET token value appreciation |
| Protocol Performance | No guarantee of continuous operation |
| Market Conditions | No guarantee of favourable market conditions |
| Regulatory Status | No guarantee of regulatory approval |
5. Non-Custodial Nature
Zetarium is a non-custodial protocol:
- Users retain control of their private keys at all times
- The protocol does not have discretionary access to user funds
- Users are solely responsible for the security of their assets
- Lost private keys cannot be recovered by the protocol
6. No Investment Advice
This documentation and all Zetarium materials:
- Are provided for informational purposes only
- Do not constitute investment advice
- Do not constitute financial advice
- Do not constitute tax advice
- Do not constitute legal advice
Users should consult qualified professionals before participating.
7. No Equity or Ownership Rights
The $ZET token:
- Does not represent equity in any entity
- Does not represent ownership rights
- Does not represent profit rights
- Is a utility and governance token only
8. Jurisdiction Limitations
Zetarium services may not be available or appropriate for users in all jurisdictions. Users are responsible for:
- Ensuring compliance with local laws
- Understanding applicable regulations
- Determining tax obligations
- Verifying eligibility to participate
9. Acknowledgment
By using Zetarium products and services, users acknowledge that they:
- Have read and understood this risk disclosure
- Understand the risks involved in crypto-asset participation
- Are participating with funds they can afford to lose
- Are not relying on any guarantees or representations
- Accept full responsibility for their participation decisions
Contact
For questions regarding risks or compliance:
| Resource | Link |
|---|---|
| Documentation | docs.zetarium.world |
| Telegram | t.me/Zetarium_World |
This risk disclosure is subject to updates. Users should regularly review this document for changes.