Risk guide
Risk Guide
Trading on 1024EX Predict involves risk. Before opening any position, users should understand how event markets, leverage, margin, settlement, and liquidation may affect their account balance.
This guide explains the main risks users should consider when trading on 1024EX Predict.
Event market risk
1024EX Predict markets are based on real-world events, outcomes, or clearly defined conditions.
The value of a position may change as new information becomes available, market expectations shift, or the likelihood of an outcome changes.
Users should understand the event being traded, the market rules, and the settlement criteria before entering a position.
Leverage risk
1024EX Predict may support leveraged trading for eligible users.
Leverage allows users to open a position with greater exposure than the margin committed to that position. While leverage can improve capital efficiency, it also increases risk.
A small market movement against a leveraged position may result in a significant loss. The higher the leverage, the less price movement is needed to reduce margin or trigger liquidation.
Users should use leverage carefully and avoid taking positions that exceed their risk tolerance.
Cross margin risk
1024EX Predict supports cross margin, which allows available account equity to support multiple open positions.
Cross margin can improve capital utilization, but it also means that losses from one position may reduce the margin available for other positions.
If one or more positions move against the user, the account may face increased liquidation risk across multiple open positions.
Users should monitor total account exposure, not only individual positions.
Liquidation risk
Liquidation may occur when the margin supporting a position or account falls below the required level.
If a position is liquidated, the user may lose part or all of the margin assigned to that position. In cross margin mode, losses may affect the broader account balance used to support other positions.
Liquidation risk may increase during periods of high volatility, low liquidity, rapid market movement, or delayed user response.
Market liquidity risk
Some markets may have lower liquidity than others.
Low liquidity may make it harder to enter or exit a position at the expected price. It may also increase slippage, widen spreads, and cause larger price movements from relatively small trades.
Users should review market depth and expected execution quality before placing large orders.
Settlement risk
Event markets are resolved based on the market rules and settlement criteria.
Settlement may depend on official sources, recognized data providers, public announcements, or other references defined by the market.
In some cases, settlement may be delayed due to unclear results, postponed events, disputed outcomes, data revisions, or exceptional circumstances.
Users should read the market description carefully before trading and understand how the final outcome will be determined.
Volatility risk
Event markets may become highly volatile before, during, or after the referenced event.
Prices may change quickly when new information is released, when market sentiment shifts, or when the event outcome becomes more certain.
Volatility may increase the risk of losses, slippage, liquidation, and unexpected account balance changes.
Information risk
Users may make trading decisions based on incomplete, delayed, inaccurate, or misinterpreted information.
Market prices may react quickly to public information, rumors, official announcements, or data updates. Users should verify information from reliable sources and avoid relying on a single unconfirmed source.
Technical and platform risk
Trading platforms may experience technical issues, network congestion, oracle delays, user interface errors, API interruptions, or other unexpected problems.
These issues may affect order submission, position management, account display, settlement timing, or user access.
Users should consider technical risk when trading, especially during fast-moving markets.
User responsibility
Users are responsible for their own trading decisions, position sizing, margin management, and risk control.
Before trading, users should understand:
- The market rules
- The settlement criteria
- The maximum potential loss
- The leverage used
- The margin mode
- The liquidation risk
- The liquidity condition of the market
1024EX does not guarantee profits, returns, or trading outcomes. Trading on 1024EX Predict may result in financial loss. Users should only trade with funds they can afford to risk.