1. You can lose everything
Crypto and TradFi perpetual futures (Hyperliquid) use leverage. A modest adverse move can liquidate your position and lose the entire margin. Prediction markets (Polymarket) settle binary — YES or NO, $1 or $0. On-chain liquidity provision (Aerodrome, prjx) carries impermanent loss and smart-contract risk. There is no FDIC, SIPC, or government insurance on any of these venues.
2. The engine is not infallible
Our automated voting committee (three frontier AI models) is calibrated to reject more than it accepts. It still gets it wrong. It will fire trades that lose money. It will miss trades that would have made money. It can stop firing entirely if market conditions shift, if a model deprecates, if our infrastructure has an outage, or if we deliberately pause it. We commit to no specific win rate.
3. Slippage, fees, and liquidity
Posted entry, stop-loss, and take-profit prices are indicative. Real fills include exchange and on-chain fees, spread, and slippage. Polymarket markets can have very thin order books — what looks like a winning trade on paper may be unfillable at scale. The engine sizes conservatively to mitigate this; you may not.
4. Execution risk is yours
BABA Capital never custodies funds. You execute on your own wallet or exchange account. If you misclick, fat-finger a size, leave an unhedged leg open, lose your seed phrase, get phished, or fall victim to an exchange hack, we cannot recover the funds for you.
5. Regulatory risk
The legal status of crypto perpetuals and prediction markets varies by jurisdiction and is evolving. Venues we surface (Hyperliquid, Polymarket, etc.) may not be lawfully accessible to you. The United States in particular restricts Polymarket access to non-US residents. Using a VPN to circumvent geo-restrictions may violate the venue’s terms and your local law. We do not condone this and assume no responsibility for it.
6. Tax risk
Every fill is a taxable event in most jurisdictions. The engine fires frequently enough that tracking, reporting, and paying taxes on each trade is your responsibility. We do not provide tax software, tax advice, or capital-gains reports. Engage a qualified tax professional.
7. Smart contract & bridge risk
LP strategies interact with smart contracts that have been audited but never proven safe. Bridges, relayers, and on-chain routers introduce additional attack surface. Engine LP positions are sized intentionally small while track record is built. You should do the same.
8. Counterparty & venue risk
Centralized exchanges (e.g. Hyperliquid) can be hacked, frozen, or rugged. Decentralized protocols can be exploited. Polymarket and similar oracle-resolved markets can have disputed resolutions. Diversify venues; never leave more on any single venue than you can afford to lose.
9. AI model risk
The voting committee uses third-party large language models (Anthropic Claude, xAI Grok, Google Gemini). These models can degrade, hallucinate, refuse to respond, get deprecated, or shift pricing. The engine has fallbacks for each but cannot guarantee continuous operation. If a vendor experiences a multi-day outage, expect signal flow to slow or stop.
10. Past performance is not future performance
Any backtest, paper-trade, or live track record we publish is historical fact about what happened — not a forecast of what will happen. Market regimes change. Edges decay. The strategies that worked in May 2026 may not work in May 2027.
11. If you can’t afford to lose it, don’t deploy it
The strongest single piece of risk discipline we know. Treat every dollar you put on these venues as if you might not see it again. Size accordingly.
By using this site or the BABA App you acknowledge that you have read, understood, and accepted every risk above. If any of it is unclear — or you cannot afford the risk — stop now and consult a qualified financial professional in your jurisdiction before deploying capital.
