Risk Acknowledgment

Auracle is a non-custodial interface to leveraged perpetual futures on Solana, with a social and reputation layer built on top. Trading these markets and using these mechanics can lose you money, sometimes very fast. This page is the honest enumeration of how. Read it before connecting a wallet.

Leverage cuts both ways

Perpetual futures are leveraged. A small adverse price move can wipe out a large portion of your collateral; an adverse move beyond maintenance margin will liquidate the position. You can lose the entire amount of collateral posted. In thin liquidity or extreme volatility, you may lose more than the nominal amount allocated if the position cannot be unwound at the expected price.

Funding payments flow between long and short positions at intervals dictated by the market. A position can be profitable in price terms and still bleed PnL through funding, or vice versa.

Auracle does not size your positions for you. It does not suggest leverage. Those choices belong to you, and so do their consequences.

Crypto markets are fast

Crypto routinely moves five to fifty percent in minutes. It moves while you sleep. It moves during macro events. It moves when an oracle dislocates. It moves when a forced-selling cascade compounds. Stops, take-profits, and other risk-management primitives may not execute at expected prices in fast markets, and may not execute at all if the matching engine, oracle, or network is degraded.

Liquidations are run by Phoenix

Positions live on Phoenix and are subject to Phoenix's liquidation logic, maintenance-margin thresholds, and third-party liquidators. Liquidation may be partial or full. Liquidation fees and slippage are borne by the liquidated position. Auracle does not control these parameters and cannot pause, delay, or override a liquidation.

Smart contracts can fail

Auracle depends on Phoenix, the Phoenix Flight builder-code program, the Solana runtime, your wallet's signing program, and any auxiliary on-chain programs. Each of those is software. Smart contracts can contain bugs, design flaws, oracle vulnerabilities, or economic exploits that haven't been discovered. Audits reduce this risk; they do not eliminate it. A smart-contract failure can result in partial or total loss, frozen positions, mispriced markets, or unintended state. Recovery is not guaranteed.

Solana can have a bad day

The Solana network has experienced outages, congestion events, and degraded-performance windows. During such events you may not be able to submit orders, confirm transactions, add margin, close positions, or move collateral. Liquidations may still happen if oracles are functioning. Auracle cannot do anything about a network outage.

Your wallet is your responsibility

Auracle never holds your funds. If your wallet, seed phrase, hardware device, or signing environment is compromised, the funds and positions controlled by that wallet may be drained or used adversely. Phishing, malware, malicious browser extensions, supply-chain attacks against wallet software, and physical theft are live threats. Auracle cannot recover, freeze, or reset any wallet, ever.

Truth Bonds are designed to be lost

A Truth Bond is a collateralized public claim. The whole point is that the collateral is at risk. If the claim resolves against you under the publicly published rule attached to the bond, the collateral is forfeited automatically and not appealable to Auracle. Read the resolution rule of any bond before you post it. Treat the bonded amount as money you are willing to lose if your claim is wrong.

Conviction Refresh has consequences

Open positions carry a public conviction signal that decays. Letting it decay reduces your visibility in Weather Reports, your standing in leaderboards, and your eligibility for Auracle Rebates. It does not affect the underlying Phoenix position. But it can affect what other users see when they look at your trade, and therefore what they think of your authorship.

Choirs pool real money

A Choir is a multisig-pooled trading group. Contributing transfers control of your funds to the Choir's voting structure. You can lose contributed funds in whole or part if the Choir votes into losses, gets liquidated, suffers operational failure, or is mismanaged by its voting members. Other Choir members may have economic incentives different from yours. Read the Choir's rules, evaluate its members, treat any contribution as funds entrusted to a third party.

Rescue pledges share fate with the rescued position

Pledged funds are committed to the position you're rescuing. If the rescue is too small, too late, or the market keeps going against the position, the rescue fails and pledged funds are lost in whole or part. Treat a pledge as a high-risk co-investment in someone else's position, not as a loan you expect repaid.

Opacity fees compound

The five-basis-point opacity fee, applied to orders that opt out of sentiment metadata, is a real and continuous drag on returns. At high frequency or high leverage it compounds. Price it explicitly into any strategy that opts out of metadata.

Sentiment Accuracy looks backward, not forward

Sentiment Accuracy is computed from how your past sentiment matched realized market outcomes. It's descriptive of the past. It is not predictive. A high score doesn't mean you'll be right next time, doesn't entitle anyone to follow your trades, and doesn't constitute a recommendation. Treating someone's Sentiment Accuracy score as a signal to copy is a use of the metric outside its design.

Auracle Rebates are not promised

The opacity-fee pool is distributed periodically to high-accuracy users. Pool size varies with how much opaque volume happens. Eligibility thresholds may change. Cadence may change. Rebates are not interest, not yield, not investment return, and not promised. Do not size positions or strategies on the assumption that a specific rebate will arrive.

Nothing on Auracle is advice

Nothing displayed through Auracle is investment advice, a recommendation, a solicitation, or an offer to buy or sell. Sentiment, conviction, Weather Reports, and Sentiment Accuracy scores are editorial features of the metadata layer. They are not forecasts and not trading instructions. Auracle is not a registered broker-dealer, futures commission merchant, swap dealer, investment adviser, or commodity trading adviser in any jurisdiction.

If you need investment, legal, or tax advice, get it from a professional in your jurisdiction.

Your jurisdiction is on you

Auracle is a permissionless interface and does not enforce geographic restrictions. Some jurisdictions prohibit retail leveraged trading, some prohibit certain derivative structures, some require licensing of operators. It is your responsibility to know what applies where you sit. If your local rules say no, the right answer is no. Auracle does not make that call for you.

Taxes are on you

Trading and the social-mechanic outcomes (bond forfeitures, choir distributions, rescue upside, rebates) may all have tax consequences depending on your jurisdiction. Auracle does not produce tax forms, does not track basis, does not advise on tax, and does not file anything on your behalf. The non-custodial nature of the protocol does not relieve you of tax obligations.

Auracle's interface can break

Auracle is software built by a small team. The interface may be unavailable, may display incorrect or stale state, may fail to surface a notification, may contain bugs. The Service may be modified, paused, or discontinued at any time. Because the protocol is non-custodial, your positions and collateral remain controlled by your wallet through Phoenix and Solana directly, regardless of whether Auracle's interface is up. But you must be willing and able to interact with Phoenix and Solana directly if the interface is unavailable at a moment you need it.

Risks compound

The above are not independent. A network outage can coincide with high volatility, a delayed liquidation, a stale oracle, a Choir vote that cannot be cast, a Truth Bond about to resolve, and a Rescue pledge that cannot be unwound. Several can happen at once. Sizing should account for the possibility, not the average.

Acknowledgment

Connecting a wallet to Auracle and confirming the volition attestation is acknowledgment of these risks. You accept that you may lose any collateral, any bond, any choir contribution, any rescue pledge. No representation has been made to you that you will profit, recover capital, or be made whole if any of the above goes against you.