The risks of trading on Syndicate
Updated
Trading on Syndicate can lose you money. This page lists the main ways that happens, in plain words. It is not a full list, and it is not advice. Only put in money you can afford to lose entirely.
Prices move
Every market on Syndicate can fall as well as rise, sometimes very fast. A token can drop to zero. Network congestion or a venue halt can stop you from selling at the price you wanted.
Leverage and liquidation
Perps let you trade with leverage. Leverage makes losses grow as fast as gains. If the price moves far enough against you, Hyperliquid closes the position and you lose the margin on it. The app shows how far away liquidation is, but a sharp move can get there before you act.
New tokens
Many new coins are scams or rug pulls, and their price can drop to zero in minutes. The app shows a warning on coins that launched in the last 7 days. The warning is based on the coin's age alone.
Prediction markets
A prediction market share pays $1 if its side wins and nothing if it loses. If you are wrong, you lose the whole amount. Outcomes are decided through Polymarket's resolution process, not by Syndicate. A result can be disputed, which can delay it.
Syndicates and operators
When you back a syndicate, its operators trade your deposit. A majority of them controls the syndicate's wallet. They can make bad trades, and the pool's rules limit what they do without making them good at it.
Withdrawals are paid from the pool's free cash. If the money is in open positions, you may have to wait for an operator to close some. Rankings and records describe the past. They say nothing about future results.
Venues, networks and code
Your trades run on outside venues and networks, such as Hyperliquid, Polymarket and Solana. Syndicate does not control them. Smart contracts, bridges, oracles and venues can have bugs, be exploited, halt or fork. Syndicate can also pause trading on a venue. A pause stops new orders.
Keys and transfers
Blockchain transactions are final. Syndicate cannot reverse a transfer or recover a lost key. Sending funds to the wrong address or the wrong network loses them. Syndicate will never ask for your seed phrase or private key. Anyone who does is trying to steal from you.
No advice
Nothing on Syndicate is investment, legal or tax advice. That includes posts, rankings, syndicate records and these guides. You are responsible for your own decisions. Read the terms.