Legal

Risk disclosure

A sober, plain-English summary of the risks involved in copy-trading on a prediction-market protocol. Read this before connecting a wallet.

Last reviewed · Poly Syncer legal review

Prediction-market trading carries risk of significant loss. Past performance does not guarantee future results. Copy-trading concentrates that risk by allocating capital based on another wallet's choices. The amount you commit to a copied position can go to zero. Read this disclosure in full before using Poly Syncer.

This template is provided for transparency and is not a substitute for legal counsel or financial advice. Poly Syncer is execution infrastructure: the service mirrors trades, it does not produce recommendations. The user remains responsible for every trade made on their wallet. The sections below explain the categories of risk that apply.

1. Nature of prediction markets

Polymarket is a prediction-market protocol on the Polygon network. Each market resolves to a binary or categorical outcome based on a real-world event. A "Yes" share pays 1 USDC if the event is resolved as Yes and 0 USDC otherwise. The reverse holds for "No" shares.

  1. Binary outcomes. A position can lose 100 percent of the amount allocated to it. Unlike a stock, there is no residual value if the wrong side resolves. The downside is fixed, but it is fixed at the entire stake.
  2. Pricing as probability. A share priced at 0.62 is the market's implied probability that the event resolves Yes. Prices move quickly when new information arrives. A share that was 0.62 in the morning can be 0.10 by the evening.
  3. Resolution risk. Markets resolve through an oracle process. Disputes, delays, or edge cases in the question wording can change the outcome the user expected. Users should read the market resolution criteria, not just the headline title, before allocating capital.
  4. No FDIC, no SIPC, no investor compensation scheme. Funds at risk in a prediction-market position are not protected by deposit insurance or any equivalent regulatory backstop.

2. Copy-trading specific risks

Copy-trading inherits every risk of the underlying market and adds several of its own.

  1. The leader can be wrong. A wallet that has been profitable for ninety days can have a catastrophic week. Past performance is informative but not predictive. Rankings on the leaderboard are based on historical results and do not constitute a forecast.
  2. Latency and slippage. The mirror trade lands a few seconds after the leader's trade. In fast-moving markets the price the user pays can be worse than the price the leader paid. Poly Syncer publishes typical p99 latency on the status page, but slippage above that headline is possible.
  3. Partial fills and missed fills. If liquidity is thin or gas conditions are extreme, a copy order may fill only partially or fail outright. The user retains the unspent capital but does not get the position.
  4. Sizing mismatch. A leader's position size reflects their conviction and their bankroll. Copying that size on a smaller bankroll concentrates risk; copying on a much larger bankroll inflates the position beyond what the leader took. Users should set per-trade and per-day caps under "User responsibilities" in the terms of service.
  5. Survivorship bias in rankings. Wallets visible at the top of any leaderboard are by definition the wallets that survived. The set of wallets that blew up and stopped trading is invisible to a snapshot ranking. Users should consider longer time windows and risk-adjusted metrics when selecting leaders.
  6. Strategy drift. A wallet that traded sports profitably for a year can pivot to politics tomorrow. The historical edge does not necessarily transfer.

3. Smart-contract risk

Polymarket, Polygon, and the EIP-712 signing flow used by Poly Syncer are software systems. Software has bugs. A bug in any layer of the stack can lead to loss of funds, frozen positions, or unintended trade execution.

  1. The Polymarket protocol is independent of Poly Syncer. Poly Syncer submits orders into it but does not control its code.
  2. The Polygon network can experience outages, reorganisations, or fee spikes that affect order delivery.
  3. Poly Syncer's own smart-contract surface is limited to the EIP-712 authorization the user signs. That surface was audited by Trail of Bits in Q1 2026; the report is linked from the security page. An audit reduces, but does not eliminate, the probability of a defect.

4. Liquidity risk

Many Polymarket markets are deep enough to absorb significant flow without moving the price. Many others are not. Thin markets can experience large bid-ask spreads, can move sharply on a single mid-sized order, and can become difficult to exit before resolution. A user who copies a leader into a thin market may find that exiting the position requires accepting a meaningful price concession, or holding to resolution.

5. Regulatory risk

Prediction markets sit at the intersection of derivatives regulation, gaming law, and securities law. The legal status of a prediction-market trade depends on the user's jurisdiction and can change with little notice. Poly Syncer does not, and cannot, verify that any particular use of Polymarket is legal in the user's location.

  1. Some jurisdictions prohibit residents from accessing prediction markets entirely. The AML and sanctions policy lists the jurisdictions Poly Syncer will not serve.
  2. Even in permitted jurisdictions, regulators can change posture. A market that is legal today may not be legal next year.
  3. Enforcement actions have, historically, been directed at venues and at users. A user is not protected from regulatory consequences merely because a third-party copy-trading service was used.
  4. The user is responsible for confirming that the use of Polymarket and of Poly Syncer is legal in their jurisdiction before connecting a wallet.

6. Tax responsibility

Gains and losses on Polymarket positions are taxable in many jurisdictions. The character of the income (capital gains, gambling winnings, ordinary income) depends on local law and on the user's individual circumstances. Poly Syncer does not provide tax forms, does not withhold tax, and does not give tax advice.

  1. Users should keep their own records of mirrored trades. Trade history is available in the portfolio view and can be exported.
  2. Users should consult a qualified tax advisor in their jurisdiction.
  3. Failure to report taxable activity can result in penalties that exceed the original loss or gain.

7. No investment advice

Nothing on this site, in the panel, in the leaderboard, in the strategies catalogue, or produced by any algorithm operated by Poly Syncer is investment advice, financial advice, legal advice, or tax advice. Poly Syncer is execution infrastructure. The decision to copy a wallet, the choice of size, the choice of categories, and the timing of disconnection are all the user's decisions.

If you are unsure whether a copy-trading strategy is appropriate for your circumstances, do not connect a wallet. Speak to a qualified financial professional first. The cheapest mistake to avoid is the one you do not make.