This document is a product and legal review draft. It is not final legal advice and should not be published until reviewed by counsel.
Read Before Live Trading
Trading digital assets, perpetual contracts, derivatives, RWA-linked markets, tokenized or synthetic markets, and leveraged products is risky. The user can lose the entire amount committed to a trade and may lose more than expected depending on the venue, product, margin model, and market conditions.
Pocket is a non-custodial trading terminal. Pocket does not hold user funds, operate an exchange, maintain an order book, guarantee execution, clear trades, settle trades, or act as a counterparty. Trading activity occurs through third-party venues, wallets, blockchains, bridges, and providers.
No Advice Or Guarantee
Pocket does not provide investment, financial, trading, legal, tax, accounting, securities, commodities, derivatives, or regulatory advice. No market display, chart, route, default, alert, post, statistic, PnL card, leaderboard, signal, or Mimic Trade draft is a recommendation.
Pocket does not guarantee profit, price, liquidity, availability, acceptance, fill, settlement, execution time, liquidation estimate, take-profit result, stop-loss result, funding estimate, gas estimate, bridge time, withdrawal time, or ability to close a position.
Market Risk
Prices can move quickly and substantially. Volatility can be caused by order book depth, liquidity, funding, leverage, liquidations, oracle updates, macroeconomic events, venue outages, smart-contract events, hacks, regulatory events, issuer events, market manipulation, news, social activity, or other factors.
Digital asset and perps markets may be less regulated, less liquid, more volatile, and more vulnerable to manipulation or operational failures than traditional financial markets.
Perpetuals, Leverage, And Margin
Perpetual contracts and other derivatives can create exposure to an underlying or reference asset without ownership of that asset. They may rely on mark prices, index prices, funding rates, liquidation engines, insurance funds, auto-deleveraging systems, maintenance margin, and venue-specific rules.
Leverage magnifies gains and losses. A small adverse price movement can cause substantial loss or liquidation. Cross-margin and isolated-margin positions have different risk profiles. The user is responsible for understanding the venue's margin model before trading.
Liquidation estimates are only estimates. Actual liquidation can occur at a different price or time because of fees, funding, mark price changes, oracle updates, spreads, latency, venue rules, market impact, or system behavior.
Execution Risk
Orders may be rejected, delayed, partially filled, filled at a worse price, cancelled, expire, fail to cancel, or remain open longer than expected. Market orders can experience slippage. Limit orders may not fill. Reduce-only orders, take-profit orders, stop-loss orders, and close-position actions can fail, fill partially, or execute at prices different from estimates.
Pocket may display order status based on venue data, WebSocket feeds, polling, or stored observations. Status can be stale, incomplete, delayed, duplicated, or wrong. The venue remains the source of truth.
Venue And Provider Risk
Pocket integrates with third-party venues and providers. Their rules, fees, availability, eligibility criteria, KYC requirements, sanctions controls, market lists, account types, account tiers, APIs, rate limits, and risk engines can change without Pocket's control.
A venue or provider may be unavailable, reject a user, reject an order, freeze activity, limit withdrawals, require extra information, suffer an outage, change fees, delist a market, pause trading, change margin rules, or lose data.
Wallet, Signing, And Approval Risk
Users are responsible for wallets, credentials, devices, seed phrases, private keys, recovery methods, approvals, delegated keys, account abstraction permissions, smart accounts, and venue API keys. Pocket will never ask for a seed phrase or private key.
Approving a wallet, venue account, integrator, bridge, token transfer, or smart account permission can create continuing authority until revoked or expired, depending on the provider. Users should review every signature request and approval carefully.
If a device, wallet, delegated key, or account is compromised, an attacker may be able to trade, transfer, approve, withdraw, or publish content.
Funding, Bridge, Stablecoin, And Gas Risk
Funding routes can involve onramps, offramps, blockchains, bridges, smart contracts, stablecoins, payment processors, bank rails, KYC providers, and venues. Funding estimates may differ from final settlement because of gas, bridge costs, onramp fees, spread, slippage, minimums, compliance review, provider delays, chain congestion, failed transactions, or routing changes.
Stablecoins can depeg, freeze, be upgraded, be blocked, be exploited, become unavailable, or lose issuer support. Holding or using a stablecoin can involve issuer, smart-contract, regulatory, liquidity, redemption, and counterparty risk.
Gas and network fees are paid to blockchains or infrastructure participants, not necessarily to Pocket. Sponsored gas, gas paid in a token, and gas abstraction can fail or be unavailable.
RWA, Synthetic, And Reference-Asset Risk
RWA-linked, stock-linked, commodity-linked, index-linked, FX-linked, pre-IPO-linked, tokenized, or synthetic products may reference assets the user does not own. The product may not grant shareholder rights, dividends, voting rights, redemption rights, delivery rights, commodity ownership, or rights against the reference asset issuer.
Reference markets can be closed while perps markets remain open. Prices may depend on third-party data, oracles, fair-value models, synthetic pricing, liquidity, funding rates, and venue rules. Corporate actions, index changes, halts, suspensions, and data errors can affect pricing.
Social And Mimic Risk
Social posts, trade shares, PnL cards, rankings, win rates, screenshots, and creator statistics can be stale, incomplete, delayed, manipulated, incorrectly calculated, or based on paper trading. Past performance does not predict future results.
Mimic Trade prepares an editable draft. It does not copy future trades, create a managed account, or authorize another user to trade for the acting user. The acting user must review and confirm each order. The acting user's execution can differ materially from the source trade.
Creators may receive rewards, referrals, fee shares, promotional benefits, or other incentives connected to posted trades, mimic activity, trading volume, or user referrals. These incentives can create conflicts of interest and should be treated as risk information, not evidence that a trade is suitable.
Regulatory, Tax, And Legal Risk
The legal and regulatory treatment of digital assets, perps, derivatives, wallets, stablecoins, onramps, venues, and social trading can change. A market, venue, or product may be unavailable to a user based on location, citizenship, residence, entity status, sanctions status, identity verification status, or provider policy.
Users are responsible for taxes, reporting, recordkeeping, and compliance with laws that apply to them. Pocket does not provide tax or legal advice.
Paper Trading And Simulated Data
Paper trading, simulated fills, demo balances, testnet activity, and estimated portfolio values are not live funds and may not reflect real market depth, fees, latency, slippage, liquidation behavior, funding, margin requirements, or venue behavior. Test and paper results should not be relied on as evidence of live performance.
User Acknowledgement
By live trading through Pocket, the user acknowledges that:
- Pocket is a non-custodial trading terminal and does not hold user funds.
- Trading can result in substantial losses, including loss of all committed
margin.
- Leverage, perps, liquidation, funding rates, and venue rules create
additional risk.
- Estimates can be wrong, stale, or different from final results.
- Third-party venues, wallets, blockchains, bridges, and providers can fail or
reject activity.
- Social content and mimic workflows are not advice or guaranteed execution.
- The user is solely responsible for every trade, funding route, wallet
approval, and signing decision.