> ## Documentation Index
> Fetch the complete documentation index at: https://docs.goaly.fun/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk Disclosure

> The real risks of using an on-chain, DeFi-backed prediction protocol.

*Effective date: **July 1, 2026***

Goaly is designed to be **no-loss**: your staked principal is meant to be returned to you in full.
But "no-loss" protects you from a **wrong prediction** — it cannot remove the risks of using smart
contracts, stablecoins, and DeFi. Please read this page before you stake.

<Warning>
  Using Goaly involves real risk to your funds. Only stake what you can afford to have locked, or in
  a worst case lose, if an underlying protocol fails. **This is not financial advice.**
</Warning>

## "No-loss" is not risk-free

The 1:1 return of your principal is enforced on-chain **as long as the vault and the protocols it
relies on remain solvent and functioning**. "No-loss" depends on:

* The **Goaly vault and its strategies** working as intended and staying solvent.
* The **underlying yield protocol (Morpho)** and its markets not failing, being exploited, or
  becoming illiquid.

If any of these break, principal that is meant to be redeemable 1:1 could be delayed or impaired. The
no-loss guarantee is an **on-chain invariant, not a promise that the underlying protocols can never
fail**.

## Smart-contract and exploit risk

Goaly is software. Smart contracts may contain **bugs**, and they, or the protocols they integrate,
may be **exploited or hacked**. An exploit could result in partial or total loss of funds. Audits and
tests reduce but do not eliminate this risk.

## Underlying protocol and yield risk

Staked principal earns yield through **Morpho** lending markets. Those markets carry their own
risks — bad debt, liquidation failures, illiquidity, oracle problems, or governance changes — that
are **outside Goaly's control** and could affect the vault's value or the availability of your
principal.

## Stablecoin depeg risk

Stakes and yield use stablecoins — **USD₮0** (Tether's omnichain USDT) and **USDC**. A stablecoin can
**lose its peg** to the US dollar. If a stablecoin depegs, the value of your stake or prize could fall
even though the token amount is unchanged.

## You can win nothing

<Note>
  A prediction can win **nothing**. Prizes are funded **only by the yield** earned on pooled
  principal. If your prediction is wrong — or if little yield accrued — you simply get your
  **principal back** and no prize. You never lose your stake to a wrong call, but you are never
  guaranteed a prize.
</Note>

## Gas and ETH on your embedded account

Every transaction on Arbitrum requires **ETH for gas**, including on your **embedded wallet**. If your
account has no ETH, you may be unable to predict, claim, or move funds until you fund it. Keeping a
small ETH balance on the account is your responsibility.

## Cross-chain and bridge risk

Surplus (prize funds only, never principal) may move cross-chain using **LayerZero** and Circle
**CCTP**. Bridges and cross-chain messaging carry additional risk — delays, failures, or exploits —
that could affect surplus funds in transit.

## Oracle and settlement risk

Match results are settled through an **optimistic settlement** process (results are proposed, and
finalize after a dispute window). Settlement could be **delayed, disputed, or — in an adversarial
case — incorrect**, which may affect when or how prizes are distributed.

## Regulatory uncertainty

The legal treatment of prediction protocols, skill-based gaming, and digital assets is **evolving and
varies by jurisdiction**. Future laws or enforcement could restrict or prohibit access to the Service
where you live. You are responsible for ensuring your use is lawful (see the [Terms of Use](/terms)).

## Self-custody risk

Your wallet is **self-custodial** — keys are derived on your device and Goaly never holds them. If you
**lose access** to your device, signature, or credentials, **you lose access to your funds**, and
Goaly **cannot recover them**. Safeguarding access is entirely your responsibility.

## Do your own research

None of this is financial, investment, legal, or tax advice. Understand the protocol and its risks,
consider your own circumstances, and consult qualified professionals before using the Service. See
the [Terms of Use](/terms) and [Privacy Policy](/privacy).

<Card title="How no-loss works" icon="lightbulb" href="/how-it-works">
  Read the mechanism behind principal protection and yield-funded prizes.
</Card>