> For the complete documentation index, see [llms.txt](https://limelight-1.gitbook.io/limelight-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limelight-1.gitbook.io/limelight-docs/legal/risks.md).

# Risks

> Using Limelight involves risk. This is a plain-language summary, not an exhaustive list. Review with qualified counsel and adapt before launch.

## Market Risk

You can lose your entire stake in a market. Your maximum loss is what you paid for your shares — there are no margin calls or liquidations, but a losing position settles at $0.00.

## Smart-Contract Risk

Limelight's Move modules are software and may contain bugs despite review and audits. Interacting with any on-chain protocol carries the risk of loss due to code defects or unforeseen interactions.

## Oracle & Resolution Risk

Price markets resolve against **Pyth** feeds; event markets resolve from external sources. Data feeds can be delayed, incorrect, or unavailable, and resolutions can be disputed. The dispute window exists to correct errors, but resolution outcomes are not guaranteed to match your interpretation of a market's rules.

## Collateral & Stablecoin Risk

Markets are collateralized in **USDCx**. Like any stablecoin, USDCx carries risks related to its reserves, issuer, and peg stability.

## Bridging Risk

Funding Limelight from another chain uses cross-chain bridge infrastructure (through the in-app deposit widget). Cross-chain transfers carry additional risks, including delays and the risks inherent to the underlying bridge providers. Always confirm you're sending the correct token, on the correct network, to the correct address.

## Network & Chain-Maturity Risk

Limelight runs on **Movement**, a sovereign Move Layer-1 that launched its M1 Mainnet in December 2025. As a relatively new network, it carries the risks common to emerging chains — including evolving tooling, validator-set maturation, and the possibility of network issues. Movement's native token and broader ecosystem are independent of Limelight; Limelight is a product built on the network.

## Regulatory Risk

The regulatory treatment of prediction markets varies by jurisdiction and may change. Future regulatory action could affect the availability or operation of the platform.


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