Risks

Market risk

• Meme tokens are extremely volatile. Moves of 10% or more in minutes are common; 50% in an hour happens.
• Leverage multiplies losses. At 10×, a 10% move against you loses your whole collateral (see Liquidation).
• Liquidation uses the price on screen. A brief spike against you, even for one slot, can liquidate a position.
• Thin pools are easy to move. Someone with enough money can push a token’s PumpSwap price for a moment, which can liquidate positions. The settlement rules limit what pushing the price can earn, but not what it can make others lose.

Payout risk

• Profits depend on the token’s pool. If many traders win on a token, its pool can be empty and profits wait in the queue until losses refill it, possibly for a long time.
• Settlement keeps part of every gain. Small moves keep less, and wins closed within 30 seconds keep much less (see Profit settlement).

Platform risk

• Trading can freeze. If Tausen’s connection to Solana drops or the SOL price goes stale, nobody can open or close until it is back (see Prices).
• Markets can pause. Under $100K market cap a market takes no new positions.
• Custody. While your USDC is on Tausen it sits in the vault of Tausen’s on-chain program. Withdrawals from it are signed by Tausen’s operator key, which the backend holds, and the team can upgrade the program. It is not insured.
• Beta software. Tausen is new. Rules and parameters may change; changes are written in these docs.

Only trade with money you can afford to lose.