Draft prepared by engineering — pending review by a lawyer before mainnet. It describes how arky works today, from its code, and will change before it is final. Text marked [to be completed: …] is information the operator has not supplied yet.

Risk disclosures

Draft of 24 September 2026

You can lose everything you put in. Read this before you trade. It is not a complete list of risks.

No investment advice

arky does not give investment, financial, legal or tax advice. Prices, charts, rankings, “trending” lists, market odds and anything Scout says are information, not recommendations. Decide for yourself, and get independent advice if you need it.

Testnet today, mainnet later

arky runs on the Arc testnet today. Testnet tokens and test USDC have no value and cannot be redeemed for money.
The testnet can be reset, stall, or behave differently from a production network. Prices, volumes and results on the testnet are not evidence of what will happen with real funds.
On Arc mainnet, every loss described here is a loss of real money. Fees, liquidity and the behaviour of other traders will differ from what you saw on the testnet.

Memecoins

Memecoins usually have no underlying business, cash flow or utility. Their price is driven by attention.
Prices can lose most of their value within minutes.
Anyone can launch a token. Creators and early buyers may sell into later buyers (“rug pulls”, “pump and dumps”). A token’s name or picture can imitate a person, brand or project with no connection to it.
Liquidity can be thin: you may not be able to sell, or only far below the price shown.
On a bonding curve, the price you pay depends on how many tokens were bought before you.

Prediction markets

A position pays only if the market resolves your way. Otherwise it is worth nothing.
Resolution depends on a price feed or, for event markets, on a person arky appoints who settles by hand. It can be late, wrong, or different from what you expected; the market’s written condition decides, not common sense. See the prediction market terms.
An unsettled or invalid market can pay out less than you paid for your position.
Odds are set by trading and are not probabilities we endorse.
Prediction markets are regulated as gambling or as financial products in some countries.

Smart contracts and the blockchain

Transactions are final. A mistaken address, amount or token cannot be reversed.
The contracts arky uses have not had an external security audit. Bugs or exploits could cause total loss.
Congestion, outages, reorganisations and price feeds can delay or change the outcome of a transaction.
USDC depends on its issuer and can lose its peg. Cross-chain deposits depend on bridge providers.

Your wallet

The wallet arky creates is self-custodial: the keys are on your device only. If you lose the recovery phrase, or someone else obtains it, your funds are gone and nobody can restore them. Clearing your browser’s site data removes the wallet from that browser.

Scout, the AI agent

Scout proposes, your wallet signs. A trade Scout prepares in chat does nothing until you sign it. Read it before you sign: Scout can misread a market, misunderstand you, or state false things with confidence.
Autopilot. It is off by default. If you fund an agent vault and turn autopilot on, Scout trades those funds without asking you, up to the per-trade and daily limits recorded in the vault, and it can lose them all — every day, up to the daily limit, for as long as autopilot stays on. Set limits you can afford to lose, and watch what it does.
Scout does not search or browse the internet: it works only from arky’s live data, prices and your own history. It knows nothing about the outside world beyond that, and a late or incomplete reading can still shape an answer. Check what it tells you before you act on it.
What Scout remembers about you may be out of date; ask it what it remembers and correct or delete it.
The key Scout trades a vault with is held by arky, encrypted. A compromise of arky could expose the vault up to those limits. Fund a vault only with what you can afford to lose.

Regulation and tax

The law on crypto-assets and prediction markets differs by country and is changing. arky does not check where you are; you must check that using it is lawful for you. A change in law could force features to close. You are responsible for any tax on your activity.