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- Market risk. Asset prices can fall. Belief assets carry no protection against loss.
- Battle risk. Your camp can lose even when your Belief’s portfolio goes up. The Heat you choose is not a loss limit: a loss is calculated at the round’s Final Heat, which can be higher than yours. With automatic renewal, losses across rounds can add up to all of your Battle capital. Round fees are separate.
- Contract risk. Smart contracts can have bugs, and the Belief assets and Battle contracts are upgradeable.
- Issuer risk. A token’s issuer can pause or freeze it, which applies to most stock tokens and the major stablecoins. An affected order waits until the issuer lifts the pause or freeze.
- Token tax. Some tokens’ contracts keep a percentage of the tokens as a fee on each purchase or sale, and the purchase and sale rates can differ. Tropic marks these tokens, with both rates, in a Belief’s portfolio and in the order review.
- Stablecoin risk. Tropic counts 1 USDG as $1, but USDG’s market price can move away from $1.