Risks and Mitigation

Market Volatility

• Assessment: Using 30x leverage amplifies both gains and losses. A sudden 30% drop in price can result in a total position wipeout.

• Mitigation: Every trade includes a built-in 5% stop-loss to limit exposure. Additionally, leverage is capped at 30x to prevent excessive risk.

Data Reliability

• Risk: AI relies on external signals from social platforms and news sources, which may carry up to a 10% error rate.

• Mitigation: Our system uses cross-verification, combining multiple sources to reduce the error margin to just 2%.

Regulatory Challenges

• Risk: There's a 20% estimated likelihood of new crypto regulations emerging by 2026 that could affect DeFi platforms.

• Mitigation: Zeumatrix AI is KYC/AML ready and supported by an experienced legal team to adapt to regulatory developments swiftly and compliantly.

Security Threats

• Risk: While unlikely, there remains a 1% probability of a system breach or exploit.

• Mitigation: The platform undergoes regular smart contract audits and employs multi-signature wallets to secure user funds and system functions.

Adoption Barriers

• Risk: Up to 50% of early users may disengage due to unfamiliarity with DeFi or leverage trading.

• Mitigation: The Galactic VIP Program, onboarding incentives, and targeted marketing campaigns are in place to retain users and encourage engagement.

---

What Happens if a Trade Fails?

• Loss Cap: With the stop-loss set at 5%, even at 30x leverage, the maximum loss on a 1 ETH stake would be limited to just 0.01 ETH.

• Pool Impact: Thanks to the 30-day lock-up rule, any loss is absorbed gradually across the pooled assets. For example, a 1 ETH trade loss would be spread across a 100 ETH pool, minimizing individual impact.

• Controls: The platform enforces a strict leverage cap at 30x and uses a diversified range of trading signals to prevent over-reliance on any one source.

• Recovery: Trading continues through AI even after individual trade failures, and the Jackpot Pool remains active to support user morale through airdrops, 2–3% staking boosts, and ETH rewards.

• Assurance: Users still receive up to 85% of platform profits, and VIP members enjoy an additional 6% bonus, helping long-term users stay on track for growth despite occasional trade losses.