The risks of trading on GM Markets — market risk, liquidity risk, smart contract risk, custody risk.
Trading on GM Markets carries risk, including the loss of principal. The full risk disclosure lives at /legal#risk. This page summarizes the major categories.
Asset prices can move against you, including overnight gaps that may exceed your slippage tolerance or Stop Loss trigger. Past performance does not guarantee future returns. Markets can become illiquid, especially outside regular hours, and your order may queue or partial-fill.
Tokenized assets rely on smart contracts. While every contract is audited, no audit eliminates risk entirely. A discovered vulnerability or an unforeseen interaction with another protocol could affect the value or availability of your tokens.
The underlying shares are held at regulated broker-dealers such as Alpaca Markets and Interactive Brokers under segregated customer accounts. Investor-protection arrangements apply within the jurisdictional limits of each broker; protection is not unlimited. The security-agent mechanism (GenTwo) is designed to redeem outstanding tokens against the underlying shares if GM Markets discontinues operations, but redemption depends on the continued operation of the broker partner.
Cross-chain bridges and the underlying blockchains can be congested, halted, or compromised. Funds in transit during a chain-level incident may be delayed or, in extreme cases, lost. Always confirm the network before initiating a cross-chain transfer.
The tokenized security issuers that quote prices may withdraw liquidity in extreme conditions. When this happens, the trade sheet will not return a quote and you cannot execute until liquidity returns.
You are responsible for your own trades. Read the full risk disclosure before trading.