Risk

SEAT is experimental software. You can lose money. There are no guarantees of profit, capital preservation, availability, or correctness. This is not investment advice.

#Fail-closed principle

The core operating rule is: uncertain = do not trade. Any of the following causes a signal to be skipped rather than executed:

• Asset not authoritatively verified and enabled in the registry.
• Oracle price missing, zero, negative, or stale beyond the max age.
• Session cannot be determined, or is closed.
• Position/notional caps would be exceeded.
• The desk is halted by drawdown protection.

#Market & asset risk

• Stock Tokens are not shares. They may carry issuer, custody, settlement, and jurisdictional risk, and may be restricted in some jurisdictions.
• Prices can gap, especially across session boundaries and after hours.
• Liquidity may be thin; realized slippage can exceed simulated slippage.

#Copy-trading risk

• A leader's past behavior does not predict future results.
• Copies are delayed relative to the leader and may fill at worse prices.
• Sizing is scaled and capped, so a desk will not match leader performance.

#Smart-contract risk

• Contracts are unaudited in Phase 0.
• The swap adapter is intentionally restricted and reverts when no verified router is configured; there is no live trading path in Phase 0.
• Reentrancy protection, pausing, and safe ERC-20 handling are used, but do not eliminate risk.

#Operational risk

• The keeper is a single off-chain actor in Phase 0 and can fail or lag.
• Private keys, RPC endpoints, and infrastructure are trust assumptions.

#Drawdown halt

Each desk has a max drawdown from its high-water NAV. Breaching it halts new copies until governance/operator review. This limits, but does not prevent, losses.