> The index of every page is at https://docs.nova.markets/llms.txt. The complete documentation in one file is at https://docs.nova.markets/llms-full.txt.

# Risks and disclaimers

Address: https://docs.nova.markets/#/risks
Section: Reference

## Trading

- **Leverage.** A position at maximum leverage is liquidated by a small move.
- **Oracle prices.** Liquidation runs on a mark price from an oracle.
- **Size.** On Nova markets a large order moves your own execution price.
- **Gaps.** A stop does not protect against a gap.

## Earn products

- **You are the counterparty.** Trader profits come out of your deposit.
- **Exit is not instant.** Epochs on the pool, up to 7 days on the vault.
- **Fees are compensation, not a guarantee.**

## Protocol

- **Smart contract risk.** Onchain code carries software risk.
- **Hyperliquid.** Matching, settlement and balances depend on it.
- **Operated components.** Keepers relay orders and oracles are run. Nova is centralised today.

## Disclaimers

**Not financial advice.** Nothing here is financial, investment or trading advice.

**Risk of loss.** Leverage can cost you your entire capital. Deposits are at risk. Any yield figure shown anywhere is an illustration, never a guarantee.

**Conviction Points.** An accounting entry. No ownership, no claim, rates adjusted, and no promise of a token or an airdrop. A Conviction Token pays only what its market generates, which can be zero.

**Regulatory.** You are responsible for determining whether your use of the protocol complies with the laws that apply to you.

**No guarantees.** Nova may modify any aspect of the protocol, including fees, points rates and listings.