What can go wrong

Market making is picking up basis points in front of information. Respect every item on this page or don't run capital.

Strategy risks

• Adverse selection. The dominant risk. One stale quote through one headline can refund weeks of spread income. Mitigations: short TTLs, the response ladder, scheduled-event blackouts, and treating "no quote" as a valid state. See Adverse Selection.
• Inventory gap risk. Positions held into the primary open gap against you with no exit. Mitigation: flat_by discipline.
• Stale reference risk. Your fair value anchors (close price, correlated moves) can themselves be wrong or delayed. Confidence must widen spreads when anchors age.

Infrastructure risks

• RPC failure. If you cannot see the chain you cannot see fills. The kit pulls quotes when its RPC goes quiet rather than quoting blind.
• Desk censorship. The server distributing quotes could go down or misbehave; capital is never exposed to it, but you stop earning. Run redundant distribution when the Book supports it.
• Contract risk. The Book is small and published, but all escrow is smart-contract risk. Never escrow more than the strategy's working capital.

Asset risks

• Tokenized equities are claims whose issuance, redemption, and legal standing are defined by their issuer, not by this project. Understand what the token is before quoting it.
• USDG is the quote asset; its peg is an assumption everywhere in the PnL math.
• Jurisdictions differ on tokenized-equity trading. Where you may run this is your own compliance question, not one this site answers.