# Pre-IPO Perpetual Markets Risks and Disclaimers
### Pre-IPO Perpetual Markets
Certain XYZ markets may be designated as Pre-IPO Perpetual (IPOP) markets. An IPOP is a perpetual derivative market that references the anticipated public listing or other public trading event of a referenced issuer. The unique nature of IPOP markets entails certain risks you should be aware of and accept if you are participating in an IPOP market.
#### No Ownership or Other Rights; No Issuer Affiliation
IPOPs are intended to provide synthetic price exposure only. They do not represent shares, pre-IPO securities, IPO allocations, tokenized equity, beneficial ownership, or any right to receive or acquire any security. Holding a position in an IPOP does not give you any rights associated with ownership of securities, including voting rights, dividend rights, information rights, appraisal rights, subscription rights, allocation rights, rights to participate in an IPO, or claims on corporate assets.
No referenced issuer, underwriter, exchange, broker, transfer agent, market maker, or other third party associated with a public listing is responsible for, affiliated with, or sponsor of any IPOP, unless expressly stated otherwise.
#### Pricing Risk
Before the referenced issuer’s securities begin public trading, there may be no continuous, public, liquid, or reliable market price for the referenced asset. Prices for an IPOP may be based on the applicable market methodology, order book activity, available public information, expected listing terms, external data sources, or other inputs described in the applicable market specifications.
IPOPs may rely on pricing methodologies that are more uncertain than those used for assets with continuous public trading. Any oracle, mark price, conversion, or settlement methodology may be affected by limited data, stale data, erroneous data, delayed listings, listing venue changes, corporate action changes, market disruption, or extreme volatility.
IPOP prices may differ materially from any announced IPO price range, final IPO price, public opening price, intraday trading price, closing price, private-market transaction price, analyst estimate, media report, or valuation attributed to the referenced issuer. Public filings, offering terms, share counts, valuation, float, lock-up arrangements, underwriter information, and expected listing timing may change without notice.
### Listing event, conversion, and settlement risk
An IPOP may be designed to convert into, reference, or settle by reference to a post-listing market after the referenced issuer’s securities begin public trading. The timing, methodology, reference price, and source of any post-listing reference price will be described in the applicable market specifications.
The anticipated listing may be delayed, repriced, amended, withdrawn, cancelled, suspended, or completed through a different structure than expected, including a direct listing, merger, acquisition, spin-off, foreign listing, depositary receipt, or other transaction. If the expected listing does not occur by the applicable outside date, if no reliable public reference price becomes available, or if extraordinary circumstances affect the referenced issuer or listing event, trading in the market may be halted and settled or closed.
Settlement or conversion may occur at a price that differs materially from the market price at which you entered a position, from your expected value, from public valuations or offering prices associated with the referenced issuer, or from any subsequent public market price for the referenced issuer's securities.
### Liquidity, volatility, and liquidation risk
IPOPs may have limited liquidity, wider bid-ask spreads, lower market depth, higher volatility, lower open interest caps, and fewer market participants than established perpetual markets. Market orders, stop orders, and liquidations may execute at unfavorable prices or may move the market.
You may be unable to open, reduce, or close positions at expected prices. In low-liquidity conditions, the mark price may be moved by relatively small orders, and the resulting price movements may trigger further liquidations. In addition, the transition from internal to external pricing may produce a step change in mark price, which can result in immediate P\&L changes for open positions and may trigger liquidations if positions are close to maintenance margin.
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