Can I lose everything?
In theory, yes, a fund can lose the money in its wallet, and never a cent more. In practice, the fund is built so that getting there would take a long chain of failures: bets are sized so no single loss is fatal, and the conviction floor stops your CEO from acting on weak reads. Only fund it with money you can afford to lose.
The honest worst case
Your fund's worst case is losing what's in its wallet. That's the full extent of it, you can never lose more than you put in, there's no debt and no margin call. But the money in the wallet is genuinely at risk, and pretending otherwise would be the wrong way to start.
Why total loss is hard to reach by design
- Per-bet caps No single position can cross the ceiling you set, so one bad call stays one bad call.
- The conviction floor Chosen with your CEO at launch, adjustable both ways, means your CEO passes on markets it can't read with confidence.
- Total exposure limits The fund keeps overall risk under a second ceiling, so it's never all-in across positions either.
Losing everything would take many oversized failures in a row, exactly the pattern the rules exist to prevent. Unlikely by design is still not impossible, which is why the sizing of the wallet itself is your first risk decision.
Fund your wallet only with money you can afford to lose. And because the wallet is non-custodial, only you control it, back up your keys and password somewhere safe: losing them can mean losing access for good.
The risk you actually manage
In practice, the question isn't “could everything vanish overnight”, it's “how much drawdown am I comfortable with while the fund learns.” That's what your dials control: bet limits, the floor, and how aggressive the fund plays.