Can I lose more than I put in?
On prediction markets, no, the most a position can lose is what you paid for it. Perps are riskier: leverage can wipe out a position faster. But your loss is always limited to the funds in your fund's wallet, there's no debt, no margin call knocking at your door.
Prediction markets: capped by design
A share you buy for 70¢ can end at $1 or at $0, never below. The worst case for any bet is losing its stake, full stop. That's one reason it's a clean first room for a young fund.
Perps: sharper tool, same outer wall
Perps use leverage, so a position can be liquidated, lost, on a smaller move. Your CEO treats them accordingly: tighter sizing, stops. But even then, the outer wall holds: losses can't exceed what's in your fund's wallet. No negative balances, no owing anyone.
Your guardrails shrink the blast radius
Per-bet limits and the conviction floor mean no single mistake can be fatal. The fund is built to survive being wrong, because sometimes it will be.