How Kyron works and what to understand before you trade

01

What you're trading#

Kyron is a prediction-market trading venue. You buy and sell positions on event outcomes — for example, “Brazil wins the 2026 World Cup” or “Argentina beats France in the final”.

Each position resolves YES or NO based on the real-world outcome. At resolution, YES positions pay $1 and NO positions pay $0 (or the inverse, depending on which side you took). Between today and resolution, position prices move based on what other traders think is likely.

Your profit or loss is the difference between what you paid and what you receive — either at resolution, or earlier if you sell before resolution. Prices reflect market consensus, not certainty.

These are not investment products. There is no underlying cashflow, no dividend, no interest. Value comes entirely from how the event resolves and what other traders are willing to pay before it does.

02

Custody — your funds, your keys#

This is structurally different from a custodial exchange. If Kyron's website is unreachable, your funds remain in your Safe and you can use the on-chain Safe interface with your Safe owner wallet to review balances and prepare recovery actions.

Your Magic wallet is the owner signer for that Safe. Kyron uses it inside the app to request signatures for Safe actions; you should not need to export or paste a raw private key to deposit, trade, or withdraw. Kyron itself never sees your Magic private key.

What Kyron operates is the matching engine that routes your orders into the order book, matches them, and settles winning positions back into your Safe. We do not have unilateral access to spend or move your USDC.

03

Deposit routing#

When you deposit USDC, Kyron routes the deposit using tiered logic based on the chain and asset you're sending:

• Tier 1 (fastest, lowest risk): direct burn-and-mint via Circle's authorised cross-chain transfer protocol for USDC. Roughly 15 seconds, no bridge-drain risk.
• Tier 1b: native L2 standard bridges for ETH between L1 and L2.
• Tier 2 (long-tail tokens): a whitelist-filtered aggregator for assets without a direct USDC burn-mint route. Per-deposit cap and per-bridge daily cap apply. Kill switches halt the tier if any whitelisted bridge shows an incident signal.
• Tier 3: if neither tier applies, the deposit is declined and you're shown alternative paths.

All deposits ultimately land as USDC in your Safe on Base.

At launch, Kyron's customer-facing deposit path is native USDC on Base only. Bridged and non-Base deposit paths stay hidden until they pass a fresh live Safe-address smoke test, backend credit proof, incident review, and route-availability check without manual operator workarounds.

• Launch route: native Base USDC deposits to your Safe funding address. This route has no third-party bridge dependency.
• Future Tier 1 routes: direct USDC burn-and-mint routes may be enabled with a $25,000 per-deposit cap.
• Future Tier 1b routes: native standard-bridge routes may be enabled with $5,000-$10,000 per-deposit caps, depending on route risk.
• Future Tier 2 routes: aggregator-routed assets may be enabled only after whitelist review, with a $5,000 per-deposit cap and per-bridge daily caps. Higher-confidence routes are capped at $250,000 per bridge per day; lower-confidence routes use $50,000-$100,000 daily caps.

Kyron maintains an internal bridge inventory with source/audit links, incident-review dates, route caps, and kill-switch status. A route is hidden or paused if that evidence is missing, stale, or shows an incident signal.

Bridge protocols and aggregators are third-party infrastructure with their own security posture. We choose whitelisted partners and monitor for incidents, but we cannot guarantee third-party bridge integrity.

04

Execution and counterparty risk#

Kyron matches trades two ways:

1. Internal order book. Kyron operates its own central limit order book. Orders are matched against other Kyron customers (or Kyron-authorised market makers) on-chain via Kyron's smart contracts.
2. Aggregated external liquidity. When the internal book is too thin to fill your order at a reasonable price, your order may route to aggregated external liquidity venues. These are mapped, monitored, and spread-adjusted; you see the final price before confirming.

Counterparty risk on the internal book: your match is another Kyron customer or market maker. Kyron's smart contracts hold the collateral until settlement.

Counterparty risk on the routed leg: aggregated external venues are third-party infrastructure with their own security posture. A bug, governance change, or operational incident at any underlying protocol could affect open routed positions. Kyron monitors and applies kill switches when an incident signal appears, but we cannot guarantee third-party integrity.

05

Settlement#

Markets resolve to YES or NO based on objective real-world outcomes (e.g., “Brazil wins the 2026 World Cup” resolves based on the official FIFA result).

When a market resolves, winning positions are paid out in USDC directly to your Safe. Kyron's resolution process uses official, verifiable sources for each market category. Resolution rules are published per market and cannot be changed retroactively.

Resolution can occasionally be delayed if the underlying event is ambiguous, contested, or postponed. In those cases, Kyron publishes the reason for delay and the path to resolution. You can self-redeem any settled-but-unclaimed position at any time via the on-chain settlement contract.

06

Smart-contract risk#

Kyron's smart contracts hold collateral, match trades, and pay out settlements. Smart contracts can have bugs. We mitigate this through:

• Continuous automated security scanning (Slither, Mythril, Aderyn, and others).
• Continuous research-and-apply discipline — we monitor public security advisories and apply lessons from documented incidents in the broader smart-contract ecosystem.
• A bug bounty program post-launch (full details to be published).
• Strict admin pause controls that allow rapid response if a vulnerability is discovered.

We do not engage paid third-party audits at launch. This is a deliberate trade-off: we prefer continuous monitoring + bug bounty + admin pause over a point-in-time audit that goes stale quickly. The trade-off may change as the platform scales.

Despite all mitigations, smart-contract risk cannot be reduced to zero. Trade accordingly.

07

Network risk#

Kyron operates on Base, an Ethereum Layer-2 network. Base can experience congestion (high gas, slow confirmations) or outages. During these events:

• Trades may take longer to confirm than usual.
• Some trades may fail and need to be retried.
• Our gas sponsorship may auto-pause if gas costs exceed safety thresholds — we'll show a banner when this happens.

Kyron has no control over Base's uptime. We monitor and surface incidents in the product, but we depend on the underlying network's availability for all on-chain actions.

08

Regulatory and jurisdictional risk#

Prediction markets are regulated differently in different countries:

• Restricted jurisdictions: some countries' regulators have stated that prediction-market platforms are not available to their residents. We block signup and money flow from these jurisdictions based on best-effort geographic detection (IP + KYC where applicable).
• Allowed jurisdictions: in jurisdictions where prediction markets are permitted or not prohibited, you may use Kyron subject to local laws.
• Unclear jurisdictions: many countries have ambiguous regulatory positions. Whether Kyron is suitable for you depends on local interpretation, which can change.

You are responsible for understanding whether you may legally use Kyron under the laws of the jurisdiction(s) where you reside, where you trade from, and where you hold tax residency. Kyron does not provide legal advice.

Tax obligations on any trading profits are entirely your responsibility. We do not withhold taxes; we do not report to tax authorities on your behalf (except where mandated by specific compliance frameworks); we cannot tell you what you owe. Consult a qualified tax advisor in your jurisdiction.

09

Operational risk#

Software has bugs. Servers go down. Third-party providers have incidents. Examples of operational risk on Kyron:

• A bug in our front-end could display a wrong price — we monitor and roll back.
• Our infrastructure provider could have an outage — we have monitoring and incident response.
• Our identity provider could have an incident affecting sign-in — we have escalation paths.
• Our compliance provider could flag a transaction incorrectly — we have human review for edge cases.

Our commitment is to surface incidents quickly, communicate transparently, and minimise customer impact. We cannot eliminate operational risk; we can only manage it responsibly.

10

About translations#

Kyron's customer-facing copy is available in English, Japanese, Korean, Simplified Chinese, and Traditional Chinese. Translations are produced by AI (large language models with sports-betting and financial-product domain prompting), governed by a per-locale style guide and a canonical terminology glossary, with multi-pass quality review per string.

English is the legal source of truth. For resolution criteria, Terms of Service, Privacy Policy, and these Risk Disclosures, the English version controls in any dispute.

For market titles and trading-context strings, you can opt into showing the English original alongside translations in Settings → Language → “Show English alongside translations”.

If you spot a translation issue — an awkward phrase, a wrong term, a culturally inappropriate choice — please email feedback@kyron.exchange with the page URL and the suggested fix. We review these and incorporate them into our glossary so the next translation pass is better.

We use this AI-driven approach because it lets us launch in 5 languages from Day 1 with a small team. As we grow, we expect to add human native-speaker reviewers for ongoing quality work.

11

What to do if Kyron is unavailable#

You don't need Kyron's website to access your funds. If our app or website is down:

• Self-withdraw your USDC. Your Safe is a standard Gnosis Safe smart contract on Base. You can access it via the Safe interface at safe.global, sign in with the recovery details we provided at signup, and withdraw your USDC to any address.
• Self-cancel resting orders. Orders sit in Kyron's on-chain Exchange contract. You can cancel them directly on-chain via the contract interface (transaction details and contract address available in your account export).
• Self-redeem winning positions. After a market resolves, your winnings sit in the on-chain settlement contract. You can redeem them directly on-chain without Kyron's website.

12

Contact#

• Support: support@kyron.exchange — general questions, account issues
• Security: Security page — vulnerability reports, suspected exploits
• Translation feedback: feedback@kyron.exchange — translation quality feedback
• Press / business: founders@kyron.exchange

13

Acknowledgement#

By depositing funds, placing trades, or otherwise using Kyron, you acknowledge that you have read and understood these Risk Disclosures. You agree that Kyron is not liable for trading losses arising from the risks described above.

These disclosures are updated periodically. The version effective from 2026-05-19 is currently in force. Material changes are announced via in-app notification.