Read this before you use okbet. Using the platform means you accept these risks.
LAST UPDATED: MAY 26, 2026
This Risk Disclosure applies to the okbet platform, including the okbet web application, mobile progressive web app, and all associated smart contracts deployed on the Base network. By using okbet, you acknowledge that you have read, understood, and accepted these risks.
okbet is a private group challenge app where friends stake, settle, and resolve bets together using USDC on the Base blockchain. okbet is not a sportsbook, casino, betting exchange, prediction market, or public wagering marketplace. okbet does not set odds, act as a counterparty, or operate a house.
Not financial advice. Nothing on okbet constitutes financial, investment, tax, or legal advice. okbet does not recommend, endorse, or evaluate any bet, proposition, or outcome. You are solely responsible for your decisions when creating, joining, or settling group challenges.
Not a regulated exchange or financial institution. okbet is not registered as a securities exchange, money transmitter, payment processor, or financial institution in any jurisdiction. okbet does not hold, custody, or control user funds.
No guarantees of outcome or profit. Participation in group challenges on okbet involves the risk of losing your entire stake. Past outcomes do not predict future outcomes. There is no mechanism to guarantee any participant a return on their stake.
Age requirements. okbet is intended for users who are 18 years of age or older, or the minimum legal age for peer-to-peer wagering in their jurisdiction, whichever is higher.
Bugs and vulnerabilities.okbet's smart contracts are software. Despite best efforts in design, testing, and code review, smart contracts may contain bugs, errors, or vulnerabilities that could result in the loss of deposited funds, incorrect payouts, or inability to claim or refund stakes.
Immutability. Once deployed, core smart contract logic on the blockchain cannot be changed. While okbet uses a proxy pattern (minimal clones via OkBetFactory) that allows the factory owner to point new bets at updated implementation contracts, already-created bet contracts cannot be retroactively modified. A bug discovered in an active bet contract cannot be patched for that bet.
Emergency controls. The factory contract owner (okbet labs, s.a.) retains the ability to: (a) pause creation of new bets, (b) trigger emergency expiration of an individual bet, returning stakes to participants as refunds. These controls exist as safety mechanisms. They do not guarantee recovery of funds in all failure scenarios.
Audit status.okbet's smart contracts have completed internal peer review and are source-verified on Basescan, with an external security-firm audit in progress (see the Security page). Independent review reduces risk but does not eliminate it—no audit can guarantee the absence of bugs.
Open-source verification.okbet's smart contracts are verified and published on BaseScan. Users and security researchers can inspect the contract source code directly. Verification confirms the deployed bytecode matches the published source; it does not guarantee the absence of bugs.
Third-party dependencies.okbet's contracts use OpenZeppelin libraries (SafeERC20, ReentrancyGuardTransient, Clones, Initializable, Ownable2Step, Pausable). Vulnerabilities in these upstream dependencies could affect okbet contracts even if okbet's own code is correct.
Friend-settled outcomes. Bets on okbet are resolved by a majority vote among the participants in the bet. There is no oracle, no automated data feed, and no admin override of outcomes. The accuracy and fairness of resolution depends entirely on the honesty and agreement of the people in the bet.
Majority vote mechanics. A bet resolves when more than half of active participants vote for the same outcome (YES, NO, or VOID). If participants vote YES or NO, the winning side claims the pool. If a majority votes VOID, the bet expires and all participants are refunded. There is no tie-breaking mechanism beyond the majority threshold.
Disputes and disagreements. If your group cannot reach a majority vote before the resolution deadline (96 hours after the event end time), the bet expires and all stakes are refunded. okbet does not mediate disputes, arbitrate outcomes, or override votes. There is no appeals process.
Collusion risk.Because outcomes are determined by participant vote, a group where a majority of participants coordinate dishonestly can resolve a bet against the truthful outcome. okbet's design assumes good faith among participants. The closing principle applies: don't bet with people you don't trust.
VOID outcomes. A majority VOID vote causes the bet to expire, refunding all participants their original stake. VOID is intended for situations where the proposition was unclear, the event was canceled, or the group agrees the bet should not have happened.
No partial payouts. When a bet resolves with a winning side, the entire pool is divided among winners. Losing participants receive nothing. There is no partial refund for losers in a resolved bet.
Payout math and rounding. The pool is divided equally among winners. Due to integer division in smart contract math, small rounding remainders (fractions of the smallest USDC unit) are assigned to the last claimant. This is a negligible amount but is disclosed for completeness.
Loss of stake. If you join a bet and the outcome resolves against your chosen side, you lose your entire stake. The stake is paid to the winning side. This is the fundamental financial risk of using okbet.
USDC stablecoin risks.okbet uses USDC (USD Coin) as its settlement currency. USDC is a stablecoin issued by Circle. While USDC is designed to maintain a 1:1 peg with the US dollar, it is not a deposit at a bank and is not insured by the FDIC or any government agency. USDC may: (a) lose its peg to the US dollar temporarily or permanently, (b) become illiquid or unredeemable due to issuer actions, regulatory actions, or technical failures, (c) be subject to blacklisting by the issuer for compliance reasons. okbet has no control over USDC's peg, liquidity, or issuer policies.
Gas fees.Every transaction on the Base network requires a gas fee paid in ETH. Gas fees are not charged by okbet—they are paid to network validators. Gas fees vary with network congestion. You are responsible for maintaining sufficient ETH in your wallet to cover gas costs for joining, voting, claiming, and refunding. okbet does not reimburse gas fees.
Platform fee.okbet charges a settlement fee only when a bet resolves with a winner: 3% of the winners' profit, capped at 1.5% of the total pool. It is deducted from the winners' payout — never from a participant's stake — and is shown before anyone joins. No fee applies to refunds, expired bets, or voided bets.
Irreversibility.Blockchain transactions are irreversible. Once you deposit USDC into a bet contract, the funds can only be returned through the contract's defined mechanisms: winning claim, VOID/expiry refund, or emergency expiration by the factory owner. There is no chargeback, reversal, or undo.
Wallet security. You are solely responsible for the security of your wallet, private keys, and recovery phrases. If your wallet is compromised, an attacker may be able to join bets, vote on outcomes, or claim payouts using your account. okbet cannot recover funds lost due to compromised wallets. okbet will never ask for your seed phrase or private key.
Base network risks.okbet operates on Base, a Layer 2 (L2) network built on Ethereum. Base is a relatively new network. Risks specific to Base include: (a) sequencer downtime or censorship that could delay or prevent transactions, (b) bugs in the L2 infrastructure that could affect all applications on the network, (c) bridge failures between Base and Ethereum L1 that could affect fund availability, (d) changes to Base's fee structure, security model, or governance. okbet has no control over Base network operations.
Transaction finality. Transactions on Base achieve soft finality quickly but rely on Ethereum L1 for final settlement. In rare cases, transactions that appear confirmed on Base could be reorganized or reverted before L1 finalization. This could theoretically affect bet state transitions or payouts, though the practical risk is low under normal network conditions.
Network congestion.During periods of high network activity, transactions may be delayed or may require higher gas fees to be processed in a timely manner. Time-sensitive actions—such as joining before a bet locks, voting before the resolution deadline, or claiming payouts—could be affected by congestion. okbet cannot guarantee transaction inclusion within any specific timeframe.
Wallet and connector risks. okbet connects to your wallet through WalletConnect and other standard wallet connection protocols. These protocols and the wallets themselves are third-party software not controlled by okbet. Bugs, outages, or vulnerabilities in wallet software or connection protocols could affect your ability to interact with okbet.
Cross-chain funding risks.okbet's escrow is and remains USDC-on-Base only. To fund, you may convert crypto from other chains to USDC on Base via independent third-party providers — introducing risks outside okbet's control, including failed or delayed routes, slippage, and provider outages. If a conversion fails, your source funds stay in your own wallet. Should the protocol itself ever add settlement networks, this section will be updated.
Legal uncertainty. The legal status of peer-to-peer staking, group challenges, and on-chain settlement varies by jurisdiction and is evolving. Laws and regulations governing these activities may be unclear, may change without notice, or may be interpreted differently by different authorities.
User responsibility. You are solely responsible for determining whether your use of okbet complies with the laws of your jurisdiction. okbet does not provide legal advice and does not represent that its services are legal in any particular jurisdiction.
Restricted jurisdictions. okbet is not available in jurisdictions where peer-to-peer wagering is prohibited by law. okbet may restrict access from certain jurisdictions at any time. The list of restricted jurisdictions may change.
Regulatory action. Government or regulatory bodies may take action against blockchain-based applications, stablecoin issuers, or peer-to-peer wagering platforms. Such actions could result in: (a) okbet being required to cease operations in certain jurisdictions, (b) USDC being frozen or blacklisted by the issuer in response to regulatory orders, (c) changes to tax obligations for participants, (d) other restrictions that could affect your ability to use okbet or access your funds.
Tax obligations. Winnings from group challenges may be taxable in your jurisdiction. okbet does not withhold taxes, issue tax forms, or provide tax advice. You are solely responsible for reporting and paying any taxes owed on amounts received through okbet.
Real funds. okbet operates on Base mainnet with real USDC. All stakes have real monetary value. Do not stake more than you can afford to lose.
Off-chain data may change. okbet may reset or migrate off-chain data (such as cached display data, profiles, and waitlist entries) as we develop the product. On-chain records and funds are governed by the smart contracts and cannot be wiped or reversed by okbet.
Features may change. The beta version of okbet is under active development. Features, smart contract logic, resolution mechanics, fee structures, and user interface elements may change significantly between beta and any future production release.
No uptime guarantee. The beta version of okbet may experience downtime, bugs, data loss, or service interruptions at any time. okbet does not guarantee availability or performance during the beta period.
Network. okbet runs on Base mainnet with real USDC and will never silently switch your wallet to a different network. Terms, fees, and features may change as the product develops; material changes will be posted.
Small team.okbet is built and operated by okbet labs, s.a., a small, self-funded company. The team's size means that: (a) development resources are limited, (b) support response times may be longer than larger platforms, (c) the project's continuation depends on a small number of people.
Service changes or discontinuation. okbet may modify, suspend, or discontinue any part of the service at any time, with or without notice. If okbet ceases operations, outstanding bets in OPEN or LOCKED state could be expired via emergency mechanisms, returning stakes to participants. However, okbet cannot guarantee that all recovery mechanisms will function perfectly in a wind-down scenario.
No deposit insurance. Funds deposited into okbet smart contracts are not covered by any deposit insurance program, government guarantee, or compensation fund. If funds are lost due to smart contract failure, network issues, or any other cause, there is no insurance or backstop to make you whole.
Phishing and impersonation. Bad actors may attempt to impersonate okbet through fake websites, fake social media accounts, or direct messages. okbet will only email you from @okehbet.com addresses. okbet will never DM you on Telegram or Discord pretending to be support. okbet will never ask for your seed phrase. If in doubt, contact security@okehbet.com.
Dependency on third parties.okbet depends on third-party services including but not limited to: the Base network, Circle (USDC issuer), WalletConnect, Supabase, Vercel, and wallet providers. Failures, policy changes, or discontinuation of any third-party service could affect okbet's operation.
If you have questions about this Risk Disclosure, contact:
okbet labs, s.a.
Republic of Panama
Don't bet what you can't lose.
Don't bet with people you don't trust.
This Risk Disclosure was last updated on May 26, 2026. okbet reserves the right to update this disclosure at any time. Material changes will be communicated through the okbet application or website. Continued use of okbet after changes are posted constitutes acceptance of the updated disclosure.