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Liquidity risks

What can change after you put assets into a pool.

Price and composition

A liquidity position can lose value and can contain different proportions of the two assets over time. Fees may not offset price changes or impermanent loss relative to simply holding the original assets.

A concentrated position can become entirely one asset outside its range. Permanent liquidity elsewhere in the pool does not create a price floor or guarantee that your position remains useful.

Token and contract behaviour

Tokens may have taxes, blacklists, transfer restrictions, rebasing behaviour or upgradeable logic. Hooks can change fees or constrain operations. These properties can affect execution even when the market looks like a familiar pair.

Flea checks known compatibility conditions and simulates calls, but it cannot guarantee the future behaviour of every token or external contract. Never treat a listing or source label as an endorsement.

Execution and infrastructure

Transactions can fail, be delayed, be replaced, or execute after other trades move the price. Wallets, RPC providers, indexers and frontends can also be unavailable.

Use reasonable amounts and review the exact destination, approvals, range and bounds. Keep receipts so you can distinguish a pending transaction from a confirmed deposit if the interface loses connectivity.