Risk Disclaimer
Important risks and disclosures for decentralized finance
CRYPTOCURRENCY AND DECENTRALIZED FINANCE INVOLVE EXTREME RISK. YOU COULD LOSE ALL OF YOUR INVESTED CAPITAL. ONLY INVEST MONEY YOU ARE WILLING TO LOSE COMPLETELY.
VanSwap is a decentralized protocol on Vana Chain. By using our services, you acknowledge and accept all risks described in this disclaimer.
1. No Investment Advice
VanSwap does not provide investment advice, financial advice, or trading advice. All information provided by VanSwap is for educational and informational purposes only.
Nothing on VanSwap should be construed as investment or financial advice. You are solely responsible for your investment decisions and should consult with qualified financial advisors before making any investment.
2. Comprehensive Risk Categories
2.1 Protocol Risks
VanSwap smart contracts may contain vulnerabilities or bugs that could result in loss of funds. While we conduct security audits, no software is completely secure.
- Potential smart contract exploits
- Code vulnerabilities and bugs
- Upgrade and migration risks
- Oracle manipulation possibilities
Automated Market Maker (AMM) design carries inherent risks that may result in financial losses.
- Impermanent loss when providing liquidity
- Price slippage during large trades
- Liquidity pool imbalances
- Flash loan attacks and arbitrage
2.2 Market Risks
Cryptocurrency markets are extremely volatile and unpredictable.
- Extreme price fluctuations (90%+ drops possible)
- Market manipulation and whale activities
- Low liquidity for certain tokens
- 24/7 market operation without circuit breakers
Low liquidity can significantly impact your trading experience and investment value.
- Inability to execute trades at desired prices
- High slippage on large orders
- Liquidity provider exit causing pool collapse
- New token liquidity risks
2.3 Technology Risks
Vana Chain and underlying blockchain technology carry inherent risks.
- Network congestion and high gas fees
- Chain reorganizations and consensus failures
- Node synchronization issues
- Protocol upgrades and hard forks
Your personal security practices are critical to protecting your assets.
- Private key loss or theft
- Phishing attacks and social engineering
- Malware and keylogger infections
- Smart contract approval exploits
2.4 Regulatory Risks
Cryptocurrency regulations are evolving and vary by jurisdiction.
- Changing regulatory landscape
- Potential bans or restrictions in your jurisdiction
- Tax reporting requirements
- Legal classification uncertainties
3. Specific VanSwap Risks
Impermanent loss is one of the most significant risks for liquidity providers.
When you provide liquidity to a pool, you may experience impermanent loss if the price ratio of the tokens changes compared to when you deposited them. This loss occurs because of the automated market maker formula and can result in receiving back less valuable assets than if you had simply held the tokens.
- Higher volatility = higher impermanent loss
- Loss can exceed earned trading fees
- Permanent if tokens are withdrawn during price divergence
- Affects all liquidity providers in AMM protocols
Large trades can significantly move market prices on decentralized exchanges.
- Higher slippage on low-liquidity pools
- Price impact percentage shown before trading
- Front-running and MEV (Miner Extractable Value)
- Transaction ordering dependencies
Creating tokens through VanSwap carries additional risks.
- No vetting of created token projects
- Potential for scam tokens and rug pulls
- No guarantee of liquidity or trading volume
- Responsibility for token economics and security
4. Technical Understanding Requirements
Using VanSwap requires understanding of several technical concepts:
- Blockchain Transactions: Understanding gas fees, transaction confirmation, and network states
- Wallet Management: Private key security, seed phrase backup, and transaction signing
- Smart Contracts: Contract interactions, approvals, and decentralized application usage
- DeFi Concepts: Liquidity pools, yield farming, impermanent loss, and AMM mechanics
- Token Standards: VRC-20 token functionality and contract addresses
You are responsible for educating yourself about these concepts before using VanSwap. Start with small amounts and understand each action before proceeding.
5. No Insurance Protection
Funds used on VanSwap are NOT insured by any government agency, insurance company, or third-party protection scheme.
Unlike traditional bank accounts or regulated financial institutions, cryptocurrency assets on decentralized protocols have no insurance protection. Losses due to hacking, smart contract failures, user error, or market conditions are not recoverable.
6. User Responsibilities
As a VanSwap user, you are solely responsible for:
- Security Practices: Protecting your private keys, using hardware wallets, enabling 2FA
- Due Diligence: Researching tokens, understanding risks, verifying contract addresses
- Transaction Verification: Checking all transaction details before confirmation
- Tax Compliance: Reporting and paying taxes according to your jurisdiction
- Legal Compliance: Ensuring your activities comply with local laws and regulations
- Risk Management: Only investing what you can afford to lose completely
7. No Warranty or Guarantee
VanSwap is provided "as is" and "as available" without any warranties of any kind.
We do not guarantee:
- Profitability of any trading strategy or liquidity provision
- Continuous availability or uptime of the protocol
- Accuracy of price information or market data
- Security against all possible attacks or exploits
- Recovery of lost or stolen funds
8. Assumption of Risk
By using VanSwap, you expressly acknowledge and assume all risks, including but not limited to:
You acknowledge that you may lose some or all of your invested capital and accept full responsibility for these potential losses.
You accept risks related to blockchain technology, smart contracts, and decentralized systems.
You accept responsibility for understanding and complying with applicable laws in your jurisdiction.
BY USING VANSWAP, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND FULLY ACCEPT ALL RISKS DESCRIBED IN THIS DISCLAIMER.
You confirm that you are solely responsible for your investment decisions and their outcomes. If you do not accept these risks, you must not use VanSwap.
If you have questions about these risks or need clarification, please review our documentation or seek independent financial and legal advice before using VanSwap.
Documentation: https://vanswap.xyz/docs.html