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Risks of Using Ref. finance

Providing liquidity and/or trading on Ref Finance do not come without risks. Before interacting with the protocol, please do research and understand the risks involved.

General Risks Quiz
AMM Core Design
Audits

Ref Finance smart contracts have been audited.

Security audits do not eliminate risks completely. Please do not supply your life savings, or assets you cannot afford to lose, to Ref Finance, especially as a liquidity provider.
Admin keys
Ref Finance is managed by the Ref Finance Sputnik DAO and will be transitioning to a fully decentralized DAO. For more information relating to the contracts and addresses that have directly managed or currently manage the affairs of Ref Finance, please check ourDocumentation.
Rug pull
If the team behind a token, either whitelisted or not, decides to abandon its project and takes the investors’ money, the project’s token will probably be worth $0. If the token is whitelisted on Ref Finance, that does not mean the project will succeed. You are responsible for doing your own due diligence of the project and should understand that crypto are very-high risk, speculative investments. You should be aware and prepared to potentially lose some or all of the money invested.
Divergence Loss
If you provide liquidity, please do note that you can make more money by not providing liquidity. Divergence Loss is often yet inappropriately called “impermanent loss”. The adjective (impermanent) may assume or create the marketing feeling that losses are only impermanent, meaning that losses are guaranteed to be reversed, which is not true.
Learn more about Divergence Loss
Staking risks
When staking you use multiple smart contract products each of which has its own risks.
Permanent loss of a peg
If one of the stablecoins in the pool goes significantly down below the peg of 1.0 and never returns to the peg, it will effectively mean that pool liquidity providers hold almost all their liquidity in that currency.
Systemic issues
In general, DeFi or the legos of money is highly connected, meaning that one failure of its component may trigger a succession of failures. A systematic risk means that you can lose money even if the failure does not directly concern your investment/exposure.

The following risks may have an impact in the liquidity pools:

- Smart contract issues with lending protocols

- Smart contracts issues with staking protocols

- Systemic issues with the stablecoins in those pools

- Systemic issues with ERC20-native tokens in those pools

Crypto trading addiction
Trading crypto can be very addictive and, according to many sources, be a form of gambling addiction, which can destroy lives. Please find below a collection of stories relating to that matter.

'Trading is gambling, no doubt about it'

'I Lost Half a Million Pounds Trading Bitcoin'

'We Spoke to a Therapist Who Treats Cryptocurrency Trading Addiction'

'I lost millions through cryptocurrency trading addiction'

Third-party wallet

Ref Finance integrates third-party wallets.

While we have taken measures to select wallet providers, we cannot guarantee their security or performance. You should familiarize yourself with the risks associated with the specific wallet provider and understand their terms of service, privacy policy, and security practices.

Please use these services at your own risk and exercise caution.