Legal
Risk Disclosure
Providing liquidity in decentralized finance is a real activity with real risks of loss. Read this page before you deposit. By using the Service you confirm you have read it and accept the risks below.
The headline
You can lose part or all of the funds you commit. Degxifi does not guarantee profits, returns, or capital preservation. Earnings come from trading fees in liquidity pools, which vary minute-to-minute and can be wiped out by adverse price movement.
1. Impermanent loss
When you deposit two tokens into a concentrated-liquidity pool, your position is rebalanced as the price moves through the range. If the price moves and stays outside your range, you can end up holding more of the falling asset and less of the rising one — a state commonly called “impermanent loss.” If you withdraw at that point, the loss becomes permanent.
The fees you collect can offset impermanent loss in volatile pools — but they do not always do so. There is no rule that says fees will exceed impermanent loss in any given period.
2. Token crash and asset failure
A token in a pool you provide liquidity to can lose most or all of its value in minutes — for reasons that include exit scams, exploits in the token’s own contract, founder rug-pulls, key-team compromises, regulatory action, or a complete collapse of demand. If a token in your position goes to zero, the fees you have collected will not bring it back.
The same applies to bridged or wrapped assets, which can de-peg from the asset they represent if the bridge is exploited.
3. Smart-contract risk
Every transaction on the Service interacts with smart contracts written by Degxifi, by Meteora, by Jupiter, by Solana’s SPL token program, and by the issuers of the tokens themselves. Smart contracts can contain bugs that are exploited by attackers. Audits reduce but do not eliminate this risk. A successful exploit on any contract in the path can result in partial or total loss of funds in affected positions.
4. Market volatility
Crypto markets are open 24 / 7 and can move sharply in either direction with little warning. A sudden price gap can:
- push your position outside its active range so it stops earning fees;
- force a rebalance at unfavorable prices;
- cause slippage on swaps the bot performs to recenter; or
- occur during network congestion when transactions fail or are delayed.
Degxifi’s automation reduces — but does not remove — your exposure to these moves. Stop-loss and exit rules are best-effort and depend on the network being able to land your transaction in time.
5. Other risks worth knowing
- Network risk. Solana, Solana RPC providers, and the transaction landing rate are not under our control. Outages and reorgs happen.
- Third-party-service risk. The Service relies on external providers (Meteora, Jupiter, NowPayments, Privy, and others). An outage, breach, or policy change at any of them can affect the Service.
- Regulatory risk. Crypto rules vary by country and change often. New laws may restrict your ability to use the Service, change tax treatment, or freeze parts of the ecosystem.
- Operational and human error. A wrong address, lost seed phrase, mistakenly approved permission, or social-engineering attack can cause loss that cannot be reversed.
- MEV and sandwiching. Public-mempool transactions can be front-run or sandwiched by other parties, slightly worsening the price you receive.
What this means for you
Only commit funds you can afford to lose entirely. Don’t take on debt to LP. Don’t put your emergency savings in. Don’t treat past performance — yours or anyone else’s — as a forecast. Read the Terms and your local rules. Use Degxifi only if you understand and accept the risks on this page.