Risk and Vulnerabilities

1POOL is a work in progress. Being a new project in a relatively new and evolving sphere of decentralized finances, the users should take note of potential vulnerabilities, some which is outlined below, when using the platform.

Potential smart contract exploits: 1pool is a new project and there can exist smart contract vulnerabilities. We will conduct a full Smart contract audit before the formal launch and update the community accordingly. Using the platform before the audit is strongly discouraged.

Though audits could mitigate the risk, it does not negate the possibility of unforeseen bugs which could be exploited by the unscrupulous actors. The users should be mindful of these risks when using the platform.

Financial Risks: Cryptocurrency is subject to extreme price fluctuations and potential manipulation and rug-pulls, where teams could vanish with your funds. Also, be mindful, liquidity in pools can be removed at any time by large investors. Users can lose substantially during such occurrences.

Impermanent loss: Impermanent loss is a unique risk involved with providing liquidity to dual-asset pools in DeFi protocols. It is the difference in value between depositing 2 cryptocurrency assets within an Automated Market Maker-based liquidity pool or simply holding them in a cryptocurrency wallet.

Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.

Please be aware of such risks and do your own research before you invest. And take appropriate precautions.