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⚠️ Risk Disclosure

Trading Risks

Cross-chain cryptocurrency swaps involve multiple risks that you should fully understand:

• Price Volatility: Cryptocurrency prices can change dramatically in seconds. The price you see when initiating a swap may differ significantly from the final execution price.
• Slippage: Large trades may experience slippage, resulting in less favorable rates than displayed.
• Market Risk: Cryptocurrency markets operate 24/7 and can be extremely volatile.

Technical Risks

• Smart Contract Vulnerabilities: Despite audits, smart contracts may contain bugs that could result in loss of funds.
• Network Congestion: Blockchain network congestion may cause delayed or failed transactions.
• Cross-Chain Risks: Cross-chain swaps involve multiple blockchains, each with their own risks.
• Node Operator Risk: THORChain relies on node operators who could potentially act maliciously.

Liquidity Risks

• Low Liquidity: Some trading pairs may have limited liquidity, resulting in unfavorable rates or failed swaps.
• Pool Depletion: In extreme market conditions, liquidity pools may become depleted.

Operational Risks

• User Error: Sending funds to wrong addresses or incorrect amounts cannot be reversed.
• Wallet Security: Loss of private keys means permanent loss of funds.
• Phishing: Always verify you are using the official THORChain Swap interface.

Regulatory Risks

• Legal Uncertainty: Cryptocurrency regulations vary by jurisdiction and may change.
• Compliance: You are responsible for complying with your local laws.
• Tax Obligations: Cryptocurrency transactions may be taxable events.

Best Practices

To minimize your risk:

• Never invest more than you can afford to lose
• Always double-check recipient addresses before confirming
• Start with small test transactions
• Keep your wallet and devices secure
• Be aware of current market conditions
• Understand the fees and rates before swapping