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Although we take a multitude of safety precautions and SafeLaunch will be audited, farming and participating in DeFi comes with certain risks. Below, we discuss the potential risks associated with using SafeLaunch.

Risks to Yield Farmers

Impermanent Loss (IL):

  • Risk:
    • Risk of (impermanent) capital loss from asset rebalancing in the Automated Market Maker ("AMM") pool.
    • Even stablecoin pairs can be subject to impermanent loss if the price of at least one moves off peg. While in general, the IL from this is small and transient, historically, there have been instances where stablecoins have stayed off-peg for extended periods of time. By opening a position with large leverage, you are also amplifying the potential IL on your principal.
  • Mitigation:
    • Impermanent loss is not unique to SafeLaunch. It is common among all yield farming and AMMs. While we currently do not yet have a way to mitigate IL, users can choose to yield farm asset pairs that have high correlations to minimize potential IL. For more information on IL, you can start with this article.

Smart Contract Risks

  • Risk:
    • While the majority of our smart contracts have been audited by third-party firms, they could theoretically have vulnerabilities.
  • Mitigation:
    • Having smart contracts audited by multiple professional third-party firms decreases the chance of vulnerabilities.
    • You'll find a copy of our audit report here once they're complete.

Risks to LaunchPad Users

Whilst SafeLaunch performs it's own due diligence checks on projects including but not limited to KYC, third party smart contract audits and our own research we shall not be liable for any losses incurred by using our platform. SafeLaunch doesn't offer financial advice and implores you to DYOR. (Do Your Own Research)
Our content is intended to be used as information and educational purposes only. It is very important to do your own research and analysis before making any investment decisions or otherwise DYOR.
SafeLaunch shall not be liable, whether in contract, tort (including negligence) or otherwise, in respect of any damages and/or expenses and/or any losses you may suffer arising out of such information or any reliance you may place upon such information.
Any further arrangements between you and any third parties contacted via the Website/Affiliated links are at your sole risk.