Legal

Risk Disclosure

Last updated 2026-08-07. This page states, plainly, the ways you can lose money using lp.xyz. It is incorporated into the Terms of Service by reference. Read it before providing liquidity or enabling automation.

Draft: not yet reviewed by counsel

This page was drafted from the product's actual code and behavior, not a template. It has not been reviewed by a lawyer. Do not treat it as final legal advice or a substitute for one.

Smart-contract risk: the contracts are unaudited

lp.xyz's own on-chain programs (the v4 hook suite: fee hooks) have not completed an external audit at the time of writing. An audit is planned but not done. The code is deliberately conservative in the meantime: for example, the escrow program caps how much capital a single offer can commit precisely because it is unaudited. But a cap on blast radius is not a substitute for an audit, and it does not make the contracts safe. In addition to lp.xyz's own contracts, every transaction you build through lp.xyz interacts with third-party AMM and bridge contracts (Orca, Raydium, Meteora, PumpSwap, Uniswap, and others) that lp.xyz does not write, control, or audit. A bug, exploit, or unforeseen interaction in any of these contracts can result in total, permanent loss of the funds involved.

Impermanent loss

Providing liquidity to an automated market maker changes your exposure as price moves: the pool continuously rebalances your position between the two assets, so a large price move can leave you with less total value than if you had simply held the assets separately. This is a normal, expected property of AMM liquidity, not a malfunction, and it can outweigh any trading fees or coupon you earn.

Automation risk

Enabling autoharvest or a trailing wall authorizes lp.xyz to sign and submit narrow, pre-defined transactions on your behalf without asking each time. Automated transactions are subject to the same on-chain risks as manual ones (they can fail, be delayed, be reordered, or cost more in fees than expected), and a maintenance action can still be running against a position that is losing value in the market. Automation maintains a position you chose to open. It does not protect that position from an adverse market move.

Total loss of funds is possible from any of the above, individually or in combination.
On-chain transactions are irreversible. Once confirmed, no party, including lp.xyz, can reverse, refund, or undo a transaction.
Past performance is not indicative of future results. A fairness score, an APR figure, or a coupon's historical behavior is not a prediction.
Nothing here is financial advice. Evaluate every action yourself, and only commit funds you can afford to lose entirely.