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Caution should be exercised when interacting with any smart contract or blockchain application. While risks are attempted to be mitigated through testing, audits and bug bounties, there is always a risk of vulnerabilities in smart contract code.
A non-exhaustive list of some risks:
  • Smart contract risks
  • Counterparty risks: The LLP pool is the counterparty to traders, if traders make a profit that comes from the value of the LLP pool
  • Token risks: Bridged tokens may depend on the security of the bridge, pegged tokens have risks of depegging