BOUNDS documentation

BOUNDS docsRisks

Risks

A range changes market exposure. Understand the assets, liquidity, contracts, chain, and interfaces before committing funds.

Market risk

Asset prices can move sharply, remain below or above a range, or never reach it. A strategy does not limit the market value you can lose.

Token risk

Tokens can lose value, become illiquid, change control assumptions, or behave unexpectedly. Curated markets reduce scope; they do not remove token risk.

Concentrated liquidity risk

Capital is active only inside selected price intervals. Concentration increases sensitivity to price movement and can create loss versus simply holding the assets.

Range risk

A narrow or poorly placed range can be crossed quickly or remain inactive. Outside the range, the position generally stops earning LP fees until price returns.

Asset composition risk

Buy Lower can accumulate an asset while it falls. Sell Higher can sell before further upside. Earn Fees can finish mostly in the weaker-performing asset.

Smart contract risk

Once live, faults in BOUNDS or integrated contracts could cause loss or prevent expected actions. The external audit of the frozen candidate is not complete.

Uniswap V3 dependency risk

BOUNDS relies on canonical Uniswap V3 Factory, pool, and NonfungiblePositionManager behavior. Bugs, governance changes, or failures in those dependencies can affect strategies.

Robinhood Chain risk

Network congestion, reorganization, downtime, sequencer or validator behavior, and RPC disagreement can delay reads or transactions.

Wallet risk

Compromised keys, malicious extensions, blind signing, incorrect networks, and unsafe approvals can cause loss. Verify every wallet prompt.

Frontend risk

A compromised domain, device, dependency, or interface can present false transaction details. Confirm addresses and amounts in the wallet and explorer.

Market-data provider risk

External prices, candles, volume, and trade feeds can be delayed, missing, or wrong. They inform research but do not authorize strategy creation.

Admin-key risk

Compromised protocol ownership could pause new creation, change the default fee within its cap, or alter market eligibility. Existing owner-only limits still matter, and operational ownership should use a reviewed multisig.

This list is not exhaustive.