# Risks Overview

### Smart Contract Risk

While Hypertrade smart contracts are designed with security in mind and undergo audits, no smart contract can be guaranteed to be completely free of vulnerabilities. Users should only deposit funds they can afford to lose.

### Impermanent Loss

Liquidity providers are exposed to impermanent loss when the price ratio of deposited tokens changes compared to when they were deposited. This is especially relevant for v3 concentrated liquidity positions with narrow price ranges.

### Slippage Risk

Large trades relative to pool liquidity may experience significant slippage. Always check the expected output amount and price impact before confirming a swap.

### Market Risk

Token prices can be volatile. The value of your assets may decrease significantly in a short period of time.


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