Risks
Understand the main ways value or access can be lost when using Blot products.
✕Loss of funds is possible
Leverage, swaps, liquidity positions, tokens, and smart contracts can cause partial or total loss. Use only funds you can afford to lose.
Strategy token risks
- Liquidation: an underlying leveraged position can be liquidated when its health falls below Tydro requirements.
- Exposure drift: prices, interest, fees, and rebalancing can move results away from an inverse, amplified, or 2x target.
- Oracle and market data: delayed or incorrect prices can affect position health and execution.
- Liquidity: entering, rebalancing, or exiting can become more expensive when markets are thin or stressed.
- Dependencies: strategy tokens rely on contracts, assets, and protocols beyond Blot itself.
BlotSwap risks
- Price impact and slippage can reduce the amount received.
- Quotes can change before a transaction confirms.
- Liquidity positions can underperform holding the supplied assets directly.
- Tokens, pools, routers, and wallet approvals can contain risk.
BLOT risks
- BLOT price and available market liquidity can change quickly.
- BLOT depends on token, market, wallet, and network contracts that can fail or behave unexpectedly.
Farm withdrawal risks
Do not deposit into a legacy farm. Use the Blot farm page and make a full withdrawal only after the app enables the safe withdrawal flow.
Nado trading risks
- Leverage amplifies losses and can lead to liquidation.
- Funding, fees, spread, and slippage can reduce returns.
- Orders can fill partially, at a different price, or not at all.
Wallet and network safety
- Use official Blot links and confirm the site address.
- Check the Ink network, contract, token, amount, and approval.
- Read each wallet prompt before signing.
- Protect seed phrases and private keys from websites and messages.
⚠Not financial advice
This documentation is informational and is not financial, legal, investment, or tax advice.