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What are the risks of liquidity pools?

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Last updated 1 year ago

All liquidity pools on ZenBull undergo a thorough evaluation by the ZenBull team before being provided with liquidity. However, this doesn't mean that the pool is entirely without risks. Here are some common risks associated with liquidity pools:

  • The assets deposited in the pool have stable quantities but are subject to fluctuations in monetary value;

  • Similar to smart contracts, there is a final risk related to the potential theft of investments or the inability to withdraw them.

The ZenBull team actively assesses the security risks associated with smart contracts, takes all necessary steps to mitigate them, and interacts only with those contracts that meet strict requirements after intensive testing to ensure that the core platform is free from such vulnerabilities.