Risk Disclosures

Effective: 2026-11-01

Digital assets and decentralized exchange activity are high risk. You may lose some or all of the assets you use. These disclosures explain important, but not exhaustive, risks of using RedSwap (the “Interface”) to swap tokens or manage liquidity on Ethereum and BNB Chain. The Interface does not guarantee returns, transaction success, contract safety, or protection against losses.

1. Volatility and total loss

Token prices may move sharply or collapse to zero. Markets may be thin, illiquid, manipulated, or unavailable. Past prices, market caps, displayed balances, and historical performance do not predict future value. Even widely used assets and tokens described as stablecoins can depeg, freeze transfers, lose backing, or fail.

2. Smart-contract and protocol vulnerabilities

Token, factory, router, and liquidity-pool contracts can contain bugs, flawed economic assumptions, privileged controls, upgrade risks, or malicious functionality. Attackers may exploit contracts or compromise developer, administrator, or signing keys. Contract source code, popularity, verification, and even a third-party audit cannot eliminate these risks. No contract is guaranteed to be audited or safe merely because it appears in the Interface.

3. Fraudulent or unusual tokens

Tokens may impersonate recognized projects, include hidden transfer taxes, block selling, impose transaction limits, change parameters, blacklist holders, allow privileged minting, or make balances and prices misleading. Some assets can be purchased but not sold. Always verify the chain and the exact token contract; a name or logo is not proof of authenticity. A frontend token list or blacklist is not a comprehensive fraud-detection service.

4. Slippage, price impact, and stale quotes

Quotes can change between calculation and blockchain confirmation. Large trades compared with pool liquidity can cause significant price impact. A high slippage tolerance allows a materially worse execution price; the Interface's configurable limit can permit tolerances as high as 20%. Deadlines and minimum-received settings reduce certain risks but cannot guarantee a favorable result.

5. Front-running, MEV, and transaction ordering

Pending transactions may be observed or reordered by validators, searchers, or other participants. Sandwich attacks, front-running, back-running, reorganization, and other forms of maximal extractable value (MEV) can worsen execution, cause failure, or impose costs. Ordinary public RPC submission does not guarantee private execution.

6. Liquidity-provider risks

Adding liquidity exposes you to changes in the relative prices of the pooled assets. Compared with holding the assets separately, your position can suffer impermanent loss, which may become permanent when you withdraw. Trading fees may not compensate for this difference. Low liquidity, pool imbalance, manipulative trades, contract exploits, and worthless tokens can result in severe losses or make a position difficult or uneconomic to exit.

7. LP tokens and exit conditions

A liquidity position may be represented by LP tokens or contract balances. Losing, transferring, or approving LP tokens may affect your ability to redeem underlying assets. Redemption depends on contract functionality, pool reserves, and network operation; withdrawal does not guarantee the original token amounts or values.

8. Token approvals and wallet permissions

Approvals can authorize an external contract to spend tokens from your wallet. Large or unlimited allowances can expose more assets if the spender is malicious or compromised. Verify the spender address, amount, chain, and requested signature. Revoking an allowance usually requires a separate blockchain transaction and fee. Malicious messages may imitate a normal approval or wallet connection.

9. Irreversibility, failed transactions, and gas

Confirmed blockchain transactions are generally irreversible. Transfers to the wrong address or network may be unrecoverable. Transactions can remain pending, revert, or fail when gas estimates, reserves, approvals, deadlines, or token mechanics change. Gas/network fees may be charged even when execution fails, and fee levels may rise suddenly under congestion.

10. Network and asset representation

Ethereum and BNB Chain are distinct networks. Tokens with the same displayed name or symbol may have different contract addresses, issuers, redemption rights, and risks on each network. Wrapped, bridged, and pegged tokens may depend on third parties or reserve arrangements. Selecting another network in the Interface is not a cross-chain transfer, and the Interface does not provide a bridge.

11. Oracles, indexers, RPC, and displayed data

The Interface relies on third-party RPC nodes, wallets, indexers, token metadata, and on-chain contract reads. These services may be unavailable, delayed, inconsistent, censored, compromised, or inaccurate. Displayed balances, prices, token descriptions, recognized LP positions, and estimates may be incomplete. Always verify material information using independent sources and your wallet.

12. Custody, phishing, and device security

You are responsible for protecting your wallet, device, signing permissions, private keys, and recovery phrase. Phishing websites, malware, fake extensions, malicious token approvals, compromised devices, and fraudulent support messages can cause total loss. No genuine support interaction should require your recovery phrase. The Interface's operator cannot restore lost keys or reverse a completed on-chain transfer.

13. Regulatory, legal, and tax uncertainty

Digital-asset laws and their interpretation can change. A particular token, liquidity service, or activity may be restricted or regulated where you live. Tax liabilities and reporting requirements may arise from swapping, wrapping, providing liquidity, or receiving fees. The mere use of a non-custodial interface does not establish that a service is legally exempt from regulation. Obtain independent professional advice when appropriate.

14. Site availability and third-party changes

The Interface, its hosting, wallet connection, RPC services, swap sources, or integrated contracts may change, fail, or be discontinued. Tokens can be delisted from the interface without disappearing from the underlying blockchain. The Interface operator cannot reverse confirmed blockchain transactions or require independent third-party protocols to restore functionality. If this website becomes unavailable, access to your position may require a separate compatible tool.

15. No insurance or guarantee of recovery

Unless separately and expressly documented, digital assets and liquidity positions accessed through the Interface are not insured deposits and are not covered by deposit protection, investor compensation, guaranteed redemption, or a promise of reimbursement from the Interface operator. Losses can exceed expected fees or earnings and may be unrecoverable.

16. Important precautions

• Verify the website URL, wallet prompts, network, and token contracts.
• Test unfamiliar contracts and assets with small amounts first.
• Review price impact, slippage, minimum received, and network fees.
• Limit allowances where practical and review existing approvals.
• Never disclose a private key or recovery phrase.
• Only transact with assets you can afford to lose entirely.

17. Contact and related documents

Questions about the website may be directed to [email protected]. See the Terms of Service and Privacy Policy for additional information. These disclosures describe risks; they do not replace independent assessment of any transaction.