Risks And Best Practices
Risks:
Impermanent Loss:
When providing liquidity, the value of your assets can fluctuate due to market volatility, potentially leading to impermanent loss. Be mindful of the risks before committing your assets.
Smart Contract Vulnerabilities:
Although Atmos undergoes rigorous audits, there is always a risk of bugs or vulnerabilities in smart contracts. Only invest what you can afford to lose.
Market Volatility:
Cryptocurrencies are known for their high volatility. Prices can swing drastically, impacting the value of tokens and liquidity pools. Stay informed and make decisions based on your risk tolerance.
Front-Running:
In decentralized exchanges, bots or other users may try to front-run your transactions by placing orders before yours, potentially leading to less favorable prices.
Phishing and Scams:
Always ensure you are interacting with the official Atmos website and contracts. Be wary of phishing attempts or scams that can lead to loss of funds.
Best Practices:
Conduct Thorough Research:
Always research the tokens and pools you are interested in before participating. Understand the project, its risks, and its potential before committing your funds.
Start Small:
If you are new to DeFi or Atmos, start with a small amount to get comfortable with the platform and its features before investing larger sums.
Diversify Your Portfolio:
Avoid putting all your assets into one token or pool. Diversifying can help mitigate risk and reduce the impact of potential losses.
Use Hardware Wallets:
For added security, consider using a hardware wallet to store your assets. This can protect your funds from phishing attacks and other online threats.
Stay Updated:
Follow Atmos's official channels for the latest updates, security alerts, and best practices. Staying informed will help you make better decisions.
Last updated