# Risks

At Vicuna Finance, we're dedicated to providing a secure and transparent environment for our users. However, it's crucial to recognize that we do not hold liability for any issues that may arise with LP tokens from the decentralized exchanges we support, including but not limited to impermanent loss and price fluctuations.

**Impermanent Loss**: Impermanent loss is a common phenomenon in liquidity provision. It occurs when the value of your LP tokens fluctuates compared to holding the tokens individually. While we strive to minimize risks and optimize strategies, impermanent loss is a fundamental characteristic of liquidity provision and can occur on any DeFi platform.

**Price Fluctuations**: Cryptocurrency markets are renowned for their volatility. Prices can experience rapid and unexpected changes. LP tokens are directly influenced by the prices of the underlying assets. Therefore, price fluctuations can affect the overall value of your LP holdings.

**Hacks:** DeFi platforms often integrate with multiple partners to provide diverse liquidity sources. These partnerships enhance the overall ecosystem but may also introduce additional risks. In the unfortunate event of a hack or security breach on a partner's platform that affects the LP in the vault, Vicuna Finance cannot assume responsibility for the losses incurred.

We encourage all users to conduct thorough research and due diligence before participating in liquidity provision on any platform. It's essential to understand the risks and rewards associated with LP tokens and make informed decisions based on your risk tolerance and investment goals.

Vicuna Finance remains committed to fostering a supportive and secure community. While we strive to provide the best possible experience, we want to ensure that all users are aware of the inherent risks associated with DeFi and liquidity provision.
