Risk and Security

1. Overview

All participants who read this guidance are deemed to have understood and agreed to its contents. GnoSwap is a decentralized application (DApp) built on the gno.land blockchain. Users of GnoSwap can access various functions, including cryptocurrency exchanges, liquidity provision, staking, and governance participation. Users must carefully review the GnoSwap documentation and ensure they understand the operational procedures before accessing the platform.

2. Asset Send and Receive Risks

GnoSwap is a decentralized platform, which means GnoSwap Labs Inc. does not have access to or control over users’ assets or transaction processes. Users must verify and double-check all details before sending assets, as blockchain transactions are irreversible once signed. Users must utilize compatible wallets that support gno.land blockchain assets and ensure they have sufficient native tokens to cover gas fees. Tokens from other blockchains must be properly bridged into gno.land-compatible assets before use. Users acknowledge and accept all risks associated with asset transfers, including potential loss during bridging processes due to delays, errors, or malfunctions.

3. Transaction Signing Risks

Users must verify transaction details before signing any transactions. Signing a transaction through GnoSwap involves authorizing irreversible actions on the blockchain, such as swaps, liquidity provision, staking, and more. GnoSwap Labs Inc. advises users to only sign transactions from trusted sources, as malicious phishing attempts may seek to compromise user wallets. Users are solely responsible for verifying the authenticity of transaction sources and should exercise caution before interacting with any contracts or platforms.

4. Risk of Impermanent Loss

Users providing liquidity to GnoSwap acknowledge the potential for impermanent loss, which occurs when the value of tokens deposited into a liquidity pool changes relative to their initial price. Users should carefully assess their risk tolerance before providing liquidity, as impermanent loss could result in a reduction—or total loss—of assets over time.

5. Risk of Staking and Delegating

Users should be aware of the risks involved in staking or delegating tokens for rewards. Staking may offer benefits, but it also involves risks, including the potential loss of principal and the fluctuation of token values. When users stake or delegate GNS tokens on GnoSwap, their assets are locked in the protocol for a designated period. During this time, market volatility could impact the value of staked assets, and early withdrawal may incur penalties. Additionally, rewards are not guaranteed and may be affected by network conditions, platform performance, or unforeseen issues with the gno.land blockchain. Users are responsible for understanding these risks before staking or delegating.

6. Governance Risks

The GnoSwap platform operates under decentralized governance, controlled by GNS token holders. While this system offers community participation, it also exposes users to governance-related risks. Governance decisions or proposals may not always align with the best interests of all users, and malicious actors could attempt to influence proposals for harmful purposes. Users participating in governance must carefully evaluate proposals and recognize that governance changes could impact the platform’s security, functionality, and financial stability.

7. Risks in Other Features

GnoSwap offers additional features, such as:

• Incentivize Pool: A permissionless incentivization program where users can add incentives for specific pools. Users should note that rewards may fluctuate or become unsustainable due to project failure, platform issues, market conditions, or other unforeseen factors.

• Launchpad: A feature to support gno.land-based projects by allowing users to deposit GNS tokens. Launchpad carries risks, including potential project failure, fraudulent activities, and market volatility affecting the future value of tokens from supported projects. GnoSwap does not guarantee the success or profitability of any project listed on its Launchpad. Users are advised to conduct thorough research before participating.

8. Limitation of Liability

Users must carefully assess the risks of each transaction within GnoSwap, proceeding at their own discretion. GnoSwap provides information to assist users but does not offer investment advice.

• No Liability for Losses: GnoSwap Labs Inc. is not liable for any losses or damages resulting from security vulnerabilities, asset theft, hacking, or exploits, including flash loan attacks.

• Third-Party Services: GnoSwap Labs Inc. is not responsible for issues arising from third-party services or platforms, including the gno.land blockchain and any integrated third-party services. Service interruptions or errors from these entities are beyond the control of GnoSwap Labs Inc.

• No Developer Liability: No developer or entity involved in the creation or maintenance of GnoSwap is liable for damages or claims related to user transactions on the platform.