Pons & Liquidity Risks

#Out-of-range positions

A market position may stop earning fees or become concentrated in one token when market conditions move beyond its intended exposure. Final Pons position behavior and management controls will be documented before launch.

#Impermanent loss

Liquidity provision changes the token mix as price moves. Compared with simply holding both assets, the position can lose relative value. Narrow ranges can make that inventory shift more pronounced.

#Fee-tier and volume risk

Trading fees depend on actual market activity and competition from other liquidity. A configured market does not promise fee income or offset adverse price movement. Final Pons fee parameters will be published only after deployment details are verified.

#Price and oracle risk

Spot prices can move sharply or be manipulated in thin pools. Displayed prices and quotes must not control on-chain reward entitlement. TWAP or external references can also lag or fail.

#Integration risk

WeedSwap will rely on supported Pons market infrastructure. Incorrect addresses, unexpected interfaces, upgrades, or chain-configuration errors can invalidate a transaction flow. No Pons contract address or component is implied by this documentation.

#Position custody

Self-managed positions remain under user control until deposited into an eligible WeedSwap contract. While deposited, withdrawal follows that contract's recorded-owner and active-stake rules. Vault users own shares rather than the underlying market position.

#Token risk

Either market token can fail, upgrade, blacklist, pause, rebase, charge fees, or lose market value. A market existing for a pair does not establish that either token is safe or officially supported.

#Before adding liquidity

• Verify token and integration addresses.
• Understand both assets and all published market parameters.
• Understand the inventory behavior of the supported position.
• Set protective minimums, slippage, and a short deadline.
• Plan how you will monitor, unstake, and withdraw the position.