Risks

Can I lose money?

Yes. Providing liquidity is not risk-free. Plain examples:

• Price moves against the pair — even on same-asset wraps, the two tokens can trade at a temporary premium or discount. The mix of the two tokens in your position shifts as the price moves.
• Out of range collects no fees — while the pool price is outside your range, that position collects no trading fees until price returns or you change range.
• Impermanent loss (IL) — compared with simply holding the tokens, LP can underperform when relative prices move. Fee income may or may not offset that.
• Conversion / exit costs — swapping into or out of the pool (including withdrawing to USDC) costs swap fees, some price difference on larger amounts, and the SoFinance 10 bps protocol fee on the deposited or converted amount. There is no extra performance fee on the trading fees you collect. See Fees.

APR tooltips and pair cards link here and to Fee APR because fee APR estimates ignore IL and costs.

Risks we cannot control

• Smart contract risk — Raydium, the Jupiter swap router, token programs, and related on-chain programs can have bugs or unexpected behavior.
• xStock / issuer controls — some pool tokens use Token-2022 and may retain freeze or other issuer authorities. A freeze can block transfers, deposits, or withdrawals even though SoFinance is non-custodial.
• Regional and compliance restrictions — token issuers, venues, or local law may restrict who can hold or trade certain assets. That is outside SoFinance's control.
• Network conditions — A busy Solana network or poor swap prices can make the result differ from the preview.

Robinhood Chain pools

Pools on Robinhood Chain (chain ID 4663) work differently from Solana pools. What is specific to them:

• What you hold — each position is a standard Uniswap v4 position NFT, minted by the Uniswap v4 PositionManager to your own wallet. Whoever holds the NFT controls the position, so moving it or losing access to your wallet means losing the position.
• The pair — each pool pairs a Robinhood token with an Ondo token. They come from different issuers and can trade at a premium or discount to each other.
• Dynamic fee — pools use the StablePairHook, which sets the trading fee on each swap. Fees you collect later can differ from what any estimate shows. The 7-day range estimate in the create-position flow is Solana-only; see Fee APR.
• Upgradeable hook — the hook contract can be upgraded. The admin role that controls upgrades is held by a single externally owned wallet, not a multisig contract. If the hook's code or a pool's fee settings change from the version SoFinance checked, SoFinance stops offering new positions in that pool. Closing an existing position stays available.
• Hook and closing — the hook runs when a pool is set up, when liquidity is added and on swaps. It has no permission to run when liquidity is removed. In Uniswap v4 those permissions are fixed by the hook's address, so an upgrade cannot add them.
• Smart contract risk — Uniswap v4 (PoolManager, PositionManager, Permit2), the hook and the token contracts can have bugs or unexpected behavior.
• Approvals and signatures — opening takes a Permit2 signature and one transaction. The first time you deposit a token, your wallet also approves Permit2 for that token: a one-time, unlimited approval. Each open still needs its own signature for the exact amount.
• Costs and price limits — when part of your deposit is swapped into the other pool token, SoFinance charges 10 bps of the tokens the swap returns. Closing is one transaction with no SoFinance fee and returns both pool tokens, with no USDC option. Network fees are paid in ETH. If the price moves past the price-protection limit before your transaction lands, the transaction fails. See Fees.
• Token issuers — Robinhood and Ondo tokens are issued by their respective issuers. For what an issuer can do with its token, see issuer terms.
• Checking on chain — your position and every transaction can be looked up on the Robinhood Chain explorer at robinhoodchain.blockscout.com.