Know the risks.

Providing liquidity is not risk-free. Read this before depositing, especially on young tokens.

#Impermanent loss

As the price moves through your bins, you sell the token that is going up and buy the one going down. Compared to simply holding, you can end up with less value; fees may or may not compensate. Concentrated liquidity amplifies both the fees and this effect. Background: Uniswap V3 whitepaper.

#Out of range

If the price leaves your range, your ladder is 100% in one token and earns no fees until the price returns. Wider ranges stay in range longer but earn less per dollar.

#Volatile and new tokens

• Memecoins can drop close to zero. A ladder that buys a falling token ends up holding it.
• Thin pools can be moved by a single trade; keep slippage tight and ranges realistic.
• Tokens with transfer taxes or unusual behaviour may not work as expected.
• Malicious tokens (honeypots) can refuse to be transferred out of Uniswap. Every liquidity provider in such a pool is stuck, with or without Obol. The builder blocks tokens Uniswap holds none of, and a ladder page warns you if a token starts blocking withdrawals, but no check can catch every malicious contract.

#Smart contract risk

Your liquidity is held by the Obol ladder managers and by Uniswap. Bugs in either could lead to losses, and the Obol contracts have not been audited yet. Read the security model to see what the contracts can and cannot do.

#Execution

Amounts shown before signing are estimates at the current price. The on-chain price guard (slippage) bounds how far the price can move before your ladder opens.