Bugs, improper pricing and impermanent loss
Despite some positive qualities, AMMs present certain risks and limitations. Hacks and vulnerabilities have already affected exchanges such as Uniswap and Balancer, where some liquidity providers saw their money stolen due to complex smart contract interactions. On the other hand, traders are exposing their strategy for the world to see, enabling front-runners to get their orders in first and exploit legitimate users.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.