# Risk & Security

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The amount of assets resulting from a swap may vary depending on the size of the swap, the available liquidity in the pool (ratio), and real-time status of deposits & withdrawals.

Unpredictable loss may occur due to the price fluctuation, and users' assets may be deposited or withdrawn to or from the pool.

For the protection of the users’ assets, users should verify the details and information of the token and its foundation. Please do your own research about the risk and benefits of your transactions before you swap or provide liquidity.

All values shown on MEVerse DEX are estimates, and real-time price accuracy is not guaranteed.

Please read additional information about MEVerse DEX below.

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**\[Notice]**

Users must notice the following guideline before using MEVerse DEX([https://meversedex.io](https://meversedex.io)) since it includes important data that they should know. If a user checks the guideline below and uses MEVerse DEX, he or she is regarded to have read, understood, and agreed with it.

1. **Asset Deposit and Withdrawal**

To request a transaction, the user must have a digital asset wallet based on the MEVerse network to hold MEVerse-based assets, along with a minimum amount of MEV for transaction fees.

An asset used for deposit should be MEVerse-compatible. Assets based on other blockchains including but not limited to Ethereum, BSC, Klaytn, and TomoChain, must be converted into MRC through MEVerse Bridge((https://www.meversebridge.io) prior to being deposited into MEVerse DEX.

Users must check the type of asset and the address carefully when depositing and withdrawing to MEVerse DEX.  If the user deposits an asset that MEVerse chain does not support, or fills in the wrong deposit address, the asset will not be deposited and may be permanently lost.

MEVerse DEX is a decentralized interface where users' private keys are not stored centrally. This means deposit errors due to the user's mistake, including those cases referred above, cannot be restored systemically. That is, if the user deposits to an invalid address, no one can access the lost asset; it is structurally and technically far different from central exchanges.

MEVerse DEX is working hard to realize the best interface for users not to make mistakes in deposits. MEVerse DEX will continue to explore ways to improve the problem within the boundaries of maintaining decentralization.

We recommend that users test in advance with a small amount of assets before sending a larger amount to prevent asset loss,&#x20;



**2. Providing Liquidity(Deposit), Removing Liquidity(Withdraw), Swap**

The users can act as liquidity providers by providing liquidity to a Liquidity Pool or taking back the liquidity they provided at MEVerse DEX. They must be fully aware of the risks involved and be responsible for financial decisions. All transactions made in MEVerse DEX should be driven by their own judgment.

#### 2.1 Assets

MEVerse DEX is a decentralized interface that does not have its protocol authority centralized to a specific entity. Users can freely add any token or the pair of the tokens(pool) based on the MEVerse chain using its interface. Before the token swap or liquidity provision, users should investigate related information about the token, its foundation, and company to find out the benefits and risks of the transaction.

**2.2 Price**

Price of each token on MEVerse DEX is determined by the liquidity pool ratio of tokens within the contract. As automated smart contract adjusts price as per the formula (x\*y=k), the price shown on MEVerse DEX interface may not be the same as prices at exchanges, and cannot be guaranteed for accurate price or market price.

MEVerse DEX Protocol has safety mechanisms to minimize losses resulting from a change in swap ratio by limiting the range in which the swap request is executed. However, users must check the ratio before pool deposit, withdrawal, and swap.

**2.3 Estimation of Expected Yield and Utilization Cost**

APR shown on MEVerse DEX is an estimate of rewards on a year's basis, and it does not guarantee fixed rates.

MEVerse DEX strives to provide accurate data in real-time as much as possible. However, the expected rate of return may vary from the actual rate of return due to price fluctuations of distributed tokens, changes in liquidity pool size, and delays in transaction processes.

**2.4 Liquidity Provision**

Users can deposit their assets in MEFI Farm and MApp's Farm and get distributed MEFI tokens and deposit rewards.&#x20;

However, suppose the difference between the current market price and the price when the user deposited the asset in the pool is significantly higher or lower. In that case, the expected return may be lower than if the asset is not deposited, and a valuation loss at that time may even occur.

Remind this loss is determined when the asset is withdrawn from the pool, which is the reason it is called an impermanent loss. Read the article below for more details.&#x20;

The actual loss would mitigate when the price difference between the two assets becomes closer to what they were at the time of depositing. Also, total profit must be considered with MEFI token and transaction fee distribution as well.

[\[Article\] What is impermanent loss?](https://academy.binance.com/en/articles/impermanent-loss-explained)

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**3. IMO(Initial MEVerse Offering)**

IMO will soon be opened. Details will be provided after the official launch.&#x20;

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**4. Smart Contract Source Code Release and Redistribution**&#x20;

MEVerse DEX has not released its smart contract source code to prevent hackers from exploiting potential security vulnerabilities that have not yet been discovered or will be discovered in the future for malicious purposes.

MEVerse has the right to redistribute(Upgrade) smart contracts that have been deployed and operated. This is because continuous contract upgrades are required due to maintaining MEVerse DEX. This right is not unique to MEVerse, but is held at the same level as other DeFi services such as Uniswap, Compound, and AAVE.

Without this right, it would be impossible to detect security vulnerabilities, apply service variables, or add new features. Most DeFi services generally have the right to redistribute.



**5. Other disclaimer**

**5.1 Additional Agreements**

MEVerse DEX is a web-app interface that helps users communicate their MEVerse blockchain network-based wallets directly with decentralized protocols to take advantage of multiple virtual assets' exchange and liquidity supply.

It means MEVerse DEX wields no control over the user's assets or individual liquidity pools where users deposit their assets. It also does not guarantee the credibility or integrity of swaps. It is the user's responsibility to carefully assume the related benefits and risks by considering token price and ratio at the moment of swap. Users should cautiously evaluate the benefits of trade and assess the risk of loss due to the change in the token price and exchange rate fluctuation. The transaction should proceed after it, along with their own decision and responsibility.

The expected return rate, token price, and all other information and content provided by MEVerse DEX are to assist users in making decentralized transactions for providing liquidity, removing liquidity, and swapping; it is not for financial decisions.

MEVerse DEX is designed to provide accurate information within a reasonable scope but does not guarantee the timeliness, suitability, or accuracy of the data.&#x20;

MEVerse DEX is not responsible for user loss of assets due to the risk of trading and for generating less than the projected profit resulting from the use of MEVerse DEX.&#x20;

MEVerse DEX does not guarantee the continuity of MEVerse DEX service and the functions within. Any service or functions provided by MEVerse DEX  can be added or deleted permanently, and MEVerse DEX itself may be stopped or changed.&#x20;

In the case of a permanent stoppage of MEVerse DEX service, users that may be affected will be given a reasonable period (30 days or more) and notifications/guides to cope with it.

MEVerse DEX does not guarantee the reliability of the MEVerse blockchain platform used by MEVerse DEX Protocol, as well as any other 3rd party services.&#x20;

MEVerse DEX does not collect any personal information of the user within the service unless for an event or promotion. Since MEVerse DEX is a service that connects each blockchain wallet with P2P, there is no technical way to identify easy user. Therefore, if user loses the private key, there is no way to find it on our end.

Development and update of MEVerse DEX Protocol aim decentralized voting and consensus system; however, developers and governance participants of MEVerse DEX Protocol do not make commitments or warranties in any way for any and all parts of MEVerse DEX  Protocol, code, service directly and indirectly to the extent permitted by law.

MEVerse DEX is a decentralized, autonomous Smart Contract application designed to provide safe and transparent financial opportunities through direct interaction with the MEVerse blockchain. However, due to the complexity of software code and the natural limitations of technology,  the code's integrity cannot be guaranteed.

Smart Contract codes used in MEVerse DEX may possess unrevealed vulnerabilities, and risks of asset loss exist from hackers and flash loan exploits utilizing these vulnerabilities.

There is a continuous effort to maintain the block sync between MEVerse DEX and MEVerse network; however, MEVerse DEX interface may be stopped or ended without prior notice due to the network transaction congestion, server checkup, computer system errors, software attacks, and other factors, such as natural events. MEVerse DEX is not guaranteed to work at all times.

In the situations mentioned above and more, there may be errors in the values/information displayed on the interface, as well as stoppage of service connection and access error/denial. User requests for swap, deposit, withdrawal, and other transactions may be delayed or fail.

MEVerse DEX cannot be held responsible for any of the aforementioned cases in the former two paragraphs within the reasonable boundaries of the law, provided MEVerse DEX itself is not responsible for the occurrence of the cases.

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This notice is valid as of May 2nd, 2022.&#x20;

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Service Agreement Change History

May 2nd, 2022: Initially published
