> For the complete documentation index, see [llms.txt](https://allblue-docs.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://allblue-docs.gitbook.io/docs/en/allblue-v2/security-and-risks.md).

# Security & Risks

Using AllBlue V2 involves risks associated with smart contracts, liquidity, token markets, and wallet interactions.

### Smart Contract Risk

AllBlue V2 operates through deployed smart contracts.

Although the protocol is designed to follow its defined logic, smart contract vulnerabilities, implementation errors, or unexpected interactions may result in loss of tokens or other adverse outcomes.

### Liquidity and Slippage Risk

Swap execution depends on the available liquidity in each Pair.

Pairs with lower liquidity may experience higher price impact and slippage, especially for larger trades.

### Impermanent Loss

Liquidity providers may experience impermanent loss when the relative prices of the two tokens in a Pair change.

The value of a liquidity position may differ from simply holding the underlying tokens.

### Token Risk

Each token may carry its own technical, market, liquidity, bridge, issuer, or protocol-related risks.

Users should review the characteristics and risks of the tokens involved before interacting with a Pair.

### Pair Availability Risk

Not all token combinations are supported or actively maintained.

Liquidity conditions and availability may change over time.

### Approval and Wallet Risk

Using AllBlue V2 may require ERC-20 token approvals and wallet signatures.

Users should verify transaction details, token addresses, approval amounts, and connected applications before signing transactions.

For broader protocol-related notices, please refer to the **Risk & Security Notice**.