> 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-v3/security-and-risks.md).

# Security & Risks

Using AllBlue V3 involves risks associated with smart contracts, Concentrated Liquidity, token markets, and wallet interactions.

### Smart Contract Risk

AllBlue V3 operates through deployed smart contracts.

Smart contract vulnerabilities, implementation errors, or unexpected interactions may result in loss of tokens or other adverse outcomes.

### Concentrated Liquidity Risk

Liquidity in AllBlue V3 is provided within selected price ranges.

If the market price moves outside a position's selected range, that liquidity may become inactive and stop participating in Swap execution and fee accrual until the price returns to the range.

### Impermanent Loss

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

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

### Position Management Risk

V3 positions may require active management.

Price ranges, liquidity allocation, and market conditions can affect how efficiently a position participates in Pool activity.

### Pool Configuration Risk

Each V3 Pool may use different configuration parameters, including Swap Fee and Tick Spacing.

Users should review the relevant Pool configuration before providing liquidity or executing transactions.

### Liquidity Risk

Pools with lower available liquidity may experience higher price impact or slippage.

Liquidity conditions may also change over time.

### 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 Pool.

### Approval and Wallet Risk

Using AllBlue V3 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**.