> 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/important-notices/risk-and-security-notice.md).

# Risk & Security Notice

Review AllBlue’s key security risks, eligibility restrictions, and disclaimers before connecting your wallet or approving on-chain transactions.

> ⚠️ **IMPORTANT:** Please read the following information carefully and fully understand it before using our services. By connecting your personal wallet to the AllBlue ecosystem interface or approving any on-chain transaction, you shall be deemed to have fully accepted and agreed to this Notice and the applicable disclaimers.

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### Chapter 1. On-Chain Stability and Trustless Philosophy

The AllBlue ecosystem is a non-custodial decentralized finance (DeFi) interface that does not directly hold or take custody of users’ assets.

Liquidity provided by users interacts with smart contracts, including V2/V3 pair pools, single pools, and NFT pools on the decentralized exchange, as well as verified on-chain vaults within the global ecosystem, such as BENQI.

* **Non-Custodial Asset Control:** All interactions are executed only when authorized by the signature of the user’s personal wallet.
* **On-Chain Transparency:** All transactions are permanently recorded on the blockchain ledger.
* **Verification and Security:** Certain underlying codebases used within the AllBlue ecosystem have previously undergone external security audits by Cyberscope. The audited contracts, code scope, and their relationship to current deployments are described in the **Security & Verification** section. Integrations with external DeFi protocols may also involve smart contract and operational risks specific to those protocols.

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### Chapter 2. Eligibility and Country of Residence Restrictions

This service is provided only to eligible users. Access to and use of the AllBlue ecosystem interface are strictly prohibited if any of the following conditions apply.

* **Age Restriction:** Individuals under the age of 18, or individuals who have not reached the legal age of majority in their country of residence, are not permitted to use this service.
* **Prohibition on Use by U.S. Persons:** U.S. citizens, permanent residents, U.S. residents, entities established under U.S. law, or any other “U.S. Person” with an address or place of residence in the United States are not permitted to use this service.
* **Sanctioned Regions and Country Restrictions:** Access is blocked for individuals or entities located in countries or regions included on international sanctions lists, including but not limited to Cuba, Iran, North Korea, Syria, and the Crimea region. Access is also blocked for individuals or entities included on prohibited or restricted lists maintained by authorities such as the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
* **Prohibition on Circumvention:** Using a Virtual Private Network (VPN) or any similar tool to conceal or bypass access restrictions from prohibited regions shall be deemed a material breach of these terms. The user shall bear all legal responsibility arising from such actions.

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### Chapter 3. Key Risks Related to Swaps and Liquidity Provision

* **Price Impact and Slippage:** Depending on liquidity size and market volatility, the actual number of tokens received may be lower than the estimated amount.
* **Impermanent Loss:** When providing liquidity to pair pools such as AllBlue V2/V3 pools, there is a risk of value depreciation due to fluctuations in the price ratio of the underlying assets.
* **Reward Rate Fluctuation:** Estimated reward rates are real-time algorithmic projections and do not legally guarantee fixed or certain returns under any circumstances.

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### Chapter 4. Asset Transfer and System Risks

* **Prohibition on Direct Transfers and Mistaken Transfers:** Assets sent directly to a smart contract address, or assets sent to an incorrect address, may be impossible to recover. All asset supply and withdrawal activities must be conducted exclusively through the official interface.
* **System Risks:** There is a risk of asset loss due to smart contract flaws, network congestion, or failures of third-party infrastructure, including external vaults and asset bridging networks.

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### Chapter 5. Limitation of Liability and Dispute Resolution

* **Third-Party Service Disclaimer:** The AllBlue ecosystem assumes no legal liability for any losses arising from flaws, defects, failures, or vulnerabilities in third-party decentralized finance protocols routed or connected by the AllBlue ecosystem, including but not limited to BENQI.
* **User’s Sole Responsibility:** All transactions are conducted entirely at the user’s own discretion and judgment. The Protocol cannot intervene in the recovery of assets in cases such as the loss of a personal wallet’s recovery phrase, seed phrase, or private key.
* **Dispute Resolution:** This service is a decentralized interface and is not subject to the regulatory jurisdiction of any specific country. All disputes shall be resolved through binding arbitration in accordance with international commercial practices, and the AllBlue ecosystem disclaims all legal liability for punitive damages.
