> For the complete documentation index, see [llms.txt](https://docs.loopad.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.loopad.fun/reference/risks.md). # Risks & Trust Assumptions We prefer to spell these out plainly. ## What is trustless * **Supply** — 1B minted once; no mint function exists. Burns only reduce it. * **Buyback configuration** — locked into the pool's identity at launch; no setter exists in the hook. Nobody can change a token's loop after launch. * **The 5% first-buy cap** — enforced by the contract on the amount received, whatever route the buy takes. * **Fee accounting** — the 1% fee and the 60/40 LP split are fixed in immutable contract state. * **Tokens themselves** — plain ERC-20s with no owner, pause, blacklist or tax. ## Trust assumptions * **LP rescue admin.** The LP manager has an admin (a dedicated multisig) able to move a launch's locked LP position out of custody. It exists for incident response — recovering from an integration bug, for example — but a compromised or malicious admin key could withdraw pool liquidity. The admin can be rotated and permanently renounced on-chain; any use of it is publicly visible. * **Protocol treasury address** for future launches is set by the factory owner (existing launches keep their registered treasury forever). * **Off-chain services** — the website, indexer and IPFS pinning are operated by the team. The contracts work without them (everything is callable directly), but the app experience depends on them. ## Market risks Tokens launched on Loopad are typically memecoins: extremely volatile, often illiquid, and frequently worth zero. The buyback mechanic reduces supply but does not guarantee price appreciation. Stock-paired tokens additionally track the volatility of their quote asset. Never trade more than you can afford to lose — nothing here is investment advice. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.loopad.fun/reference/risks.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.