Risks

Smart contract risk#

The contracts are tested but not audited. Pools, their rules and launch liquidity are permanent by design, so a bug in a live pool can't be fixed.

Token risk#

• Anyone can launch a token. A launch being on Arcsmith says nothing about whether the token has value.
• Anyone can open a market for any token address. Always check you have the right token.
• Most new tokens lose most of their value.

Rule risk#

• Blocks can raise fees up to 50% during a pool's first 15 minutes and 10% after, and can refuse trades. Read a pool's rules before trading.
• The dump damper slows fast exits but can be outrun by selling slowly across many wallets.
• Some token scanners label any sell-side fee as a "sell tax".

Liquidity risk#

• New existing-token markets start empty; their price can be moved for free until someone deposits.
• Full-range liquidity is exposed to price moves (impermanent loss), like any Uniswap position.
• Large sells on a launch can fail at the launch floor instead of partly filling.

External risk#

• USDC is issued by Circle and can be frozen for specific addresses.
• Stats on this site come from a community index of Arc and can be delayed or wrong; reported volume can be inflated by wash trading.
• Arcsmith is an independent project, not affiliated with Arc or Circle.

Questions about how something works? Start with How it works and Safety guarantees.