LP and protocol risks
Providing concentrated liquidity and using onchain automation involve material risk. Automation changes how a position is managed; it does not remove market or protocol risk.
Last reviewed: 19 October 2026
Only deploy assets after you understand the pool, token pair, contracts, automation settings and possible loss scenarios.
Impermanent loss
When the relative price of the two assets changes, an automated market maker adjusts the assets held by the position. The resulting position can be worth less than holding the original assets separately.
Trading fees and AERO Rewards where eligible may offset some or all of this difference, but they may also be insufficient. The outcome depends on price movement, volume, fee tier, reward allocation and time in range.
Concentrated range risk
A concentrated-liquidity position only provides active liquidity inside its selected range. If price moves outside, the position may stop earning swap fees and can become concentrated in one of the paired assets.
A rebalance realises the current asset composition into a new range. Repeated movement can increase fees, gas costs and exposure to adverse price action. Automation changes when and how the range moves; it does not eliminate these risks.
Smart-contract risk
Foraga positions interact with smart contracts. Bugs, exploits, incorrect assumptions, permission errors or unforeseen interactions can cause partial or complete loss or make a position temporarily unavailable.
Foraga does not have access to your private keys. Positions using automation are managed by Foraga smart contracts according to the product rules and actions available to you. This contract exposure is distinct from wallet-key custody.
Do not assume the contracts have been audited unless a current audit or review is explicitly linked by Foraga. Third-party review and audit material will be published when available.
Third-party protocol and network risk
Supported positions depend on the Aero protocol and the network on which each position is deployed, including Base, Optimism, Ethereum and Robinhood Chain. Protocol upgrades, smart-contract changes, network interruptions, congestion, data issues and other third-party failures can affect positions or delay automated actions.
Wallet providers, RPC services, data services and token contracts introduce additional dependencies that Foraga does not control.
Market and reward-token risk
AERO reward rates are variable. Reward allocations, token prices, liquidity, trading activity and displayed APY can change rapidly. A pool receiving AERO Rewards today may receive a different allocation in the future.
Low liquidity or volatile conditions can increase price impact and slippage. Stablecoins and wrapped or bridged assets can also lose their intended peg or backing.
Automation and execution risk
An eligible action may be delayed or fail because of network conditions, gas availability, slippage limits, contract state, unavailable keepers or third-party failures. A configured rule can also produce an outcome different from the one a user would have selected manually after seeing later market information.
Review Edge Trigger, Return Zone, buffers, cutoffs, reward action, destination and slippage before saving automation. Confirm every wallet transaction and monitor the resulting position state.