> For the complete documentation index, see [llms.txt](https://frogs.gitbook.io/frogsfi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://frogs.gitbook.io/frogsfi/welcome/risks-to-be-aware-of.md).

# Risks to be aware of

1. **Impermanent Loss:** One of the main risks of participating in FrogsFi is the possibility of impermanent loss. Impermanent loss occurs when the value of the deposited stablecoin changes significantly relative to the value of the $CAKE token, resulting in a net loss of value for the deposited stablecoin. This can occur when there is a significant price movement in either direction. You can read more about Impenfrmanent Loss [here](https://academy.binance.com/en/articles/impermanent-loss-explained).
2. **Smart Contract Risk:** Like all smart contracts, there is a risk of bugs or vulnerabilities that could be exploited by hackers. While we take every precaution to ensure the security of our smart contract, there is always a risk that unforeseen issues could arise.
3. **Network Congestion:** In times of high network congestion, there may be delays or errors in the execution of transactions, which could result in unexpected outcomes or losses.
4. **Regulatory Risk:** The regulatory environment for cryptocurrencies and lotteries is constantly evolving, and there is a risk that new regulations could impact the operation of FrogsFi or the value of cryptocurrencies in general.

{% hint style="info" %}
It is important to understand these risks before participating in FrogsFi. Users should carefully consider their risk tolerance and financial situation before depositing funds into the FrogsFi smart contract.
{% endhint %}


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