> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tokenlayer.network/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk

> Important risk disclosures before using Token Layer

## ⚠️ Important Risk Disclosure

Token Layer is currently **pre-audit** and in active development. By using the platform, you acknowledge and accept the following risks:

### Security Considerations

* **Pre-Audit Status**: The smart contracts and platform have not yet undergone a formal security audit
* **Use at Your Own Risk**: Only invest amounts you are willing to lose completely
* **No Guarantees**: There are no guarantees of functionality, security, or returns

### Investment Risks

<Warning>
  **Do not invest more than you can afford to lose.** All cryptocurrency investments carry significant risk, and Token Layer's pre-audit status introduces additional considerations.
</Warning>

* Token prices can be highly volatile
* Smart contracts may contain undiscovered vulnerabilities
* Market conditions can change rapidly
* Liquidity may vary significantly across different tokens

### Regulatory Considerations

* Cryptocurrency regulations vary by jurisdiction
* You are responsible for understanding and complying with your local laws
* Token Layer does not provide legal, financial, or investment advice

### Best Practices

<Tip>
  Start with small amounts to familiarize yourself with the platform before committing significant capital.
</Tip>

* Always verify transaction details before confirming
* Keep your private keys and wallet credentials secure
* Be aware of the risks associated with each chain you're trading on
* Monitor your positions and set appropriate risk management strategies

## Future Updates

We are actively working towards completing a comprehensive security audit. Once completed, this page will be updated with:

* Audit firm name and credentials
* Audit report findings
* Addressed vulnerabilities
* Ongoing security measures

## Questions or Concerns?

If you have questions about security or risk management, please chat with us in the bottom right corner.