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

# Risk Disclosure

> The risks of using hoodstar.fun and trading meme coins. Read this before trading.

**Assume any amount you put into a meme coin can go to zero.** That is the baseline, not the worst case. Trade only with money you can afford to lose entirely.

## Market risks

* **Extreme volatility.** Meme coins routinely move ±90% in hours. Bonding-curve pricing is deterministic, but demand is not.
* **Total loss is common.** The overwhelming majority of launched tokens lose most or all of their value. Locked liquidity prevents rug-pulls of the pool — it does not create demand or a price floor above zero.
* **Creator behavior.** Creators receive no free tokens, but they can buy early (including a visible dev buy at launch) and sell into your buys. All their trades are public on-chain — check before you buy.
* **Manipulation.** Coordinated groups, wash trading, and copycat/impersonation tokens exist. Verify contract addresses against the token page on hoodstar.fun.

## Technical risks

* **Smart contract risk.** The contracts are internally reviewed and invariant-tested, and a third-party audit is planned, but no code is risk-free. This applies equally to the Uniswap contracts tokens migrate to.
* **Blockchain risk.** Robinhood Chain is an Arbitrum Orbit L2 operated by third parties. Sequencer downtime, bridge issues, congestion, or RPC/indexing lag can delay or prevent transactions and distort displayed data.
* **Wallet & device security.** Anyone with your seed phrase has your funds. Phishing sites and fake "support" DMs are the most common way users lose money.
* **Irreversibility.** Confirmed blockchain transactions cannot be undone by anyone, including us.

## Platform limitations

What hoodstar.fun **can** do: provide a fair launch mechanism, enforce locked liquidity, display on-chain data transparently, and moderate the interface.

What hoodstar.fun **cannot** do: reverse transactions, recover lost keys, remove tokens from the blockchain, guarantee any token's value, or protect you from your own trading decisions.

## Regulatory risk

Digital asset regulation is evolving rapidly and varies by jurisdiction. The platform is unavailable in some regions (see [Terms of Service](/legal/terms-of-service)); rules that apply to you may change, and tax obligations on trading profits are your responsibility.

<Warning>
  Nothing on hoodstar.fun or in these docs is financial, investment, legal, or tax advice. Do your own research and consult qualified professionals where appropriate.
</Warning>