> For the complete documentation index, see [llms.txt](https://flipper-3.gitbook.io/flipper-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://flipper-3.gitbook.io/flipper-docs/resources/risks.md).

# Risks

Flipper is a non-custodial trading aggregator. Your funds stay in your wallet, but trading through Flipper still carries risks. This page explains the main ones.

### **Smart Contract Risk**

Flipper's routing, margin, vault logic, and other mechanics run on smart contracts. Bugs or vulnerabilities in any of these contracts could result in loss of funds.

### **Venue Risk**

Flipper does not operate the venues it routes to. Trades are executed on third-party protocols. If a venue halts, degrades, changes its risk parameters, or suffers an exploit, your position is affected.

### **Execution and Split Risk**

Flipper may split one order across several venues. Each leg is a separate transaction: legs can fill at different times, at different prices, or fail entirely while others succeed. Flipper cannot guarantee perfect execution across independent protocols. A partial fill can leave you with a different position size or entry price than expected.

### **Routing Estimate Risk**

Routes proposed by AI Routing are estimates based on data available at the moment of calculation. Liquidity, fees, funding, and prices can move before or during execution. The route shown as best may not remain the best, and may not execute at all.

### **Oracle Risk**

Perp venues use price oracles to determine mark prices, funding, and liquidation levels. If an oracle is delayed, unavailable, inaccurate, or manipulated, positions can be marked incorrectly and liquidated before prices return to fair value. Flipper does not operate or control these oracles.

### **Liquidation and ADL Risk**

Leveraged positions can be liquidated if margin becomes insufficient, and liquidation can happen fast and at prices worse than displayed. Venues may also use auto-deleveraging (ADL), which can reduce or close a position to protect protocol solvency. Indicators shown in Flipper are informational and do not prevent liquidation or ADL.

### **Network Risk**

Networks can congest, degrade, or halt. During downtime you may be unable to open, modify, or close positions.

### **Authorization Risk**

Some features use session keys or delegated permissions so software can act within limits you set. If you grant broader permissions than intended, or forget to revoke them, transactions may be executed that you did not individually approve. Revoking a permission does not cancel transactions already signed or submitted.

### **Automation Risk**

Trading bots and automated rebalancing act on the parameters you configure. Automated strategies do not guarantee profit.

### **Screening**

Flipper may show contract checks, protocol metrics, and risk warnings. These are automated signals built from third-party data. A clean signal does not mean an asset or protocol is safe, and no warning does not mean no risk exists.

### **Risk Mitigation**

Flipper includes several features designed to reduce these risks:

* **Stop-Out Management (optional)** can attempt to close an aggregate position before an underlying venue liquidates it, using the most conservative threshold among your position legs.
* **Route comparison and split execution** are used to reduce slippage and price impact where multiple venues are available.
* **MEV-aware execution** reduces, but cannot eliminate, exposure to attacks.
* **Pre-trade data**, such as position size, margin, leverage, estimated fees, funding, liquidation price, PnL, and health factor, is shown before you confirm.

{% hint style="warning" %}
None of these features guarantee that liquidation, slippage, partial execution, protocol failure, or loss will be prevented.
{% endhint %}

{% hint style="info" %}
This is not an exhaustive list of potential risks.
{% endhint %}