Risks

Common risks exists in the LP Finance Governance structure. The risks are outlined to acknowledge participants.

LPFi Staking

To unstake LPFi, a penalty is applied (check here for more info). If a proposal is submitted on LP Finance Governance and the user wants to vote, a loss of funds would occur.

It is important to balance the amount of staked LPFi and xLPFi if you are willing to participate.

xLPFi Governance

Minting xLPFi to participate in governance does not guarantee 1:1 swap back to LPFi. xLPFi is likely to be traded at a discount on liquidity pools at the most time, so users should be knowledgable on the risks and usage of xLPFi.