# Risks

### Smart Contract Risk

Even though the Smart Contracts have undergone audit, it is impossible to completely eliminate the possibility of exploits and/or bugs. Since the contracts interact with the Uniswap V3 protocol and Lido they automatically inherit any potential risks that could exist in those contracts as well.

### ETH Price

Ether is a volatile asset and it is simply impossible to predict its future price. Different price levels present different risks for different participants.

> #### ETH below 500 USD
>
> The contract goes out of range and no fees are produced. BLP stakers won’t be producing any fees but will still be able to claim EXIT tokens. They can still get out of their positions by burning BLP tokens and claiming their underlying liquidity back. Anyone who deposited funds in the Bootstrap phase will have their deposits locked and are not earning any fees.

> #### ETH between 500 and 10,000 USD
>
> The contract is in range and fees are being produced. Stakers earn EXIT and can still claim back their liquidity position at any time. Depositors of the Bootstrap phase can’t claim their deposits but are still able to earn fees.

> #### ETH above 10,000 USD
>
> The contract is out of range on the upper side. The range position is closed and only USDC is left in the position. Anyone who is in the bonding period will be able to cancel their bonds and claim their locked tokens back. All participants can exit the system according to the rules stated in the Exit Liquidity phase.


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