Ownership and risks
Liquidity provision puts your assets at risk. Trading fees and displayed APR figures are not a promise of profit. Your total return depends on token prices, fees earned and the costs of entering, managing and leaving a position. You can lose part or all of your capital.
Market exposure and impermanent loss
A liquidity position changes its token composition as the market price moves through its range. Its value can differ from the value of simply holding the same starting amounts of both tokens. This difference is commonly called impermanent loss. It is a comparison with holding, not another service fee, and fee income may not offset it.
Closing or rebalancing acts at current prices. A rebalance may swap tokens and realize losses while creating a new position. It does not reverse earlier losses or guarantee that future fees will cover them.
Going out of range
A position earns trading fees when swaps use its active liquidity. When the price leaves its range, that liquidity becomes inactive and generally no longer earns new trading fees until the price returns. The position may hold only one of the two tokens at that point. Existing accrued fees remain separate from future earnings.
Narrower ranges can concentrate liquidity but need closer attention. For the positions described in this guide, you choose and confirm management actions yourself. There is no promise that the range will automatically follow the market. See price ranges.
Ownership and access
Your LP position is represented by an NFT owned by your Safe smart account. An embedded wallet or your connected external wallet provides the signer for that account. Position-management actions are submitted through your smart account with its authorization; an approval for the management contract does not by itself give Flowlex an autonomous rebalancing mandate.
The management contract's administrator can pause its supported operations, including claiming and closing through that contract. A pause does not transfer ownership of your position. Access through the underlying protocol is a separate route and requires control of your signer, compatible tools and network fees. Keep account access and recovery information secure.
Read Wallets and ownership for the distinction between your signer, your Safe account, and the Flowlex management contract. Transaction lifecycle explains where assets are held during and after each action; the contract reference identifies the components on Base.
Technical and execution risks
Smart contracts, wallet software, signing services, networks and bridge providers can fail or be compromised. Transactions can revert, be delayed or execute at a different price within their permitted limits. USDC and other stablecoins carry issuer, depegging and transfer-restriction risks. Dollar-denominated values and APR figures are estimates, not protected balances or guaranteed returns.
Start with getting started, and review each action in managing positions before confirming it.