Legal

Risk Disclosure

Effective: March 14, 2026 Protocol: Kavachswap (kavachswap.com)

IMPORTANT — READ BEFORE USING THE PROTOCOL.

Trading and providing liquidity in DeFi carries substantial risk of loss, including the potential loss of all funds. This document describes material risks. It is not exhaustive. Do not use the Protocol unless you fully understand and can afford to accept these risks.

This document is informational only. It is not financial, investment, or legal advice.

01 Smart Contract & Protocol Risk

Contract Vulnerabilities High

The Kavachswap Protocol consists of on-chain programs. All smart contracts may contain bugs or design flaws that could be exploited. The Protocol may not have been audited by an independent third party as of this date. Use accordingly.

Upgrade & Admin Key Risk Medium

Programs may be upgradeable by the deployer's authority. If the upgrade authority is not renounced or time-locked, a compromised authority could deploy a modified program. Review upgrade authority status of program IDs before committing significant funds.

Token-2022 & Extensions Medium

Tokens with transfer fees, interest-bearing mechanisms, or other Token-2022 extensions may have limited support or behave differently. Use standard SPL and Token-2022 tokens; check documentation for extension support.

02 Market & Financial Risk

Price Volatility High

Digital assets are highly volatile and may decrease to zero. Never allocate more than you can afford to lose entirely.

Impermanent Loss (LPs) High

When the price ratio of pooled assets changes, you may receive less total value when you withdraw than if you had simply held the assets. Impermanent loss can exceed fees earned.

Slippage & Price Impact Medium

Large trades relative to pool liquidity execute at worse prices. Setting too wide a slippage exposes you to sandwich attacks; too narrow may cause failed transactions.

03 Network & Infrastructure Risk

Solana Network Medium

Congestion, validator outages, or halts may delay or fail transactions. The Protocol has no control over network availability.

RPC Provider Medium

The Interface connects via third-party RPC providers. Downtime or incorrect data may cause stale prices or failed submissions. Use a backup RPC in your wallet when possible.

Front-End Risk Medium

The web Interface could theoretically be compromised via DNS, CDN, or supply chain attacks. Always verify you are on the correct domain. Advanced users can interact with the program directly.

04 MEV & Transaction Ordering

Sandwich Attacks & MEV Medium

Transactions can be observed before confirmation. Bots may front-run or sandwich your trade. Set appropriate slippage tolerance. The Protocol does not include MEV protection at the contract level at this time.

05 Regulatory & Legal Risk

Regulatory Uncertainty High

The legal status of DeFi and digital assets is uncertain and evolving. Future regulations could restrict or prohibit use, require KYC/AML, or impose taxes. You are solely responsible for complying with applicable laws.

Tax Obligations Medium

Swaps, liquidity provision, and fee distributions may be taxable events. The Protocol does not provide tax records or advice.

06 Key & Wallet Risk

Private Key Loss or Theft High

You are solely responsible for the security of your private keys and seed phrase. The Protocol cannot recover lost keys or reverse unauthorized transactions. Lost or stolen keys mean permanently unrecoverable assets.

07 Acknowledgment

By using Kavachswap, you confirm that you have read and understood this Risk Disclosure, have evaluated your risk tolerance, and assume all risks. No warranty, guarantee, or representation of safety is made by the operator.

Questions: kavachswap@gmail.com