Risk Disclosure
UpSwap cross-chain swap risk disclosure: covers 14 core risk categories including crypto asset volatility, smart contracts, cross-chain failures, address errors, MEV, and taxes. Read and understand carefully before use.
This English translation is provided for convenience and informational purposes only. In the event of any discrepancy or conflict, the Chinese version (linked below) prevails as the authoritative legal document.
Preamble
This Risk Disclosure is issued by the UpSwap team and takes effect on June 11, 2026. Before using the non-custodial cross-chain swap service provided by UpSwap (the "Service"), please read carefully and confirm that you understand all 14 risk categories below. By using the Service, you are deemed to have acknowledged and accepted all of these risks and to bear the corresponding consequences yourself.
Important notice: trading crypto assets is highly risky and may result in the loss of all your funds. UpSwap only provides a frontend aggregation tool (widget); it does not hold user assets, does not provide investment advice, and does not guarantee that any transaction will succeed.
1. Inherent risks of crypto assets
Crypto asset prices are extremely volatile; single-day declines can exceed 50%, and some tokens may go to zero (100% loss) within a short period. Crypto assets are not legal tender of any country, carry no central bank backing, and are not protected by any central deposit insurance institution.
2. Smart contract risk
The Service relies on the smart contracts of upstream aggregation protocols and cross-chain bridges. These contracts may contain undiscovered code vulnerabilities or logic flaws. Historically, incidents such as The DAO (2016), Wormhole (2022, approx. USD 320 million), Ronin (2022, approx. USD 620 million), and Nomad (2022, approx. USD 190 million) caused massive user losses due to contract vulnerabilities or private key compromises. Passing an audit does not mean absolute safety.
3. Cross-chain failure and delay risk
On-chain congestion, gas fee spikes, liquidity drying up on the destination chain, or solvers (market makers) going offline or withdrawing orders may all cause a swap to fail, remain pending for extended periods (hours to days), or fill only partially. UpSwap cannot guarantee any specific execution time or success rate.
4. Address error risk
If you enter a wrong destination address — for example selecting the wrong chain (sending ERC-20 to a BSC address) or making a typo — the assets will be permanently lost and cannot be recovered. UpSwap does not hold user assets and has no ability whatsoever to reverse or claw back on-chain transactions. Double-check the address and the destination chain before confirming.
5. MEV and sandwich attack risk
Transactions on DEX-routed paths may be subject to maximal extractable value (MEV) extraction by miners/validators or searcher bots, including sandwich attacks and front-running, causing your actual execution price to be worse than the quote.
6. Vendor counterparty risk
UpSwap forwards orders to multiple upstream liquidity providers and cross-chain networks. If an upstream party suffers a technical failure, performs a rug pull, is frozen by regulators, or enters bankruptcy liquidation, the resulting losses are borne by the user. UpSwap is not responsible for the actions or failures of any third party.
7. Exchange rate and slippage risk
There is a time gap between quote generation and final on-chain execution, and the actual settled amount may be lower than the quote. The Service uses a minimum-output (minOut) mechanism: if the execution result falls below minOut, the transaction automatically reverts. Slippage losses within the minOut bound, however, are borne by the user.
8. No FDIC
Crypto assets are not protected by the US Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), the UK FSCS, the Hong Kong Deposit Protection Scheme, or any comparable institution. Once assets are lost, no government or industry fund is available for claims.
9. Sybil and dust attack risk
Attackers may send tiny amounts of tokens (dust) to your wallet together with look-alike addresses for address poisoning, luring you into copying a wrong address from your transaction history. Always verify the receiving address character by character from a trusted source; never trust an arbitrary address from your clipboard or a chain explorer history.
10. Tax risk
In most jurisdictions (including but not limited to the United States, the United Kingdom, Germany, Japan, and Singapore), every crypto asset swap constitutes a taxable event and may give rise to capital gains tax or income tax obligations. Users must report and pay taxes to their local tax authority themselves. UpSwap does not provide tax advice and does not withhold or remit taxes on your behalf.
11. Regulatory change risk
Crypto asset regulation worldwide is evolving rapidly. UpSwap may in the future be required to stop serving specific jurisdictions, adjust its token list, or implement additional identity verification measures. Such changes may take effect on very short notice and affect your ability to continue using the Service.
12. No investment advice
UpSwap does not predict the price of any asset, does not recommend buying or selling any token, and does not endorse any blockchain network or project. The token list displayed in the frontend only reflects upstream liquidity availability and does not constitute investment advice, an offer, or a recommendation. All investment decisions are made independently by the user, who bears the resulting gains and losses.
13. Technical and device risk
Leaked wallet private keys, lost seed phrases, malware-infected devices, hijacked browser extensions, and phishing sites impersonating the Service can all lead to asset losses. Always confirm that the URL you visit is the main UpSwap domain, and never enter your seed phrase or blind-sign approval transactions on any unfamiliar site.
14. User assumption of risk
You confirm that all risks of using crypto assets and the Service are borne independently by you alone. To the maximum extent permitted by applicable law, the UpSwap team assumes no liability beyond the limited liability agreed in the Terms of Service (capped at 500 USD).
Final warning
If you do not fully understand any of the risks above, do not use the Service.
Contact
For any questions about this Risk Disclosure, contact support@upswap.io. That mailbox handles general user inquiries and risk communication; for urgent security incidents, also CC security@upswap.io.