Create
LegalLast updated

Risk Disclosure

Draft — pending legal review

This document is a draft. It will be reviewed by counsel before publication and may change. Items in square brackets are placeholders.

Contents
  1. Summary
  2. 1. Memecoins can go to zero
  3. 2. Bonding-curve pricing
  4. 3. Snipe tax right after launch
  5. 4. Contract and chain risk
  6. 5. Graduation and pool timing
  7. 6. IP-infringing tokens get blocked
  8. 7. Wallets and irreversible transactions
  9. 8. Creators and other participants
  10. 9. Regulation and tax
  11. 10. Not advice. DYOR

This Risk Disclosure summarises the main risks you should understand before using WOW (an interface to a memecoin launchpad on Soneium). It forms part of the Terms of Service; by using the Service you are deemed to have understood and accepted these risks. The list is not exhaustive.

Summary

  • Memecoins are extremely high risk. Most never graduate and can go to zero.
  • Prices follow the curve formula. Selling right after a large buy loses money.
  • Buys right after launch pay a decaying snipe tax.
  • Contract bugs and chain outages are always possible.
  • Graduation does not complete on its own. Trading is paused until the pool-creation transaction lands.
  • Unauthorised use of third-party IP can be stopped at the chain level.
  • Nothing here is investment advice. Do your own research (DYOR) and only risk what you can afford to lose.

1. Memecoins can go to zero

Tokens launched on WOW generally have no underlying business, revenue or assets. Their value comes only from participant demand and attention, which can vanish in an instant. Most tokens never reach graduation; trading dries up and they become effectively worthless.

Assume you may lose everything you put in. Do not use money you need to live on, borrowed money, or money you cannot afford to lose.

2. Bonding-curve pricing

Before graduation, a token's price is set by a bonding-curve formula: buying pushes the price up, selling pushes it down. There is no order book; your counterparty is the curve itself.

  • A large buy moves the price up sharply. Selling immediately afterwards pushes it back down with your own sale, producing a large loss.
  • Every buy and sell deducts the curve fee and creator tax from the ETH leg. A round trip always costs the fees even if the price is unchanged.
  • Quotes shown on screen (tokens received, ETH received) are reference values at the time you submit. If other trades land first in the same block, the outcome changes (slippage). Setting a slippage tolerance is your responsibility.
  • Earlier buyers get a lower price, so later participants are structurally disadvantaged.

3. Snipe tax right after launch

To discourage bot front-running ("sniping"), buys made within a set window after launch incur an additional, decaying rate (the snipe tax). The starting rate and window are contract parameters, visible on the How page and in the on-chain record.

  • Buying immediately after launch yields far fewer tokens than usual.
  • The snipe tax is not refundable.
  • The snipe tax does not eliminate bots; earlier participants may still have an edge.

4. Contract and chain risk

  • Smart-contract bugs and vulnerabilities: WOW's contracts are tested, but unknown defects or attacks (flash loans, price manipulation, reentrancy and so on) could cause loss of funds. Check the How page for the status and scope of any audit.
  • Soneium network: sequencer downtime, congestion, reorganisations, bridge failures or failed upgrades can delay, fail or revert transactions. Layer-2 networks are relatively new technology with risks that differ from Ethereum mainnet.
  • RPC and interface outages: balances and prices shown are reference values from RPC nodes and may be delayed or wrong. The contracts remain on-chain even if the interface is down.
  • Uniswap v4 and hooks: post-graduation pools use Uniswap v4 with a custom hook. These include third-party code and parts outside WOW's control.
  • MEV and front-running: third parties may get ahead of your transaction and cause it to execute at a worse price.

5. Graduation and pool timing

When the amount raised on the bonding curve reaches the threshold, the token enters the "graduation" stage. However, graduation does not complete on its own.

  • After the threshold is reached, the token cannot be bought or sold until the Uniswap v4 pool-creation transaction is sent and confirmed. You cannot react to price moves during this window.
  • Anyone can send the pool-creation transaction, but nothing happens until someone does. High gas or network congestion can delay it.
  • Liquidity is thin immediately after pool creation and prices can swing widely. The final curve price and the pool's opening price may not match.
  • After graduation the token can also be traded outside WOW (DEX aggregators and so on), and WOW has no control over that trading.

6. IP-infringing tokens get blocked

Tokens that use third-party intellectual property without permission (well-known anime, game or corporate characters, logos, trademarks) can be stopped at the chain level. The operator of Soneium may, on a rights-holder's request or at its own discretion, refuse or freeze transactions for specific tokens or addresses at the sequencer, and this has happened in practice.

  • A blocked or frozen token can no longer be sold or transferred; the value of your holding is effectively lost.
  • WOW may also hide such tokens from the interface under the Terms of Service. Hiding does not remove the token from the chain.
  • Creators should use only original material or material they have cleared. Buyers should check that a token's image and name do not borrow third-party IP.

7. Wallets and irreversible transactions

  • Blockchain transactions cannot be undone. If you send to the wrong address, amount or token, nobody can reverse it.
  • Losing your private key or seed phrase means losing access to your assets; if someone else obtains it, they can take them. WOW never holds your keys and cannot recover them.
  • Beware of phishing sites imitating WOW, fake tokens and fake signature requests. Always verify the domain, contract address and contents before signing.

8. Creators and other participants

  • Anyone can launch a token. WOW does not pre-screen tokens or descriptions and does not vouch for their accuracy.
  • Creators or their associates may buy heavily and later sell off (rug pull, dump). Mechanisms that prevent a creator from pulling liquidity after graduation do not prevent price declines.
  • Labels such as "HOT", "KING" and "NEW" are mechanical classifications of on-chain data, not recommendations or quality assessments.
  • Other participants may coordinate to manipulate prices.
  • Crypto-asset regulation differs by country and changes often. It is your responsibility to confirm that using the Service is lawful where you live.
  • Buying and selling tokens and receiving fees (including claiming creator tax) may be taxable. Reporting and paying tax is your responsibility.
  • Regulatory changes or action by authorities may make the Service or particular tokens unavailable.

10. Not advice. DYOR

Nothing on the Service (prices, market caps, progress, charts, rankings, descriptions, mascots and so on) is investment advice, a solicitation or a recommendation. WOW holds no investment-advisory registration and makes no representation about any token's prospects.

Always do your own research (DYOR), make your own decisions, and participate only with what you can afford to lose. When in doubt, not trading is also an option.