Risk disclosure
Last updated October 25, 2026
Tokens launched on Liftoff are extremely risky. Most lose most or all of their value. Only use money you can afford to lose completely.
Market risks
- Volatility: prices can move tens of percent in seconds, especially right after launch.
- No value guarantee: a token is only worth what someone will pay for it. Liquidity can dry up.
- Price impact and slippage: large trades move the price. On the curve, each buy raises the price for the next.
- Creators and early buyers can sell at any time. A creator's launch buy is capped at 5% of supply, but anyone can buy more on the open market.
Scams and impersonation
- Anyone can launch a token with any name or image. A token named after a brand, celebrity or project has no connection to it unless they say so themselves.
- Always check the token's issuer address. Copycat tokens can use the same name and ticker.
- Liftoff will never DM you first or ask for your keys. Anyone who does is a scammer.
Technology risks
- Final transactions: XRP Ledger transactions can't be reversed. A wrong address or a signed scam transaction can't be undone.
- Service operation: curve payouts are sent by the Liftoff service. Outages can delay them. Funds stay in the token's vault meanwhile, but you rely on the service being run properly.
- Software risk: despite testing, the software, the XRP Ledger, wallets or other tools may have bugs.
- Key security: if your wallet's keys are lost or stolen, so are your tokens.
Legal and tax
- Laws on digital assets differ by country and change often. Some places restrict or ban these tokens.
- Buying, selling or earning creator fees may be taxable. You are responsible for your own taxes.