There are inherent risks with any great undertaking, especially in the crypto space. These are the major risks that we are aware of at present.
Currently there is no way to completely avoid impermanent loss as two asset pairs will be changing in price value constantly. We do aim to mitigate as much IL as possible.
There needs to be enough liquidity in the pools to cover the swaps or we must have backup liquidity available, such as access to the Serum CLOB to cover very large swaps.
The regulatory status of the GooseFX platform, GOFX and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of digital assets has become a primary target of regulation in all major countries in the world. It is impossible to predict how, when or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including GOFX and/or the GooseFX platform. Regulatory actions could negatively impact GOFX and/or the GooseFX platform in various ways. The Company, the Distributor (or their respective affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction.
There is the risk that the development of the GooseFX platform will not be executed or implemented as planned, for a variety of reasons, including without limitation the event of a decline in the prices of any digital asset, virtual currency or GOFX, unforeseen technical difficulties, and shortage of development funds for activities.
Hackers or other malicious groups or organisations may attempt to interfere with GOFX and/or the GooseFX platform in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Company, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of GOFX and/or the GooseFX platform, which could negatively affect GOFX and/or the GooseFX platform.