Confidential execution does not eliminate risk.
This is a focused summary, not a complete legal or investment risk statement. Users should run independent technical, operational, legal, tax, and compliance review before trading, providing liquidity, or integrating Shield Swap.
Version 2026-07-12
Key risks
Protocol and software risk
Smart contracts, wallets, proving systems, networks, APIs, and interfaces can contain defects or become unavailable. Transactions can fail, integrations can change, and assets can be lost. No published independent audit report is linked from this site.
Market and liquidity risk
Available liquidity can change rapidly. Price limits, minimum outputs, and deadlines constrain specific execution conditions but do not guarantee price, liquidity, completion, or best execution.
Liquidity-provider risk
Concentrated liquidity can become inactive outside its selected range and can incur impermanent loss. Fees may not offset market movement, rebalancing costs, contract risk, or operational costs.
Two-phase settlement risk
A swap and its output claim are separate transactions. Wallets must preserve the secrets and state required to claim. A completed swap does not by itself prove that output was later claimed.
Privacy and correlation risk
Pool, route, amounts, price movement, timing, and swap-to-claim linkage can be public. Amount and timing fingerprints, funding edges, wallet operations, and off-ramps can reintroduce correlation.
Investigator access risk
Swaps and LP positions produce a compliance record decryptable by the designated investigator-key holder. The key custodian, access quorum, disclosure policy, retention rules, and audit process are not published.
Administration and upgrade risk
Protocol controls depend on administrative and upgrade credentials. Loss, compromise, misuse, operational error, or an adverse change can affect trading, assets, positions, and availability.
Pause and freeze risk
Controls can pause entry or trading and can restrict a specific position. Ordinary exit paths may remain available during broader pauses, but they can still fail because of contract, wallet, network, or asset conditions.
Token and bridge risk
Supported tokens, wrappers, registries, bridges, and underlying token programs introduce separate contract, issuer, authorization, custody, depeg, and availability risks.
Compliance boundary
A compliance record is an attribution mechanism, not a certificate. It does not attest identity, beneficial ownership, screening, jurisdiction, best execution, mandate approval, or legal compliance.
Verify before use
Review the developer documentation and confidentiality model. Product copy is not a substitute for applicable terms, current integration details, or independent review.