Risk & Security
Please be aware that the use of Fizzswap has the following risk factors.
• Fizzswap is a blockchain decentralized protocol without a central entity. Users participate in transactions through liquidity pools on the blockchain created by other users at their own responsibility and judgment. This may lead to users being unable to receive recovery support from someone or Fizzswap for the results of an user's mistake, so it is always recommended to test with a small amount first to manage the risk caused by mistakes(mistransfers, etc.).
• All assets and asset liquidity pools identified on the Fizzswap website are tokens on the Silicon chain that are self-registered by users without going through individual screening, and their safety is not guaranteed by the Fizzswap team.
• Based on the nature of the AMM (Automated Market Maker) method, the asset price a user receives on Fizzswap can vary significantly depending on the swap size, the amount(ratio) of assets currently waiting in the pool(percentage), and the changes to pool's real-time supply and removal of liquidity.
• Asset price fluctuations may cause assets to be deposited or withdrawn from the pool at prices or ratios that users did not expect. Also, if there is a price change from the price at the time of depositing in the pool, you may incur a loss when withdrawing, compared to the case that you simply hold the asset.
• All Figures displayed on the website are estimated information provided to help users make decisions, and do not guarantee the timeliness, suitability or accuracy of the data.
• A normal Fizzswap website never asks for the user's personal wallet private key, mnemonic key, and seed phrase to be entered.
• For other risk factors, precautions, and conditions of use, please check the link below.
1. Abstract
Fizzswap is a decentralized application (DApp) based on Silicon Chain which is developed by a third party. Fizzswap is designed to provide users with an easy-to-use interface such as Fizzswap website(https://fswap.io) (Hereinafter Fizzswap and Fizzswap website are collectively referred to as the “Fizzswap”) to the decentralized protocol that integrates directly with Silicon blockchain wallet of a user, to swap various digital assets and to provide liquidity.
NOTICE: This guideline contains the terms and conditions by which you may access and use the Fizzswap. Please read this guideline carefully. By accessing or using the Fizzswap after you check this guideline, you signify that you have read, understand, and agree to be bound by the terms and conditions in its entirety.
2. Revision terms of this document
The contents of this document can be revised at any time for the purposesreasons such as change, addition, deletion, supplementation, user protection, and error correction of Fizzswap. If the content of this document is revised, the revision will take effect from the time the changed contents is posted. However, if the content to be changed is unfavorable to the user or is a significant change, it will be posted 30 days before the effective date. If the user checks the revised document after the effective date and continues to use Fizzswap, it is deemed that such user has read, understood and agreed to the revision.
3. Eligibility
• To use Fizzswap, an user must be at least the age of majority in civil terms in his/her country (ex: 21 years of age in Singapore). Also, a user must be able to make a statement that you have full rights and authority to enter into and comply with civil agreements on behalf of yourself or any legal entity that you represent.
• An user must be able to make a statement that a user is (i) not subject to any economic or trade sanctions by any governmental authority (including, but not limited to, the Office of Foreign Assets Control of the U.S. Department of the Treasury, etc.); (ii) is not citizens or residents of any jurisdiction subject to comprehensive economic sanctions by the United state, and will not use Fizzswaps for the purpose of illegal activity conduction, promotion, or designing.
4. Precautions when using Fizzswap
4.1. General Precautions
For reliable network/service while using Fizzswap, please read the following guideline carefully.
• It is recommended that you access the service with only one instance/tab.
• The service may be limited if you use multiple instances/tabs for prolonged period of time, using a public/shared IP access point and/or there is an excessive amount of connection requests.
• If you are having difficulty with connectivity for whatever reason, please close all instances/tabs and access the service after at least 1 hour before re-connecting.
4.2. Precautions regarding supplying/removing liquidity
4.2.1. Supply and Remove Liquidity
Users should be aware of the following when suppling and removing assets.
• To request a transaction, the user must have a Silicon wallet to hold Silicon-based assets, along with a minimum amount of Silicon (ETH) to use for transaction fees
• Liquidity on the Silicon chain is provided with Silicon-Compatible Tokens issued on the Silicon chain. Hence, an asset that is not a Silicon-compatible Token and based on other blockchains, including but not limited to Ethereum, Ripple, BSC, must be converted into a Silicon-compatible format through bridging protocol(e.g., Oribit Bridge) prior to being deposited into Fizzswap.
4.2.2. Asset mis-transfer
Users must accurately check the asset type and address when transferring assets between wallets. If a user transfers a type of asset that is not supported by Silicon Chain, or if the required transfer address is not entered or entered incorrectly, such transfer may not be properly processed and assets may be irreversibly lost.
Please refer to the link below for more information regarding mis-transfer of assets.
• Even for some assets (e.g., Ripple, XRP) that are heterogeneous chain’s assets from Silicon, which can be transferred between wallets directly through the Fizzswap interface without going through the bridge site, the user must accurately enter the transfer address and destination tag assigned to each wallet. If the transfer address or destination tag is not entered or entered incorrectly, such transfer may not be properly processed and assets may be irreversibly lost.
• Fizzswap is a decentralized application in which the private key of user assets is not managed by a central entity. Fizzswap has such structure in which asset recovery or/and technical support from a central entity are impossible for the consequences from users' mistake or negligence including but not limited to wrong transactions described above. This structure is designed so that if a user transfers an asset incorrectly, no one, including Fizzswap, can access the asset. Due to the decentralized nature like this, capabilities and responsibilities of Fizzswap team for mis-transfer may not be similar to the support of many centralized exchanges(e.g., Upbit, Bithumb, Coinone, ect.) for technical and structural reasons
• To prevent losing assets, we recommend that users test with a small amount of assets prior to sending a larger amount.
• For supply and mis-transfer occurring as a result of using Silicon Bridge, please refer to the respective site’s policies.
4.3. Providing Liquidity, Removing Liquidity, Swap
You can act as a Liquidity Provider by providing liquidity to a Liquidity Pool(e.g., Single pool, V2/V3 pool) in Fizzswap; however, you must carefully evaluate and consider the risk before proceeding with the transaction, and take responsibility for your own actions and judgments.
4.3.1. Price
Fizzswap works based on the AMM(Automated Market Maker) method. Price of each token within Fizzswap is determined by the liquidity pool ratio of tokens within the relevant Smart Contract. As automated Smart Contract makes adjustment to price as per the formula (x*y=k), the price shown on Fizzswap interface may not be the same as prices shown at other exchanges, and cannot be guaranteed for accurate or appropriate market prices.
• Each token price at the time a user supplies, removes, or swaps assets is determined by the above price measurement method (exchange ratio of token pairs), and the price is not directly proportional to the exchange quantity.
• In addition, as the exchange rate of token pairs momentarily changes due to the real-time participation of various participants, the price displayed on the Fizzswap website right before the transaction may change at the time of the transaction, and the price applied at the time of the actual transaction may vary. (e.g., Transactions occur in token pairs, asset supply and removal of token pairs, etc.)
• The Fizzswap Protocol has a stabilization measure so that the request can be executed only within a certain range of the exchange rate to be applied by the user in order to minimize the loss that may occur due to the large change in the current exchange rate, but you should precisely check and confirm the exchange rate applied to the time of transactions when proceeding liquidity supply, removal, and swaps.
4.3.2. Rewards and Utilized APR(APY)
All reward APRs displayed on Fizzswap's website, including the Liquidity Supply APR, FIZZ Distribution APR, Airdrop APR, Pool Fee APR for using the protocol, Staking APR, and Utilization APR for using a Single Liquidity (Supply), are estimates of the rewards distributed on an annualized basis, and are not guaranteed.
For more details regarding rates of returns displayed, Please refer to below link
• In particular, at 9 a.m. (KST) every day, the FIZZ APR of each liquidity pool is updated reflecting the FIZZ Mining rate aggregated from the user pool vote and the FIZZ buyback quantity per pool. At this time, the figure that indicates FIZZ distribution APR includes the quantity allocated to the vFIZZ Holder(5%), development team (5%), Treasury(5%), Partner(5%) and the rewards that users actually receive is the amount that the quantity allocated for the team is excluded.
• Fizzswap strives to provide accurate information in real time as much as possible, but the expected APR displayed in the screen may vary from the actual APR due to price fluctuations of distributed tokens, changes in liquidity pool size, and delays in transaction processes.
• For details on calculating the expected APR, please refer to the relevant documentation on the Fizzswap website.
4.4. Provision for Each Liquidity Providing Method
4.4.1 Provision of liquidity for Pair Pool
Users can earn returns from token supply distribution rewards, and token airdrop by supplying two types of assets (pairs) on Fizzswap.
There may be delays when supplying pair liquidity. You can find out more details in the link below.
In the event that the market price of an asset that a user supplies changes significantly from its price at the time of supply, the user is more likely to receive a lower reward than if the asset was not supplied, and even incur a mark-to-market loss. These losses, however, become permanent when a user withdraws their assets from the pool (due to this nature, we refer to these losses as impermanent losses, see the link below for more information), and if the price difference between the price of the user's assets in the self-supply state before the user withdraws user's assets and the price when the user supplied user's assets to the pool is restored, then the actual loss may be reduced. Moreover, users' overall rewards should be calculated taking into accoun pool usage fee rewards. For more information on impermanent losses, please refer to the links below.
5. Additional Notes on Fizzswap V3
5.1. Concentrated Liquidity
Fizzswap V3 (Version 3) has a Concentrated Liquidity function. This notice refers to the liquidity pool with centralized liquidity as the 'V3 pool' and to the liquidity pool with the previous features as the 'V2 pool'.
Due to its principle of operation, the V3 pool provides users with more freedom and choice for centralizing liquidity supply and designating a supply section and, therefore, may hold higher reward expectations and greater loss risks than the V2 pool.
The V3 pool liquidity providing risks compared to the V2 pool liquidity providing are as follows. The narrower the designated price range becomes, the higher the chance of (i) a rise in the risk of impermanent loss (IL; Impermanent Loss), (ii) a rise in the risk of changing the composition ratio and value of supplied assets (There is also the possibility that the ratio of the two assets is fixed at 100:0 at the time of removal), (iii) a rise in the likelihood of not being able to obtain supply rewards when the token's price departs from the user's specified range, (iv) a rise in the risk of loss due to price range migration (V3 to V3 migration) when the price is out of the price range. For more information, please refer to the link below.
As the V3 pool liquidity providing has high structural complexity and is difficult to predict the risk of asset loss (particularly when the liquidity is provided in a narrow price range), it is not recommended for users with little experience in investing in virtual assets and the personality that cannot handle the possibility of loss. Users must carefully evaluate and consider the risks of concentrated liquidity before supplying and managing liquidity to liquidity pools.
6. Prohibited Acts
Users must comply with this guide's precautions and not engage in the following actions.
• Activities that harm or disrupt the sound trading order of Fizzswap
• Activities that disrupt or negatively affect the operation of Fizzswap (including but not limited to Fizzswap interfaces, Fizzswap protocols, etc.) through automated or other fraudulent methods such as Agents, scripts, spiders, spyware, toolbars, etc.
• Activities that defame the Fizzswap team or interfere with their work
• Providing inaccurate, incorrect, or misleading information while using Fizzswap
• Activities of taking the assets of Fizzswap users or engaging in taking the authority of the user's wallet without justifiable cause
• Activities that use proceeds directly or indirectly related to all forms of criminal activity (e.g., terrorism activity, tax evasion, etc.) when using Fizzswap
• Impersonating someone other than yourself during the communication with Fizzswap support team
• Other illegal acts in violation of any applicable laws and regulations
7. NO WARRANTIES AND LIMITATION OF LIABILITY
• Fizzswap is a web-app interface that allows users to use their Silicon blockchain wallet to communicate with a decentralized protocol to swap assets and to provide liquidity. This means Fizzswap wields no control over individual Liquidity Pools, or the trust of a swap. It is the user’s responsibility to carefully consider the benefits and risks related, by taking into consideration token price ratio at the moment of swap, and all the necessary information to evaluate such risks.
• Expected APR, token price, an example of reward calculation, and all other information provided by Fizzswap interface help users make informed decisions for using Fizzswap or decentralized financial transactions such as providing liquidity, removing liquidity, and swapping. The information provided here is not a suggestion or a hint to invest or trade. Fizzswap makes a reasonable effort to deliver accurate information but does not guarantee the timeliness or accuracy of the information.
• Fizzswap is not responsible for user loss of assets, and for generating less rewards than projected, resulting from the use of Fizzswap.
• Fizzswap does not guarantee the continuity of Fizzswap service, and of the functions within. Any service or functions provided within Fizzswap can be added or deleted permanently, and Fizzswap itself may be stopped or changed. (In the case of a permanent stoppage of Fizzswap service, users that may be affected will be given a reasonable period (30days or more) and notifications/guide.)
• Fizzswap does not guarantee the reliability of Silicon blockchain platform used by Fizzswap Protocol, as well as any other third party services.
• There is no responsibility or authority on the part of Fizzswap for the contract execution technology set by a third party. Token issuing individuals or foundations that own the wallet (Deployer) with the corresponding authority, may stop, change, or suspend the execution of the token contract, and such changes may affect and limit the ability to supply or remove assets from the liquidity pool (LP) within Fizzswap. Thus, the inability to remove assets due to the execution of a specific token contract authority is unrelated to the functionality provided by Fizzswap (supplying and removing assets from autonomously created pools). Since Fizzswap does not have independent control over the user's private cryptographic keys, it is not structurally possible for Fizzswap to arbitrarily access, control, or intervene in the assets held in the liquidity pool, such as sending them to a specific address, which requires the action of the token contract holder's wallet associated with the liquidity pool pair causing the issue.
• Developers, operators and governance participants of Fizzswap do not endorse, guarantee, or assume responsibility in any way for any and all part of Fizzswap to the fullest extent permitted by law.
• Due to the complexity of software code and the nature of technology, the perfect integrity of the code cannot be guaranteed. Smart Contract codes used in Fizzswap may be susceptible to vulnerabilities which cannot be prevented by due diligence in the industry, and risks of asset loss exist(e.g., hackings or flash loan exploits utilizing those vulnerabilities).
• There is a continuous effort to maintain the block sync between Fizzswap and Silicon network; however, Fizzswap interface may be stopped without prior notice due to problems in the network resulting from transaction congestion, computer system errors and software attacks and other factors, such as natural events. Fizzswap is not guaranteed to work at all times.
• In aforementioned situations and more, there may be errors in the values/information displayed on the interface, as well as stoppage of service connection. User requests for swap, deposit, withdrawal and other transactions may be delayed or fail.
• Fizzswap, OUR DEVELOPERS, EMPLOYEES, OFFICERS, OPERATORS, AFFILIATES, AND GOVERNANCE PARTICIPANTS(HEREINAFTER, REFERRED TO AS THE “WE” OR “US” IN THIS AND NEXT SUBSECTIONS), MAKE NO WARRANTIES, EXPRESS OR IMPLIED, GUARANTEES OR CONDITIONS WITH RESPECT TO YOUR USE OF Fizzswap. YOU UNDERSTAND THAT USE OF Fizzswap IS AT YOUR OWN RISK AND THAT WE PROVIDE Fizzswap ON AN "AS IS" BASIS AND "AS AVAILABLE." YOU BEAR THE ENTIRE RISK OF USING Fizzswap. YOU ACKNOWLEDGE THAT COMPUTER, SOFTWARE, TELECOMMUNICATIONS SYSTEMS, AND BLOCKCHAIN SYSTEM ARE NOT FAULT-FREE.
• YOU UNDERSTAND AND AGREE THAT WE SHALL NOT BE LIABLE TO YOU FOR: ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL CONSEQUENTIAL OR EXEMPLARY DAMAGES WHICH MAY BE INCURRED BY YOU, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY.. THIS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY LOSS OF PROFIT (WHETHER INCURRED DIRECTLY OR INDIRECTLY), ANY LOSS OF GOODWILL OR BUSINESS REPUTATION, ANY LOSS OF DATA SUFFERED, COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR OTHER INTANGIBLE LOSS. UNDER NO CIRCUMSTANCES SHALL WE BE LIABLE TO YOU FOR ANY CLAIMS, PROCEEDINGS, LIABILITIES, OBLIGATIONS, DAMAGES, LOSSES, OR COSTS IN THE AMOUNT EXCEEDING THE ABOUNT YOU PAID US IN EXCHANGE FOR ACCESS TO AND USE Fizzswap, OR USD$100.00, WHICHEVER IS GREATER. THIS LIMITATION OF LIABILITY SHALL APPLY TO THE FULLEST EXTENT PERMITTED BY LAW.
8. Protection of rights and cooperation with law enforcement agencies
In the following cases, the measures to user's access information (e.g., wallet address, access information, etc.) to the Fizzswap website may be taken as reasonably necessary, such as being provided to a regulatory authority or judicial authority.
• When there are reasonable grounds to believe that the relevant asset is involved in hacking, money laundering, or other criminal activity
• When requested by a regulatory or judicial authority based on the applicable laws and regulations
9. Dispute
Any dispute arising out of or in connection with these terms including any question regarding its existence, validity or termination and any dispute arising out of or in connection with users’ access or use of Fizzswap, shall be referred to and finally resolved by arbitration administered by the Singapore International Arbitration Centre (“SIAC”) in accordance with the Arbitration Rules of the Singapore International Arbitration Centre ("SIAC Rules") for the time being in force, which rules are deemed to be incorporated by reference in this clause. The seat of the arbitration shall be Seoul or Singapore. The Tribunal shall consist of one arbitrator. The language of the arbitration shall be English.
10. Safety and Security
Fizzswap team has received professional security audits on Fizzswap from credible professionals in the industry, and is in its continuous effort to improve security and to minimize vulnerabilities.
11. User Notice
Besides commercially reasonable means of communication (e.g., social media links posted on the Fizzswap website), Fizzswap can send out notices or inform its users through other commercially reasonable methods. Notices provided by Fizzswap using public communication means are effective immediately
This revision regarding the service will be effective from October 7th, 2024.
Service Agreement Change History
October 7th, 2024 : Initially declared
Last updated