Risk Disclosure

Disclaimer

Last updated 25 July 2026

Read this before you launch, buy, or sell anything on LumpFun. It describes what the protocol actually does, including the parts that can lose you money.

1. Experimental, unaudited software on mainnet

LumpFun is experimental software running on Cardano mainnet with real funds. It has not been audited by an external security firm. Its validators have an internal adversarial test suite and have been exercised end to end on mainnet, and several serious defects were found and fixed that way — which is precisely why you should assume more remain. A bug or exploit may result in the permanent, unrecoverable loss of everything you put in.

2. Not financial advice, and not investments

Nothing here is financial, investment, legal, or tax advice. Tokens launched on LumpFun are highly speculative experiments created by anonymous third parties, not securities and not investments. Most will lose all of their value. Only use ADA you can afford to lose entirely.

3. Fees on every trade

Every buy and sell pays 2 ADA to the protocol and 1% to the token creator, on top of the Cardano network fee. Launching a token is free beyond the network fee.

Because the protocol fee is a flat amount rather than a percentage, small trades pay a large share of their value in fees. Cardano's minimum-UTxO rule also means the creator fee output has a floor of roughly 0.85 ADA regardless of trade size. A 5 ADA buy can therefore cost well over half its value in fees. Size your trades accordingly.

4. Every token starts with 100% of its supply in the pool

The minting policy will not accept a launch unless the entire supply is placed in the pool at creation, with the pool's authenticity NFT and a matching datum. There is no pre-mine and no creator allocation: a creator who wants tokens must buy them on the same curve as everyone else. This is enforced on chain, not by convention.

Pool liquidity is locked permanently. The validator has no withdraw path, so nobody — not the creator, not LumpFun — can remove it. The corollary is that it can never be returned either.

5. Graduation changes the price in one step

A token trades on a launch curve with a virtual ADA offset until its ADA reserve reaches the graduation threshold. At that point both buying and selling are blocked until the pool is switched to a permanent constant-product AMM. When that switch happens the virtual offset is removed and the price steps down in a single move.

You cannot trade ahead of this. It is a deliberate property of the design, not a malfunction, and it is not compensated. Understand it before buying near a threshold.

6. Transactions are irreversible

Cardano transactions cannot be reversed, cancelled, or refunded once submitted. You are responsible for your wallet, your keys, and for verifying the token, the contract addresses, and the transaction details before you sign. We cannot recover funds sent in error, sent to a wrong address, or lost to a token that fails.

7. We never hold your keys

LumpFun is non-custodial. Transactions are built by our server against our own Cardano node and returned to your wallet unsigned; your wallet signs them and we submit the result. The server has no key for your address and is structurally unable to sign on your behalf — sign.withWallet() throws on a read-only wallet. Nothing moves without your signature.

8. Listing is not endorsement

Any token appearing on LumpFun is there because someone launched it. Its name, ticker, image, description, and links are supplied by that creator and are not verified by us. Names and tickers are not unique and can be chosen to impersonate other projects. Always check the policy ID.

9. Availability and data

LumpFun runs on self-hosted infrastructure. Prices, balances, charts, and transaction building all depend on our Cardano node and chain indexes being healthy and at the chain tip. The service may be unavailable, delayed, or wrong at any time, without notice, and may refuse to build transactions when its indexes are behind — deliberately, rather than build against a stale view of the chain.

10. No liability

LumpFun is provided "as is" and "as available", without warranties of any kind. To the maximum extent permitted by law, the LumpFun team is not liable for any loss of funds, profits, or data arising from your use of the protocol or this site. See the Terms for the full limitation.

  • This document is not legal advice and has not been reviewed by a lawyer.