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description: Understand your investment risks.
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# Investment risks

Depending on your investment strategy, you can be exposed to various risks. It is important that you understand these risks, as ultimately your investment choices are your own responsibility.

DeFi applications use Smart Contracts for the code logic, and rely on you staking or locking your liquidity / funds in the contracts for periods of time. You should always be aware that there are risks attached to this process, and you are trusting PolyGoon to keep your investment / funds safe.

At PolyGoon we take code quality and security very seriously - all our code goes through a rigorous internal Testing and Quality Assurance (QA) process. We also have engaged some of the best industry experts to audit our Smart Contracts code. That said however, new exploits are sometimes discovered that can potentially expose investors to loss, until patched.

Some of the investment risks include:

* At PolyGoon we do our best to stay ahead of hackers, but there are no 100% guarantees.
* If you provide liquidity (LPs), you are at risk of [impermanent loss](https://academy.binance.com/en/articles/impermanent-loss-explained).
* When you buy the PolyGoon token (GOON) you are at risk of token value loss.
* If you stake other tokens in pools with deposit fees, you are at risk of being unable to recoup the [Deposit Fee](../tokenomics/fees) paid.&#x20;

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_**Important note:** Crypto / Defi markets and projects are considered high risk investments. Always do your own research (DYOR) into any project. You are responsible for your own investing strategy, and should manage your own risk. Only Invest what you can afford to lose!_
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