Risk summary

Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

This page explains what can go wrong when you use the swap, staking, liquid staking and Earn features of LUX8 Wallet. It applies to every user. For users in the United Kingdom: the Financial Conduct Authority (FCA) considers cryptoassets a high-risk investment.

What the wallet is

LUX8 Wallet is a self-custodial wallet published by Lux8 Labs Ltd. Your keys are made and kept on your device. We never hold your funds and cannot move, freeze or recover them. Swaps are built by third-party services on the Solana blockchain (Jupiter, and Sanctum for liquid staking): the wallet shows you the transaction, you sign it on your device, and it settles on chain. The wallet takes no fee of its own; network fees and the providers' fees are shown before you sign.

You could lose all the money you put in

Cryptoasset prices can rise or fall sharply, in minutes. Some tokens lose all their value. Nobody, including us, can guarantee a price or a return.

No protection if something goes wrong

Cryptoassets are not covered by deposit insurance or investor compensation schemes. In the United Kingdom, the Financial Services Compensation Scheme (FSCS) does not protect this type of investment, and the Financial Ombudsman Service cannot consider complaints about it.

Transactions cannot be reversed

A transaction signed and sent to Solana cannot be cancelled or reversed, by you or by us. Check the amounts, the tokens and the recipient before you sign.

Swap risks

• Price movement. The price can change between the quote and the moment the swap lands. The slippage limit you choose caps how far it can move; past it, the swap fails instead of filling at a worse price.
• Price impact. A large swap in a small pool moves the price against you. The wallet shows the measured impact before you sign.
• Liquidity. You may not be able to sell a token when you want, at the price you want, or at all.
• Smart contracts. Swaps run through programs written by third parties. A bug, an exploit or an outage in any of them can lose funds.
• Fraudulent tokens. Anyone can create a token with any name or logo. A token that looks like a known one may be a copy with no value.

Staking and liquid staking

• Staking. Staked SOL stays in a stake account under your control, but unstaking takes until the end of the current epoch (about two days). Rewards depend on the validator and the network and are not guaranteed.
• luxSOL. luxSOL is the liquid staking token of the LUX8 validator, created and managed by Lux8 Labs Ltd, the company behind this wallet. Its price follows the SOL in its pool, but on the market it can trade below that value, and the pool depends on Sanctum's programs and on our validator.
• Other liquid staking tokens carry the same kinds of risk, managed by their own teams.

Earn and DeFi

Earn deposits into lending protocols run by third parties. Those protocols carry smart contract, market and liquidity risk, and withdrawals may be delayed or limited by the protocol itself. The rates shown are what the protocol pays today, not a promise.

Security of your device

Whoever has your recovery phrase or your unlocked device controls your funds. We will never ask for your recovery phrase or password.

Keep it in proportion

A common rule of thumb is to put no more than 10% of your money into high-risk investments. Do your own research, and treat offers that look too good to be true with suspicion.

Questions: info@lux8.net. See also the Terms of Use and the Privacy Policy.