import LinkLeft from './LinkLeft' const ContentSectionRisks = () => { return ( <> {/* Section 3 */}

Transparency builds trust.

There are risks in participating in the token sale. It's important you understand them before deciding to commit your funds.

Unaudited smart contracts

We take great care and forethought in the way we design our smart contracts. We make their source code publicly accessible in order to get peer reviewed by as many experts possible.

Still we cannot guarantee that our products are free of exploits, when we launch.

New token sale mechanism

The Mango token sale was designed with the goal of being as fair as possible to all participants. However, there is a mechanism by which one or more participants with large amounts of capital could discourage others from participating in the token sale.

During the deposit phase, these participants could deposit very large amounts of USDC. This would drive up the average price of the token and potentially discourage others from participating in the sale.

Then, during the last minute of the withdrawal phase, these large participants could withdraw much of their USDC, thus receiving a much lower average price, depending on how successful they were at discouraging others.

Therefore, all participants should be aware of this potential behaviour during the sale and make their best decisions accordingly.

Inflationary Tokenomics

Mango will be running its own on-chain order books to allow perpetual swap trading. In order to attract sophisticed traders with the technical expertise to become market makers, the protocol will need to provide very generous liquidity mining rewards.

We were inspired from bitcoins emission schedule in our design, but the mechanism is genuinely unproven in this context and potentially could be exploited. Even if it operates correctly, distributing MNGO from the DAO will be inflationary.

Learn about it in the docs

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