Why We Disclose Risks
JustPump believes in honest communication. While we’ve built protections into the platform, trading memecoins remains inherently risky. Understanding these risks is essential for making informed decisions. We disclose risks because:- You deserve transparency: No platform can eliminate memecoin risk
- Informed traders make better decisions: Understanding risks leads to responsible trading
- Legal and ethical responsibility: Full disclosure protects both you and the platform
- Community trust: Honesty builds long-term trust, even when it means acknowledging limitations
Market Risks
Memecoins Are Highly Volatile
Why this happens:- Low liquidity amplifies price movements
- Sentiment-driven trading (hype, fear, FOMO)
- No underlying fundamentals or revenue
- Coordinated pumps and dumps
- You buy a token at $0.001
- Price pumps 500% in an hour due to hype
- Whales dump, price crashes 90% in 10 minutes
- You’re left with a 50% loss despite the pump
How to Manage Volatility
How to Manage Volatility
- Only trade with funds you can afford to lose completely
- Use limit orders (when available) instead of market orders
- Set stop-losses mentally (Solana DEXs may not support automatic stops)
- Don’t chase pumps—buying into hype often leads to losses
- Take profits incrementally instead of waiting for “the top”
Low Liquidity Tokens Can Be Manipulated
Manipulation tactics include:- Wash trading: Fake volume to create illusion of activity
- Pump and dumps: Coordinated buying followed by sudden selling
- Spoofing: Placing fake buy/sell orders to manipulate sentiment
- Rug pulls: Creator dumps their allocation and abandons the project
- 10% max sell limit per transaction (slows dumps)
- Permanent liquidity lock after graduation (prevents LP rug pulls)
- On-chain transparency (all trades visible)
- Social media hype campaigns
- Coordinated group buying/selling
- Creator selling their allocation gradually (within 10% limit)
- Fake hype and misleading information
Red Flags to Watch For
Red Flags to Watch For
- Anonymous creators with no track record
- Excessive hype with no substance
- Token descriptions promising guaranteed returns
- Very low initial liquidity (easy to manipulate)
- Suspicious trading patterns (large buys followed by immediate sells)
- Pressure to “buy now before it’s too late”
Early Trading May Involve Single Participants
Why this matters:- First buyers may face near-zero liquidity
- A single large sell can crash the price significantly
- Creator may be the only other participant initially
- You might not be able to exit at the price you expect
- Check trading history before buying new tokens
- Look for multiple distinct traders, not just one or two
- Consider waiting for the token to gain traction
- Be extra cautious with tokens less than 1 hour old
Rewards Are Not Guaranteed Profits
Important limitations:- Cashback may not cover 100% of your losses
- Eligibility is determined by backend criteria
- Vault balance limits total distributions
- You may not qualify for every distribution window
- You lose 10 SOL on failed tokens
- Cashback vault distributes 2 SOL to you
- Net loss: 8 SOL
Technical and Platform Risks
Smart Contract Risks
Potential issues:- Undiscovered vulnerabilities in contract code
- Interaction bugs with other Solana programs
- Economic attacks (e.g., flash loan exploits)
- Solana network issues affecting contract execution
- Follows Anchor Framework best practices
- Uses checked arithmetic to prevent overflows
- Extensive testing before deployment
- Plans for third-party audit
- Start with small amounts to test the platform
- Never invest more than you can afford to lose
- Monitor official channels for security updates
Backend and Oracle Risks
Potential issues:- Backend bugs calculating eligibility incorrectly
- Service outages preventing reward issuance
- Discrepancies between expected and actual rewards
- Trust required in backend infrastructure
- All payouts are cryptographically signed and verifiable
- Users can audit vault balances on-chain
- Backend logic will become more transparent over time
- Community can flag discrepancies
Wallet Security Risks
Common attack vectors:- Phishing websites impersonating JustPump
- Malware stealing private keys from your device
- Fake wallet extensions or mobile apps
- Social engineering (e.g., fake support asking for seed phrases)
- Only use the official JustPump URL
- Use hardware wallets for significant funds
- Never share your seed phrase or private keys
- Be skeptical of anyone asking for wallet access
Regulatory and Legal Risks
Regulatory Uncertainty
Potential issues:- Your jurisdiction may restrict or ban memecoin trading
- Tax obligations on gains (even if you reinvest)
- KYC/AML requirements may be introduced
- Platform access may be restricted by region
- Research local laws and regulations
- Consult tax professionals for guidance
- Keep records of all transactions
- Comply with local reporting requirements
Platform Changes
Possible changes:- Fee structure adjustments
- New features or restrictions
- Changes to reward mechanics
- Migration to decentralized governance
User Responsibility
You Are Responsible for Your Decisions
Before trading:- Research the token and creator
- Understand bonding curve and AMM mechanics
- Assess your risk tolerance
- Consider opportunity cost (could funds be better used elsewhere?)
- Plan your entry and exit strategy
Trade Responsibly
Principles of Responsible Trading
Principles of Responsible Trading
- Never invest more than you can afford to lose completely
- Diversify risk across multiple tokens, not all-in on one
- Set limits on daily/weekly trading losses
- Take breaks if you’re emotional or tilting
- Avoid revenge trading after losses
- Don’t trade on borrowed money or margin (if available)
- Ignore FOMO and make rational decisions
- Exit partially to secure profits, don’t wait for “the moon”
Signs of Problem Trading
Signs of Problem Trading
- Trading with money you need for living expenses
- Chasing losses with larger and larger trades
- Feeling anxious or obsessive about price movements
- Neglecting work, relationships, or health to trade
- Lying to others about trading activity or losses
- Trading in secret or feeling ashamed
This Is Not Financial Advice
Explicitly:- We do not endorse any token listed on the platform
- Creator listings are not endorsements of quality or legitimacy
- High trading volume does not indicate safety or value
- Past performance does not predict future results
- All content is for informational purposes only
- Financial advisors for investment guidance
- Tax professionals for tax obligations
- Legal counsel for regulatory compliance
Acknowledgment
By using JustPump, you acknowledge that:- You have read and understood these risk disclosures
- Trading memecoins involves significant risk of loss
- JustPump does not guarantee profits or prevent losses
- You are responsible for your own trading decisions
- You will not hold JustPump liable for trading losses
- You comply with all applicable laws in your jurisdiction
Final Words
JustPump is designed to make memecoin trading fairer, more transparent, and more secure—but it cannot eliminate risk. Memecoins are speculative, volatile, and often have no fundamental value. Trade wisely:- Start small
- Do your research
- Understand the mechanics
- Accept that losses are possible (even likely)
- Never risk funds you cannot afford to lose
Read the Legal Disclaimer
Review the complete legal disclaimer and terms of use
Questions About Risks?
If you need clarification on any risk disclosures:- Visit the FAQ
- Contact [email protected]