It’s important to understand the risks of DUO.
The main potential risk associated with DUO is impermanent loss, which can occur if the value of an asset decreases after a DUO position is closed. Impermanent loss is not specific to DUO, as it can become permanent only if the user sells the cryptocurrency (as a separate action after the DUO position has been closed) and its value has declined. It's important to note that impermanent loss is a general risk associated with holding cryptocurrency, due to the volatility of most crypto assets. Nevertheless, this volatility also provides opportunities for profit through DUO. To mitigate risk, we advise that users adhere to a strict money management strategy when executing DUO positions.
