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.
DUO positions may also involve a lock-up period, during which funds cannot be withdrawn before maturity. You should only enter a DUO position if you are comfortable with the possibility that your assets will be inaccessible until the end of the term.
Cryptoasset services are not regulated or are subject to limited regulation in many jurisdictions. You should not expect any protection if something goes wrong, and there is no compensation scheme available (such as FSCS or other statutory protection).