Poncho → Risk disclosure

Risk disclosure

Last updated 4 October 2026.

Read this before you send any money to a Poncho wallet. If one item here makes you stop, it has done its job.

The tokens

• Most new tokens go to zero. Assume yours will.
• You may not be able to sell. A price on a screen is not a buyer. Liquidity can disappear at any moment.
• A contract can be built to trap you. Transfer taxes, blacklists, pausing and minting are all used against buyers. Poncho's checks catch some of these, not all.
• A name proves nothing. Anyone can launch a token called anything, including the name of a real company. Check the contract address.

What the check before a buy cannot do

Before a buy, Poncho checks against the chain what selling straight back would return, and refuses a buy that fails its tests (see Questions). A passed check means the things it tested came back clean, at that moment, on that market. It is not a verdict on the token. A token can change its rules after you buy, its owner can close the sale later, and liquidity can be pulled a minute from now. Some markets cannot price a sale before you hold the token; then the round trip is not judged at all.

Your keys, and what it would take to lose them

• Poncho holds your private keys. Each one is encrypted and stored in our database on servers in the United States, and our server can decrypt it to sign. If an attacker took both the database and the key that decrypts it, they could reach every wallet. What stands between you and that is our security, not the design.
• Your Telegram account is your login. Whoever controls it controls your Poncho wallets. Turn on two-step verification in Telegram.
• Export your key and keep it offline. It is your way out if Poncho is down, blocked or gone. A key shown in a chat can survive in screenshots and device backups.

Poncho's own software

• Poncho is new software. It can fail, stall or behave in ways we did not expect, and a bug can cost money. No security firm has reviewed its code.
• Approvals outlive the trade. To sell a token, or to buy with a token such as USDG, your wallet gives a contract permission to move that token. On BSC bonding curves, Flap and other launchpads' bonding curves, Poncho approves exactly the amount of that trade. On Uniswap markets, Poncho approves Uniswap's own contracts for an unlimited amount: the v3 router, or Permit2 for v2 and v4. Permit2's permission for Uniswap's router ends after 30 days, but the unlimited approvals stay until they are removed. If one of those contracts were ever compromised, a standing approval could be used to take that token from your wallet. Poncho has no screen that lists or removes approvals. To remove one, export your key and set the approval to zero in a wallet app of your own.

Between confirm and done

• A quote is an estimate. The price, the gas and what you receive can change between the confirm screen and the block. Your slippage setting caps how far; past it the trade fails instead.
• A failed transaction still costs gas.
• Others can be faster. BNB Smart Chain orders transactions first come, first served at a single sequencer, with no public mempool. That makes the usual sandwich attack hard. It does not stop someone faster from trading before you, and whoever runs the sequencer or the node your transaction passes through sees it first.

The chain and the dollar token

• BNB Smart Chain is run by Robinhood, not by us. Its terms say it does not guarantee that the chain or its sequencer is available. They also say it may block wallet addresses, and may change or end the service without notice. Read the BNB Smart Chain terms.
• USDG can be frozen. Some tokens trade against USDG, a dollar stablecoin issued by Paxos. Paxos's terms say it can freeze USDG, must follow legal orders to freeze it, with or without notice, and is not liable to you for it. Read the Paxos terms.
• Other people's contracts. BSC, Uniswap, Flap and the other markets Poncho trades on are other people's code. Some contracts can be upgraded or paused by their owners. Poncho does not control them.

If you launch a token

Launching makes you the issuer. You choose the name, ticker, image and words, and you answer for them, including trademarks and the laws that apply where you and your buyers are. The creator fee rate cannot be changed after the launch. Poncho does not market your token, vouch for it or advise you about it.

Mistakes with addresses

BNB sent to the wrong address or on the wrong network is gone. Attackers send tiny amounts from addresses that look like ones you use, hoping you copy the wrong one. Poncho shows the full address and asks you to confirm before a withdrawal; it cannot stop you sending to the wrong place.

Tax

Selling or swapping crypto can be taxable where you live. Poncho does not calculate, withhold or report tax. Your trades are listed in Activity and on the chain. Nothing here is tax advice.

The rules, and the end of the service

The rules for crypto services are changing in many countries. They may change who can use Poncho, from where, or whether it runs at all. Poncho is run by a small team, and nothing guarantees it will continue. If it stops, your exported key is what matters.

Nothing is insured

No deposit protection, compensation scheme or insurance covers funds in a Poncho wallet.