What Are the Risks Associated with Using a Third-Party Liquidity Locker Service? ⎊ Path

What Are the Risks Associated with Using a Third-Party Liquidity Locker Service?

While third-party lockers are designed to prevent rug pulls, they introduce a new point of failure: the locker service itself. Risks include the possibility of the locker service being hacked, having a malicious backdoor in its own smart contract, or the company running the service going defunct.

Investors must trust the security and integrity of the third-party service, which adds a layer of counterparty risk.

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