Sometimes, smart contract codes will have _____ that hackers can exploit.

liquidity loops

asset failures

typo errors

vulnerabilities

_____ refers to temporarily losing value in the assets you provided in a liquidity pool as compared to simply holding them outside the pool.

Temporary loss

Impermanent loss

Permanent loss

Negligible loss

Which of these characteristics are not criticized of DEXs?

Lack of know-your-customer (KYC) and anti-money laundering policies

DEXs have total inclusivity, which may allow criminals to use them

Being open source so anyone can audit them

Some cryptocurrencies on DEXs are being equated to securities

To manage risk when using DEXs, secure your devices with _ and hide your cryptocurrency wallet's .

Two-Factor Authentication (2FA); credit card information

Facial ID; private keys

Two-Factor Authentication (2FA); private keys

Facial ID; public keys

Should you plan to be a _____, understanding impermanent loss is crucial!

staker

liquidity provider

developer

trader

When using DEXs, you should avoid trading ____ liquidity pairs since these are prone to manipulation.

low

medium

high

unregulated

Liquidity pools operate using an _____. It acts as an algorithm that prices the assets in a liquidity pool in relation to how much of it is left.

Electronic Market Maker

Automatic Market Maker

Automated Market Maker

Order book

It is important to only use reputable DEXs whose smart contracts have been ___ properly.

marketed

designed

developed

audited

If a liquidity pool has 10 BNB, buying 1 BNB costs $100, but now that 9 BNB is left, buying another BNB would cost ____.

more than $100

less than $100

$100

nothing

Chelle provided liquidity to a liquidity pool and earned some rewards, but she is now at an impermanent loss. She wants to withdraw her capital but is afraid of taking the loss. What is her best course of action?

Withdraw all her capital

Wait for the value of her assets in the pool to rise again

Withdraw some assets but not all

Any of the above, whichever was the original plan she made, because there are no guarantees when trading/investing

Safety and Risk Management when using DEXs

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