Safety Guide & Disclosures

CakeWise is a research and education tool. Everything shown — APR estimates, risk ratings, suggested actions — is for informational purposes only.

DeFi yields are highly variable. APRs shown on PancakeSwap fluctuate continuously based on the amount of capital in each pool, token prices, and trading volume. Past APR is not indicative of future returns.

Always make your own decisions. Consult a qualified financial advisor before committing significant capital to any DeFi protocol.

Impermanent loss (IL) occurs when you provide liquidity to an AMM pool and the price ratio between the two tokens changes after you deposit. The more the price ratio diverges, the greater the IL.

Example: You deposit $500 of BNB and $500 of CAKE into a pool at a 1:1 ratio. If BNB doubles in price relative to CAKE, the pool automatically rebalances, leaving you with more CAKE and less BNB than you started with. If you had simply held both tokens, you would have more total value.

The key nuance: IL is 'impermanent' because it only crystallises when you withdraw liquidity. If prices return to their original ratio, IL disappears. Trading fees earned during your time in the pool can also offset or exceed IL — but this is not guaranteed.

Stable-to-stable pairs (USDT/USDC) have very low IL risk since their prices move together. Volatile pairs (CAKE/BNB) carry higher IL risk. Always use a dedicated IL calculator before committing capital.

Every interaction with PancakeSwap — swapping, adding liquidity, staking, farming — involves smart contracts on the BNB Smart Chain. Smart contracts are code, and code can have bugs.

PancakeSwap is one of the most audited protocols in DeFi, with a large security budget and an active bug bounty programme. However, no smart contract is entirely risk-free.

Risks include: undiscovered bugs in the contract code, oracle manipulation attacks on price feeds, and upgradeable proxy contracts where an admin key could theoretically modify the contract.

Only interact with the official PancakeSwap contracts accessed through pancakeswap.finance. Third-party interfaces or forks may use unaudited contracts.

This app provides links and general guidance. Before executing any transaction, always verify the current state of the opportunity directly on pancakeswap.finance.

APRs, liquidity depths, and token prices change in real time. A farm that showed 80% APR an hour ago may show 40% now.

For V3 liquidity positions, verify that the price is still within your selected range. Out-of-range V3 positions earn zero fees.

For token swaps, always check price impact and confirm you are receiving the token you expect. Verify contract addresses for less-known tokens.