Risk Disclosure

This document is required reading. The risks below are not theoretical — each one has, at some point in the history of cryptocurrency, materially harmed users of bridge and wallet services. By using LumensHub you confirm that you understand and accept each of these risks.

1. Custodial-bridge risk

When you bridge an asset from Polygon, XRP Ledger, or Solana into Stellar, your assets spend a window of time — typically minutes — in LumensHub-controlled custodial wallets on the source chain. During that window:

• If our custodial wallets are compromised by an attacker, your funds may be lost before they are credited to your Stellar address.
• If our backend service experiences a critical outage, the corresponding mint on Stellar may be delayed for hours or days.
• If our key-management procedures fail, the entire bridge can become insolvent.

We mitigate these by segregating distributors from issuers, multi-sig signers (where applicable), monitoring and alerting, and comprehensive incident-response procedures. None of this eliminates the risk.

2. Non-custodial wallet risk

Your Stellar wallet is non-custodial: the secret key is generated and stored in your browser, encrypted with your password.

• If you lose your password and do not have the recovery phrase you wrote down at wallet creation, your funds are permanently inaccessible. We cannot recover them. No exceptions.
• If your device or browser is compromised by malware, browser extension, or physical access, the attacker can extract your encrypted secret and brute-force your password.
• If you accidentally clear browser storage (uninstalling the browser, “Clear all data”, an OS reset, etc.) without first exporting your recovery phrase, the wallet is gone.

3. Smart-contract / on-chain protocol risk

Polygon, XRP Ledger, Solana, and Stellar are independent networks operated by third parties. Each has previously experienced — and may again experience — consensus failures, halted blocks, reorganisations, censorship of specific addresses, and protocol-level vulnerabilities. We do not control these networks and cannot compensate you for losses arising from their failure.

4. Stellar DEX & liquidity risk

Token swaps and trading happen on the public Stellar Decentralised Exchange. Liquidity for the assets you trade can be thin, fragmented, or manipulable by adversaries placing and pulling orders. Path payments may settle at materially worse prices than displayed. Slippage protection helps but does not eliminate the risk of receiving less than the screen suggests.

5. Anchor / SEP-6 / SEP-24 risk

When you interact with third-party Stellar anchors through the Service, you are depositing funds with a separate company subject to its own terms. We do not take custody of those funds. If the anchor goes offline, freezes, exit-scams, or is sanctioned, we cannot recover your deposit.

6. Network congestion & gas risk

Source-chain network fees (gas) can spike unpredictably. A bridge operation costing cents most of the time can briefly cost tens of dollars in a network-congestion spike. We do not refund or subsidise gas fees.

7. Front-running & MEV risk

Public mempools on Polygon and Solana can be observed by bots that race ahead of your transactions. For trades and swaps this can cost you a portion of the expected output.

8. Regulatory risk

Cryptocurrency regulation is evolving rapidly. New laws or regulator actions may force us to suspend services in your jurisdiction, freeze certain assets, comply with court orders, or shut down entirely. We will provide as much notice as legally permitted, but emergency or sealed orders may leave us no time. Your access to funds during such events may be temporarily or permanently impaired.

9. Tax

Bridging, swapping, and trading on the Service may have tax consequences in your jurisdiction. You are solely responsible for reporting your transactions to the relevant tax authority and paying any tax owed. We do not provide tax advice, do not issue 1099 / W-2 / equivalent forms automatically, and do not file on your behalf.

10. Phishing & impersonation

Always verify the URL is exactly lumenshub.com or app.lumenshub.com. We will neverask for your password, secret key, or recovery phrase — not via email, not via Telegram, not via support chat. Any such request is fraudulent.

11. No insurance

Your funds are not insured by any government or private insurer. Losses from any of the above risks are not recoverable from us beyond the limits stated in our Terms of Service.

12. By using the Service, you acknowledge:

• You have read and understood every risk listed above.
• You are using only funds you can afford to lose.
• You will safeguard your password and recovery phrase appropriately.
• You will keep small balances in custody-window assets and move large balances to cold storage.
• You will report to us anything that looks suspicious so we can investigate.

Questions? Contact support@lumenshub.com.