Providing liquidity on Rune doesn't come without risks. Before making a deposit, it's best to research and understand the risks involved.
Rune smart contracts are based on Goose which were Audited by CertiK and Hacken. What does this mean? Nothing, it's bullshit.
I have access to the vault, which has roughly 25% of the supply, on an offline laptop somewhere. More details in the FAQ.
If one side of an LP sees more demand than the other, either through buys or sells, there will be impermanent loss. See here for more information.
Nobody else mentions the other risks, hiding behind a veil of fake security. Risks involve:
Never go all in. Do not put in your life savings, or what you can’t afford to lose.
It's incredibly easy for a project owner to plant an exploit and pass an audit. Most audits don't check all contracts. Most projects deploy new contracts afterward. There is no trustlessness in crypto. You're always trusting something or someone. The protocol can be legit, but if the owner doesn't pay for their domain nobody is going to use it.
Most of these guys hire [insert Fiverr or random Russian programmer] to do their contracts. Even deploy them, as ridiculous as that sounds. I did everything myself. Nobody has access to anything except me. Only Binzy can deploy, access domains, tweet, announce, etc. It's all 2-factor or offline. I can sleep at night knowing I won't wake up to something that was within my control. There's always contract risk, but I did the best I could to keep the funds saifu, better than anyone I know, and I've been here a while.