> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usexfg.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk warnings

> Risks of HEAT CDs, swapXFG, Hearth LP, and HEAT minting.

## HEAT Certificates of Deposit (CDs)

CDs lock **HEAT**, not XFG. You must [mint HEAT](/features/heat/mint-heat) first (`mintHeatV10`), then open a term-locked HEAT CD.

<Warning>
  CD yield is variable and not guaranteed. Interest depends on protocol fee volume (swapXFG atomic swaps and Hearth trades). Low activity periods can mean very low or zero yield.
</Warning>

**Lock-up risk.** Your **HEAT** is inaccessible until the maturity height. You cannot withdraw early. Liquidity before maturity requires [transferring the CD](/features/commitment-deposits/transferring-deposits), typically at a negotiated discount.

**Interest rate risk.** You lock a term, not a fixed APY. If fee volume falls after you lock, you earn less than expected.

**Consensus risk.** CD rules are enforced by Fuego consensus. A consensus bug could affect deposits. Rules are open source — review them before locking significant amounts.

**Wrong model.** There is no current product path that locks **XFG** as a CD. COLD / Ember\_Heat / “XFG deposit” models are removed.

***

## swapXFG (atomic swaps)

**Counterparty stall.** If the counterparty goes offline mid-swap, wait for the timelock, then refund. Funds are delayed, not forfeited, if you follow the refund path.

**Timelock duration.** Depends on the counterparty chain and daemon config. Check your pair’s docs before large swaps.

**No on-protocol price protection.** You and the counterparty agree amount/rate off-chain (or via offers). Market moves between agreement and completion do not auto-adjust the deal.

**Fee.** Completed XFG-side swaps charge **1%**, routed **69% CD yield / 11% Bonus Vault / 20% Treasury** (`CryptoNoteConfig.h`).

***

## Hearth liquidity

Hearth is the on-chain **XFG/HEAT** market. Protocol trade fee is **1%** (`HEARTH_FEE_BPS = 100`), **100% → CD yield accumulator** in consensus code. LPs earn the swap spread, not the fee.

<Warning>
  Providing Hearth liquidity carries impermanent loss risk. If the XFG/HEAT pool price moves sharply while you are an LP, you may withdraw less value than you deposited, even after LP fee income.
</Warning>

**Impermanent loss.** Inherent to AMM-style inventory. Large adverse moves can dominate spread income. Do not treat the old “0.3% LP fee” figure as Hearth’s protocol trade fee — that number is **not** `HEARTH_FEE_BPS`.

**Consensus risk.** Pool mechanics are on-chain. Review [How Hearth works](/features/hearth/how-hearth-works) before large LP deposits.

***

## HEAT mint (burn XFG)

<Danger>
  Minting HEAT **burns XFG permanently**. Burned XFG is not withdrawable as XFG. There is no recovery of the burned principal.
</Danger>

**Permanent reduction of XFG.** You exchange XFG for HEAT at Hearth TWAP pricing via **`mintHeatV10`**. HEAT value and future CD yield are not a guaranteed recovery of burned XFG market value.

**Wallet backup.** Keep seed + wallet file backups before minting and before opening CDs. Deposit secrets and keys live in the wallet.

**Historical note (not the primary path).** Older STARK / off-chain claim flows and COLDAO-era language are **deprecated product narrative**. Do not treat “generate a STARK proof to claim HEAT elsewhere” as the current default mint path.

***

## General

**No reversals.** Confirmed sends, mints, CD ops, Hearth trades, and swaps are irreversible.

**Privacy is probabilistic.** Ring signatures and commitments provide strong privacy, not absolute anonymity under all behavioral analysis.

## Known issue — block-serving RPC hang

Every daemon binary tested — including the month-old Jul-10 daemon on port 18180, while idle and fully synced — hangs on `queryblockslite.bin`, `queryblocks.bin`, and `getblocks.bin`. This blocks live sync/send end-to-end testing only. All protocol verification is performed against the C++ production code directly (unit and integration harnesses), not live RPC.