> For the complete documentation index, see [llms.txt](https://hawkfi.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hawkfi.gitbook.io/whitepaper/guides-and-support/understand-fees-and-risks.md).

# Understand Fees and Risks

Review the fee source and the main risks for HawkFi Models and Laboratory before using live capital.

HawkFi Models and HawkFi Laboratory do different jobs. Their fees and risks should be read in the context of the workflow you plan to use.

## Find the current fee source

| Workflow                            | Read this before funding                                                                                                           |
| ----------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- |
| Core HawkFi LP positions and Models | [HawkFi fee FAQ](/whitepaper/guides-and-support/faqs.md#what-are-the-fees-related-to-using-hawkfi-what-is-a-yield-performance-fee) |
| HawkFi Laboratory                   | Laboratory is for simulation. Review live fees on the workflow you choose after the backtest.                                      |

{% hint style="info" %}
Always review the current product page before funding.
{% endhint %}

## Know the main risks

| Risk                              | Where it matters              | What to check                                                                                                           |
| --------------------------------- | ----------------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Market and price risk             | Every live workflow           | The asset can move against the setup. HawkFi does not guarantee future returns.                                         |
| Impermanent loss                  | Liquidity Providing positions | Compare fees and PnL with Pair HODL, Manual LP, token inventory, and drawdown.                                          |
| Adverse selection and toxic fills | MEV Boost LP positions        | MEV Boost can reduce exposure to anticipated toxic flow, but it cannot eliminate adverse selection or impermanent loss. |
| Inventory drift                   | LP positions                  | Check the ending token mix, inventory skew, TVL breakdown, and whether PnL came with unwanted exposure.                 |
| Model mismatch                    | Models                        | A model optimized for one asset class or market regime may not fit another. Test the pool and market window first.      |
| Backtest overconfidence           | HawkFi Laboratory             | Historical results are research. They do not predict future returns or remove live execution differences.               |
| Network and funding limits        | LP positions                  | Keep enough SOL for the workflow and review priority fee settings when transactions fail.                               |

## MEV Boost Alpha risks

[MEV Boost](/whitepaper/hawkfi-solana/mev-boost-alpha.md) is an opt-in Alpha feature for eligible Meteora DLMM LP positions. Cross-pool opportunities may not appear, may be missed, or may fail to execute because of pool conditions, available liquidity, market movement, or unsuccessful transactions. Removing and requoting liquidity can help reduce exposure to unfavourable flow, but the resulting placement or spread may not be profitable.

MEV Boost does not guarantee higher PnL, prevent impermanent loss, eliminate adverse selection, or make every LP position profitable.

## Before using live capital

1. Choose the workflow and open its current fee source.
2. Decide which market, inventory, and drawdown risks you can monitor.
3. Test the configuration in HawkFi Laboratory when the mode is available.
4. Fund an amount that matches the risk you are prepared to manage.
5. Define what would make you pause, change, or exit the setup.

## Go deeper

* [Start with HawkFi](/whitepaper/quick-guide/readme.md)
* [Move from Backtest to Live](/whitepaper/hawkfi-laboratory/move-from-backtest-to-live.md)
* [Reduce Impermanent Loss](/whitepaper/learn-hawkfi/how-to-reduce-il.md)
* [Solve Common Problems](/whitepaper/guides-and-support/faqs.md)