❓FAQ - Frequently Asked Questions
On this page you can find answers to frequently asked questions.
Safety
An admin contacted me in TG, is this normal?
No, it is not an admin. Admin or moderator will not contact you first. It is likely a scammer. Do not provide any info and do not click on any link. Report to an admin.
How to get an airdrop?
There is no airdrop. There was a reward through a staking contract at the launch of UNCL in 2020, but no airdrop. Anyone claiming there is an airdrop is a scammer: report to an admin and block him.
How to protect myself?
Use your PC exclusively for crypto, don't install anything other that the strict necessary and only from a verified source
DO NOT store your seed phrase on your PC, on a cloud service or on any location which has a contact (i.e. internet connection) with the "external world". Store on a paper, on steel plates, etc. and keep it safe
Use a hardware wallet: ledger (through metamask) is supported for UNCX ILO and farming. This is a cold storage and you will never need to enter your seed phrase on your PC.
Do Your Own Research
DYOR
Aside from the guide below, we prepared a DYOR checklist to help you in evaluating risks and make better decisions when investing, you can find it here.
Why DYOR is important?
In our telegram channels, we often read about concerns about upcoming ILOs, or even ended ones which had a rather shady start or end. Our stance remains the same: we are a tech provider, our platform is decentralized and any dev can start a fund raiser, hence it is your duty as a participant to know exactly what are the risks involved, and take the decision to skip some ILOs, or only invest what you can afford to lose. It is your risk management versus your risk appetite.
Even an audited and KYC ILO doesn't protect you from losing your funds, as there are many more ways to steal your funds than there are ways to protect you.
With the ILO Platform v6, a lot of improvements were implemented, the major one in term of UI are the blue/orange/red coloring which are giving you a quick taste of the "quality" of an ILO.
That being said, some red flags doesn't necessary means shady, and all blue doesn't mean it's safe.
Here are some hints to help you conducting your own research and finding a lower risk ILO.
Do also check the DYOR guide of our partners SolidProof and FOMODEX.
How do you feel about the flags?
Flags are rather blue?
Or rather red?
Though the blue flags look appealing, do dig into the details of the ILO, like locks expiration (both LP and tokens), type of token locking (linear or standard), audit details, etc. and ask questions in our dedicated channel and in the project's channel.
Is 80 to 100% of the liquidity locked?
Did they lock the minimal % of liquidity or the maximum 100%? Locking 60% means that, 40% of the BNB/ETH are sent to the team/dev/project wallet directly after presale's success.
Locking 100% of the liquidity does not mean however that your funds are safe.
Misconception
Liquidity lock is different than token lock/vesting. ETH/BNB/etc. is not "locked" in the liquidity pool, but the LP token (representing the ratio of tokens in a pair) is locked.
Take for example and ILO called XYZ supplying XYZ tokens with the funds raised in BNB.
A pool is created with 100 XYZ and 100 BNB upon ILO completion.
The XYZ/BNB token ratio in the pool depends on the price of both tokens in the pair. Unlocked XYZ tokens sold to the XYZ/BNB pool will reduce the amount of BNB and increase the amount of XYZ in that pool, meaning the price of XYZ will decrease.
1 LP token could represent 1 XYZ and 1 BNB, meaning XYZ has a rather high price tag. However, if a large amount of XYZ are sold to the pool, the LP token may represent 100 XYZ and 0.01 BNB: this would mean that 1 XYZ token has practically no value anymore: the liquidity pool was drained. The amount of locked LP tokens remains the same and are still locked, but their value is extremely low.
If the concepts of liquidity pool, liquidity locking and impermanent loss is not clear to you, we recommend watching this video.
How to read the Tokenomics?
Under the "info" tab of every ILO, you will see, among other pieces of information, the tokenomics.
Definitely bad tokenomics
Why: Too many unlocked tokens, there is a risk of large amount getting sold and driving the price close to zero
Potentially good tokenomics
Why: 80% of tokens are dedicated for presale and liquidity, no unlocked supply (or <1%). However there is about 20% of locked tokens, which might look good, but needs further investigation. Lock type (linear unlock or standard) and lock duration need to be investigated (check the Token Vesting section in Guides).
Funds raised & liquidity locked
Do note that the tokenomics chart is only considering the tokens of that project and not the BNB/ETH/etc. raised. The amount of ETH/BNB that the team will receive is:
ETH/BNB raised minus the amount (in %) of liquidity locked.
Example:
If 100% of 1000 BNB is locked in LP, the team receives 0 BNB.
If 70% of 1000 BNB is locked in LP, the team will received 300 BNB.
However, in case 100% of the liquidity is locked, this doesn't mean it is safe, so:
Check the circulating supply in the tokenomics chart: how will those tokens be used/sold? What wallets or contracts are those tokens in? Are they locked/vested with a competitor(We can only assure you of safety of our own locks)? Or are they unlocked and can be market sold, draining the liquidity?
Check for how long is the liquidity locked. Can the team remove the whole liquidity in 1 month?
Contract
If the contract is unaudited:
can new tokens be minted and market sold?
can fee/tax on transfer be raised?
can trading be paused?
or any contract-related issues that might cause problems down the line
(disclaimer: UNCX Network is not an audit company. We don't audit flawed contracts. If the contract is unaudited, you invest at your own risk.)
Token Lock/Vesting
If tokens are vested with UNCX, you will see all the locks under the tokenomics chart on the token page. Otherwise they will appear as "Circulating / Unlocked".
Ask yourself a question: will the team ever own more tokens than the amount sold during presale once they are unlocked? If yes, how long until it happens: 1 week? 1 month? 1 year?
Linear lock warning
Some teams/devs use the Linear Lock in their ILO to have their tokens in a smart contract rather than circulating: this looks "good" on the tokenomics, however token can be already "unlocked in the locking contract", which means a large amount can be withdrawn by the team even before the ILO ends.
Do check the details of linear locks, here is a good example of a proper linear lock, as there is no token release until 8 months later:
Is the contract audited by one of our whitelisted auditors?
The audit by our partners have proven to detect things like errors in code preventing a successful finalization of the ILO, customizable tax amount (which in some cases could be changed to 90%+ at any time), unlimited minting, and so on.
No auditor can detect and flag everything suspicious: the findings of an audit depends on many factors and is not an exhaustive list of all potential threats hidden in a code.
Is the team KYCed by one of our whitelisted partners?
If a team has passed KYC, it is a good sign: it means that the team behind the project should be known by the KYC provider.
However: Do not trust blindly a team and their project because of a KYC badge. Despite the KYC process of our providers being as tight and tough as possible, an unfortunate turn of events may still occur.
In case of concerns about a team behavior after a launch on our platform, do get in touch directly with the KYC provider.
Is the Telegram group botted? Are admins open to any question?
Do you only see moon boys? Can you ask question without being muted or banned? Are there thousands of people (bots?) in the tg already saying "good project"?
Is the Twitter account recently created? Is it botted?
Do you see some tweets with thousands of likes and retweets? Are typical answer to those tweets repetitive and pointless (e.g. "Good project")
Does the project use a copyrighted item/picture/movie/anime?
If they use "Ironman" as their token name and Ironman pictures, do you think they were granted a license by Marvel/Disney?
Licenses as such can cost millions: Why are they raising funds then?
If they have a CG trailer which is absolutely breathtaking, and likely costs hundreds of thousands, do they need a fund raising?
Do they have a real product?
Or did you participate based on people shilling it?
If they claim to have a fantastic product, do they have a beta?
If the economic model is based on taxing other investors, isn't it a type of Ponzi scheme? If not, what are the other source of incomes that will benefit all holders and bring this out of the typical Ponzi scheme?
Look for real long term hold with a real product and a sustainable economic model, and with lots of room to grow, especially if you wish to make it through the bear market.
Bottom line
To remain as decentralized as possible, UNCX team will not check nor recommend an ILO, unless it was "incubated". Hence a poorly conducted DYOR means you accept the risk of losing your funds. Avoid this by learning how to sense shady projects and discover solid ones.
Empower yourself, do thorough DYOR, invest according to your risk appetite, and be accountable for your investments. This can only help you in your crypto journey.
UNCX doesn't refund any funds lost by investing in an ILO that turned out to be a scam. Do your own research.
ILO
What does "ILO" mean?
ILO stands for "Initial Liquidity Offering". A project may need to raise funds which will be partly used to create a liquidity pool allowing trading to start smoothly and partly to fund the project.
This model of fundraising makes it safer for investors to participate in a presale, as at least 60% of raised funds are dedicated for liquidity in the pool, meaning every token holder can start trading immidiately after the presale ends.
What are the holding requirements for ILO participation?
There are no holding requirements for ILO participation. Rounds 1 and 2 are public and everyone can participate. If you want to participate in a round 0(if there is one), you have to get whitelisted by the team launching the token
For developers:
I have a "JSON" error
Before / When creating an ILO: Restart your computer, clear internet cache, try another web browser. Check all parameters of your ILO, ensure you provide enough gas for the creation.
During / While raising funds for an ILO: This is usually when a liquidity pool has been created manually during the ILO. Unfortunately, you have to restart your ILO from the beginning and make sure your tokens are not already in circulation.
After / When initiating the market at the end of a successful ILO: This is often due to errors in the token smart contract's code. Or with extra large supply of token which are not supported by some AMM.
Please get in touch with an official admin to see what are your options.
Other topics
Farms
There are so many farms, I do not know where is the one I need
On the farm page, the "Tokens" tab allows you to easily search for a farm by selecting (or searching) the name of the reward token for that farm. Once you found it and selected it, you can click "View farms" to see all farms rewarding with this token.
Why do I have less token after I withdraw my LP from the farm?
You may have less of one token in the pair, but more of the other token. This is called Impermanent Loss. LP tokens are a portion of the liquidity for a pair. And in a liquidity pool, the ratio of both tokens changes as people buy and sell.
When providing liquidity on Uniswap I am a bit lost
Welcome to Uniswap v3! Since May 5th 2021, Uniswap v3 was released with a new liquidity pool concept (based on NFT rather than LP UNI-V2 tokens) and several new features. The UNCX farms, however, are still based on Uniswap v2. In order to provide liquidity to a pair for farming (all UNCX farms have a link to add liquidity if no LP token was found in your wallet), you will need to add "v2." in front of "info.uniswap.org/pair/0x..."
I have unstaked my LP token from a UNCX farm: how to get my underlying tokens back from the pair?
With Uniswap v3, you will need to find your way in Uniswap to show you the LP v2 removing page. The easiest may be to start here and see if after scanning your wallet, Uniswap finds your liquidity. If you cannot see the pair you provided liquidity to, try this link. This is for removing UNCL/UNCX liquidity and convert the LP token to the underlying UNCL and UNCX tokens. You can adjust the URL to replace UNCL and/or UNCX contract number (starting 0x....) to the contract number of the tokens you are willing to remove from the liquidity pool.
I am in a farm ending soon, when should I exit?
Anytime. Previous farms remain accessible, even if the reward period has ended. You can unstake, then: - Re-stake in a new farm if your LP UNI-V2 token matches that farm - Leave as an LP token in your wallet to still receive 0.3% trading fees - Unpair your LP token to receive the 2 underlying tokens (see question above about getting the underlying token from a pair using Uniswap v2)
I do not see the earn fees after unstaking my token, where are they?
When a LP UNI-V2 token is staked, Uniswap will not track the earn fees for that LP token. You still own the same portion of the liquidity pool, but the your portion has grown with every liquidity provider fee now stored in the pool.
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