> For the complete documentation index, see [llms.txt](https://docs.hoodfun.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hoodfun.xyz/faq.md).
# FAQ
Why did my token's price move when nobody traded it?
The bonding curve holds LT, not a stablecoin. If the underlying asset the LT tracks moves, the LT's NAV moves with it (multiplied by leverage), and the curve's value moves too — with zero buys or sells.
Can I lose more than I put in?
No. Your maximum loss is what you spent. LTs are non-liquidating — they rebalance instead of getting liquidated — but in extreme conditions an LT's value can approach zero.
Why did my sell transaction revert?
Selling redeems the underlying LT for USDC through the vault's atomic redeem path, which is capped by the vault's idle USDC buffer. A sell that would drain more than the buffer holds reverts rather than partially filling. For large positions, sell in smaller chunks, or — post-graduation — swap for the LT directly on the pool and redeem it yourself.
What is decay?
LTs hold constant leverage through automatic rebalancing. In choppy, sideways markets, that rebalancing bleeds value out of the LT even if the underlying asset ends up back where it started. Higher leverage makes decay worse. This is a known, unavoidable cost of holding constant leverage — not a bug.
How does post-graduation liquidity work?
Graduated tokens trade on a standard Uniswap V2 pool, paired with their backing LT. Initial pool depth comes entirely from whatever LT and token supply was sitting in the curve at graduation — thin pools mean higher slippage on large trades.
Do I need to hold the LT to trade a token?
No. `MemeZap` handles minting/redeeming and swapping the LT for you behind the scenes — you only ever need USDC or the chain's native gas token.
Can anyone back a token with any asset?
No. A token can only launch backed by an LT that's been registered through the LT Factory — the launcher checks this on-chain and rejects anything else.
What happens if the keeper goes down?
The backing LT's NAV goes stale, which freezes that LT's mint/redeem — and freezes trading on every token backed by it, since curve trades round-trip through the LT vault. This is deliberate: the contracts refuse to trade on a stale price.
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