Token Lock FAQs

FAQs for both Liquidity Locks and Sphera Locks

Who are Liquidity Locks for?

Liquidity locks are the standard practice for all serious crypto projects looking to build a community and raise external funding. Locking liquidity is effective for brand-new projects and teams that have no prior experience in the industry to help them establish credibility and trust.

What’s the difference between Sphera Locks & Liquidity Locks?

Team Token Locks are specifically for tokens allocated to project team members. With these locks, team members are unable to sell their tokens until the lock expires. They help prevent exit scams. Liquidity Locks are for liquidity pool (LP) tokens. These are created when a project contributes tokens to a liquidity pool on a decentralized exchange. They help prevent "rug pulls".

How long should I lock my liquidity for?

The longer the better. Long-term locking of liquidity signals your commitment to delivering on what you have promised. If you are concerned about the impact of locking liquidity on your company's Treasury and cash flow, our NFT Liquidity Bonds service can help.

How much of my liquidity should I lock?

If you intend to be the main liquidity provider for a liquidity pool, we recommend locking 80-100% of the total pool value.

What are the fees to use a Liquidity Lock?

Check out the Sphera Pricing page for locking fees for our supported blockchains. Fees are included automatically in your wallet when you deploy your contract and are charged in the native token for the blockchain you have selected.

How do I withdraw tokens once my lock ends?

After using any Sphera services, you can use our Claim Token dashboard to see the status of your locks, vesting contracts, and staking pools.

How can Sphera services help in preventing crypto scams?

A "rug-pull" occurs when project creators completely withdraw their Liquidity Pool tokens from a decentralized exchange pair. For example, the infamous Squid Game Rug-Pull could have been prevented if the project team had locked their LP tokens in a Sphera Liquidity Lock.

Can I use the locking services if I didn’t create my token with Sphera Token creator?

Yes. Our locking contracts are compatible with any token standard on the blockchain networks that we support.

Note that Token and LP Locks can not prevent teams from acting with bad intentions. Any modifications to the smart contracts directly can still be made by scammer teams, such as making tokens Honeypots or closing trading.

These actions are not possible to prevent by external smart contracts, and therefore you should always do your own research before buying any token.

Use Sphera's Create Token Tools to prevent this being possible, through an audited token smart contract.