Token Lock FAQs
FAQs for both Liquidity Locks and Team Token Locks
Using a liquidity lock is best practice for any serious crypto project looking to build a community and raise external funding. However, for new projects with teams that don’t have an existing track record in the industry, liquidity locks can be particularly effective in helping gain credibility and trust.
The longer the better. Locking liquidity for the long term helps signal that you are a serious project committed to building what you have promised. If you are worried about how locking liquidity might impact your company’s treasury and cashflow, check out our NFT liquidity bonds.
If you intend to be the main liquidity provider for a liquidity pool, we recommend locking 80-100% of the total pool value.
Each lock has a fee of $150 USD. This fee is included automatically in your wallet when you deploy your contract, and is charged in the native token for the blockchain you have selected.
After using any Team Finance service you can use our Claim Token dashboard to see the status of your locks, vesting contracts and staking pools.
A rug-pull occurs when project creators withdraw their Liquidity Pool tokens from a decentralized exchange pair. The infamous Squid Game Rug-Pull would have been prevented if the project team had their LP tokens in a Team Finance Liquidity Lock.
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 decentralised exchange. They help prevent rug pulls.