Compliance

Liquidity Escape Hatch

In very rare cases, an active liquidity provider in Verified Pools may have one of their Coinbase Verifications revoked (e.g. while performing a KYC refresh). In the event that this occurs, a user is always able to remove their liquidity from an active position (i.e. the escape hatch), but will not be able to increase liquidity, create a new position, or swap while their attestations are revoked. This is enabled by a custom remove liquidity policy which bypasses the Coinbase Verifications check and only performs an onchain sanctions check. Additionally, in the event a liquidity provider fails the onchain sanctions check, they will also not be able to remove their liquidity until the issue is remediated.