If you enter a liquidity pool with an incorrect ratio between the two tokens you provide, you are at risk of arbitrage. This can be either due to a liquidity pool being seeded and priced incorrectly, or due to you adding liquidity with an incorrect weighting of the assets.
This will cause you to “sell” your tokens under its proper price point, which will result in you losing significant value on your position. There are bots always searching for opportunities like this; to ensure this does not happen, it is always recommended to inspect the pair of the pool you wish to enter through analytics first or be extra attentive when you enter the initial seeding of your pool.
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