They become problematic when strike prices imply unrealistic FDVs, when tranches unlock too early, or when reporting and monitoring are absent. In these cases, the engagement can shift from liquidity provision to value extraction. The most common failure modes are over-allocation of tokens relative to float, strikes set at aspirational multiples that encourage aggressive hedging, and the absence of enforceable KPIs or transparency requirements. A critical structural risk emerges when the token lacks a liquid perpetual futures market: Without the ability to gamma scalp (profit from volatility through delta-neutral rebalancing), the market maker's only path to profitability becomes directional trading — short selling the loaned tokens and covering at lower prices.