V4 hooks — power and risk

A hook's address encodes which lifecycle callbacks it can intercept — the permission flags are literally the low bits of the address. LiqMax surfaces them as badges on every V4 pool.

beforeSwap/afterSwap hooks can adjust fees or route order flow; liquidity hooks can gate who can deposit; donate hooks enable custom incentive schemes.

Treat unverified hook bytecode like an unaudited smart contract holding your funds — because that's exactly what it is.

Educational content — not financial advice.