> ## Documentation Index
> Fetch the complete documentation index at: https://docs.trady.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Rug-Check Basics

> How rugs actually work in 2026 — bundle dumps, painted charts, honeypots, slow rugs — and the discipline that keeps you solvent.

[Reading a Token Page](/learn/reading-a-token-page) covers the numbers. This page covers the *game* — how rugs actually work, and the process discipline that keeps you solvent while you learn.

## How rugs actually work in 2026

The cartoon rug — dev pulls liquidity, price to zero — is mostly solved by launchpads (LP burned, authorities revoked by default). Modern rugs are **distribution games**:

* **The bundle dump.** Team controls 20%+ of supply across "unrelated" wallets, markets the token, feeds the chart until enough exit liquidity arrives, then distributes. No contract exploit needed — you just bought supply from someone who got it free.
* **The painted chart.** Bots wash-trade volume and grind the candle up so the token trends on every screener. The only real buyers are the ones the chart was painted for.
* **The honeypot.** You can buy but not sell (or sell tax is 99%). Bait pattern: up-only chart, low volume, few holders. Contract checks catch most; the chart pattern catches the rest.
* **The slow rug / soft exit.** No single dump — insiders bleed supply into every pump for weeks. Deadliest for "diamond hands."
* **The revival scam.** Dead token, "CTO" (community takeover) announced, insiders who accumulated at zero sell the bounce.

Common thread: **the information was on-chain the whole time.** Bundles, dev history, holder freshness, fees-vs-volume — every scheme above leaves fingerprints in the data on the token page.

## The discipline layer

Checking the token is half the job. The other half is checking yourself:

* **Size so zero doesn't end you.** Before entry: "if this goes to 0 today, can I trade tomorrow without tilt?" If no, size down. Position size in % of portfolio is displayed in [Portfolio](/portfolio/portfolio-positions) for exactly this reason.
* **Write the thesis.** One sentence: why you're buying, what makes you sell. No thesis = you're not trading, you're gambling with extra steps.
* **The FOMO test.** "Would I buy this if I hadn't seen the chart?" Green candles and a hyped chat are the *worst* entry signal — that's the exit crowd's marketing.
* **Take initials at 2x.** Recover your stake, play with house money. If you caught a life-changing multiple — sell. The screenshot-to-friends urge is the top signal. Roundtripping a 10x to zero does more psychological damage than a clean loss.
* **After a loss: stop → name the exact mistake → convert it to a rule.** ("Bought a bundled token because the chat was loud" → "Bubblemaps check is non-negotiable.") You don't win money back; you just make money. Revenge trading is how a bad day becomes a bad month.
* **Concentration beats spraying.** Twenty micro-positions you can't monitor lose to a few positions you actually vetted and watch.

## When the market turns

Rug frequency doesn't drop in bear conditions — *your margin for error does*. Risk dial: as conditions worsen, fewer trades, stricter checks, more cash. Protecting capital in chop is a position too — the goal is being alive when the next meta starts.