diff --git a/apps/web/__tests__/usePoolTicks.test.ts b/apps/web/__tests__/usePoolTicks.test.ts
new file mode 100644
index 0000000..5c1f142
--- /dev/null
+++ b/apps/web/__tests__/usePoolTicks.test.ts
@@ -0,0 +1,154 @@
+import { describe, it, expect, beforeEach, afterEach, vi } from 'vitest';
+import { renderHook, waitFor } from '@testing-library/react';
+import { usePools } from '@/hooks/usePoolTicks';
+
+const mockPools = [
+  {
+    id: 'pool-xlm-usdc-030',
+    token0: 'XLM',
+    token1: 'USDC',
+    token0Symbol: 'XLM',
+    token1Symbol: 'USDC',
+    feeTier: '0.30%',
+    currentPrice: 0.1085,
+    currentTick: -22000,
+    tvl: 4_200_000,
+    feeApr: 12.4,
+    volume24h: 340_000,
+  },
+];
+
+describe('usePools', () => {
+  beforeEach(() => {
+    vi.stubGlobal('fetch', vi.fn());
+  });
+
+  afterEach(() => {
+    vi.unstubAllGlobals();
+  });
+
+  it('shows initial loading state then returns pool data', async () => {
+    global.fetch = vi.fn().mockResolvedValueOnce({
+      ok: true,
+      json: async () => ({ items: mockPools }),
+    });
+
+    const { result } = renderHook(() => usePools());
+
+    expect(result.current.loading).toBe(true);
+    expect(result.current.pools).toHaveLength(0);
+    expect(result.current.isStale).toBe(true);
+
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    expect(result.current.pools).toEqual(mockPools);
+    expect(result.current.error).toBeNull();
+    expect(result.current.isStale).toBe(false);
+  });
+
+  it('handles fetch failure gracefully with mock data and error', async () => {
+    global.fetch = vi.fn().mockRejectedValueOnce(new Error('Network error'));
+
+    const { result } = renderHook(() => usePools());
+
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    expect(result.current.error).toBeInstanceOf(Error);
+    expect(result.current.pools).toHaveLength(3);
+    expect(result.current.isStale).toBe(true);
+  });
+
+  it('handles HTTP error gracefully with mock data and error', async () => {
+    global.fetch = vi.fn().mockResolvedValueOnce({
+      ok: false,
+      status: 500,
+    });
+
+    const { result } = renderHook(() => usePools());
+
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    expect(result.current.error).toBeInstanceOf(Error);
+    expect(result.current.error?.message).toContain('500');
+    expect(result.current.pools).toHaveLength(3);
+  });
+
+  it('handles invalid JSON response gracefully', async () => {
+    global.fetch = vi.fn().mockResolvedValueOnce({
+      ok: true,
+      json: async () => { throw new Error('Invalid JSON'); },
+    });
+
+    const { result } = renderHook(() => usePools());
+
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    expect(result.current.error).toBeInstanceOf(Error);
+    expect(result.current.pools).toHaveLength(3);
+  });
+
+  it('handles null response body gracefully', async () => {
+    global.fetch = vi.fn().mockResolvedValueOnce({
+      ok: true,
+      json: async () => null,
+    });
+
+    const { result } = renderHook(() => usePools());
+
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    expect(result.current.error).toBeInstanceOf(Error);
+    expect(result.current.pools).toHaveLength(3);
+    expect(result.current.isStale).toBe(true);
+  });
+
+  it('handles empty items array response', async () => {
+    global.fetch = vi.fn().mockResolvedValueOnce({
+      ok: true,
+      json: async () => ({ items: [] }),
+    });
+
+    const { result } = renderHook(() => usePools());
+
+    await waitFor(() => {
+      expect(result.current.loading).toBe(false);
+    });
+
+    expect(result.current.pools).toHaveLength(0);
+    expect(result.current.error).toBeNull();
+    expect(result.current.isStale).toBe(false);
+  });
+
+  it('cancels state updates on unmount', async () => {
+    let resolveFetch: () => void;
+    global.fetch = vi.fn().mockImplementation(
+      () =>
+        new Promise((resolve) => {
+          resolveFetch = () =>
+            resolve({ ok: true, json: async () => ({ items: mockPools }) });
+        })
+    );
+
+    const { result, unmount } = renderHook(() => usePools());
+
+    expect(result.current.loading).toBe(true);
+
+    unmount();
+
+    resolveFetch!();
+
+    await waitFor(() => {
+      expect(result.current.pools).toHaveLength(0);
+    });
+  });
+});
\ No newline at end of file
diff --git a/apps/web/components/AddLiquidity/PoolSelector.tsx b/apps/web/components/AddLiquidity/PoolSelector.tsx
index c7f31f1..fa27240 100644
--- a/apps/web/components/AddLiquidity/PoolSelector.tsx
+++ b/apps/web/components/AddLiquidity/PoolSelector.tsx
@@ -10,11 +10,18 @@ export interface PoolSelectorProps {
 }
 
 export function PoolSelector({ selected, onSelect }: PoolSelectorProps) {
-  const { pools, loading } = usePools();
+  const { pools, loading, error, isStale } = usePools();
 
   return (
     <div className="flex flex-col gap-2">
-      <p className="text-xs font-medium text-zinc-500 dark:text-zinc-400">Select pool</p>
+      <div className="flex items-center gap-2">
+        <p className="text-xs font-medium text-zinc-500 dark:text-zinc-400">Select pool</p>
+        {isStale && !loading && (
+          <span className="text-xs text-amber-600 dark:text-amber-400" title="Showing cached/mock data">
+            (cached)
+          </span>
+        )}
+      </div>
       {loading ? (
         <div className="flex gap-2">
           {[1, 2, 3].map((i) => (
@@ -24,6 +31,8 @@ export function PoolSelector({ selected, onSelect }: PoolSelectorProps) {
             />
           ))}
         </div>
+      ) : error ? (
+        <p className="text-sm text-red-500 dark:text-red-400">Failed to load pools. Showing cached data.</p>
       ) : (
         <div className="flex flex-col gap-2">
           {pools.map((pool) => {
diff --git a/apps/web/hooks/usePoolTicks.ts b/apps/web/hooks/usePoolTicks.ts
index 414f443..7ea571d 100644
--- a/apps/web/hooks/usePoolTicks.ts
+++ b/apps/web/hooks/usePoolTicks.ts
@@ -67,19 +67,35 @@ export function usePoolTicks(poolId: string | null) {
 
 export function usePools() {
   const [pools, setPools] = useState<PoolDetail[]>([]);
-  const [loading, setLoading] = useState(false);
+  const [loading, setLoading] = useState(true);
+  const [error, setError] = useState<Error | null>(null);
+  const [lastUpdated, setLastUpdated] = useState<number | null>(null);
 
   useEffect(() => {
     let cancelled = false;
     setLoading(true);
+    setError(null);
 
-    fetch(`${API_BASE}/pools?limit=50&orderBy=tvl`)
-      .then((r) => r.json())
-      .then((data: { items?: PoolDetail[] }) => {
-        if (!cancelled) setPools(data.items ?? []);
+    fetch(`${API_BASE}/pools?limit=50&orderBy=tvl`, { cache: 'no-store' })
+      .then((r) => {
+        if (!r.ok) throw new Error(`Failed to load pools: HTTP ${r.status}`);
+        return r.json();
       })
-      .catch(() => {
-        if (!cancelled) setPools(MOCK_POOLS);
+      .then((data: unknown) => {
+        if (!cancelled) {
+          if (!data || typeof data !== 'object') {
+            throw new Error('Invalid response format');
+          }
+          setPools(((data as { items?: PoolDetail[] }).items ?? []));
+          setLastUpdated(Date.now());
+        }
+      })
+      .catch((err: unknown) => {
+        if (!cancelled) {
+          const error = err instanceof Error ? err : new Error('Failed to load pools');
+          setError(error);
+          setPools(MOCK_POOLS);
+        }
       })
       .finally(() => {
         if (!cancelled) setLoading(false);
@@ -90,7 +106,9 @@ export function usePools() {
     };
   }, []);
 
-  return { pools, loading };
+  const isStale = lastUpdated === null;
+
+  return { pools, loading, error, isStale };
 }
 
 function generateSyntheticTicks(): TickData[] {
diff --git a/apps/web/hooks/usePools.ts b/apps/web/hooks/usePools.ts
index 13af23b..5ca3be6 100644
--- a/apps/web/hooks/usePools.ts
+++ b/apps/web/hooks/usePools.ts
@@ -32,7 +32,7 @@ interface UsePoolsParams {
 }
 
 export function usePools({ page, orderBy, search }: UsePoolsParams) {
-  return useQuery<PoolsResponse>({
+  const query = useQuery<PoolsResponse>({
     queryKey: ['pools', page, orderBy, search],
     queryFn: async () => {
       const params = new URLSearchParams({
@@ -45,7 +45,11 @@ export function usePools({ page, orderBy, search }: UsePoolsParams) {
       if (!res.ok) throw new Error('Failed to fetch pools');
       return res.json();
     },
-    refetchInterval: 30_000,
     placeholderData: (prev) => prev,
+    refetchInterval: 30_000,
   });
+
+  const isStale = query.data === undefined && !query.isLoading;
+
+  return { ...query, isStale };
 }