Living labs as a research approach have been said to hold many promises regarding the evaluation of state-of-the art technologies in real-world contexts, for instance by allowing close cooperation with various stakeholders. At the same time, a living lab approach is connected with substantial complexity and increased risk. This paper elaborates on a conducted living lab with the objective to explore challenges and opportunities of mobile participation. For this purpose, a novel mobile application enabling interaction between citizens and city authorities was tested over a period of five months in Turku, Finland. In this paper, we describe identified risks associated with a living lab approach to mobile participation research. We conclude with an overall evaluation regarding the appropriateness of the living lab approach within the e-participation research field and provide recommendations on how to balance potential and risk in future projects.