Lugol's is a tissue fixative. It is meant to kill things (all things) and preserve them against bacterial decomposition. It can be used medicinally, but like most medicines it is toxic to everything, but more toxic to the things we want to kill than the things we want to save. At least it if it is effective that is the case. Lugol's works great when treating for bacterially mediated infections on corals IME but often won't kill coral parasites until a dosage that is often lethal to the corals as well.
Chris
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FSM
~ Touched by His noodly appendage ~
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