1) You don't have to use DE
2) You only use a little bit, just enough to raise PSI 1lb.That usually means 1/4 to 3/4 of a cup.
3) DE shouldn't hurt your grass, but it will kill many kinds of bugs.
4) It won't affect your pool's warranty, but may affect the filter warranty, but shouldn't as it won't damage the filter.
5) I would not tell the builder. Not his business.
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