Exposure to moderate to-high amounts of acetone can irritate your eyes and respiratory system, and make you dizzy. Very high exposure may cause you to lose consciousness. This chemical has been found in at least 572 of 1,416 National Priorities List sites identified by the Environmental Protection Agency.

Class 4 dangerous goods include flammable solids, substances liable to spontaneous combustion and substances which, in contact with water, emit flammable gases.

They are as follows: Division 2.1: Flammable Gases. These gases are known to ignite on contact with ignition sources. This includes acetylene, hydrogen, propane and many others.

According to Regulation EC 1272/2008 classified as Flammable Liquid Category 2, Eye Irritant Category 2, Specific Target Organ Toxicity Single Exposure Category 3.

Class IA liquids are liquids that have flash points below 73 °F (22.8 °C) and boiling points below 100 °F (37.8 °C). Additionally, unstable flammable liquids are treated as Class IA liquids. Typical Class IB liquids include acetone, benzene, ethyl alcohol, gasoline, and isopropyl alcohol.

Your body makes small amounts of acetone. You can be exposed to a small amount of acetone by breathing air, drinking water, and eating food with acetone. You can also be exposed by contact with household chemicals with acetone.

Breathing moderate to high amounts of acetone for a short amount of time can irritate your nose, throat, lungs and eyes. It can also cause headaches, dizziness, confusion, a faster pulse, nausea, vomiting, effects on the blood, passing out and possible coma, and a shorter menstrual cycle in women.

sure you can dilute it with water if you want to however diluting it will make it work slower which means you leave acetone on the nail longer which means it could melt it more easily.