Yes be super careful with Labrea on VPS providers and dedicated server providers. They tend to get upset if you are trying to pick up IP's. In most cases it won't even work on KVM hosts.
I've used Labrea on unused address space to make ARIN/RIPE happy back in the day and that was harmless, as entire /16's and /17's were unused. They used to nag about nothing in the /16's being pingable, so Labrea made it all 100% pingable