Water-based or latex waterproofing paints are generally safe, but they contain micro-particles of minerals such as crystalline silica, which fill the pores in the concrete. Inhaling these particles during the painting process can be harmful to the lungs. Painters should wear the manufacturer's recommended respirator and safety glasses when applying a waterproofing paint, especially if they are using a spray gun. In addition, most latex waterproofing paints contain VOCs -- volatile organic compounds -- which are emitted into enclosed basement spaces until the coating has cured. Inhaling VOCs is harmful for children and adults with asthma and other respiratory disorders.
Rather than relying on a mineral compound like the latex waterproofing paints, elastomeric waterproofing paints create a thick rubberized film to hold back the water pressure. These can be a very safe choice, because a water-based elastomeric basement paint can be formulated with little or no VOC content. However, some elastomerics may contain phthalates, a plasticizing agent that's banned from use in children's toys.
These coatings are supplied as a powder that should be mixed with water immediately before application. They work by filling the concrete's pores with Portland cement and potentially hazardous ingredients such as crystalline silica. Painters should wear a respirator and safety glasses during mixing and application. Once the paint has dried, however, these paints are relatively safe because they contain no toxic chemicals that might contribute to poor indoor air quality.
There are no secret ingredients in paint. Stores that sell paint are required to supply current material safety data sheets, or MSDS, to customers upon request. You should also request the paint's general data sheet and the paint can's label carefully for application instructions that advise you which safety equipment is appropriate for your project.