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LRF conversion to ePub generally has a variety of issues, though all very minor. Softbreaks aren't preserved unless you enable heuristics and the format scene breaks option. It also puts every single paragraph in a <div> tag, which is a bit weird when you're using to managing paragraphs in <p> tags, but it does work. TOC creation from LRF can be hit or miss too.
Generally PRC (same as mobi) will probably work out better for you for a typical ebook. There may be strengths to LRF in specific cases, but I'm not sure what those would be.
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