My iphoto on my imac somehow updated on its own and now its saying "The photo library needs to be upgraded to work with this version of iPhoto." have i lost my photos?

I tried to open my iphoto last night on my iMAC and it somehow updated on it's own and now has a message saying  "The photo library needs to be upgraded to work with this version of iPhoto. Your photo library will not be readable by previous versions of iPhoto after the upgrade.The upgrade process for very large libraries may take an hour or more to complete." I only have the option to quit or upgrade. What does this mean? Have i lost my pictures? i don't properly have my back up hard drive set up so all my pictures aren't backed up.

"The photo library needs to be upgraded to work with this version of iPhoto. Your photo library will not be readable by previous versions of iPhoto after the upgrade.The upgrade process for very large libraries may take an hour or more to complete."
After your iPhoto application got updated to a new version, iPhoto will convert the iPhoto library to a new format, that is used by the new version. The warning tells you, that after this upgrade older iPhoto versions will no longer be able to read the iPhoto library. If you have a second Mac with older software that might be important. Make a backup to be on the safe side and let iPhoto upgrade the library.

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