Market & Rate Risk
- Price volatility: collateral can fall fast; keep buffers
- Correlation: multiple assets can drop together; diversify thoughtfully
- Interest rates: borrow costs can rise and supply yields can fall
Liquidation Risk
If HF < 1.0, liquidators can repay part of your debt and take collateral at a discount. Avoid by keeping HF well above 1.0 (1.5+ recommended), setting alerts, and acting early.Smart Contract & Oracle Risk
- Code bugs or integration issues can cause loss
- Bad or delayed prices can affect HF unexpectedly Mitigate by limiting exposure, spreading risk, and staying informed about updates.
Operational & Liquidity Risk
- Network congestion can delay urgent transactions
- Pool liquidity constraints can limit large withdrawals Plan for emergencies: keep fee tokens and an action plan ready.