DeFi. The risks involved in lending on DeFi.

The risks involved in lending on DeFi include:

• Credit risk: DeFi loans are typically made without traditional credit analysis, meaning users can lose their assets if the loan borrower does not pay back.

• Liquidity risk: Decentralized lending platforms may not have enough liquidity to repay all loans at the same time, which can result in loss for users lending assets.

• Regulation risk: DeFi regulations are still developing and can change rapidly, which can negatively affect decentralized lending platforms.

• Security risk: DeFi platforms are susceptible to cyber attacks and other forms of security breaches, which can result in loss of assets for users.

• Volatility risk: Asset prices on DeFi can be highly volatile, which can result in significant loss for users lending those assets.

It is important for users to understand these risks and do their own research before lending assets on DeFi. It is always recommended to diversify assets and not put everything in a single loan or platform.