What Are the Key Risks in Crypto Lending for Advanced Users?

[AIcash]

Answer: Advanced crypto lenders face multiple layers of risk:

Smart Contract Risk: DeFi protocols rely on code that can be exploited. Even audited contracts have been breached.

Counterparty Risk: Centralized lending platforms can default or mismanage funds.

Liquidation Risk: Collateral values fluctuate; a sudden drop can trigger automatic liquidations.

Interest Rate Volatility: Rates can spike unexpectedly, affecting profitability and exposure.
Advanced users often mitigate these risks through diversification, over-collateralization, and protocol research.

[Pitchfork_IS_power]

Risk never sleeps in DeFi — diversify and stay sharp

[The_Walking_Dead]

True — DeFi rewards the disciplined. Research + risk controls = survival in this arena. ️