Types of Risks

At LNDfi, we aim to provide powerful financial tools and competitive returns. However, it is essential to recognize and understand the risks associated with using our lending protocol.

• Market Risks – The crypto market is highly volatile, and significant price fluctuations can impact the value of your collateral and overall investment stability.

• Liquidity Risks – During periods of high pool utilization, liquidity may be low, preventing immediate withdrawals of assets.

• Liquidation Risks – If the value of your collateral falls below the required threshold (Health Factor below 1), your assets may be liquidated to cover outstanding debt, potentially resulting in losses.

• Smart Contract Risks – Despite rigorous audits, all smart contracts carry the possibility of undiscovered vulnerabilities.

• Regulatory Risks – Changes in cryptocurrency regulations may affect the operations of DeFi platforms, including LNDfi.

Risk Mitigation Approach

While no platform is entirely risk-free, LNDfi is committed to minimizing risks through transparency, open-source development, and thorough security audits. We continuously refine our protocol to address smart contract risks and improve stability, ensuring a secure and resilient ecosystem for our users.