# Risks At Yei Finance, while we strive to offer robust financial tools and returns, it's crucial to acknowledge and understand the inherent risks associated with using our lending protocol: * **Market Risks:** The crypto market is volatile; significant price fluctuations can affect the value of collateral and the stability of your investments. * **Liquidity Risks:** There might be instances when liquidity is low, and you are unable to withdraw your assets immediately, particularly when the pool's utilization is high. * **Liquidation Risks:** If the market value of your collateral falls below the required threshold (Health Factor below 1), your assets may be liquidated to cover the loan, potentially leading to losses. * **Smart Contract Risks:** While our platform is built on thoroughly audited smart contracts, there is always a risk of undiscovered vulnerabilities. * **Regulatory Risks:** Changes in cryptocurrency regulations could affect the operations of DeFi platforms, including Yei Finance. While Yei Finance strives to minimize risks, no platform is entirely risk-free. Key concerns include potential smart contract bugs and the risk of collateral liquidation. Our commitment to transparency, open-source code, and comprehensive audits are central to our risk mitigation strategy. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.yei.finance/products/yeilend/mechanism/risks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.