No DeFi protocol is risk free.

When a user interacts with Silo Finance, they should familiarize themselves with the following non-exhaustive list of potential risks:

  • Smart Contract: Code is written by humans and humans can make mistakes.

  • Economic: Protocols rely on economic models and economic models can have unintended consequences.

  • Liquidation: Lending markets require collateralization and proper collateralization may require liquidations.

  • Bad Debt: Failure in any of the above may cause bad debt and bad debt may mean lenders lose some (or all) of their deposits.

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