Risks

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.