Crypto DeFi is still a relatively new and untested technology. As such, there are a number of risks associated with using DeFi platforms, including:
Smart contract risk: DeFi platforms rely on smart contracts to execute transactions. Smart contracts are complex pieces of code, and they can be vulnerable to bugs and exploits.
Market risk: The cryptocurrency market is volatile, and the prices of crypto assets can fluctuate wildly. This means that users could lose money if they borrow or lend crypto assets at the wrong time.
Regulatory risk: The regulatory landscape for crypto DeFi is still evolving. It is possible that governments could introduce regulations that could impact the use of DeFi platforms.