Risks
Overview
Participating in DeFi protocols, including Pluz Finance, involves various risks. Understanding these risks helps users make informed decisions about their investments and activities on the platform.
Smart Contract Risk
Smart contracts underpinning Pluz Finance may contain bugs or vulnerabilities despite rigorous audits. These risks can potentially lead to loss of funds.
Market Risk
The value of collateral and borrowed assets can fluctuate due to market conditions, affecting users' positions and potentially leading to liquidations.
Liquidity Risk
Low liquidity in Pluz Finance Vaults can affect users' ability to withdraw or move assets quickly, especially during high demand periods.
Operational Risk
Technical issues, including system downtime, cybersecurity threats, or failures in protocol integration, can impact the platform's performance.
Mitigation Strategies
Pluz Finance employs several strategies to mitigate these risks:
Regular Audits: Conducted by leading security firms to identify and address vulnerabilities.
Insurance Fund: Provides coverage against potential losses from unforeseen events.
Automated Monitoring: Continuous oversight of market conditions and user positions to manage risks proactively.
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