Investing in decentralized financial (DeFi) systems offers innovative opportunities but comes with notable risks. Here are some key risks to consider: Smart Contract Vulnerabilities: DeFi platforms rely on smart contracts to automate transactions. Bugs or vulnerabilities in these contracts can lead to significant financial losses. Hacks and exploits targeting smart contracts are not uncommon. Regulatory Uncertainty: DeFi operates in a largely unregulated space, which means that future regulations could impact its legality and functionality. Sudden regulatory changes could affect your investments. Market Volatility: Cryptocurrencies and DeFi tokens are known for their price volatility. This can result in substantial gains, but equally significant losses, making the market highly unpredictable. Liquidity Risks: Some DeFi projects may suffer from low liquidity, meaning it could be difficult to convert assets into cash quickly without impacting the market price. Security Risks: ...