#OnChainLendingSurge
🚨🚨🚨🚨🚨High Risks associated with on-chain lending!!!
📌Volatility: Crypto asset prices can change dramatically, posing a risk of liquidation to borrowers.
📌📌Smart Contract Risks: Smart contract bugs or vulnerabilities can result in a loss of cash.
📌📌📌Regulatory Uncertainty: The legal position of on-chain lending differs per jurisdiction.
🚫🚫🚫 Lenders may experience losses if asset values fluctuate during the lending period.
🚫⛔ Market risks include low liquidity and abrupt surges in demand, which can affect interest rates and availability.
🤝🤝👏On-chain lending is changing the way traditional financial services are delivered by offering borrowers and lenders a decentralized, accessible, and efficient alternative.
Smart contracts enforce the loan terms, reducing human error and administrative costs.
🚨🚨🚨 Conclusion : Loans are not meant for a spending spree, you should have a good and specific reason for taking a loan.
Be responsible with your spending. Spend only what you can afford to let go