$ALCX Alchemix's self-liquidating loan mechanism is innovative, but it also has some potential risks. Here are some of the main risks:

### 1. Market volatility risk

- **Volatility of collateral value**: If the market price of the collateral asset drops sharply, it may lead to liquidation, affecting the security of the user's assets.

### 2. Repayment risk

- **Insufficient income**: The income generated by the collateral assets in the background may not be enough to fully repay the loan, especially when the market is unstable or interest rates change.

### 3. Smart contract risk

- **Code vulnerability**: Despite audits, smart contracts may still have undiscovered vulnerabilities that may lead to asset losses or attacks.

### 4. Liquidity risk

- **Insufficient liquidity**: In extreme market conditions, there may be insufficient liquidity problems, affecting users' transactions and redemptions.

### 5. Systemic risk

- **Platform dependence**: As a decentralized platform, Alchemix's security and stability rely on its smart contracts and governance mechanisms, and any systemic problems may affect users.

### 6. Governance Risks

- **Governance Decisions**: Decisions made by ALCX token holders may lead to changes in the direction of the protocol, affecting users’ assets and returns.

Before using Alchemix’s self-liquidating loan feature, users should fully understand these risks and make decisions based on their own risk tolerance.