# Risks ## Introduction There are risks involved in using Nitron. This document attempts to assess the different risks that users will undertake by using Nitron. However it is not possible to identify all possible risks that exists, and as such this assessment is not, and does not attempt, to be wholly complete. ### Exchange Risk As Nitron is non-custodial, there is no risk of the exchange stealing your funds. However, there is a risk that there are bugs or flaws in the code or logic of the underlying protocol. ### Counterparty Risk Nitron is over-collaterized, so there is no risk of borrowers defaulting on their loans in typical situations. However, due to market movements and asset liquidity profiles, there is a risk that borrowers' collateral may drop below what they borrowed. This is described in the next section, Asset Risk. ### Asset Market Risk Every user is able to use multiple types of collateral to borrow multiple types of assets in a single position. Since all assets are treated as a single basket, users cannot choose which collateral to accept, and all lenders have the same risk exposure if a certain asset moves quickly against a borrower. The protocol has multiple [safety features](/earn/nitron-lend-and-borrow/protocol-safety-features.md) to mitigate such risks. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://guide.dem.exchange/earn/nitron-lend-and-borrow/risks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.