> For the complete documentation index, see [llms.txt](https://guide.dem.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.dem.exchange/earn/nitron-lend-and-borrow/risks.md). # 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 This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://guide.dem.exchange/earn/nitron-lend-and-borrow/risks.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. 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.