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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.
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.
Nitron works similarly to Aave in that each 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.