There are three main, potential risks:
Partner platform risk
Grow is powered by Yearn’s lending platform. There is always a small risk of failure, but Yearn mitigates this through best-in-class security, regular audits, and loan loss reserves.
With any lending, borrower default is a risk. We mitigate this with over 125% collateral to protect your funds.
Donut is built on Ethereum's infrastructure, which could potentially fail. This is extremely unlikely.