DeFi involves real financial risk. Using Fira means interacting directly with smart contracts on Ethereum — there is no intermediary, no deposit insurance, and no way to reverse a transaction once confirmed. Loss of funds is possible.
This collection covers six categories of risk you should understand before using Fira:
Interest Rate Risk — Fixed rates aren't always truly fixed; variable rates can spike
Liquidation Risk — Borrowers can lose collateral automatically if health deteriorates
Collateral Risk — The assets backing loans can fail in multiple ways
Liquidity Risk — Exiting or withdrawing may not always be possible at a fair price
Smart Contract Risk — Code can contain bugs, even after auditing
Bad Debt Risk — Liquidation shortfalls can result in losses shared by lenders
For information on the security measures Fira has put in place — audits, bug bounty, and operational controls — see Security Measures & Audits.
No audit, bounty, or protocol mechanism eliminates risk. Do your own research and never deposit more than you can afford to lose.