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Nexus Market
  • Introduction
    • 👋Hi !
    • Overview
      • Start BUIDLing
  • Links
    • Money Market App
    • Github
    • Telegram
  • Concepts
    • At a Glance
      • Supply
      • Borrow
      • Repay
      • Withdraw
      • Liquidation
      • Flash Loan
      • Risks
    • Protocol
      • Liquidity Pool
      • Reserve
      • Oracle
      • Governance
      • Incentives
      • Safety Module
  • LST as Collateral
  • Coming Soon
  • Guides
    • User Flows
    • Follow-on Steps
  • Developers
    • Smart Contract
      • Pool
      • L2 Pool
      • Wrapped Token Gateway
      • View Contracts
      • Incentives
      • Tokenisation
      • Interest Rate Strategy
      • Access Control Manager
      • Oracles
      • PoolAddressesProvider
      • Pool Configurator
      • Switch Adapters
    • Safety Module
    • Governance
    • Flash Loan
      • Premium Distribution
      • Example Calculation
  • Credit Delegation
  • Resources
    • Web3
    • Glossary
    • Contracts Dashboard
      • Ethereum Sepolia
      • Base Sepolia
      • BSC Chapel
    • Parameters Dashboard
    • Access Control Dashboard
    • FAQ
      • General
      • Risk
      • Supplying and Earning
      • Borrowing
      • Liquidations
      • Governance
      • Safety Module
      • Developers
      • Other Features
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  1. Concepts
  2. At a Glance

Risks

PreviousFlash LoanNextProtocol

Last updated 1 month ago

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While Nexus Money Market provides a secure and decentralized lending environment, users should be aware of certain risks associated with the protocol:

  • Collateral Risk: The value of supplied collateral can fluctuate due to market volatility. If the collateral value drops significantly, borrowers may face liquidation, resulting in a loss of a portion of their assets.

  • Oracle Risk: The protocol relies on price oracles to determine asset values. If an oracle provides inaccurate or delayed price data, it may trigger unexpected liquidations or incorrect borrowing limits.

  • Smart Contract Risk: Even though the platform is built on a tested Aave V2 framework, smart contracts are still subject to potential vulnerabilities or exploits. Users should assess risks before interacting with the protocol.