Risks

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.