Managing DeFi Risk

Decentralised finance offers attractive yields but also carries risks. Impermanent loss occurs when the price ratio between two pooled assets changes; your share of the pool may be worth less than if you simply held the assets. Smart‑contract vulnerabilities, protocol exploits and insufficient liquidity can lead to loss of funds. Always research the projects you invest in, diversify your holdings and only allocate capital you can afford to lock up. Gopnik Wallet provides risk indicators and encourages prudent allocation through its analytics features.