Liquidated it could be sold off to the market and you also get a penalty penalty fee and in some cases for example during black Thursday. You might have your entire position liquidated you might lose lose everything. So it’s very important to pay attention to these prices. If you want to participate in this very Risky Business of yield farming, you need to follow the rates constantly almost like it’s a full-time job tit paying attention to the interest rates on supplying and borrowing. And of course paying very close attention, very close detail to the price of the crypto currencies that are used as collateral because as I mentioned if it crashes then the whole system or your pole position can be liquidated. So on top of all of these risks that we went over another major risk is that when you’re interacting with these platforms you are using a hot wallet in this case. I was using meta Mass. This is a hot wallet that is
Line, so if your funds are not protected if you’re not practicing the best security your funds can be hacked and there are people that need this a very lucrative business by interacting with compounds and yield farming using tens hundreds of thousands of dollars. So having that much money on a wall like this is also a risk. I hope you found value in this video go down below and subscribe to the channel. Thank you for listening and I’ll see you next time.