# Risks

DeFi applications in any environment are risky, especially when built on a new technology. There are a number of risks with liquid staking and our MPC solutions, as well as the ecosystem we've built on. While this list is **not complete,** we hope it can give users an idea.

Some risks include:

* **Smart Contract Risk -** Risk of funds loss via vulnerabilities or bugs in our token contracts 
* **Software Risk -** Our MPC technology is built off of a third party FOSS software that may have vulnerabilities or bugs
* **Compromise Risk -** Our MPC technology utilizes an x-of-n model that means that if a certain number of our MPC nodes are compromised, funds can be stolen
* **Protocol Risks -** Bugs in the underlying protocol or changes in the underlying protocol can lead to loss of funds as well as potential irregular 
* **Corporate Risk & Regulatory Risk** 
* **and more**