> For the complete documentation index, see [llms.txt](https://etherfi.gitbook.io/etherfi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://etherfi.gitbook.io/etherfi/resources/ether.fi-whitepaper/risks.md).

# Risks

The risks of using ether.fi: account access, smart contracts, staking, Liquid vaults, borrowing, trading, the Cash card, and legal availability.

Using ether.fi involves risk, including the loss of some or all of your assets. Which risks apply depends on the products, assets, networks, and third-party services you use.

## Risks that apply everywhere

| Area                        | What can go wrong                                                                                                              |
| --------------------------- | ------------------------------------------------------------------------------------------------------------------------------ |
| **Account access**          | Your sign-in method is compromised, you lose your signing device, you approve a malicious instruction, or recovery is misused. |
| **Smart contracts**         | Bugs, exploits, wrong configuration, upgrades, privileged roles, module permissions, oracle failures, or governance failure.   |
| **Blockchains and bridges** | Congestion, reorganizations, outages, bridge failure, delayed finality, or deposits to an unsupported network.                 |
| **Markets and assets**      | Price swings, a lost peg, thin liquidity, issuer or counterparty failure, or restrictions on a specific token.                 |

## Risks by product

### Staking and restaking

Validator penalties and slashing, operator failure, oracle errors, Ethereum withdrawal delays, thin liquidity, and weETH trading below its redemption value. Restaking products add the risks of the restaking protocol, its strategy, and its operators.

See [Slashing Risk](/etherfi/security/security-and-risks/slashing-risk.md) and [weETH / eETH](/etherfi/products/staking/eeth.md).

### Earn

Liquid vaults depend on their contracts, strategy providers, assets, oracles, and the DeFi protocols each strategy uses. A vault can lose value, delay withdrawals, or run short of liquidity. Past or displayed rewards are not a guarantee.

See [Earn](/etherfi/products/liquid.md) and the architecture page for the vault provider.

### Borrow

Supply and borrow rates change. If your health factor reaches the liquidation threshold, some or all of your collateral can be liquidated. Liquidity, collateral values, interest, oracle prices, and risk parameters can all change.

See [Borrowing Power, Health Factor, and Liquidation](/etherfi/products/borrow/borrowing-power-and-liquidation.md).

### Markets

Trading carries market, liquidity, slippage, smart contract, aggregator, and settlement risk. Tokenized stocks, metals, and currencies depend on their issuers and may not give you the same rights as holding the asset directly.

### Card and payments

Card use is governed by your Cardholder Agreement and the Issuer's terms. Availability, benefits, limits, rewards, fees, disputes, and supported regions can change. Card payments and transfers depend on third-party payment infrastructure. The Cash card is not affiliated with the ether.fi protocol.

## Legal and availability

ether.fi is not a regulated financial institution. Products may not be available in all jurisdictions. Access can depend on where you live, your citizenship, identity verification, and your account type. Laws, tax treatment, and product terms can change.

Read the [Terms of Use](https://www.ether.fi/legal/terms-of-use), the [legal agreements](/etherfi/legal/ether.fi-legal.md), and [Security & Risks](/etherfi/security/security-and-risks.md) before you use a product.


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