Understanding DeFi Risks

A lending protocol's code works perfectly, but a token it accepts as collateral loses its backing. What kind of risk is that?

• A contract bug
• Dependency risk
• Oracle manipulation

What is the rule this course uses for sizing a position in one protocol?

• As much as you like, if the protocol has been audited
• No more than half your DeFi money
• No more than 10% of your DeFi money, and only an amount you could lose entirely