The underlying markets are conservatively parameterized to handle collateral volatility, but some risk remains and loss of principal is possible. Collateral value can change with market conditions and the state of the Apyx protocol, and in the event of a sharp drop in value, a depeg, or a protocol level failure, liquidations may not execute smoothly, potentially leading to losses. Other risks, including those related to smart contracts and oracles, also apply, so please review carefully before depositing.