What are the risks?

Blend works with smart contracts, which are a set of programmed instructions. If a hacker exploits a vulnerability in the contract, this can lead to financial losses. To prevent this, these contracts are audited by third-party experts in smart contract security. Blend has already undergone multiple audits. We recommend that you review the latest audits at https://docs.blend.capital/audits-and-bug-bounties. The Blend protocol depends on a component called the “oracle,” which is the mechanism for setting prices based on supply and demand. If the oracle fails and prices are not “correct,” there is a risk of losses. Oracles are also subject to audits, similar to smart contracts. As with any crypto asset, there is the possibility of volatility. This risk is not directly associated with BLEND or the contract, but it is inherent to your investment, as even USDC could vary from its underlying asset, the USD.