Collateral and liquidation: the risk behind crypto borrowing
Understand how a position can close without your approval when risk limits are crossed.
Learn decentralized finance concepts, liquidity pools, staking, lending and smart contract risks. Follow clear explanations and related beginner reading.
Learn the underlying mechanism before comparing an application or a quoted return.
Follow the connected lessons ↗ Try the related practice exercise ↗Understand how a position can close without your approval when risk limits are crossed.
Learn how a DEX liquidity pool prices swaps, why trade size changes output, and how price impact differs from slippage.
See how a 2× price move can leave a constant-product pool about 5.7% behind holding before fees—and why pool design matters.
Understand the difference between a displayed price and an executable exit.
Learn how blockchain oracles bring outside data to smart contracts—and why source quality, update timing and stale-data rules matter.
Distinguish an order’s own effect from other changes between quote and execution.
Read audit scope, deployed versions and remaining powers before trusting a security badge.
Compare staking and lending by where returns come from, what can fail and which risks the user carries.
What is DeFi? See how interfaces, wallets, smart contracts and assets fit together—and what decentralization does not guarantee.
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