What is the Major Risk Associated With Decentralized Finance

[Nomad]

Well, in my opinion, one of the biggest risks in Decentralized Finance or DeFi is related to irreversible transaction. Once you send funds over the network the transactions cannot be undone. If funds are sent to the wrong address or if you use the wrong network, your funds will be lost forever. Irreversible transaction can lead to significant financial losses for inexperienced users.

 

[Suba]

I agree with you, Defi transactions cannot be reversed, because they use blockchain, they are final and permanent, and once confirmed, they are immediately recorded in the block. Furthermore, there is also the risk of Oracle failure and the potential for rug pulls.