> For the complete documentation index, see [llms.txt](https://puzzle-lend.gitbook.io/guidebook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://puzzle-lend.gitbook.io/guidebook/protocol-details/risks.md).

# Risks

Risks associated with supplying and borrowing

**100% Utilization Risk**

If your supplied asset has high borrow demand, Suppliers risk the possibility that 100% of the supply may be lent out. In that case, Suppliers will temporarily not unable to withdraw their supply  until other users repay their loans or supply additional funds.

**Liquidation**

If the value of Supplier collateral dips below the threshold determined by asset LTV (loan to value ratios), a portion of debt will be liquidated with a liquidation penalty deducted from the deposited collateral.

Crypto assets are highly volatile. Due to sharp price fluctuations, liquidation may occur suddenly. There is a possibility that supplied collateral will not cover a debt position.

**Smart Contract Risk**

We do our best to prevent all possible attacks. However, the risk of exploit can never be fully eliminated.

Also, we don’t recommended putting a significant amount of supply before Puzzle Lend smart contracts get official audits.

**Asset Risk**

Crypto assets are volatile and are subject to many risks, including but not limited to adoption, speculation, regulatory change, technology, and security risks. Any asset may be subject to large swings in value and may even become worthless.

The well-being of each isolated market depends on all its assets. Assets of other markets do not affect the market.