# Risks Decentralised finance and the crypto space in general is the wild west. Not only are there countless rugs and scams but smart contracts are susceptible to bugs and are inherently risky. Impermanent loss is also an issue many people do not understand. Impermanent loss - **Impermanent loss** is when a liquidity provider has a temporary **loss** of funds because of volatility in a trading pair. Rug pull - In normal English lexicon, to pull the rug out (from under someone) means to to suddenly take away important support (from someone). In the context of crypto and Decentralized Finance (DeFi), having been rug pulled means to have buy support or Decentralized Exchange (DEX) liquidity pool taken away from a market. This results in a sell death spiral as other liquidity provider, holder and traders sell to salvage their holdings. Typically, it is a new form of exit scamming where someone will drain the pool at DEX, leaving the token holders unable to trade. Users should always do their research into any project they plan to interact with. Although most users do not understand smart contract code, it is imperative to get a second opinion from someone educated before jumping into any project. Learn how to keep your funds safe - [**https://letmeape.medium.com/how-to-keep-your-funds-safe-metamask-guide-816773968310**](https://letmeape.medium.com/how-to-keep-your-funds-safe-metamask-guide-816773968310) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://zeusdefi.gitbook.io/zeus-finance/extra-info/risks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.