*️Risks & Insurance Fund
There are a variety of risks that are associated with using lending protocols on DeFi. Here we summarize the associated risks and how it is mitigated through careful protocol design:
Insurance Fund
PsyLend has seeded a protocol insurance fund with an initial sum of 100k USDC, that will serve as a backstop against the various risk factors listed above. 50% of protocol fees generated will be redirected back into the insurance fund to support protocol safety.
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