#DeFiGetsGraded DeFi, short for Decentralized Finance, refers to financial services and systems that operate on blockchain technology and are decentralized, meaning they don't rely on traditional financial intermediaries like banks. DeFi platforms provide various financial services, including lending, borrowing, trading and yield farming.

*DeFi Risk Management*

DeFi risk management involves identifying and mitigating potential risks associated with these platforms. Some key risks include¹:

- *Smart Contract Risks*: vulnerabilities in smart contracts can lead to exploits and hacks, resulting in significant losses.

- *Market Risks*: market volatility