📌 Risks to Know When Participating in P2P Lending on Binance

Participating in P2P lending (peer-to-peer) on Binance offers an opportunity to earn additional passive income; however, users need to understand the potential risks before getting involved:

🔹 Credit risk: Borrowers may not repay on time or may default, resulting in losses for lenders.

🔹 Market volatility: The value of collateral assets may decline significantly, causing the loan to lose value.

🔹 Legal & compliance risk: Each country has different regulations regarding P2P financial activities, and users need to research thoroughly to ensure compliance.

🔹 No capital insurance: Binance does not guarantee profits or capital return for P2P loans.

⚠️ Note: This article is for informational purposes only. It is not investment advice. Users need to assess risks and make decisions that align with their personal financial capacity.

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