🔍 1. Price fluctuations lead to principal loss

• Even if the financial product itself states an annualized yield (such as 10% APY), if the coin you invest in (like ALPHA, ETH) drops more than this yield during the period, your 'total asset value' will still be negative.

• ✅ Example: You deposit 100 ALPHA with an annual interest rate of 10%, but if ALPHA drops in value by 40% within the year, the total value results in a loss.

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🔍 2. Liquidity mining has 'impermanent loss'

• If you join a liquidity pool for coin pairs like 'ALPHA/BNB', significant price fluctuations can cause impermanent loss, leading to an asset combination that does not meet expectations upon exit.

• Even with mining rewards, it may not be enough to cover the losses.

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🔍 3. Choosing products with low or no actual profit

• Some products in Binance Alpha are 'stable low yield', such as 'flexible savings' which only offers a 1–3% annual return, and may not necessarily outpace inflation or fees.

• If you invest for too short a time, or with too little capital, the actual income approaches 0.

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🔍 4. Interest is not paid in cash, but in volatile assets

• Most Alpha yields are paid in coin-based currencies (like ALPHA, ETH, SUI), and these coin prices fluctuate, which may lead to a decline in value when receiving interest, resulting in paper gains → actual losses.

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🔍 5. Ignoring platform fees or tax burdens

• Some yield products may have hidden transaction fees or management fees.

• If you are in Taiwan or other taxable countries, withdrawals or cash-outs may incur tax liabilities.