GLOW uses Oracles . Oracle failures or incorrect data can cause cascading liquidations and bad debt.
Smart Contract Risk
Complex smart contracts may contain bugs, vulnerabilities, or be exploited in unintended ways, leading to partial or complete loss of funds.
Third-Party Protocol Risk
Lender assets are exposed to integrated protocols. Exploits on these protocols can result in loss of lender capital. That is why we will have limits in deposits that will be increasing slowly to accomodate growth.
Liquidation Failures
Liquidators may malfunction or fail to perform, potentially under-collateralizing the protocol and causing Lenders losses. However fees are creating an insurance fund that automatically covers any bad debt created from delayed liquidations.
Withdrawal Limitations
High pool utilization may temporarily prevent withdrawals when most liquidity is actively borrowed. But during that period lenders will enjoy very high APR.