# Risks

## 1.Revenue farmers and liquidity providers

Exposure to the risk of unpredictable losses.

## 2.Leveraged revenue farmers and leveraged liquidity providers&#x20;

Exposure to the risk of being liquidated.

## 3.HOO Lenders

When not liquidated in a timely manner, it exposures the risk of sharing the debt arising from the underwater position.

## 4.Liquidators&#x20;

Exposure to  the risk of competing with others for liquidation bonuses. If you win, gas fees are free, otherwise high gas fees are likely.

## 5.Routine risks of Defi&#x20;

This includes permanent loss, scams, wallet depletion, private key theft, etc. Therefore, DeFi users must be cautious and learn the good habits of DeFi in this zone.

## 6.Risk of Smart Contract&#x20;

Smart contracts have brought innovative uses to cryptocurrencies, such as interactions with DApps. However, due to the complexity of smart contracts, certain smart contracts may be more vulnerable to hacking. At Shouyi, we have equipped each smart contract with a 24-hour lockdown and have hired a reputable auditor to review the entire platform, thus reducing the risk of smart contracts. Did you know: most Shouyi machine gun pools operate with 1 smart contract (no need to build new smart contracts) and new machine gun pools are created using the same constructs (but with different constructors; i.e. parameters/inputs to the contract). Therefore, there is no need to worry about creating a new contract every time more machine gun pools are added, thus constantly reducing the need for new audits.

## 7.Third Party Risks

Shouyi is a combinable leveraged reinvestment protocol, and these machine gun pools have automatic compounding. However, the tokens used in the machine gun pools do not indicate a partnership with Shouyi. To clearly indicate this risk, we have divided the machine gun pools into risk pools and stable pools. Obviously, risk pools represent a greater risk and therefore users should be careful.
