What Are the Risks Associated with Web 3 Loans?Although Web 3 loans are becoming increasingly popular, there are still some risks associated with taking out a loan. These include:
- Repayment risk: In some cases, borrowers may not be able to repay the loan. This could lead to default and serious financial consequences.
- Technology risk: Web 3 loans are secured by blockchain technology, but there is still some risk of technology failure or hacking.
- Regulatory risk: Web 3 loans are still relatively new and regulations may change in the future, which could have an impact on the loan.