# Risks

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Providing liquidity to ichi.farm or minting stable coins on ichi.farm is not without risks.   Please don’t supply your life savings, or assets you can’t afford to lose, to ichi.farm.
{% endhint %}

### **Minting**

When minting ichi.farm stable coins, you are exposed to some risks:

1. Smart contract issues, bugs, or economic loopholes/exploits with the ichi.farm protocol
2. Risks with the digital assets used as collateral, typically stable coins:
   * Maker Dao risks: <https://makerdao.com/en/whitepaper/#risk-parameters-controlled-by-maker-governance>
   * USDC risks: <https://support.usdc.circle.com/hc/en-us/articles/360001314526-Circle-USDC-Risk-Factors>
   * USDT risks: <https://tether.to/legal/>
3. Market, trading, liquidity, and exchange risks associated with non-collateral, cryptocurrency assets
4. Governance risks: Governance could make poor decisions on treasury management or important stable coin parameters, such as minimum reserve percentage

### **Liquidity Provision**

When providing liquidity to the ichi.farm exchange, you are exposed to many risks:

* Smart contract issues
* Impermanent loss: <https://cointelegraph.com/news/report-impermanent-loss-on-uniswap-and-other-amms-is-always-permanent>
* Market, trading, liquidity, and exchange risks

### **Farming**

When staking liquidity pool tokens to get ICHI, the ichi.farm governance token, you are exposed to many risks:

* Smart contract issues
* Market, trading, liquidity, and exchange risks