DeFi risk management separates power users from those who get rekt. High yields attract attention, but without proper risk controls, a single exploit can wipe out years of gains.
Key Takeaways
- Every DeFi position has multiple layers of risk—assess them all
- Size positions assuming 100% loss is possible
- Diversify across chains, protocols, stablecoins, and risk tiers
- Monitor positions actively—set up alerts for key metrics
- Have a disaster recovery plan before you need it
- Consider insurance for larger positions
- Risk management isn’t sexy, but it’s what keeps you in the game