You run the risk of being liquidated if the price of the borrowed asset appreciates against the deposit token. Your position will be liquidated when the Debt Ratio (debt/collateral value) reaches the Collateral Factor.
This can be mitigated by maintaining a lower Debt Ratio on the borrowed tokens, monitoring positions during volatile market conditions, and taking notice before reaching the liquidation parameters.
Improvement for Smart Contract Risks
Smart contracts are audited by third-party firms, they could theoretically have vulnerabilities.
Mitigation: We run a bug bounty program to provide incentives for people who find vulnerabilities in our live code and come to us as opposed to exploiting them.