Technical Risk is the probability of loss due to hacks, bugs, or other technical issues that may arise.

In the context of decentralized finance (DeFi), technical risk refers to the potential for losses or other adverse effects that may result from technical issues or flaws within a DeFi protocol or application.

Technical risk is an important consideration in DeFi, as it can have significant impacts on the performance and stability of a DeFi protocol or application. Some common sources of technical risk in DeFi include software bugs, network outages, and security vulnerabilities.

In order to manage technical risk in DeFi, it is important for investors and users to carefully research and evaluate the technical aspects of a DeFi protocol or application before making any decisions to invest or participate. This can help to ensure that the protocol or application is well-designed, well-tested, and secure, and it can help to minimize the potential for losses or other adverse effects due to technical issues.

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