# General Risks ### Oracle Risk Basically, Evoq uses the same price oracle as the underlying lending protocols. If an oracle malfunctions or reports incorrect data, it can cause cascading liquidations or protocol errors, leading to bad debt and loss of user funds. ### Liquidation Risk Liquidation doesn't depend on the protocol or any specific members involved. Liquidators are third-party operators open to anyone. Despite economic incentives, sometimes liquidators can malfunction or fail to perform. This can lead to under-collateralization of the protocol and result in bad debt. To address this, a portion of the protocol reserve is allocated to a risk fund to prepare for unexpected losses. ### Smart contract Risk Smart contract risk involves vulnerabilities in automated contracts, such as coding errors and oracle manipulation, which can lead to unauthorized withdrawals, cascading liquidations, and financial losses. Users should be aware of these risks and take responsibility for reviewing the security of smart contract. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.evoq.finance/security/general-risks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.