# Risks for Borrowers (Yield Farmers)⚠️

| Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Alleviation                                                                                                                                                                                                                                                                                                                                                                               |
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| <p><strong>Impermanent Loss:</strong></p><p>risk of (impermanent) capital loss from asset rebalancing in the Automated Market Maker ("AMM") pool.</p>                                                                                                                                                                                                                                                                                                                                                                                | <p>​</p><p>​​🌟 Impermanent loss is common among all yield farming and AMMs. While we currently do not yet have a way to alleviate IL, users can choose to yield farm asset pairs that have high correlations to minimize potential IL. For more information on IL, you can start with this <a href="https://academy.binance.com/en/articles/impermanent-loss-explained">article</a>.</p> |
| ​Content                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | ​Content                                                                                                                                                                                                                                                                                                                                                                                  |
| <p><strong>Liquidation:</strong></p><p>if you open a leveraged yield farming position, BTESTA Finance borrows a base asset for you to farm. You run the risk of being liquidated if price of the borrowed asset appreciates against the farming token pair. Your position will be liquidated when the Debt Ratio (debt / position value) reaches the Liquidation Debt Ratio. ​📌 <a href="https://app.gitbook.com/@btesta-finance/s/btesta-finance/our-protocol/btesta-space">See Space Key Parameters</a> for more information.</p> | <p>​</p><p>​​🌟 This can be alleviated by using a lower leverage level, monitoring positions during volatile market conditions, and closing them before hitting the liquidation parameters.<br></p>                                                                                                                                                                                       |


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