Skip to content
Education only · not financial, tax or legal adviceCanadian facts checked 2026-10-31 · a MITEY site
Menu
Infographic

DeFi risk map: likelihood and severity (editorial)

An editorial teaching map, not a measurement. Positions reflect how often each risk tends to affect ordinary users and how badly when it does.

Mitey the yeti talking a plan through with an older yeti, with a warning sign
Mitey says: Every number in this picture is worked out in the notes below it.
Risk mapLikelihood for an ordinary user →Severity →ScamsBridgeSmart contractLiquidationDe-pegOraclePlatform failureLost keysRegulatorywatch closely
DeFi risk map: likelihood and severity (editorial). An editorial teaching map, not a measurement. Positions reflect how often each risk tends to affect ordinary users and how badly when it does.

Reading the infographic

  • Scams and phishing: common and often total loss.
  • Bridge failures and smart-contract exploits: less frequent for any one user, but severe.
  • Liquidations: common for borrowers in fast markets; partial loss plus penalties.
  • Stablecoin de-pegs and oracle problems: occasional; severity depends on design and exposure.
  • Platform failure and lost keys: can be total; mostly preventable with checks and backups.
  • Regulatory change: frequent but usually lower direct loss.

Go deeper

You may share this infographic with a link back to this page. Numbers are hypothetical teaching examples unless a date and source are shown.

Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.