# Risks Breakdown The three common types of risks of DeFi include **financial risk**, **procedural risk**, and **technical risk**. 1.**Financial risk** relates to potential rewards of investment opportunities and management of the opportunities. Financial risk is commonly attributed to an organization or the risk tolerance of an individual. Financial risks also depend on the objectives of an individual for the management of a successful investment portfolio. 2.**Technical risk** directly relates to hardware and software issues of DeFi products or services. 3.**Procedural risk** relates to the user and the methods they employ for using DeFi products or services that can compromise security. Procedural risks are almost similar to technical risks, in association with end-users(i.e. USER ERROR). --- # 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://absorber.gitbook.io/absorber/absorber-token/risks-breakdown.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.