# Risks > What can go wrong when you supply a stock, from smart contracts, price feeds and liquidations to money markets, stablecoins, tokenized stocks, market hours and rate spikes. Source: https://app.tango.finance/docs/vault/risks Supplying a stock puts it to work at money markets, with debt against it. That earns the spread, and it also adds risks you do not have when you simply hold the stock. This page lists them, with what the contract does about each one and what it cannot do. Read it before you supply, and decide for yourself whether the strategy suits you. > **Key points** > > - The strategy borrows against your stock. A sharp fall in the stock's price can lead to a liquidation that lowers the stock each share holds. > - It depends on money markets, price feeds, stablecoins and the tokenized stock itself. Any of them can fail, pause or lose value. > - Rates change all the time. Borrowing costs can spike above lending income, and the spread can turn negative. > - Contract limits and timelocks narrow what can go wrong. They do not guarantee returns or protect against every loss. Nothing here is investment advice. ## Smart contract risk The vault that holds supplied stock (see [Using a vault](https://app.tango.finance/docs/vault/overview.md)), its venue adapters, its swapper and its price oracle are smart contracts, and so are the money markets they use. A bug in any of them could lose funds. The contract cannot be upgraded, so a flaw in its code cannot be patched in place. These docs make no claim that any contract has been audited. ## Oracle risk Price feeds can be wrong, late or stop. No price is read to count share value, but prices are used to check swaps and harvests, and to value stablecoins other than the default. A stale price stops swaps and harvests, and counts the affected stablecoin as zero, which can put the stablecoin book into deficit. Each feed's own error margin comes on top of the contract's tolerances. Money markets decide liquidations with their own oracles, which the contract does not control. See [Asset support](https://app.tango.finance/docs/vault/assets.md#how-prices-are-read). ## Liquidation risk The strategy borrows against your stock. If the stock's price falls far enough, the money market lets others repay part of the debt and take collateral at a discount. Share value falls by the stock taken, as soon as the venue reports it. The operator can buy stock back from the surplus the liquidation leaves, but liquidators keep a bonus, so a rebuy usually cannot restore all of it. The contract does not manage loan-to-value. The operator does, offchain, and a forced withdrawal keeps each venue's loan-to-value as it was rather than lowering it. See [Health and liquidation](https://app.tango.finance/docs/vault/borrow-venues.md#health-and-liquidation). ## Borrow and lending venue risk Money markets can be paused, changed, drained or left with bad debt. If a borrow venue cannot be read, deposits and every withdrawal stop until the curator abandons it, behind its delay, which writes off the collateral there. A loss at a lending venue counts only once its share price shows it, and a venue's views that fail count as zero. Lending venues can run short of cash to pay out, which limits forced withdrawals. A newly added borrow venue that is badly built could call any function of its own protocol in the contract's name. ## Stablecoin risk The strategy borrows and lends stablecoins. A stablecoin can lose its peg, be paused, or block an address. Other stablecoins are valued at no more than the default stablecoin, but nothing protects against the default stablecoin itself losing value. A blocked fee recipient stops harvests that pay a fee until the curator names another. ## Tokenized stock risk A tokenized stock is issued by a company that sets its rules. The issuer may restrict who can hold or transfer it, pause it, or handle corporate actions such as splits and dividends in ways that change the token's behaviour. A paused token can stop deposits, withdrawals and liquidations alike. Each tokenized stock is also only as good as its issuer's backing and its access to the real share. ## Market hours Stock prices move during US market hours. Price feeds for tokenized stocks may not update outside trading hours, and can hold a price over a weekend or holiday. When trading resumes, the price can move in one step, and a borrow venue can liquidate at once if that step crosses its line. The curation service lowers the strategy's borrowing gradually in the hours before each US close. It borrows back gradually once the next trading day is under way. That leaves more room for a step at the open, but a large enough step can still cross the line. The curation service harvests only while US stock markets are open. The Buy and Sell dialogs show "Prices follow US market hours". ## Borrowing rate spikes A money market's borrowing rate rises as more of its stablecoin is lent out, and can rise steeply when the market is busy. While it is above the lending rate, the stablecoin book shrinks. The curation service repays debt that costs more than lending earns, but rates can move faster than it acts. A long stretch can use up all unharvested profit and leave the book in deficit, which stops deposits and ordinary withdrawals. ## Operator and curator risk The operator acts without delay. It decides how much to borrow, where to lend, which routes swaps take, the release order and when to harvest. Each swap can lose up to its tolerance, capped at 5% by the contract. Holders rely on the operator to keep the book out of deficit, keep the release order sound, rebuy after liquidations and bring rewards back. The curator's changes wait its delay, but then take effect. On tango.finance an automated curation service holds the operator role, and its rules can change. See [Profiles and access control](https://app.tango.finance/docs/vault/roles.md#trust-that-remains). ## Timing between holders Profit counts for whoever holds shares when it is harvested. A holder who leaves before a harvest gives up their part of profit not yet harvested. One who joins just before a harvest shares in profit earned before they arrived. A loss counts only once a feed or a venue shows it, so a holder who leaves before then avoids their share, and the holders who stay carry it. ## Other risks - Each stock has a deposit cap. Once it is reached, new deposits are refused until the curator raises it. The cap never limits withdrawals. - The networks the app runs on can stall or reorder transactions, and a stalled network can make prices stale. - Moving funds between networks relies on third-party routes. See [Move funds](https://app.tango.finance/docs/app/move-funds.md).