DeFi lending is highly collateralized, typically over 125%. This makes it more likely that in the event of a borrower default, there may be sufficient collateral to protect your funds. However, as with all digital currency products, Donut is not FDIC insured.

Donut accounts are encrypted using AES-256 standard. We use two-factor authentication for sign-in, and protect all digital assets with cold storage – going above and beyond best practices to keep your account and information secure.

The DeFi ecosystem relies on the integrity of our partners’ closely governed and audited smart contracts. While we're confident in Yearn’s extensive security and risk management practices, we encourage you to use discretion when investing and consider potential risks of this emerging technology. Read more about risk and safety at Donut here.