# Risk Management and Security

Unlike traditional risk management models, DeFi eliminates the need for an intermediary, decreasing the risk of a single point failure. In order to manage DeFi risk appropriately, we must know that it differs from traditional models, by having different collateralization mechanisms due to its decentralized nature.

Return Finance manages risk by setting criteria for our technology to automatically monitor and adjust positions based on inputs. Total value locked, APY, liquidity and outflows, asset ratios, auditability and insurability are all examples of criteria set within our system.

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