🩺 Pursuing high returns in DeFi lending and mining? First, give your operation strategy a "health check." It's like inspecting the brake system before driving—safety is the prerequisite for earning profits.

Let's look at these 5 key self-check items—have you paid enough attention to any of them:

**1. Is the collateralization ratio leaving enough safety margin?**
This is a lifeline. When borrowing stablecoins with assets like BNB, the collateralization ratio must stay above 200%. If the asset price drops and the ratio approaches the liquidation threshold (usually around 150%), your collateral may be automatically sold. At that moment, your plan could fall apart.

**2. Is the borrowing cost fixed or floating?**
Many jump in when they see the current 1% interest rate. But many lending protocols have dynamically adjusted rates. A 1-2 percentage point increase in cost can squeeze out arbitrage opportunities.

**3. Is the net profit truly positive?**
Don’t be fooled by gross returns. This formula must be calculated clearly: **Financial yield - Borrowing interest - Gas fees - On-chain interaction costs = Actual net profit**. Often, transaction fees eat up more than half of the profit.

**4. Did you choose the right collateral?**
Interest-earning assets with low volatility (like PT tokens) have much lower risk levels than high-volatility mainstream coins. A single choice can impact your entire "health check" score.

**5. Do you have a contingency plan for extreme market conditions?**
Have you set price alerts? Do you have an emergency plan in mind? When a black swan event occurs, whether you have a plan determines if you can rationally cut losses or be forced to liquidate.

**Final words**
In the DeFi world, understanding and managing risk is your biggest source of profit. Don’t overlook these detailed checks—they often serve as your last line of defense.

How do you usually manage risk? Do you have lessons learned from past pitfalls? Feel free to share in the comments so everyone can avoid those tempting but hidden dangers.