> For the complete documentation index, see [llms.txt](https://docs.bloom.garden/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bloom.garden/legal/risk.md).

# Risk

The Bloom protocol represents a new and exciting way for lenders to earn near U.S. treasury bill rates. However, we take disclosures of risks seriously and want users to be making an informed decision when they use the protocol. The primary risks include the following:

**Smart Contract** **Risk**: The Bloom protocol is created to isolate the actions any participant can take. In addition, we’ve completed security audits of the protocol (see the [Audit](/technical-docs/audits.md) section of these documents). However, smart contracts and other security risks will always exist.

**Custodial Risk**: Custodial risk for RWAs can never be fully eliminated, but we believe that the custodian structure utilized by Backed to hold the underlying indirectly purchased by borrowers on the Bloom protocol represents the best way to hold such assets.

Please see the Risk Disclosures section in our Terms of Service for additional information on the risks associated with using the Bloom protocol. All users must agree to these terms prior to using the protocol.


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