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

# Risk Management

Risk management is an essential component to any lending market. Mystic cares deeply about its users, and so we want to ensure we bring the best risk frameworks possible to the table. This includes, but is not limited to:

* Overcollateralization - All loans are overcollateralized proportional to the underlying asset's risk profile. The health of the loan is managed constantly and updated in real-time.
* Professional risk management - Mystic works with professional risk managers to carefully monitor and manage risk on the protocol to ensure users are taken care of.