# 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. * Safety module(s) - safety modules will protect markets from bad debt events. * 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.mysticfinance.xyz/core-concepts/risk-management.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.