# Risk Management ### What is it The Comptroller is the risk management layer of the SeahorseFi protocol; it determines how much collateral a user is required to maintain, and whether (and by how much) a user can be liquidated. Each time a user interacts with a ibToken, the Comptroller is asked to approve or deny the transaction. The Comptroller maps user balances to prices (via the Price Oracle) to risk weights (called [Collateral Factors](https://docs.compound.finance/v2/comptroller#collateral-factor)) to make its determinations. Users explicitly list which assets they would like included in their risk scoring, by calling [Enter Markets](https://docs.compound.finance/v2/comptroller#enter-markets) and [Exit Market](https://docs.compound.finance/v2/comptroller#exit-market). ### Oracle Risk Seahorse is at the moment woulld be fully reliant on the StateRelayer developed by Birthday Research in which the bot relays price oracle from the native DeFiChain for fetching prices of the available asset. This dependence, while generally reliable, created a single point of failure. An erroneous or stale price could, without a secondary mechanism for validation, pose threats such as unwarranted liquidations or inflated borrowing. We are looking to engage with the wider community for a more sustainable long-term solution. **General** In general the use of DeFi applications can lead to loss of funds due to either malicious developers or unforeseen vulnerabilities in a given protocol, users should conduct their own research before depositing funds into a given DeFi application. ​ **Maximum Utilization Risk** In heavy utilization, funds may temporarily be unable to withdraw until the utilization rate decreases. --- # 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://seahorsefi.gitbook.io/seahorsefi/protocol/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.