The biggest risks in my opinion, is black swan events(sudden huge BTC price crashes, hence your funds potentially being liquidated through a margin call)
That's what I don't quite get about this whole thing. Humongous liquidations must've happened countless times since this was launched. That's what happens to traders. I can't see how Blockfi's selection of traders would be any better than any other ones.
They must either have massive collateral or tiny positions or Blockfi dictate how much they can risk. It's all a bit murky. Yeah, that's my question as well. I hope someone who is more knowledgeable would post something.