I'm about to try Defi platform now but i have no idea about it. All I really just see is that its going to give me more than 10% of APY. This is good enough for me but I just want to be aware of the risk if anything could happen. Any given situation, is this not going to be good?
Like others already mentioned, here in crypto you can never be 100% sure if the platform where you want to provide liquidity is really legit or is doing a rugpull and you will lose your funds. It is also possible that the platform somehow gets hacked, like for example if an attacker gehts hold of the private keys of the company or stuff like that. If you choose a big and trusted platform though i think those risks should be extremely small like <1%.
Depending on for what trading pair you want to add liquidity there is also the risk of "impermanent loss", which happens when the prices of the two coins that you provided liquidity move in different directions.