Network Congestion or Downtime
Busy networks may delay transactions.
What is this risk?
Blockchain networks can become congested during periods of high activity, making transactions slow and expensive. Bitcoin and Ethereum have both experienced significant congestion during market volatility — exactly when you might need to act quickly to avoid liquidation. Additionally, platforms can experience downtime due to technical issues, maintenance, or being overwhelmed by traffic during market crashes.
Think of it this way...
“Think of traffic jams that prevent you from reaching the bank before it closes. When everyone is trying to do the same thing at once, the system slows down, and you might not make it in time.”
How to Protect Yourself
Practical steps you can take to reduce or manage this risk
Don't wait until the last minute to add collateral or repay loans — act before you're in danger.
Keep a healthy collateral buffer so you have time to react even if transactions are delayed.
Use wallets and platforms that allow you to set higher transaction fees for priority during emergencies.
Have backup options: can you access your account from multiple devices or platforms?
Consider keeping some funds on Layer 2 solutions or faster networks for quicker response times.
See This Risk in Action
Explore real-world scenarios where this risk plays a role
Other Risks to Consider
Explore other risks to get a complete picture
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