- Default Risk: There is a risk that borrowers may default on their loans, leading to a potential loss of principal for investors.
- Platform Risk: P2P lending platforms may face operational, regulatory, or technological risks that could impact their ability to facilitate loans effectively.
- Illiquidity: Unlike traditional investments like stocks or bonds, P2P lending investments may have limited liquidity, meaning it could be challenging to sell loans and withdraw funds before the loan term ends.
- Regulatory Changes: Changes in regulations governing P2P lending could affect the industry's landscape and impact both borrowers and investors.
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