The Staking Module protects the protocol against unexpected loss of funds:
Smart contract risk:
Bug, flaw, or potential attack on the smart contract layer
Risk of failure of an asset used as collateral
Risk of liquidators not capturing liquidation opportunities in a timely manner
Low market liquidity of the principal asset to be repaid
Risk of oracles not properly updating the prices in case of extreme market moves and/or market congestion
Risk of oracles not properly submitting prices, causing improper liquidations.