Using decentralized finance (DeFi) platforms comes with several legal risks. These platforms often operate in unregulated spaces, which can expose users to fraud, hacking, and loss of funds. The lack of consumer protection laws makes it difficult to seek recourse. Additionally, regulatory uncertainty in many countries poses risks, as DeFi platforms may inadvertently violate local financial regulations, including anti-money laundering (AML) and know-your-customer (KYC) requirements. Users could be unknowingly exposed to tax liabilities if the platforms fail to comply with reporting standards. The decentralized nature of DeFi also means there is no central authority to hold accountable in the event of disputes or legal violations.