High yields are often accompanied by high risks. Take Falcon Finance as an example; its return rate (12%) far exceeds Aave's (3%), and the truth behind this is the custody risk premium. The question is: is this 9% spread truly alpha or risk compensation?

The key lies in how you handle this risk. Instead of completely avoiding it, it's better to learn to coexist—here are three practical approaches.

**Method 1: Hedging Strategy**
The core logic is simple—don't put all your chips on one basket. You can allocate your funds like this: 50% in Falcon Finance for high interest, and the other 50% in stable protocols like Liquity or MakerDAO. If the former experiences de-pegging due to custody issues, you still have the capacity to pick up bargains on DEXs (assuming you judge that this is only a temporary freeze and not a real exit scam). In plain terms, custody risk usually manifests as liquidity crises, rarely leading to complete asset wipeout.

**Method 2: On-Chain Water Level Monitoring**
No project will lock all assets in cold wallets. Daily redemptions require liquidity in hot wallets. Continuously monitoring this indicator can help detect anomalies early—if the funds in hot wallets suddenly dry up, that’s a real danger signal.

This isn’t about turning you into a trading expert, but about maintaining awareness when earning that 9%. Risks themselves are not scary; what’s frightening is ignoring them.