We have set the appropriate collateral factor, borrowing factor, and liquidation incentive for each asset to make sure that repaying loans or even liquidations can be made in time. However, there's always a possibility that the price changes much more than in history, leaving nobody able to liquidate the whole position in time, resulting in an underwater position where not all borrowed assets are repaid. So, apart from Edge using Insurance fund to subsidize the loss, the lenders may share the risk of those underwater debts.