Imagine this scenario: a mainstream public chain community falls into a dispute over the upgrade direction and directly forks the chain. Suddenly, there are two parallel chains, both claiming to be the "authentic" one. Your lending position? It exists on both chains.

Sounds absurd, but this is truly a nightmare-level problem for DeFi protocols.

**Why is a hard fork so devastating?**

Stablecoins (like USD1, USDT) usually only recognize one chain. What about real-world assets (RWA) collateralized in the real world? That’s even worse—the actual USD reserves are just one, and if a fork occurs, they become worthless. So, at the moment of chain split, stablecoins on one chain could instantly become paper.

Arbitrageurs will frantically move assets between the two chains, causing oracle price feeds to become chaotic. You won’t be able to tell which chain to repay on, or even which chain is the "real" one. Even more terrifying, some people's assets could be liquidated on both chains simultaneously.

**How will lending protocols choose?**

DeFi protocols in such situations will inevitably pick a side. The protocol team will officially support one chain as the legitimate one, and the others will basically become useless.

**How can you survive?**

Once a fork occurs, the chaos usually lasts 24 to 48 hours. During this period, stop all operations—no borrowing, no repaying, no moving assets. Replaying attacks could cause your actions on chain A to be executed on chain B as well, which would be a huge loss.

The safest approach is to monitor the asset issuers’ movements. Stablecoin issuers and protocol teams will clarify their stance first; following their lead is the safest bet.

Hard forks may seem like a technical issue, but in reality, they test the risk awareness of DeFi participants. Knowing this is essential to protect your assets in extreme situations.