The collapse of Terminal Finance in late 2025 has highlighted significant vulnerabilities within the decentralized finance (DeFi) sector, particularly concerning liquidity strategies and risk management. The platform, which utilized synthetic assets and complex yield mechanisms, was unable to endure macroeconomic pressures such as increased U.S. tariffs and fiscal instability. This incident underscores the urgent need for improved risk management and transparency in DeFi protocols. As the sector continues to grow, the demand for institutional-grade solutions to manage these risks becomes increasingly critical to ensure stability and investor confidence.