You will not lose your funds because all loans are 100% asset-backed.
This means that in order to borrow your money, borrowers first need to provide collateral worth over 100% of what they borrow to secure the loans.
For example, to borrow $1,000, borrowers might have to provide $1,500 (150%) worth of collateral in white listed crypto assets. Should the loan default, or the value of the collateral drop to a level that is deemed insecure, the lending protocol automatically closes the loan and recovers your deposit by selling the collateral.
This is all automated and immediate. There are no waiting periods and all deposits can be withdrawn any time.