There is no risk of liquidation because the folding strategy supply the same asset that borrows, thus the assets of the folding strategy are not exposed to market price fluctuations. In case of low liquidity in the lending platform, the user will not be able to withdraw his assets from the folding strategy vaults. These events are rare, but they are not necessarily bad for users either since in high asset utilization scenarios on lending platforms interest rates rise significantly forcing users to pay borrowed money and incentivizing users to supply assets on the platform to increase liquidity.