Situations in which monetary funds suffer losses: Severe financial crisis: When the financial order is already out of balance, monetary funds mainly invest in the currency market. Once the financial order is disordered, the currency market will be the first area to be affected.

Huge redemption: Huge redemption refers to the sudden and huge amount of money fund redemption behavior.

Once such a situation occurs, fund managers have to sell the soon-to-maturity bonds held by the fund to meet redemptions.

This selling behavior will cause bond prices to fall, but because money funds need enough cash to pay for huge redemptions, fund managers can only "sell" the bonds they hold at a lower price at a loss.

Once the fire sale price is low enough, money fund losses may occur.

Rising yields: A sharp rise in market yields in the short term will lead to a sharp drop in bond prices.