1. Market fluctuation: As a money market fund, Guangfa Smart Fund's income is affected by market interest rate, exchange rate and other factors. When the market interest rate rises or the exchange rate fluctuates, the net value of the fund will fall, resulting in losses for investors.

2. Investment strategy of the fund manager: The investment strategy of the fund manager has an important impact on the income and risk of the fund. If the fund manager's investment strategy does not conform to the market trend or the portfolio allocation is unreasonable, the net value of the fund will fall and investors will lose money.