Run risk generally refers to the bankruptcy of a bank due to a large number of customers withdrawing cash and being unable to pay.

Why are currency funds at risk of runs?

Because the income of Internet treasure money funds reached about 6 points at the peak, while the income of general money funds has exceeded 5 points, investors with large amounts of funds will definitely consider whether to invest in bank financial products.

Monetary funds invest in treasury bonds, central bank bills, bank certificates of deposit, etc., which have a time limit. Once most investors redeem their shares, the fund will definitely not have that much money to give to users.

This is why money funds are at risk of runs.