What are the risks of DAI?

Could you please elaborate on the risks associated with DAI? I'm particularly interested in understanding its volatility, as well as any potential smart contract vulnerabilities or liquidity issues it might face. Given its decentralized nature, I'm also wondering about the regulatory uncertainties surrounding DAI. Additionally, could you discuss the risks related to its collateralized nature and the impact of market fluctuations on its value? It would be helpful if you could provide insights into these risks and how investors can mitigate them.